Trade Crucial to Every State's Economy

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Posted by Natalie De Vincenzi on Wednesday, October 12th, 2016, 8:59 AM PERMALINK

Every state across the country relies on international trade. Trade has not only a significant impact on the entire nation as a whole, but on each and every state’s GDP and jobs.

Washington leads the way with 24.18 percent of their state GDP is tied to trade,followed closely by Louisiana with 23.84 percent and Texas with 21.26 percent. For 33 of 50 states, more than 10 percent of the state’s GDP is tied to trade.

While it has been subject to criticism on the campaign trail, free trade is positive. It cuts and reduces tariffs—taxes on trade—as well as other barriers to trade. Despite being about 5 percent of the world population, the U.S. contributes close to 10 percent of all world exports. Additionally, the United States sells to 234 countries around the world, who buy U.S. goods and services. It’s clear that the U.S. has a significant stake in trade and that trade has a weighty impact on the U.S. economy. Fewer barriers to trade therefore results in greater economic gains for the U.S. and lower prices of goods and services for consumers.

Trade-related jobs account for more than one-quarter of ALL jobs in almost every state and a total of 41 million jobs across the country are tied to trade. These jobs pay on average 15-20 percent more than jobs in industries not tied to trade.

Without a doubt, promoting free trade will lead to greater economic growth, greater GDP, and more jobs for the American people.

 

Percent of State GDP Tied to Trade (2015)

1. Washington

24.18%

 

26. Massachusetts

11.41%

2. Louisiana

23.84%

 

27. South Dakota

11.36%

3. Texas

21.26%

 

28. Kansas

11.30%

4. South Carolina

17.56%

 

29. Ohio

10.89%

5. Kentucky

17.16%

 

30. Florida

10.76%

6. North Dakota

16.78%

 

31. Minnesota

10.32%

7. Vermont

15.13%

 

32. New York

10.26%

8. Michigan

14.96%

 

33. New Jersey

10.21%

9. Oregon

14.30%

 

34. North Carolina

9.99%

10. Indiana

13.94%

 

35. New Hampshire

9.92%

11. Mississippi

13.82%

 

36. Wisconsin

9.91%

12. Tennessee

13.30%

 

37. Connecticut

9.59%

13. Iowa

13.10%

 

38. Arkansas

8.69%

14. Alaska

12.88%

 

39. Pennsylvania

8.66%

15. Illinois

12.88%

 

40. Missouri

8.45%

16. Utah

12.64%

 

41. Montana

7.62%

17. Delaware

12.63%

 

42. Rhode Island

7.36%

18. Georgia

12.24%

 

43. Hawaii

7.40%

19. West Virginia

12.20%

 

44. Colorado

7.15%

20. Nevada

12.03%

 

45. Virginia

7.13%

21. Alabama

11.75%

 

46. Maine

7.07%

22. California

11.71%

 

47. New Mexico

6.94%

23. Idaho

11.65%

 

48. Maryland

6.71%

24. Nebraska

11.49%

 

49. Wyoming

6.21%

25. Arizona

11.43%

 

50. Oklahoma

5.82%

           

Source: (Bureau of Economic Analysis, TradeBenefitsAmerica.org)

 

 

Photo Credit: 
Maryland GovPics

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