Strong Growth in Exports Underscores Importance of Pro-trade Policies

WASHINGTON, DC – Financial Services Forum President and COO Rob Nichols issued the following statement on third quarter GDP growth:

“Today’s GDP announcement demonstrates the vital importance of trade to the U.S. economy. A 5.5 percent increase in exports added $19.7 billion to GDP in the first quarter and prevented the economy from slipping into negative territory. The U.S. economy expanded by $17.4 billion or 0.6 percent in the first quarter on a real, seasonally adjusted annualized basis. Absent the growth in exports, the economy would have contracted by $2.3 billion. Even offsetting for imports, net exports still contributed 42 percent to GDP in the first quarter.

“Open markets are creating jobs and economic growth here in America. Now more than ever, keeping America open to the global economy is a vital national priority. Indeed, over the past year, the benefits to the US of a pickup in exports to the rest of the world have offset the drag on our economy caused by the housing downswing.

“To ensure that American businesses and workers continue to benefit from engagement in the global economy, Congress should act to approve free trade agreements with Colombia, Panama, and South Korea and renew the President’s trade promotion authority.

"The Administration should also continue to pursue an ambitious outcome to the Doha Round of trade talks and policymakers should make access to growing foreign markets, such as China, a top priority. As we work to open new markets for America abroad, it is essential that we also keep U.S. markets open to foreign investment. By keeping our doors open to foreign investment here at home, we encourage our trading partners to do the same.”