Media Myths About Free Trade Cause Many to Forget Benefits

(CNN Money)

Free trade is becoming a dirty word as the [U.S.] election heats up and heartland states like Iowa become a battleground for votes.

At a recent debate, John Edwards trashed the North American Free Trade Agreement and Sen. Hillary Clinton called for a “timeout” on any new pacts.

Three U.S. free trade pacts with South Korea, Panama and Colombia are languishing in Congress after years of talks. This despite congressional input, a final accord approved in two countries, and even post-deal amendments tacked on to toughen labor and environmental standards.

Maybe all the effort has been wasted. Protectionist sentiment is growing among Democrats and even some Republicans.

A Wall Street Journal-NBC News poll this month found that 60% of all voters believe “foreign trade has been bad for the U.S. economy.”

Why is this? Well, the economically ignorant mainstream media have done their part to blame any negative economic event on free trade. They confuse general trends, such as the U.S. giving normal trade ties to China, with free trade deals that require both countries to sign.

Meanwhile, ideological think tanks in Washington and pundits have all helped to poison the well against free trade.

Most significantly, Big Labor, led by the Service Employees International Union and the Teamsters, opposes the pacts. They’ve cynically told visiting Colombians pleading for free trade that it’s nothing personal against Colombia – they just want to show they still have political clout.

All this is happening on the fertile soil of misinformation and confusion about what free trade is.

For one thing, free trade is often confused with any foreign trade, so it’s easy to blame it for outsourcing, the decline of the U.S. manufacturing base and other economic ills.

The less-visible reality: Free trade pacts have advanced America’s economy unlike any other foreign policy move.

In 13 years of free trade since the completion of the Uruguay round of trade talks and NAFTA, America’s economy has added 26.2 million new jobs, and gross domestic product has doubled to more than $13 trillion, a sharp upturn from the pre-free-trade years. The International Trade Administration estimates that NAFTA and the Uruguay round of trade talks have added $1,400-$2,000 to the average family’s income. Indeed, free trade is one benefit virtually all economists agree on.

But not everyone’s an economist. Six myths about free trade stand out – and should be debunked. ...Complete article here.