Trade and the American Economy

Why Trade Promotion Authority Matters

This Special Report, prepared for the ACCF, draws on a paper released by the Council of Economic Advisers in February, 2002, entitled “Trade and the American Economy: The Case for Trade Promotion Authority.” The ACCF offers this Special Report in an effort to promote discussion on the impact of trade promotion authority on U.S. economic growth and living standards.

The strength and well-being of the American economy is tied to that of the global economy. For the United States to advance its long-standing interest in an open world trading system, it must provide the leadership necessary to reduce trade barriers around the world. But for the past seven years, the executive branch has lacked Trade Promotion Authority, leading the process of opening trading markets to stall. The costs of inaction are mounting: significant trade barriers hampering U.S. exports remain, the commercial disadvantage of the United States is growing as countries around the world conclude trade agreements without us, and the most powerful force for economic development in poorer nations remains underutilized.

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