The Importance of Trade and Multinational Partnerships

April 16, 2018

In today’s on-demand, delivered-to-your-door economy, successful companies can no longer afford to operate in just one location—operations are spread around the globe. Given the global nature of our economy, it is difficult to plant a flag on any single company. That is why governments, including our own, need to remember that an international company doing business on their soil is not a rival. They are contributing to their economy in numerous ways, often importing world-class training programs that benefit local workforces and supporting cutting edge research and development.

International trade and investment are pillars of U.S. economic growth. For example, many trade agreements between the United States and other nations help attract foreign direct investment to our shores, which in turn creates high-quality American jobs, boosts U.S. exports and economic output, and generates tax revenue for the U.S. government.

International companies help broaden the U.S. economy, making it more resilient. They also help open new markets and give other countries a stake in America’s economic success, which benefits U.S. foreign policy.

America’s attractiveness to international companies is directly linked to our country’s long-standing commitment to free trade. Trade agreements attract these companies to the United States by opening foreign markets to U.S. exports, improving access and protections, reducing tariff and non-tariff barriers, and harmonizing regulations to reduce transaction costs and promote efficiency.

The importance of global trade and investment to the U.S. economy cannot be underestimated. America’s abundant talent and natural resources, dynamic innovative market, and stable democratic governance create the world’s most fertile environment for both domestic and foreign investment. However, the opportunities for our continued economic success are highly dependent on access to the global markets. To turn away from those opportunities would only mean offering them to our competitors instead.