A commitment to lead

Our country demonstrates magnanimity in policy changes to accommodate poorer countries throughout the global village. As one of the prime movers of free trade in the World Trade Organization, it has committed to promoting free trade, specifically, the liberalization of America’s textile and apparel industries; one of the most heavily protected sectors of the US economy.

“Regrettably, however, the US has done little of substance to liberalize its textiles and apparel trade,” according to Aaron S. Chavey, a Policy Analyst in the Center for International Trade and Economics at The Heritage Foundation. “Consequently, some analysts predict that in 2005, when liberalization of this sector should be complete, over 90 percent of apparel products will still be eligible for a quota.”

Said Chavey: “America’s textile and apparel industry, despite policies protecting it, has been in decline for decades. The sector, which has lost approximately 30 percent of its workforce since 1989, comprises just 1 percent of total non-farm employment in the US. The average wage paid in this sector is far below the national average–nearly 20 percent below for the textile industry and 33 percent below for the apparel industry. The US is continuing to protect a declining sector of its economy at significant cost to American consumers and some developing countries”.

It’s mind boggling how dedicated detractors have used loss of, believe it or not, “American jobs” if the CNMI apparel industry isn’t shut down via a federal takeover. Said Chavey:

“Often, workers who believe they would be affected lobby their politicians for protection from foreign competition. Politicians respond to their plight by passing protectionist legislation, and the barriers enacted increase costs to US consumers. Thus, focusing the debate on short-term costs creates decisions that hurt consumers in the long run and ignores the benefits that liberalizing the textile and apparel sector could produce”.

Loss of, well, the condescending term “US Jobs?” Not quite! Said Chavey: “…workers who are displaced by the liberalization of this sector are not left stranded. Since 1974, the Trade Adjustment Assistance (TAA) Program has offered them financial aid and training opportunities. Moreover, the growing US economy creates numerous opportunities for them to find new employment, albeit much of it in other sectors. According to the Bureau of Labor Statistics, for example, 19 million new jobs were created in the US during the past decade”. Too and more significantly, according to Chavey, a “study found that the workers who found new jobs outside the apparel industry experienced a 34 percent increase in pay”.

President Clinton has the balance of this year to encourage the textile and apparel industry to fulfill a commitment. It’s good for US consumers and definitely of great help to developing whose economies rely on sale of finished apparel products in US markets. After all, if it’s a declining industry, it stands to reason that efforts to liberalize free trade in this sector is the most appropriate thing to do. Our country must take the lead role in providing huge savings to its consumers and jobs for workers in poorer countries. It should retain its magnanimity in this regard. It’s good for everyone–consumers across the land and workers–savings and jobs for needy families in poorer villages in the global community. Si Yuus Maase`!