President Bush and the Republican Congress Prove to be Free Traders

When President Bush entered the White House in 2001 the United States had signed into just three free trade agreements with other countries; Canada, NAFTA, and Jordan. Since that time a Republican controlled Congress with the backing of the White House have passed seven more historic free trade agreements and currently is working on agreements with 58 other countries to open trade between borders. This progress of trade liberalization has been under-reported in the media and under-publicized by the politicians responsible for the deals. It is baffling that in an election year, that many think will show Republicans losing big, the Republican incumbents and challengers are not using these ground breaking deals as ammunition in the campaigns. The American public needs to know why these deals are important and how they will be good for America.

Free trade is a cornerstone of American political rhetoric, however it has not been practiced near as much as it is preached. Free trade has proven to open doors to new markets, products, and ideas. These become utilized to their most productive capacity when more market participants are allowed equal access to the resources. The beautiful thing about free trade is that it is not a zero-sum game. Both parties end up winning by increasing wealth of each participant in the transaction. This is due to each country trading a resource valuable to the other for something they themselves value. Each ends up better off because they receive goods or services cheaper relative to what they could produce domestically. The cost savings eventually reach the consumer lowering inflation and expanding household discretionary income.

Since the United States currently possesses the most economic resources in the world, we stand to benefit most from free trade between nations. We can offer economies resources they may not be able to acquire elsewhere or produce domestically and, most likely, at a lower cost. We also open up resources, especially natural resources, to US domestic manufacturers to fill needs in the market and do so without the added cost of tariffs and other regulatory burden. The IT industry in India is a good example of how low regulated trade benefits all parties. The Indian economy receives massive investment from other countries in IT facilities that create relatively well-paying jobs. The company gets the cost saving of lower labor costs which increases profitability. This trickles down to shareholders as well as increases tax revenues to the government.

The Bush Administration and Congress have taken a monumental step forward to open trade worldwide. The economic benefits are substantial and, in the long run, will boost the foreign opinion of America and increase democracratic principles around the world. Those responsible need to be congratulated for their effort and keep pushing to get those many pending agreements signed so others may enjoy the prosperity that accompanies free trade. The voters need to realize that these agreements are good for the American economy and therefore good for America. I ask that voters take this progress into consideration when they step into the voting booth next month.