US 3rd Qtr Growth Rate Slowed Because of Trade Deals

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FOR IMMEDIATE RELEASE

December 23, 2015 
Contact: Paola Masman, Media Director 
202-688-5145, paola@prosperousamerica.org

Washington~ Yesterday, the Bureau of Economic Analysis (BEA) reported that the third quarter growth rate (at 2% annualized) was significantly slower than second quarter growth rate (3.9% annualized) in large part because of the trade deficit. 

According to the report: “The deceleration in real GDP in the third quarter primarily reflected a downturn in private inventory investment and decelerations in exports. Imports, which are a subtraction in the calculation of GDP, increased.”

“US trade policy continues to be a drag on growth and job creation,” said Michael Stumo, CEO of the Coalition for a Prosperous America. “The market share of US firms has been reduced, rather than increased, by bilateral and multilateral trade agreements.”

Year-to-date growth is 60% down from 2014, when real GDP increased at a 5% annual rate.

“The Trans-Pacific Partnership will, like past trade deals, incentivize offshoring and reduce the market share of domestic US businesses and workers,” continued Stumo.  “Current Congressional opposition to the TPP results from the fact that our trade performance worsened, instead of improved, from past deals. Merely recycling the same past promises is not enough without concretely addressing modern trade problems such as currency manipulation, increased foreign border taxes and subsidies to massive state-owned industries.”

The Coalition for a Prosperous America is a nonpartisan, nonprofit organization representing the interests of over three million households through our agricultural, manufacturing and labor organization members.

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  • commented 2015-12-24 09:42:43 -0500
    A very good point made today was the fact that Sanders is the only candidate talking about economic issues and the middle class shrinking and what we can do about it. All the other candidates are talking fear, race and other divisive issues.
  • commented 2015-12-23 15:37:56 -0500
    If our congressional reps continue to be unresponsive to their constituents needs, they must be replaced. Free trade is NOT the solution to American’s economic security. We need global equity and fair trade