|
Trade liberalization creates more and better jobs in
the United States while also protecting U.S. labor standards.
- Trade creates good jobs in the United States. Ten
percent of all U.S. jobs (approximately 12 million)
depend on exports. One in five factory jobs depend
on international trade. Jobs that depend on trade
generally pay about 13 to 18 percent more than the
average U.S. wage.
- U.S. plants that export increase employment 2 to
4 percent faster annually than plants that do not
export. Exporting plants also are less likely to go
out of business.
- U.S. firms that invest abroad are more likely to
succeed in generating good jobs at home. Such jobs
pay an average wage in the United States of $15,000
more than jobs in firms that are less globally integrated.
- The North American Free Trade Agreement (NAFTA)
is an example. Real hourly compensation in the U.S.
manufacturing sector increased by 14.4 percent in
the 10 years following NAFTA implementation, as compared
to 6.5 percent in the 10 years prior to NAFTA.
- Recently negotiated trade agreements require the
signatory countries to effectively enforce their own
labor laws and not derogate from internationally recognized
standards.
Trade liberalization improves worker rights and labor
standards in developing countries.
- In 44 developing countries that engaged in significant
trade liberalization, there was “no case where the
trade reforms were followed by a worsening of association
rights,” according to the Organisation for Economic
Co-operation and Development. In addition, freedom-ofassociation
rights improved in 32 of the countries after trade
liberalization. Liberalized trade creates economic
opportunities that give workers the freedom to choose
to work for employers offering better pay and better
working conditions. Liberalized trade also contributes
to rising standards of living, which economic studies
suggest is key to raising labor standards.
- Recently negotiated trade agreements contain provisions
designed to safeguard worker rights such as the right
of association; the right to organize and bargain
collectively; a prohibition on the use of forced labor;
a minimum age for the employment of children; the
elimination of the worst forms of child labor; and
acceptable conditions of work with respect to minimum
wages, hours of work, and occupational safety and
health.

David Richardson, “Exports Matter… And So Does Trade
Finance,” The Ex-Im Bank In The 21st Century:
A New Approach? 2001.
Organisation for Economic Co-operation and Development,
“Trade Employment and Labour Standards: A Study of
Core Worker Rights and International Trade,” 1996.
The President’s Export Council, Annex on Worldwide
Sourcing, May 3, 2004.
U.S. Department of Commerce, Office of the United
States Trade Representative Fact Sheet, “Myth: NAFTA
Was a Failure for the United States,” November 2003.
Ibid Press Release, “Why Trade Is Good for American
Manufacturing,” Web site: www.tpa.gov, May 20, 2002.
World Trade Organization, Annual Report,
1998.
|