COSTS OF INACTION: WHY AMERICA WILL NOT GET
A FAIR SHARE OF JOBS WITHOUT FAST TRACK?
IF CONGRESS FAILS TO GIVE THE PRESIDENT FAST-TRACK AUTHORITY -- THE SAME POWER EVERY PRESIDENT HAS HAD FOR 20 YEARS -- AMERICA WILL NOT GET HER FAIR SHARE OF JOBS. Congress' failure to grant fast-track authority will leave America sitting on the sidelines as trade agreements are negotiated without our participation. This will cost America high-paying jobs, while blocking American workers from competing against the world on a level playing field.
Lost Jobs in Telecommunications Industry. In November 1996, Canada and Chile reached a comprehensive trade agreement that eliminated Chile's 11 percent across-the-board tariff starting this year. As a result, American telecommunications companies competing for contracts in Chile will do so at a significant competitive disadvantage.
Lost Jobs In Fresh Fruit Industry. Chilean fresh fruit pays a 2-percent duty when entering Venezuela (due to the Chile-Venezuela FTA), whereas American producers pay a 15-percent tariff. To the U.S. Embassy estimates that the U.S. market share would grow from its current 39 percent to 67 percent if U.S. producers had equivalent access to the Venezuelan market.
Lost Job Opportunities In South Asia Without Fast Track. To the South Asian countries -- India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka, and the Maldives -- are creating a free trade zone. Without fast-track authority, America will not be able to make fair trade agreements with this region and American workers will not have a fair chance to sell their goods to roughly 20 percent of the world's population.
Lost Job Opportunities In Textile Industry Without Fast-Track Authority. Venezuela, Colombia, Ecuador, Peru, and Bolivia comprise a market of 100 million people and a GDP of over $260 billion. As part of the effort to develop a common external tariff, the import tariff on textile goods, for example, was raised from 5 to 15 percent. Without fast track authority, America will be unable to knock down this barrier to good made by American workers -- thus costing the United States jobs.
Lost Job Opportunities In Latin America Without Fast Track. Brazil, Argentina, Paraguay and Uruguay comprise the largest market in Latin America: 200 million people and a GDP of nearly $1 trillion. These four countries have entered into free trade agreements raising tariffs on most items imported from outside these boundaries. Thus, American firms not located and producing within these countries face a competitive disadvantage; this disadvantage will only grow as these countries expand the free-trade zone. Fast track authority will give the President the chance to pry open this market and allow America to have her fair share of the jobs.
EXAMPLE: 1.8 MILLION REASONS WHY THE PRESIDENT SHOULD HAVE FAST-TRACK TRADE AUTHORITY
Quaker Fabric Company Lost Bid For A $1.8 Million Contract Because They Had To Pay High Tariffs. Quaker Fabric Company --located in Fall River, Massachusetts -- is a $200 million a year corporation with 1,750 employees. Recently, Quaker was informed by its Sales Representative in Chile that it had lost a bid for a $1.8 million a year account to a competitor from Canada, solely because of the 11-percent tariff that Quaker must pay, while its competitors can import tariff free.