Knowing your interest in trade, I wanted to share with you some highlights of the recent trade data that was released last week by the International Trade Commission, an independent federal agency. This data demonstrates the importance of trade to the U.S. economy and the positive impact Free Trade Agreements have on increasing our exports, including North State goods and agricultural products, to other nations. Share your thoughts

Summary of data compiled by Ways and Means Committee Republican staff:

• U.S. Exports Were Biggest Contributor to Economic growth in 2008.  Over the last four quarters, exports have been the largest contributor to economic growth and added more to GDP growth than the consumption of durable and nondurable goods and services combined! Without this strong growth in exports, there would have been no positive economic growth at all.

• Energy Imports Drive Our Trade Deficit. U.S. imports of energy products (primarily oil and natural gas) increased by 35% ($127 billion) from 2007 to 2008.  This surge was driven by increases in energy prices as oil prices cracked $140/barrel earlier in 2008.  In contrast, total imports of all goods increased by only 7%.  The deficit in energy products increased by 29% (over $92 billion), and the energy deficit accounted for over 51% of the total deficit.  By comparison the deficit with China in 2008 accounted for 33% of the total deficit.

• Free Trade Agreements (FTAs) Reduce Our Trade Deficit. The United States trade surplus with the countries with which we implemented trade agreements under Trade Promotion Authority (all the recent FTAs) increased by 61%.

• In 2008, the United States had a trade surplus of $21.2 billion in manufactured products with FTA partner countries together (including NAFTA)

• Delaying the U.S.-Colombia Fair Trade Agreement has Increased the U.S. Trade Deficit.  The experience with the Central America Free Trade Agreement shows how going from one-way preferences to two-way trade grows U.S. exports and improves the U.S. trade balance.  The United States should be seeing the same benefits from the U.S.-Colombia fair trade agreement, but the Speaker has refused to allow a vote on that agreement.  While Congress didn't act, the U.S. trade deficit with Colombia grew.