By A. Scott Anderson, President and CEO of Zions Bank
This week, Congress has been debating trade promotion authority (TPA), one of the most important issues of the year.
With a Senate vote likely at the end of this week, and consideration later in the House, I’m hopeful all members of Utah’s congressional delegation will vote in favor of TPA. I’d also like to personally thank Sen. Orrin Hatch, who has put enormous time and effort into securing a positive resolution of this issue. His strong and unwavering leadership has been terrific throughout the difficult battles over TPA.
I also appreciate the strong support of U.S. House and Senate leaders, and President Barack Obama, for TPA.
Robust international trade is absolutely critical to the economies of the United States and Utah. Hundreds of thousands of jobs are dependent on international trade, and America’s standing in the world is at stake.
America must lead the world in two ways: militarily and economically. History proves conclusively that when America does not vigorously engage with the world, prudently using both its military might and economic might, then terrible things happen — like world wars, economic depressions, increased terrorism and more worldwide poverty and suffering.
International trade is a critical part of America’s economic strength. The more the world is tied together economically, the less the likelihood of war and conflict.
International trade is also critical for national, state and local economies. Utah is a relatively small state in the Intermountain West. But international trade accounts for one in five Utah jobs — 374,963 total — according to the Business Roundtable. And trade-related jobs are growing twice as fast as total employment.
Utah exported $16 billion in goods and $6.1 billion in services in 2013, including nonferrous metals, semiconductors and components, navigational and measuring instruments, medical devices, farm goods, travel services and many other products and services. Utah has 3,475 exporters, and 86 percent are small- and medium-sized businesses.
I could cite many more statistics proving the importance of international trade. Suffice it to say that 95 percent of the world’s population and 80 percent of the world’s purchasing power reside outside the United States. America’s and Utah’s economic success are inextricably tied to international trade.
The trade promotion authority debated in Congress this week gives the president authority to negotiate trade agreements, with final authority vested in Congress to vote the agreements up or down.
Hatch notes that the legislation creates a compact between the Senate, the House and the administration, strengthening Congress’ role in trade agreements and empowering the legislative branch in every step of the process. The bill itemizes objectives and priorities that must be reached for congressional approval.
Critical trade agreements are being negotiated that will be subject to TPA, including the Trans-Pacific Partnership between Asian nations and the United States, and the Transatlantic Trade and Investment Partnership, made up of the United States and the European Union. These agreements will lower trade barriers, making it easier to export to countries signing the agreements.
Hatch has called the TPA legislation a “smart, bipartisan compromise that will move America forward. If we want to maintain our nation’s economic leadership and promote American values around the world, we must reach beyond our borders, and this bill is a strong first step.”
It is disappointing that some prominent members of Congress in Obama’s own party have abandoned him on this issue. And it’s especially unfortunate that Democratic presidential candidate Hillary Clinton, a former secretary of state, isn’t providing leadership. She worked on some of the trade agreements being negotiated, and she surely knows the importance of this legislation.
Passing TPA will show the world that America still leads. It will also show that Congress and the administration can work together to solve problems and move the country forward. Please encourage your congressmen and senators to vote for TPA.
