The House of Representatives is now considering whether to grant the White House trade promotion authority (TPA), under which negotiated trade deals are sent to Congress for an up or down vote, but are not subject to amendments. Approval of TPA is key to the completion of two pending trade deals with Asian and European nations. As Americans for Tax Reform president Grover Norquist pointed out in a recent op-ed for Reuters, “granting the President trade promotion authority is the only way to get prospective trading partners to sit down for time-consuming and complicated negotiations required to reach an agreement.”
While enactment of trade deals that reduce tariffs and other barriers to trade will grow the economy as a whole, some states have a great deal at stake. The following is breakdown of how much each state’s economy is tied to trade:
|
Percent of State GDP Tied to Trade (2013) |
|||
|
1. Washington |
24.58% |
26. Ohio |
11.32% |
|
2. Louisiana |
22.79% |
27. New York |
11.15% |
|
3. Texas |
21.27% |
28. Arizona |
11.04% |
|
4. South Carolina |
16.89% |
29. Nebraska |
10.95% |
|
5. Kentucky |
16.85% |
30. South Dakota |
10.70% |
|
6. Vermont |
16.61% |
31. Minnesota |
10.67% |
|
7. Michigan |
16.58% |
32. Wisconsin |
10.48% |
|
8. Utah |
15.65% |
33. New Jersey |
10.48% |
|
9. Mississippi |
14.64% |
34. Alaska |
10.45% |
|
10. Indiana |
14.16% |
35. New Hampshire |
10.17% |
|
11. Tennessee |
14.05% |
36. Connecticut |
10.03% |
|
12. North Dakota |
13.85% |
37. North Carolina |
9.84% |
|
13. West Virginia |
13.65% |
38. Pennsylvania |
9.26% |
|
14. Nevada |
13.56% |
39. Arkansas |
8.69% |
|
15. Delaware |
13.56% |
40. Missouri |
8.40% |
|
16. Illinois |
13.15% |
41. Montana |
8.17% |
|
17. Idaho |
13.01% |
42. Colorado |
7.71% |
|
18. Georgia |
12.85% |
43. Rhode Island |
7.52% |
|
19. Oregon |
12.71% |
44. Virginia |
7.20% |
|
20. California |
12.68% |
45. Maryland |
6.98% |
|
21. Iowa |
12.61% |
46. Maine |
6.76% |
|
22. Alabama |
12.24% |
47. Hawaii |
6.51% |
|
23. Florida |
12.04% |
48. Oklahoma |
6.10% |
|
24. Massachusetts |
11.90% |
49. New Mexico |
5.75% |
|
25. Kansas |
11.45% |
50. Wyoming |
4.40% |
Source: Bureau of Economic Analysis, TradeBenefitsAmerica.org
Looking at the state-specific impact, it’s clear trade is crucial to the economy of many states. In three states – Washington, Louisiana, and Texas – over a fifth of the economy is linked to exports. Rounding out the top ten list of states whose economies are most reliant on trade are South Carolina, Kentucky, Vermont, Michigan, Utah, Mississippi, and Indiana. In 36 states, over a tenth of the economy is linked to exports. Lawmakers in these congressional delegations in particular will be doing their states a disservice by opposing TPA.
After being approved by the Senate last month, it’s now the House’s turn to act. ATR president Grover Norquist explains why time is of the essence when it comes to congressional approval of fast track authority required to get pending trade deals completed:
“We have a Democratic president who wants fast-track authority. We have a unified GOP Congress that wants to pass it. After the 2016 election, Republicans may not control the Senate. That would doom fast-track authority right there.
“If the authority isn’t granted now, there is a real possibility that the United States may not do any trade agreements for the next decade. Washington cannot afford such a withdrawal from the global economy.”
To read Norquist’s Reuters column in its entirety, click here.