02.06.14

Reps. Slaughter, DeLauro and Miller: Record Trade Deficit with South Korea Shows Why Congress Should Oppose Job-Killing Trans-Pacific Partnership

WASHINGTON – In light of new data released today that shows the U.S.-South Korea trade imbalance has reached its largest deficit on record just two years after the Korea-United States (KORUS) agreement went into effect, Representatives Louise M. Slaughter (D-NY), Rosa DeLauro (D-CT) and George Miller (D-CA) renewed their call to oppose Fast Track authority and stop future flawed trade deals like the Trans-Pacific Partnership (TPP) that threaten American jobs.

“Just two years after the KORUS agreement went into effect, we have a record trade deficit with Korea, which is hurting American manufacturers and American workers. It’s well past time our major export was something other than good-paying American jobs,” the Representatives said. “The data is continuing to prove what we already know, which is that these deals are bad for Americans. Supporters of the TPP in its current form should take a hard look at these numbers and think twice about whether they want to inflict another job-killing trade deal on our nation. We need to stop Fast Track, stop the TPP, and reinvest in American manufacturing.”

The U.S.-South Korea trade deficit reached a historic high of $20.673 billion this year, which is a $7.4 billion (56 percent) increase from 2011—the year before KORUS took effect. And it’s not just a change from before KORUS; there was also a $4 billion (28 percent increase) in the trade deficit since 2012, which makes it clear that that the numbers just get worse every year. In addition, exports are down $1.8 billion since 2011 and down $700 million since 2012. This widening trade gap shows lost opportunity and lost jobs for American workers and companies.

The trade data also shows that the United States’ overall trade deficit with the 11 countries currently participating in TPP negotiations is $154 billion.  If TPP has the same impact as KORUS, this deficit will only grow larger.

KORUS was passed in the 112th Congress under Fast Track Authority, which prevented members of Congress from amending the trade deal on behalf of their constituents whose jobs were threatened by it. This time around, opposition to Fast Track by key Congressional leaders combined with a new poll showing strong majorities of Americans oppose TPP have slowed the trade deal’s momentum.

new poll shows significant opposition to Fast Track and the trade deal itself, as well as a perception that this flawed trade deal will kill American jobs. Respondents overwhelmingly believe that the TPP deal would make things worse for American jobs and worse for American wages and salaries. More than three out of five Americans oppose granting the administration Fast Track Authority to push through new trade deals, and 43 percent of respondents would be less likely to vote to reelect a member of Congress who supports fast track. Fifty-six percent say that the TPP deal would make things worse for American wages and salaries while only 21 percent say it will make things better. Americans are clearly concerned with creating unfair competition that drives down wages for American workers and believe that trade negotiators should make preventing U.S. jobs from moving overseas a top goal for any potential deal.

Instead of pushing flawed trade agreements, the Representatives said Congress should pass legislation that supports U.S. manufacturing and will help create middle-class jobs in America. Rep. Slaughter’s Reciprocal Markets Access Act would instruct U.S. trade negotiators to eliminate foreign market barriers before reducing U.S. tariffs and provide enforcement authority to reinstate the tariff if the foreign government does not honor its commitment to remove its barriers. Rep. DeLauro’s National Infrastructure Development Bank Act would establish a National Infrastructure Bank to leverage private dollars to invest in a wide-range of infrastructure projects using American manufactured goods and creating good middle class jobs that cannot be outsourced.