Don't Buy the Hype: 20 Years of Data Reveals 'Free Trade' Fallacies

[pampango]

5. Our trade deficit is much larger with non-'free trade' countries than it is with the 20 countries

that we have 'free-trade' agreements with. That is true in both absolute and in percentage terms.

In 2013 our total trade with the the 20 countries with which we had 'free-trade' agreements was $1.448 trillion. We had a trade deficit of $92.4 billion (6.5% of the total) with them. Exports were 47% and imports were 53% of the total.

In 2013 our total trade with the rest of the world was $2.731 trillion. We had a deficit of $765.5 billion (27.2% of the total). Exports were 36.5% and imports were 63.5%.

In 2013 the amount of our trade with non-'free trade' countries ($2.7 trillion) was about twice as large as with 'free trade' countries ($1.4 trillion), but our trade deficit ($765 billion vs. $92 billion) was 8 times larger with non-'free trade' countries.

Our trade deficit with non-"free trade" countries is much larger both in absolute and percentage terms. It makes no sense to want to preserve the status quo with those countries.

Our trade deficit is certainly a problem but it is not due to 'free trade' agreements. In fact we do better with those countries. Imports are 13% of our economy. They are 34% in Germany. Which has a healthier middle class and stronger unions.