Imports Create Jobs, Drive Exports; U.S. Tariffs Hurt Economy, Says Chamber Study
Imports support more than 16 million U.S. jobs, drive innovation and boost U.S. exports, according to a May 6 study from the Chamber of Commerce and other trade industry groups. “Imports are not the bogeyman some Americans believe them to be," said the study (here). "They are not an evil one must endure to export.” The study was commissioned by the Chamber, the American Apparel and Footwear Association, the National Retail Federation and the Consumer Electronics Association. It said that American families actually benefit from imports because imports “ensure a wide selection of budget-friendly goods” and allow companies to lower production costs and stay competitive. Imports also support millions of jobs -- many union jobs held by minorities and women -- and support exports. Because the U.S. is integrated into an international supply chain, the research, design and components of imports often originate in America. The study quotes International Trade Commission research which found that in 2004, U.S. inputs accounted for 11 percent of the value of U.S. apparel imports.
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“U.S. trade policies and practices at times limit the benefits of imports to the U.S. economy — and consequently to employment,” the study said. While the U.S. market is more open than other economies, many products -- such as peanuts and athletic footwear -- face double-digit tariff peaks, the study said. It recommended reducing or eliminating tariffs through legislation, including the Miscellaneous Tariff Bill, the Affordable Footwear Act and bills that extend preferences to groups of countries, like the African Growth and Opportunity Act.
Future World Trade Organization agreements, including the Information Technology Agreement, would also eliminate tariffs on supply chain goods, and “thus be highly beneficial to American producers and consumers,” the study said. The study also cites past proposals to restrict imports, such as an effort in the last Congress which would have raised the price of importing from China in an effort to offset the country’s undervalued currency. “Frustrations with ‘unfair trade’ and protracted U.S. unemployment are understandable,” the study said. “But proposals to restrict or reduce imports must be evaluated in the light of the facts that imported intermediate goods are vital for U.S. manufacturers, imported consumer products benefit American families, and imports generally support millions of American jobs.”