Mar 9, 2006- Another Record Trade Deficit
HON. MARCY KAPTUR
 OF OHIO
IN THE HOUSE OF REPRESENTATIVES
THURSDAY, MARCHÂ 9, 2006
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Ms. KAPTUR. Mr. Speaker, America's economic strength can be measuredby her trade accounts, whether we are exporting more goods and services than weare importing; and if we do export more than we import, America's economicstrength grows. But when Americaimports more than she exports, her economic muscle weakens.
This chart that I brought to the floor this evening shows that since themid-1970s, when Americabegan signing very unbalanced trade agreements with other countries, everysingle year Americabegan to import more than she exports. This last year of 2005, we had ahistoric trade deficit with the world totaling over $750 billion, threequarters of $1 trillion. Indeed, it was $725 billion more in imports coming intoour country than exports going out. This is not an insignificant amount. Thishas never happened to the UnitedStates of America before.
In January, Americaimported this year $68.5 billion more in goods and services than we exported.This was an all-time high just for 1 month, an increase of over 5 percent fromlast December. This year in agriculture alone for the first time in Americanhistory since the Pilgrims settled, the United States will import more foodthan we export. Think about that. Think about what that means for America'sindependence, our birthright of independence.
According to Alan Tonelson at the U.S. Business and Industry Council, America'scondition cannot be explained by high oil prices. That makes these numbersworse, but Mr. Tonelson says the January trends spotlight the continued declineof U.S. national competitiveness in ``industries of the future,'' such ashigh-tech hardware and services, and throughout our vital manufacturing sector.
Today, many companies, airline companies, automotive parts companies likeDelphi, a data corporation in my own district which just announced bankruptcy,all of them are teetering and a sign that imports are displacing what Americaused to make and send elsewhere. Today's report by the U.S. Department ofCommerce suggests that the U.S.current account trade deficit for this year will probably surpass $1 trillion,$1 trillion; and that is on top of the $9 trillion of public debt that has beenamassed since 2000 in our country. Truly, we are a republic teeteringfinancially, losing our independence because somehow we have to fund these gapsin what is owed publicly and in this trade account deficit. And we areborrowing in order to make up the difference, and we owe interest on those borrowings.
In order to sustain such an unprecedented and rapidly accumulating deficit,we are dependent on this massive borrowing from abroad and selling off valuableU.S.assets just like a fire sale, like you go to a pawn shop. To sustain a deficitlike these, we are dependent upon investment by foreign agents like Dubai PortsWorld, which is in the headlines again today.
Our country cannot be secure, cannot be secure, from the defense standpointor financially under conditions like these. And yet after 12 years of evidenceof the failure of trade agreements like NAFTA, Trade Representative Portmancontinues to negotiate trade deals like the CAFTA agreement. This year theadministration intends to bring new trade agreements under the same failed modellike the U.S.-Peru Free Trade Agreement and an agreement with Colombia. Peru,a country that employs child labor, and Colombia, where labor leaders are morelikely to be killed and are, summarily, more of them than anywhere else in theworld.
How can our workers compete with these conditions? How can our smallbusiness people, how can our salaried executives compete with undemocraticplaces, no transparent legal system, no banking system that really functionsopenly?
The answer is we cannot. We simply cannot. So we are outsourcing everythingto these places. And that is why imports are rising faster and faster and thepeople in those other places cannot afford to buy what is made by the people ofthis country who have sustained a middle-class life-style until now. Despitemodest economic growth in our country, middle-class workers are not seeing anyrise in their income. That is right: inflation-adjusted income for allhouseholds except the very wealthiest is flat. This may be the first generationin Americawhen our children do not live as well as their parents before them. And youknow what? The American people know it. They know it.
This is not the American Dream. This is the American nightmare.
Please sponsor the Balancing Trade Act, H.R. 4405, that would require actionby the administration when we sustain these kinds of continued trade deficitswith other nations. It is time for America to become independentagain. It is time for Americato restore her promise to all of her people.