World Trade Month began as World Trade Week in 1926, a time of great economic uncertainty and growing isolationism. With the idea of promoting its port and finding ways to grow local businesses through exports, Los Angeles Chamber of Commerce launched what is now know as World Trade Month. Showing trade to be a beacon of hope for our struggling economy is no easier today, likewise, the stakes are just as high.
In today’s economic reality, trade is clearly one of our greatest hopes, and offers the best economic news. The U.S. trade deficit shrank 28% in February, narrowing to its smallest in more than nine years, the Wall Street Journal reported.
The Commerce Department reported that U.S. exports climbed in February by 1.6% from the previous month, reaching $127 billion. Imports fell by 5.1%. A sharp global recession is restraining demand for U.S. goods and services in key overseas markets.
This is far cry from recent years when trade was adding a full percentage point or more to GDP, but the U.S. figures look pretty good compared with many Asian economies, which have registered export drops of 30% or more in recent months.
U.S. Trade Representative Ron Kirk’s reaction is just the right policy response: “This new trade data underscores the need to open more world markets to U.S. farmers, ranchers, manufacturers, and service providers, and to work with our trading partners to grow the global trading system again,” he said.
It’s worth remembering that the United States was the world’s largest exporter in 2009. More than 57 million Americans work at companies that engage in international trade, according to the Treasury Department. And over 225,000 small and medium-sized companies depend on exports for their business.
With so much at stake, opening world markets for U.S. workers, farmers and companies is more important than ever.
