Free trade agreements (FTAs) are helping boost exports of American-made goods, says the National Association of Manufacturers.
Although the total trade deficit in manufactured goods grew 12 percent in the first seven months of the year, the deficit with FTA countries is down 25 percent, according to an interim report by the industry group.
The manufactured goods deficit with Canada and Mexico shrank sharply, while surpluses with Australia, Chile, and Singapore grew appreciably, said the industry group's president, John Engler. In fact, the U.S. surplus with Chile more than doubled, he added.
"It's time for those who opposed" the Central America Free Trade Agreement, the North America Free Trade Agreement and other trade deals "to move past raw emotion and politics for a closer look at the facts. The facts show that free trade agreements are good for our trade balance, and that our economy stands to benefit from more of them as quickly as they can be negotiated," Engler noted.
U.S. partners in NAFTA and other free trade agreements account for 43 percent of U.S. manufactured goods exports, but only 6 percent of the deficit, he said. "So, ninety-four percent of our deficit in manufactured goods then is attributable to countries with which we do not have FTAs. Policymakers would do well to acknowledge this fact," he said.