John Boehner, July 16, 2004

Free trade has taken a rhetorical beating lately. When our economy went through a sluggish period at the beginning of this decade and when jobs were lost -- particularly in the manufacturing sector -- many fingers pointed toward trade as the culprit. Massachusetts Senator and presidential candidate John Kerry - a longtime supporter of free trade who voted for the North American Free Trade Agreement and normalized trade relations with China -- has gotten into the act. What’s more, even some officeholders and pundits right here in the Buckeye State have joined in as well.

Trade is -- at its core -- an activity beneficial to everyone involved. "A rising tide lifts all boats" is a phrase I like to use to describe free trade’s far-reaching impact. It’s based on the economic law known as comparative advantage. Those countries which produce a product more successfully than another -- the United States has a strong track record in manufacturing and in agriculture, for example -- ought to have the opportunity to sell more of their products outside their own borders. So how does trade lift all boats? More production means more jobs. More jobs mean more personal income. And more personal income means more consumer spending, which then begins to cycle through to other industries, including those not directly related to the products originally traded.

Blinded by election year politics, however, some have chosen to ignore the very real economic benefits of trade. Instead, they cry foul and threaten to oppose every single instance of free trade because of unfair trade practices employed by only a handful of other nations. When you think about it, this is really the political and economic equivalent of cutting off your nose to spite your face.

Fortunately, most of us in Congress have not let this rhetoric stand in our way. Recently, the House and Senate overwhelmingly agreed to one of the most substantial free trade agreements in some time. It’s a pact with Australia: an ally, a free nation, and a huge new market for American industry, especially for manufacturers. Chances are, those ready to criticize trade at every turn won’t share too many of the expected benefits of this trade agreement, so let’s take a look at them here.

Under the agreement, 99% of all exports of manufactured goods will be duty-free. The National Association of Manufacturers expects the agreement to lead to nearly $2 billion in new exports of U.S. manufactured goods. And, following the "rising tide lifts all boats" logic, the impact will be far more substantial than that. For example, if we increase exports of cars, not only would this lead to increased production of steel and rubber, it also would create more demand for tool and dye manufacturers, who would raise their production and sales as well.

So, why does this matter to Ohio? Exports to Australia already inject more than $350 million into our state’s economy. A whopping 97 percent of these exports are produced by manufacturers. This trade agreement opens up even more avenues for them -- and will provide a much-needed shot in the arm for Ohio employers and employees alike.

Are international trade practices always fair? Not necessarily. China, for example, has been a popular target of anti-free trade advocates because that nation at times employs a tactic known as "dumping," or selling cheap goods below market value inside our borders. However, the Bush Administration has responded strongly to this illegal activity by imposing several new tariffs on various Chinese exporters -- another fact anti-free trade politicians are leaving out of their rhetoric.

Fortunately, and remarkably, we were able to salvage the Australian free trade agreement from falling victim to election year politics. And hopefully, once we’re past the political season, the heated words will die down and we can hammer out even more free and fair trade pacts. We owe that to our manufacturers, our farmers, and those in other industries who deserve to sell their products to as many people around the world willing to buy them.

Congressman John Boehner, a Republican, represents Ohio's Eighth Congressional District, which includes Miami, Butler, Preble, Darke, and Mercer Counties.