Globalization of the United States economy has had a crippling impact on American towns as free trade makes it easier for companies to move production and jobs overseas, a report from the U.S. International Trade Commission details.
The report, which assembled union representatives, economists, and others to discuss the impact of decades-long U.S. free trade policy, was requested by U.S. Trade Representative Katherine Tai and conducted in March and April of this year.
Among other findings, the report found that U.S. free trade policy has allowed companies to more readily move American jobs overseas and keep wages low for jobs that remain in the U.S.
“Participants identified trade policy as the cause of job losses. One union representative noted that trade policies often have loopholes or are manipulated by China and other countries so that the policies are not operating as intended,” the report states:
Another union representative stated that current trade agreements allow for more capital mobility than the agreements prior to the 1980s, enabling auto, electronics, and steel manufacturers to move overseas for any number of reasons. Various union representatives explained that companies are able to use the threat of moving jobs overseas for various reasons — such as better tax implications and lower wages — to limit the power of labor unions and keep domestic wages down. [Emphasis added]
When U.S. free trade policy enables companies to offshore production, the report states, American employees are not the only ones directly impacted by such moves. Towns and communities as a whole, along with Americans in supporting industries, feel the devastating impact as well. – READ MORE