What Is John McCain's Position on Free Trade?:
- Lower Barriers to Trade - McCain would engage in more Free Trade Agreements (FTA's) to level the global playing field and increase enforcement of existing trade agreements. He supports both pendng FTA's with Colombia and South Korea. He wants to enforce an existing agreement within NAFTA to open up the U.S. to the Mexican trucking industry. (Source: On the Issues)
Developing countries are afraid that, under the agreement, low-cost, subsidized U.S. farm products will flood their markets, and put them out of business. Until the U.S. significantly reduces these subsidies, further progress on this important multi-lateral trade agreement is effectively dead in its tracks. (Source: USA Today, Bill includes billions in farm subsidies, May 15, 2008; Gourmet, Betting the Farm, April 2008)
How Would It Impact the Economy?:
Passage of the FTA with South Korea would be the largest since NAFTA. It would support this long-time ally in our efforts to end North Korea's nuclear program. Trade with South Korea in 2006 was $75 billion, and could increase to $100 billion within a few years. It would eliminate 94% of tariffs between the two countries, especially benefiting the auto, textile and service industries. It would immediately eliminate tariffs on $1 billion worth of agriculture exports to South Korea. (Source: USTR, KORUS FTA Briefing Book)
Opening the borders to Mexican trucks could cost some Teamsters jobs, since Mexican truck-drivers typically earn a third less ($7 an hour). However, this competition would also lower the price of food and other transported items. (Source: NYTimes, Court Bars Mexican Trucks, January 17, 2003)
Elimination of farm subsidies would save taxpayers $307 billion a year, and substantially help lower the $500 billion a year budget deficit. It would also remove the key obstacle to the Doha WTO trade agreement, which would add $500 billion a year to the U.S. economy in exports. (Source: USA Today, Bill Includes Billions in Farm Subsidies, January 17, 2008; Foreign Affairs, The Stakes of Doha,December 2005)
