US Must Enforce Laws To Break Down Trade Barriers, House Democrats Argue

by Leroy Baker, Tax-News.com, New York

01 April 2008

Senior Democrats in the House of Representatives on Friday sent a letter to President Bush, renewing their call for stricter enforcement of US rights under trade agreements.

The letter was sent in anticipation of the Administration’s annual 'National Trade Estimate' (NTE) report, listing barriers to US exports.

In their letter, the Democrats expressed hope that the Administration would “move past merely inventorying the systemic, recurring trade barriers that US companies face, and to take a positive step forward and begin enforcing US rights more vigorously”.

In the Democrats’ view, stricter enforcement of trade laws would avoid further growth of the US trade deficit and unsustainable levels of foreign-owned US debt.

In 2007, the US trade deficit was USD711.6bn – the third highest level in history, and equal to 5% of the US economy.

According to the letter, over the past six years alone, foreign-owned debt has more than doubled, currently standing at USD2.4tn, or 17% of US gross domestic product (GDP). It added that this has led the Bush Administration to accumulate more debt to foreign governments and individuals than all previous administrations combined.

In an appendix to the letter, the Democrats identified existing trade barriers with America’s five largest trading partners and their impact on the US economy.

The letter also encouraged the Administration to instruct the United States Trade Representative (USTR) to “request immediate consultations” with key trading partners to resolve outstanding issues. The senior Democrats contended that stronger enforcement of trade agreements and the preservation of US rights would help open additional foreign markets to US goods and services.

"Action in these areas could help restore confidence and fight the growing perception that trade agreements are part of the problem, not the solution to expanding opportunity for American workers, farmers and businesses," they argued.

The letter also noted recent action by the Administration to initiate important cases dealing with World Trade Organization (WTO) violations by China, and encouraged similar action on remaining issues.

Recommended