Trade with other nations is important to Missouri for this basic reason: trade means jobs here at home. Export sales create Missouri jobs in agriculture, commercial aircraft, engineering, pharmaceuticals, and other areas.
American workers and businesses in these and other industries have demonstrated that goods and services from the U.S. can compete throughout the world, if we have fair access to markets in other countries.
In Japan, Europe and elsewhere, trade barriers and protectionist business arrangements unfairly cost the U.S. literally billions of dollars in export sales. If foreign markets were open to U.S. goods and services, there would be more jobs here at home. (At the same time, the U.S. trade surplus with the European Community would rise, and the trade deficit with Japan would fall.)
The correct answer to trade problems with Japan, the European Community, and others is more trade through removal of trade barriers, not protectionism in the U.S. In order to open markets, the U.S. should enforce rules of fair play in a systematic and businesslike way. When other nations maintain unfair trade barriers, the U.S. should press for open markets and, if necessary, take retaliatory measures. We should insist on reciprocity in trade.
This is a policy of enforcement in order to open markets and create new opportunities for U.S. workers and businesses. Reciprocity in trade is the opposite of protectionism.
Protectionism says tat America has had it, that we just can't sell in other countries, and that we have to put up trade barriers here and hide from the world. This is a demoralizing and damaging message. It recalls some of the crybaby behavior of the automobile executives who were on the President's trip to Japan.
When the U.S. has followed a policy of trade reciprocity, it has gotten results. A willingness to take action in order to open markets not close them has produced new opportunities and sales for beef, forest products and services.
The principal U.S. law for removing unfair foreign trade barriers, the Super 301 provision, was enacted in 1988. It was available for two years and led to market opening agreements with Japan and Korea. Under this policy, the U.S. identifies major foreign trade barriers. The U.S. Trade Representative then seeks removal of the barriers through negotiation, but under a timetable. If U.S. concerns are not met, the law calls for retaliation.
I am a sponsor of legislation to renew and strengthen the policy of enforcing the rules in order to open markets. Because of the clear and increasing importance of world trade for our economy, I hope the Senate will debate the enforcement issue this year.
(John Danforth is a U.S. senator from Missouri.)
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