The Daily Record - Free Trade Will Boost Job Numbers

Op-Ed

By Rep James Renacci

This week the House of Representatives passed three long-stalled trade agreements with Colombia, Panama and South Korea. The agreements were passed with bipartisan support and the support of President Obama.

The United States has 12 free trade agreements, or FTAs, in force with 17 countries including Australia, Canada, Israel and Chile.

I know some are skeptical about the benefits of free trade agreements. There is a legitimate fear these arrangements will lead to more American jobs heading overseas. However, removing barriers to American products -- like steep tariffs -- will make our goods more competitive abroad.

The Obama Administration projects passage of the three FTAs could create 250,000 jobs, most of them high-paying, high-skilled manufacturing jobs. That number may in fact underestimate the impact the FTAs will have.

A 2009 study by the U.S.-Korea Business Council estimated a free trade agreement between our two countries could create as many as 345,000 new jobs here in America.

The fact is, a large portion of Ohio's economy already is tied to exporting goods to our trading partners. About 95 percent of Ohio's exports were in the manufacturing sector and total employment related to manufacturing in Ohio was 362,200 in 2010.

According to the U.S. Chamber of Commerce, more than 8,000 jobs in the 16th District are directly supported by exports. Total merchandise exports in our district is more than $2.75 billion, with more than $1.5 billion exported to FTA partners.

Nationally, the story is the same. According to the U.S. International Trade Administration, the three FTAs will increase America's gross domestic product by at least $10 billion per year and U.S. merchandise exports will increase by at least $13 billion each year.

Anything that helps manufacturing is good for Ohio. And anything that is good for Ohio is good for the nation as a whole.

I also understand it is vitally important for our small businesses to be able to compete in an increasingly global economy. That is why I will hold a small business exporting seminar at Walsh University in Canton next Wednesday.

It will bring together representatives from the U.S. Department of Commerce, the U.S. Small Business Administration and the U.S. Patent & Trademark Office so they can share their experience and expertise on exporting with northeast Ohio businesses.

This is an innovative and cost-effective way government can help the private sector adapt to competition abroad. The event actually has garnered so much attention we have had to close registration, and I intend to hold more events like it in the future.

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