Trade will help keep state solvent
Tuesday, February 26, 2008 5:30 AM PST
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E-mail this articleWashington business leaders and economists have been saying since the first of the year that the state is relatively well-positioned to weather the national economic slowdown, thanks to its heavy reliance on international trade. News Monday from the annual meeting of the National Governors Association in the nation's capital appeared to bear out their optimistic outlook.
The national economic downturn already has contributed to at least 18 states sliding deep into the red, prompting governors meeting in Washington, D.C., to appeal to President Bush Monday for another economic stimulus package. Washington's economy, though slowing, remains among the most robust in the nation, with state economists projecting a budget surplus of about $954 million.
Trade with China, Japan, South Korea, Canada and Mexico has more than offset the impact of the housing slowdown on Washington jobs and state coffers. State exports hit a record of more than $66 billion in 2007, according the state Department of Community Trade and Economic Development. That's an increase of $13 billion, or 25 percent, over total exports in 2006.
If there is a dark cloud on the trade horizon, it's a growing protectionist sentiment that threatens to slam the door on virtually all new international trade agreements. An important, market-opening trade pact negotiated with South Korea more than a year ago has been stalled in Congress for many months.
The "fast track" trade negotiating authority expired last spring, and congressional leaders have indicated that they will not renew it. Under this authority, Congress can only accept of reject trade agreements without amendment. Absent fast-track authority, there is little prospect of forging significant new trade agreements.
Presidential hopefuls Hillary Clinton and Barack Obama this week are sounding as though they would have little need of such negotiating authority. The two Democratic candidates are trying to outdo one another with their anti-free trade rhetoric this week in Ohio. They're focusing their fire on the North American Free Trade Agreement that many in Ohio blame for the loss of manufacturing jobs.
Such scapegoating for the difficulties many face in the inevitable transition to a global economy apparently plays well in today's political climate. That has troubling implications for the national economy. It's especially troubling with regard to this state's economic future.
Washington is the nation's most trade-dependent state. The state exports more on a per capita basis than any other state. One in three jobs in the state is supported by trade. International trade largely determines this Washington's economic well-being.
Write your elected representatives now and, when it comes time to vote in the fall, this is one hot-button that Washingtonians should consider when casting their vote.
grams wrote on Feb 26, 2008 11:31 AM:
Hauskapoika wrote on Feb 26, 2008 6:05 PM:
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