Pennsylvania has weathered the recent economic storm better than most states. In spite of the recession, which reduced output and employment, the Pennsylvania economy has grown since 2002.
Adjusted for inflation, per capita personal income in the state increased by about 10 percent between 2002 and 2012. International trade and exports have played an important role in this recent growth of the state economy.
One of the most effective steps Congress can take to promote continued local economic growth is to facilitate international trade. Specifically, Congress must give President Obama the authority he needs to close new trade agreements.
The Pennsylvania economy today is more dependent on global commerce than it has ever been. Indeed, the 1.6 million jobs tied to trade reflect sector growth of 100 percent over the past decade. That's one in five jobs in our state.
From 2004 to 2011, trade-related employment in the commonwealth grew 7 1/2 times faster than employment in general. And those jobs often paid better. Average wages in manufacturing plants that export are as much as 18 percent higher than in plants that sell only in the domestic market.
Manufacturers that do business abroad are also less dependent on the vagaries of the local business cycle. That may help explain why those that export are less likely to go out of business than those that don't.
It's not just big businesses reaping the benefits of international trade. Fully nine out of 10 Pennsylvania exporters are small or midsize. They're finding international markets a great place to grow their sales. In the past decade, exports from Pennsylvania have increased by a staggering 12 percent per year, even with the effects of the Great Recession.
Pennsylvania is already doing better than many states thanks to international trade. Hershey exports chocolates to Japan and New Zealand. Pittsburgh's Alcoa exports aluminum alloy plates to Malaysia, while Scranton's Arley Wholesale imports ceramic tiles from the same country. And according to the U.S. Department of Commerce, The Philadelphia-Camden-Wilmington metropolitan area was the 13th-largest exporter in 2012.
And even though most people haven't really thought about it, international trade has also fattened their wallets.
While exports make us money, imports save us money. When companies spend less on raw materials by importing them from abroad, they can offer a greater range of products to consumers at a lower cost. The average Pennsylvania family of four saves more than $10,000 a year thanks to more liberal policies in trade and investment.
But we can do even better.
Congress has given every president since Franklin Roosevelt - Republicans and Democrats alike - the power to negotiate trade agreements that open markets while ensuring fair play. The most recent grant of this trade promotion authority lapsed in 2007. Trade promotion authority helps ensure that all concerned parties have a voice and that new trade deals won't be needlessly delayed once they've been handed over to Congress for final approval.
We can expect greater gains from trade if we make more countries free-trade-agreement partners. Last year, such countries purchased nearly 13 times more goods per capita from the United States than countries without such agreements. Removing tariffs and other barriers to trade will fuel business growth right here in Pennsylvania.
Congress needs to renew trade promotion authority. Doing so would lead to new trade deals, an expanded global market for Pennsylvania products and services, and - most importantly - new jobs and opportunity throughout our state.