Trade Expanding
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Economists agree free and open trade is essential to a strong economy.
But whether or not Congress renews the President's authority to negotiate
trade agreements -- so-called fast track authority -- observers say trade
will continue to expand.
Since World War II global trade has increasingly grown faster than world
economic output:
- According to the International Monetary Fund (IMF), between 1979 and
1988 trade grew an annual average of 4.3 percent while world output grew
only 3.4 percent.
- Between 1989 and 1996, average annual trade grew almost twice as fast
as world output, at 6.2 percent and 3.2 percent respectively.
Services make up an increasing share of United States exports compared
to goods -- manufactured products, farm produce and raw materials.
- U.S. export of services has grown twice as rapidly as export of goods
since 1980.
- In 1996, total service exports were $237 billion compared to total
goods exports of $612 billion.
- Service exports have expanded outside the traditional categories of
tourism, air fares and freight transportation. For example,
- TV programs and the film industry accounted for $4.9 billion in service
exports in 1996.
- Hiring American professional services, such as investment bankers,
engineers and lawyers accounted for $19.2 billion in 1996, up from $4.4
billion in 1986.
- Attending U.S. schools, including medical education, brings about $7
billion a year in tuition payments to the U.S.
Economists note that the process of globalization -- the worldwide convergence
of supply and demand -- requires more agreements to lower barriers to trade
and investment.
Robert J. Samuelson (Columnist), "Globalization on the March,"
Washington Post, October 15, 1997.
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