Trade protectionism could be the biggest risk to President-elect Donald Trump’s growth-and-greatness agenda. Trump the deal maker needs to decide whether to play case-by-case defense or to use America’s leverage to open markets.
The United States has free-trade agreements (FTAs) with 20 countries that account for 10 percent of the global economy but nearly half of U.S. exports. In the first five years of these deals, U.S. exports on average increased three times as rapidly as export growth globally. The United States enjoys a manufacturing trade surplus with FTA partners, while about 60 percent of imports are for intermediate goods that lower costs for U.S producers. U.S. free-trade agreements support innovation by incorporating new rules that help cutting-edge businesses. Congress, the co-owner of these agreements, should push for more.