Free Trade/Trade Good

Free trade slash trade good
August 23, 2010

TABLE OF CONTENTS
1. RUSSIA-U.S. IMPORT-EXPORTS........................................................................................................2
1.1. U.S. exports to Russia.....................................................................................................................2
1.2. Russia imports $167.4 bill 5.4 bill of that is from the U.S.............................................................2
1.3. Russia imported 30 billion worth in food.......................................................................................2
2. THE BENEFITS OF TRADE..................................................................................................................3
2.1. The gains from free Trade...............................................................................................................3
2.2. You get higher GDP from free trade...............................................................................................3
2.3. Free trade creates more competition...............................................................................................3
2.4. We get more jobs when we export..................................................................................................4
2.5. Trade creates jobs...........................................................................................................................4
2.6. 95% of consumers outside of U.S. free trade opens the door to them............................................4
2.7. Poor countries missed out on wealth because of protectionism.....................................................5
2.8. Russia a major source of fuels........................................................................................................5
2.9. Things Russia has too offer.............................................................................................................5
2.10. Trade gives you more diversity in goods available......................................................................6
2.11. We are better off with free trade...................................................................................................6
2.12. 57 million American workers work for firms that export.............................................................6
2.13. 4o% of American workers work in a firm that exports................................................................7
2.14. Creates better jobs.........................................................................................................................7
2.15. Trade reduces a country's dependency on foreign aid..................................................................7
2.16. Trade allows you to benifit from more efficeint types of production...........................................8
2.17. Analogy of why free trade is good................................................................................................8
2.18. How free trade works....................................................................................................................8
2.19. The basic idea behind trade...........................................................................................................9
2.20. Response to: will lower one econemy and raise the other till they are the same..........................9
2.21. Self deception to think we can protect our selves by closing trade............................................10
2.22. Wouldn't grow as much if we close trade...................................................................................10
3. ENVIRONMENT..................................................................................................................................10
3.1. Protectionism harms the environment..........................................................................................10
3.2. Historically freer trade helps the environment..............................................................................11
4. NATIONAL SECURITY......................................................................................................................11
4.1. Trade with Asia helps national security........................................................................................11
5. MISCELLANEOUS..............................................................................................................................11
5.1. Russia seeking free trade with CIS nations...................................................................................11
5.2. Russia raised import tarrifs...........................................................................................................12
5.3. Government has a program for those adversly effected by free trade..........................................12
5.4. Need trade with Asia.....................................................................................................................12
Page 1 of 12
RUSSIA-U.S. IMPORT-EXPORTS
U.S. exports to Russia
June 14, 2010, Bureau of European and Eurasian Affairs and the U.S. Department of State,
"Background Note: Russia", http://www.state.gov/r/pa/ei/bgn/3183.htm
Trade
The U.S. exported $5.4 billion in goods to Russia in 2009, a 42% decrease from the previous year.
Corresponding U.S. imports from Russia were $18.2 billion, down 32%. Russia is currently the 32nd-
largest export market for U.S. goods. Russian exports to the U.S. were fuel oil, inorganic chemicals,
aluminum, and precious stones. U.S. exports to Russia were machinery, vehicles, meat (mostly poultry),
aircraft, electrical equipment, and high-tech products.
Russia imports $167.4 bill 5.4 bill of that is from the U.S.
Imports--$167.4 billion: machinery and equipment, chemicals, consumer goods, medicines, meat, sugar,
semi-finished metal products. Major partners--EU, CIS, Japan, China, U.S. U.S. exports--$5.4 billion.
Principal U.S. exports (2009)--oil/gas equipment, autos/parts, meat, aircraft, electrical machinery,
medical equipment, plastics, cosmetics, and chemicals. U.S. imports--$18.2 billion. Principal U.S.
imports (2009)--oil, chemicals, aluminum, iron/steel, precious stones, nickel, fish and crustaceans,
copper, base metals, and wood.
Russia imported 30 billion worth in food

June 1, 2010, The New Zealand Herald is a daily broadsheet newspaper published in Auckland, New
Zealand, owned by APN News & Media. Its editorial line is center-right and has generally been
supportive of the National Party.[2] Circulation peaked at over 200,000 copies in 2006, "Russia free
trade deal talks begin", http://www.nzherald.co.nz/business/news/article.cfm?
c_id=3&objectid=10648872
Russia imported food worth US$30 billion in 2008 and was the world's fifth largest food import market.
It was, said Groser, among the world's largest importers of meat and dairy products.
Page 2 of 12
THE BENEFITS OF TRADE

The gains from free Trade
Daniella Markhiem (is the Jay Van Andel Senior Analyst in Trade Policy at The Heritage Foundation’s
Center for International Trade and Economics.), April 16, 2007, The Heritage Foundation, "Why Free
Trade Works for America", http://www.heritage.org/Research/Reports/2007/04/Why-Free-Trade-
Works-for-America
The gains from freer Trade are substantial. Today, the $12 trillion U.S. economy is bolstered by free
Trade, a pillar of America's vitality. In 2005, U.S. exports to the rest of the world totaled $1.2 trillion
and supported one in five U.S. manufacturing jobs. jobs directly linked to the export of goods pay 13
percent to 18 percent more than other U.S. jobs.[1] Moreover, agricultural exports hit a record high in
2005 and now account for 926,000 jobs.[2]
You get higher GDP from free trade

Marian L. Tupy (is assistant director of the Project on Global Economic Liberty specializing in the
study of Europe and sub-Saharan Africa at the Cato Institute.He has worked on the Council on Foreign
Relations' Commission on Angola and advised the Central Intelligence Agency and the U.S. Department
of State on Central Europe. Tupy received his B.A. in international relations and classics from the
University of the Witwatersrand in Johannesburg, South Africa, and his Ph.D. in international relations
from the University of St. Andrews in Great Britain.), January 3, 2006., CATO Institute, "Free Trade
Benefits All", http://www.cato.org/pub_display.php?pub_id=5354
According to the Cato Institute's 2004 report on Economic Freedom of the World, which measures
economic freedom in 123 countries, the per capita gross domestic product in the quintile of countries
with the most restricted trading was only $1,883 in 2002. That year's per capita GDP in the quintile of
countries with the freest trading regimes was $23,938.
Free trade creates more competition

Works-for-America
As today's global economy offers unparalleled opportunities for the U.S., continuing to expand Trade by
lowering barriers to goods and services is in America's economic interest. Freer Trade policies have
created a level of competition in today's open market that engenders innovation and leads to better
products, higher-paying jobs, new markets, and increased savings and investment. Small business, a
critical component of the U.S. economy, creates two out of every three new jobs and accounts for about
one-quarter of America's exports.
Page 3 of 12
We get more jobs when we export

Josh Bivens (Ph.D., Economics, New School for Social Research
B.A., Economics, University of Maryland at College Park. Josh Bivens joined the Economic Policy
Institute in 2002), May 6, 2008, Economic Policy Institute, "Trade, jobs, and wages",
http://www.epi.org/publications/entry/ib244/
Job loss is by far the most visible and easily understood way that international trade can affect American
living standards. The effect of trade flows on American jobs is actually pretty complicated and so
requires a bit of untangling. First, trade creates new jobs in exporting industries and destroys jobs when
imports replace the output of domestic firms. Because trade deficits have risen over the past decade,
more jobs have been displaced by imports than created by exports.
Trade creates jobs

Diana Furchtgott-Roth (Director, Center for Employment Policy Senior Fellow Hudson Institute. Ms.
Furchtgott-Roth received her B.A. in economics from Swarthmore College and her M.Phil. in
economics from Oxford University.), November 1, 2007, Hudson Institute, "Adjusting to Free Trade",
http://www.hudson.org/index.cfm?fuseaction=publication_details&id=5285&pubType=Trd
Whereas trade increases economic growth and employment, it causes job losses for a relatively small
percentage of America's 153 million workers. That's why the Labor Department oversees a multitude of
plans to help workers negatively affected by trade. Free trade creates U.S. jobs not just by boosting
foreign investment, but also by increasing employment at American exporting firms. This latter effect,
though less obvious, is far more significant.
95% of consumers outside of U.S. free trade opens the door to them
Works-for-America
With more than 95 percent of the world's consumers living outside of the United States, the global
marketplace is important to U.S. firms. Free Trade opens the door to that marketplace and promotes
America's continuing prosperity.
Page 4 of 12
Poor countries missed out on wealth because of protectionism

Trade liberalization talks in Hong Kong ended with a deal to further liberalize access for poor countries'
exports to rich countries' markets. Urged on by the misguided nongovernmental organizations, poor
countries wasted an excellent opportunity to enhance their own prosperity by opening their markets to
foreign competition, however.
Russia a major source of fuels

Natural Resources
The mineral-rich Ural Mountains and the vast oil, gas, coal, and timber reserves of Siberia and the
Russian Far East make Russia rich in natural resources. However, most such resources are located in
remote and climatically unfavorable areas that are difficult to develop and far from Russian ports.
Nevertheless, Russia is a leading producer and exporter of minerals, gold, and all major fuels. Natural
resources, especially energy, dominate Russian exports. Over two-thirds of Russian exports to the
United States are fuels, mineral oil, or metals.
Things Russia has too offer

Natural resources: Petroleum, natural gas, timber, furs, precious and nonferrous metals. Agriculture:
Products--Grain, sugar beets, sunflower seeds, meat, dairy products. Industry: Types--Complete range of
manufactures: automobiles, trucks, trains, agricultural equipment, advanced aircraft, aerospace, machine
and equipment products; mining and extractive industry; medical and scientific instruments;
construction equipment.
Page 5 of 12
Trade gives you more diversity in goods available

Trade improves global efficiency in resource allocation. A glass of water may be of little value to
someone living near the river but is priceless to a person crossing the Sahara. Trade delivers goods and
services to those who value them most.
We are better off with free trade

Alan S. Blinder (is the Gordon S. Rentschler Memorial Professor of Economics at Princeton University.
He wrote, from 1985 to 1992, a regular economics column for Business Week and is the coauthor of one
of the best-selling textbooks on economics. He has served as vice chairman of the Federal Reserve’s
Board of Governors and as a member of President Bill Clinton’s Council of Economic Advisers.), June
28, 2010, Library of Economics and Liberty, "Free Trade",
http://www.econlib.org/library/Enc/FreeTrade.html
Spain, South Korea, and a variety of other countries manufacture shoes more cheaply than America can.
They offer them for sale to us. Shall we buy them, as we buy the services of laundry workers, with
money we earn doing things we do well-like writing computer software and growing wheat? Or shall we
keep "cheap foreign shoes" out and purchase more expensive American shoes instead? It is pretty clear
that the nation as a whole must be worse off if foreign shoes are kept out-even though the American
shoe industry will be better off.
57 million American workers work for firms that export

Economists Andrew Bernard, Bradford Jensen, and Peter Schott have concluded that approximately 57
million American workers-more than 40 percent of the U.S. workforce-are employed by firms that
engage in international trade. Bernard analyzes American imports and exports using customs documents
that accompany shipments of goods crossing the border, along with reports of firms' employment. The
resulting information provides the most precise picture available of the employment effects of American
trade. Imposing barriers to international commerce in the name of "fair trade" would not increase jobs in
America-quite the opposite. Other countries would retaliate against us. As a result, our export markets
would shrink and more Americans would lose jobs.
Page 6 of 12
4o% of American workers work in a firm that exports

economics from Oxford University.), July 1, 2010, "Free Trade Creates Jobs",
http://www.opposingviews.com/arguments/free-trade-creates-jobs
According to Professor Andrew Bernard of Dartmouth College , about 40% of American workers work
for firms that export. These exporting firms are vital for American jobs, especially at a time of slowing
job creation. The falling dollar makes American goods more desirable abroad, creating more jobs for
Americans. And foreign firms have headquarters here, employing 5.3 million American workers. The
Organization for International Investment tracks these jobs by state.
Creates better jobs

James K. Glassman (Under Secretary, Public Diplomacy and Public Affairs. Mr. Glassman is a
graduate of Harvard University, where he was managing editor of the university daily, The
Crimson. He is the recipient of, among other honors, the Warren Brookes Award of the American
Legislative
Exchange Council for distinguished journalism.), May 1, 1998, The CATO Institute, "The Blessings of
Free Trade", http://www.cato.org/pub_display.php?pub_id=6815
In fact, free trade does not create jobs overall. It leads to more jobs in some sectors and fewer in others,
although, in the aggregate, for this country, it tends to exchange good jobs for bad. And it creates
wealth, which is more important than jobs.
Trade reduces a country's dependency on foreign aid

Hodan S. Isse (PhD, George Mason University. MS, Ohio University. BS, Somali National University.
Assistant Professor of Economics, Department of Finance and Managerial economics, University at
Buffalo, USA) and Abdiweli M. Ali (Assistant Professor of Economics. Ph.D. in Economics, George
Mason University. MA in Public Administration, Kennedy School of Government, Harvard University.
BA in Economics (highest honors), Somali National University. MA in Economics, Vanderbilt
University.), May, 2006, Entrepeneur, "An empirical analysis of the determinants of foreign aid: a panel
approach.", http://www.entrepreneur.com/tradejournals/article/151013855_2.html
A negative and statistically significant relationship exists between GDP per worker (GDPW) and the
foreign aid variable (EDA). The results show that a 10 percent increase in a country's productivity or
GDP per worker decreases foreign aid from 4 to 10 percent. The coefficient of TRADE is negative and
highly significant, as expected. On the basis of Table 2, a 10 percent increase in trade reduces foreign
aid between 5 and 11 percent. The results strongly suggest that trade reduces a country's dependency on
foreign aid.
Page 7 of 12
Trade allows you to benifit from more efficeint types of production

Trade allows consumers to benefit from more efficient production methods. For example, without large
markets for goods and services, large production runs would not be economical. Large production runs,
in turn, are instrumental to reducing product costs. Lower production costs lead to cheaper goods and
services, which raises real living standards.
Analogy of why free trade is good

Some lawyers are better typists than their secretaries. Should such a lawyer fire his secretary and do his
own typing? Not likely. Though the lawyer may be better than the secretary at both arguing cases and
typing, he will fare better by concentrating his energies on the practice of law and leaving the typing to a
secretary. Such specialization not only makes the economy more efficient but also gives both lawyer and
secretary productive work to do.
How free trade works

The same idea applies to nations. Suppose the Chinese could manufacture everything more cheaply than
we can-which is certainly not true. Even in this worst-case scenario, there will of necessity be some
industries in which China has an overwhelming cost advantage (say, toys) and others in which its cost
advantage is slight (say, computers). Under free trade the United States will produce most of the
computers, China will produce most of the toys, and the two nations will trade. The two countries, taken
together, will get both products cheaper than if each produced them at home to meet all of its domestic
needs. And, what is also important, workers in both countries will have jobs.
Page 8 of 12
The basic idea behind trade

There is ample evidence people have been trading with one another since earliest times. As economists
James Gwartney of Florida State University and Richard Stroup of Montana State University put it in
their book "What Everyone Should Know about Economics and Prosperity," the motivation for trade
can be summed up in the phrase, "If you do something good for me, I will do something good for you."
Response to: will lower one econemy and raise the other till they are the same
Many people are skeptical about this argument for the following reason. Suppose the average American
worker earns twenty dollars per hour while the average Chinese worker earns just two dollars per hour.
Won't free trade make it impossible to defend the higher American wage? Won't there instead be a
leveling down until, say, both American and Chinese workers earn eleven dollars per hour? The answer,
once again, is no. And specialization is part of the reason.
If there were only one industry and occupation in which people could work, then free trade would
indeed force American wages close to Chinese levels if Chinese workers were as good as Americans.
But modern economies are composed of many industries and occupations. If America concentrates its
employment where it does best, there is no reason why American wages cannot remain far above
Chinese wages for a long time-even though the two nations trade freely. A country's wage level depends
fundamentally on the productivity of its labor force, not on its trade policy. As long as American
workers remain more skilled and better educated, work with more capital, and use superior technology,
they will continue to earn higher wages than their Chinese counterparts. If and when these advantages
end, the wage gap will disappear. Trade is a mere detail that helps ensure that American labor is
employed where, in Adam Smith's phrase, it has some advantage.
Page 9 of 12
Self deception to think we can protect our selves by closing trade

Those who are still not convinced should recall that China's trade surplus with the United States has
been widening precisely as the wage gap between the two countries, while still huge, has been
narrowing. If cheap Chinese labor was stealing American jobs, why did the theft intensify as the wage
gap fell? The answer, of course, is that Chinese productivity was growing at enormous rates. The
remarkable upward march of Chinese productivity both raised Chinese wages relative to American
wages and turned China into a world competitor. To think that we can forestall the inevitable by closing
our borders is to participate in a cruel self-deception. Nor should there be any worry about failing to
forestall the inevitable. The fact that another country becomes wealthier does not mean that Americans
must become poorer.
Wouldn't grow as much if we close trade

Americans should appreciate the benefits of free trade more than most people, for we inhabit the greatest
free-trade zone in the world. Michigan manufactures cars; New York provides banking; Texas pumps oil
and gas. The fifty states trade freely with one another, and that helps them all enjoy great prosperity.
Indeed, one reason why the United States did so much better economically than Europe for more than
two centuries is that America had free movement of goods and services while the European countries
"protected" themselves from their neighbors. To appreciate the magnitudes involved, try to imagine how
much your personal standard of living would suffer if you were not allowed to buy any goods or services
that originated outside your home state.
ENVIRONMENT
Protectionism harms the environment
Center for International Trade and Economics.), April 24, 2009, The Heritage Foundation, "Climate
Policy: Free Trade Promotes a Cleaner Environment",
http://www.heritage.org/Research/Reports/2009/04/Climate-Policy-Free-Trade-Promotes-a-Cleaner-
Environment
When all these negative effects are taken into account, it is clear that the adoption of protectionist
polices as a part of a U.S. climate regime does far more harm than good and should be avoided.
Page 10 of 12
Historically freer trade helps the environment

Center for International Trade and Economics.), April 24, 2009, The Heritage Foundation, "Climate
Policy: Free Trade Promotes a Cleaner Environment",
http://www.heritage.org/Research/Reports/2009/04/Climate-Policy-Free-Trade-Promotes-a-Cleaner-
Environment
Historically, as a nation's prosperity increases, its desire--and more importantly, the resources available--
to adopt environmental protections become stronger and result in policies that accommodate the
individual needs of the country. Engaging in freer trade can better promote the evolution of good
regulations by empowering countries with the economic opportunity to develop and raise living
standards.
NATIONAL SECURITY
Trade with Asia helps national security
James Carafano, Ph.D. (one of the nation's leading experts in defense and homeland security, directs
Heritage's Douglas and Sarah Allison Center for Foreign Policy Studies. Carafano is an accomplished
historian and teacher as well as a prolific writer and researcher on a fundamental constitutional duty of
the federal government: to provide for the common defense.), November 17, 2009, The Heritage
Foundation, "Missing in Action: Asian Nations Can't be Found in US Trade Policy",
http://www.heritage.org/Research/Commentary/2009/11/Missing-in-Action-Asian-Nations-cant-be-
Found-in-US-Trade-Policy
But despite all the trips and talks, there are plenty of signs the Obama administration doesn't get it. In
Asia, trade has long been a cornerstone of our security interests, but efforts to strengthen trade relations
are conspicuously absent from the administration's Asia portfolio.
MISCELLANEOUS
Russia seeking free trade with CIS nations
June 17, 2010, RIA NOVOSTI RIA Novosti is Russia's leading news agency in terms of multimedia
technologies, website audience reach and quoting by the Russian media., "Russia expects CIS countries
to create free trade zone by yearend", http://en.rian.ru/exsoviet/20100617/159463469.html
Russia's First Deputy Prime Minister Igor Shuvalov said on Thursday he hoped that CIS member states
would create a free trade zone by the end of the year.
Page 11 of 12
Russia raised import tarrifs

Russia is in the process of negotiating terms of accession to the World Trade Organization (WTO). The
U.S. and Russia concluded a bilateral WTO accession agreement in late 2006, and negotiations continue
on meeting WTO requirements for accession. Although Russia did reduce or eliminate import tariffs on
some products in 2007 and 2008, the prevailing trend in 2009 was to increase import tariffs in key areas
in response to the global economic crisis.
Government has a program for those adversly effected by free trade

Workers adversely affected by free trade have access to a two-year program called Trade Adjustment
Assistance (TAA), which is projected to help 71,000 workers in FY 2007, at a cost of $12,000 per
participant. In 2006, 72 percent of TAA workers left the program for a new job within three months; 90
percent of those were still employed six months later.
Need trade with Asia

James Carafano, Ph.D. (one of the nation's leading experts in defense and homeland security, directs
Heritage's Douglas and Sarah Allison Center for Foreign Policy Studies. Carafano is an accomplished
historian and teacher as well as a prolific writer and researcher on a fundamental constitutional duty of
the federal government: to provide for the common defense.), November 17, 2009, The Heritage
Foundation, "Missing in Action: Asian Nations Can't be Found in US Trade Policy",
http://www.heritage.org/Research/Commentary/2009/11/Missing-in-Action-Asian-Nations-cant-be-
Found-in-US-Trade-Policy
Trade with Asia is vital to America's future. America is a trading nation; a third of our economy comes
from trade. Asia accounts for more than a quarter of global trade -- more than the U.S. and Europe
combined. According to the Index of Economic Freedom, half the world's 10 most free economies are
Asian nations.
Page 12 of 12

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Free Trade/Trade Good

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Free trade slash trade good

August 23, 2010

Russia imported 30 billion worth in food

THE BENEFITS OF TRADE

You get higher GDP from free trade

Free trade creates more competition

We get more jobs when we export

Trade creates jobs

Poor countries missed out on wealth because of protectionism

Russia a major source of fuels

Things Russia has too offer

Trade gives you more diversity in goods available

We are better off with free trade

57 million American workers work for firms that export

4o% of American workers work in a firm that exports

Creates better jobs

Trade reduces a country's dependency on foreign aid

Trade allows you to benifit from more efficeint types of production

Analogy of why free trade is good

How free trade works

The basic idea behind trade

Self deception to think we can protect our selves by closing trade

Wouldn't grow as much if we close trade

Historically freer trade helps the environment

Russia raised import tarrifs

Government has a program for those adversly effected by free trade

Need trade with Asia

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