ABSTRACT

International Trade Agreements and Job Estimates [Updated October 13, 2021]   [open pdf - 537KB]

From the Overview: "The Obama Administration engaged in negotiations on two mega-regional free trade agreements (FTAs): the Trans-Pacific Partnership (TPP) among the United States and eleven other Asia-Pacific countries and the U.S.-European Transatlantic Trade and Investment Partnership (T-TIP). Upon taking office, the Trump Administration withdraw from the TPP and the T-TIP. Discussions on TPP, T-TIP and other FTAs, including during recent elections, have focused attention on quantifying the impact of trade agreements on jobs in the U.S. economy. Economists and others often use sophisticated economic models to estimate the economic impact of trade agreements on the economy, particularly the impact on jobs and wages. The International Trade Commission (ITC), for instance, provides estimates of the impact of FTAs on the U.S. economy. Limitations of data and important theoretical and practical issues make it difficult to derive precise estimates of the impact of a particular trade agreement on the U.S. economy. Such models use a number of assumptions that are necessary to derive the results, but such assumptions reduce the reliability of the estimates. In addition, the economy as a whole is subject to a broad range of events, often unforeseen, that cannot be modeled ahead of time in generating trade estimates, but may affect economic performance, including job creation and job losses, in ways that may outweigh the impact of free trade agreements."

Report Number:
CRS In Focus, IF10161
Author:
Publisher:
Date:
2021-10-13
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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