How Trade Strengthens U.S. Security
Posted by Jordan Tama
As Congress wrapped up its work this month, it passed important measures to normalize trade ties with Vietnam and renew low tariffs for Andean and African countries. Additional trade pacts with Peru, Colombia, and Panama will be voted on by the Democratic-led Congress next year. These votes are likely to be contentious. Many new members of Congress argue that trade agreements spur the loss of American jobs, and some new members call for renegotiating existing pacts, such as NAFTA.
The public debate on trade usually centers on its economic costs and benefits. I happen to believe the benefits outweigh the costs, but that the costs are real and should be mitigated by expanded assistance programs for Americans who lose their jobs when companies move overseas.
Here I want to focus on a different aspect of trade policy: its impact on other U.S. foreign policy interests. While reasonable people can disagree about the relative weight of the economic gains and losses induced by trade, I think the political and security benefits of reducing trade barriers are undeniable (though often underestimated). If we take them into account, the case for opening markets becomes much stronger. Consider the following:
1) Trade can provide an economic engine for foreign policy leadership. Trade accelerates U.S. economic growth, producing positive foreign policy spillover effects. Growth increases our tax base, making it easier to fund foreign affairs and defense programs. It also helps us maintain our technological edge, which is central to our military strength. A stagnant or shrinking economy would likely lead to a smaller U.S. presence abroad and diminished American influence internationally.
2) Trade can foster political and security cooperation. We need help from other countries in the Iraq war, in the broader struggle against violent jihadism, and on other security priorities. But nations that don't have direct interests at stake in those issues will only help us if we help them on issues they consider important, like greater access to our huge market. If we reduce our import barriers, they'll be more likely to back us on security matters.
Why should we care whether poor countries support our policies on Iraq, Iran, or counterterrorism? Because they have votes in international bodies like the UN and their backing can make our policies more legitimate internationally.