Washington, D.C. - Congressman Kevin Brady (R-Texas) today announced that the U.S. trade deficit – the difference between imports and exports – has decreased for the seventh straight month, according to a new report published by the Bureau of Economic Analysis.    This is in despite of record oil prices, which play a significant role as America relies so heavily on oil imports, and is due to growing sales of U.S. goods and services abroad. 

“Over the last decade, U.S. trade policy has focused on opening up overseas markets for U.S. goods and services through bilateral free trade agreements and regional and multilateral negotiations,” said Congressman Brady.   “We are seeing the fruits of that policy, as these agreements have created new consumers for American goods and services.”

Exports are up by nearly 12%, growing faster than imports.   This means we’re selling more than we’re buying.   As a result, the trade deficit has shrunk by over 9%.  Services exports alone have increased by $4.4 billion, including financial services and transportation jobs, such as freight and port.    Within the last month alone, the economy has added 166,000 jobs, and GDP growth stands at 3.9%.  Unemployment is steady at 4.7%.  

“These positive economic figures, driven by strong exports, are helping to off-set the downward pressures of the housing and credit crunch, fueled by the sub-prime mortgage crisis,” continued Brady, who yesterday questioned Federal Reserve Chairman Ben Bernanke during a hearing of the Joint Economic Committee.

Strong exports support job good-paying jobs at home.  In Texas, the largest exporting state in the nation, trade supports one in five manufacturing jobs and accounts for 17% of GDP.   The Port of Houston supports 280,000 jobs alone.  And studies show that jobs supported by exports pay up to 18% better than those who don’t.

Whereas the U.S. market is already largely open to imports from around the world, many countries put up barriers to U.S. business.   Free trade agreements, such as the one the U.S. House of Representatives approved this week with Peru, rightly make a one-way street a two-way street.  

“With 95% of the world’s consumers outside U.S. borders, the U.S. has to be pro-active in finding new ways to access those markets.  Trade agreements offer us a direct way to do that.  That’s why I strongly supported the recently passed Peru trade agreement, and encourage my colleagues to take up pending agreements with Colombia, Panama, and Korea, the 10^th largest economy in the world,” added Brady.

Congressman Kevin Brady is a Member of the House Ways and Means Committee and Trade Sub-committee, which overseas U.S. trade policy, and the Joint Economic Committee, which plays a significant role in issues affecting the U.S. economy.   He is recognized as one of the top leaders on trade issues in Congress, having successfully led the fight to approve the U.S.-Central American Free Trade Agreement two years ago.