speeches · August 16, 2007
Speech
William Poole · President
U.S. Export Opportunities
ArkansasMinorityBusinessDevelopmentRoundtable
LittleRock,Arkansas
August17,2007
In discussions about international trade, Beforeproceeding,Iwanttoemphasizethat
we hear a lot more about imports than theviewsIexpressherearemineanddonot
about exports, which is why I have chosen necessarilyreflectofficialpositionsoftheFederal
to discuss exports. My focus will be on ReserveSystem.Ithankmycolleaguesatthe
the opportunitiesprovidedbyatradingenviron- FederalReserveBankofSt.Louisfortheircom-
ment that is free of unnecessary governmentally ments,particularlyCletusC.Coughlin,vice
imposed barriers. Such an environment is ideal presidentanddeputydirectorofresearch,who
not only for providing opportunities for U.S. providedspecialassistance.However,Iretain
exporters but also for maximizing economic fullresponsibilityforerrors.
prospects throughout the United States. In light
of the recent news of unsafe products that have
been imported from China—melamine-laced pet SOME FACTS ABOUT U.S.
food,lead-taintedtoys,antifreeze-taintedcounter-
EXPORTS
feit toothpaste, antibiotic-tainted fish and tread-
separating tires to name a few—I want to stress Internationaltradeisplayinganincreasing
that there is a role for government in protecting roleintheU.S.economy.Since1970,exportsas
U.S. consumers from unsafe products. My con- ashareofgrossdomesticproduct(GDP)have
cernisthatcertaingroupswillattempttousecon- aboutdoubled,fromabitlessthan6percentto
cerns over safety and job loss to restrict imports 11percentin2006(seeFigure1).Theseexports
and thereby pursue an agenda of economic iso- consistofbothgoods,suchasindustrialequip-
lation in an increasingly globalized world. mentandconsumergoods,andservices,suchas
Mykeypointscanbemaderathersuccinctly. insuranceandfinancialservices.For2006,exports
First,limitingimportsintotheUnitedStatestends ofgoodswere70percentoftotalexportsand
toalsoreduceexports.Second,economicgrowth exportsofserviceswere30percent.Thissplit
abroadprovidesexportopportunitiesforU.S. hasheldrelativelyconstantsincethelate1980s.
firms.Thebenefitsofexpandingexportsarenot Someadditionalinsightintotheincreasing
restrictedsolelytoexporters.Third,thecitizens roleofinternationaltradecanbegleanedby
ofArkansashavegainedmuchfrominternational adjustingexportsandGDPfortheimpactofprice
trade,andthebenefitswillincreaseinthefuture changes.Beginningintheearly1970suntilthe
providedwecanmaintainanopentradingenvi- early1980s,exportpricestendedtoriseatamuch
ronment.Fourth,tradedisputesareanatural fasterratethantheoverallpricelevelasmeasured
consequenceofadynamicinternationalenviron- bytheGDPdeflator(seeFigure2).Primarily
ment.Itiseasyforretaliatorytrademeasuresto becauseofrelativelyrapidproductivitygrowth,
escalateandderailthedesirablemovementtoa forroughlythenext20years,exportprices
moreopentradingenvironment.Itisinthebest increasedverylittle,especiallyrelativetoprices
interestsofallthecountriesoftheworldto generally.Price-adjusted,orreal,exportsincreased
avoidtradewars. rapidlyduringthelate1980sandthe1990srela-
1
INTERNATIONALTRADEANDFINANCE
15
10
5
0
2
7491 0591 3591 6591 9591 2691 5691 8691 1791 4791 7791 0891 3891 6891 9891 2991 5991 8991 1002 4002
EX/GDP
tnecreP
Figure 1
Nominal Exports as a Percent of GDP, 1947 to 2006
SOURCE:BEA,HaverAnalytics.
130
100
70
40
10
7491 0591 3591 6591 9591 2691 5691 8691 1791 4791 7791 0891 3891 6891 9891 2991 5991 8991 1002 4002
GDP Deflator
Exports Price Index
xednI
Figure 2
Exports Price Index and GDP Deflator, 1947 to 2006 (2000 = 100)
(2000=100)
SOURCE:BEA,HaverAnalytics.
U.S.ExportOpportunities
15
10
5
0
tivetorealGDP(seeFigure3).Aftertherecession subsetofthesefirmsdoesthebulkofthetrading.
earlyinthisdecade,therapidincreaseinreal Forexample,in2000,thetop10percentof
exportsrelativetorealGDPresumed. exportingfirmsaccountedfor96percentoftotal
UnderlyingtheincreasesinU.S.trading U.S.exports.Thesefirmsexhibitanumberof
activityisthebehaviorofnumerousfirms. characteristics,suchasrelativelyhigherproduc-
AlthoughIwillconfinemydiscussiontotrade tivityandlargersize,whichlikelycontributeto
ingoods,tradeinservicesisimportantanda theirexportsuccess.Moreover,exporterstendto
worthytopicforafuturespeech. bemoreinnovativeandpayhigherwagesthan
Inrecentyears,researchershavegenerateda
theirdomesticcounterparts.
numberoffactsaboutexportingfirms.1Thenum-
Notsurprisingly,goods-producingfirms
beroffirmsinvolvedininternationaltradein
accountforthemajorityofexports(andimports)
goodsisincreasingrapidly,andtheyareshipping
byvalue,althoughincreasingnumbersoffirms
moreproductstomoreforeigndestinationsthan
inwholesaleandretailtradeareengagingininter-
inthepast.Exportingfirmsexperiencedrelatively
nationaltrade.Table1highlightssomefeatures
rapidemploymentgrowthandwereamajorforce
ofthedistributionofexportingfirmsacross10
inU.S.jobcreation.
manufacturingindustries,rankedintermsof
Despiterapidgrowthinrecentyears,plants
industryemploymentasashareoftotalmanu-
andfirmsdirectlyinvolvedinexportingrepresent
facturingin2002.Acrossallindustries,firms’
asmallpercentageofthetotalnumberofU.S.
plantsandfirms.In2000,forexample,ofthe5.5 foreignshipmentsrepresentonlyasmallshare
millionfirmsoperatingintheUnitedStates, oftotalshipments,astheyneverexceed21per-
roughly4percentwereexporters.Thesefirms, cent.Inmanufacturingasawhole,only18percent
althoughrelativelysmallinnumber,employover offirmswereexportersin2002,withexports
one-thirdoftheU.S.workforce.Furthermore,a accountingfor14percentoftotalshipments.
3
7491 0591 3591 6591 9591 2691 5691 8691 1791 4791 7791 0891 3891 6891 9891 2991 5991 8991 1002 4002
EX/GDP
tnecreP
Figure 3
Real Exports as a Percent of GDP, 1947 to 2006
SOURCE:BEA,HaverAnalytics.
1 SeeBernard,Jensen,andSchott(2005)andBernard,Jensen,Redding,andSchott(forthcoming).
INTERNATIONALTRADEANDFINANCE
Table 1
Firms That Trade
SOURCE:Source:Bernardetal.,“FirmsinInternationalTrade,”fromthe2002CensusofManufacturers.
NAICS=NorthAmericanIndustryClassificationSystem.
Whilemyprecedingcommentsrefertofirms totheportorsomeotherpointofexitfromthe
thataretradinggoods,Iwouldliketohighlight UnitedStates.Thetransportationoriginofexports
thelinkagesbetweenfirmsdirectlyengagedin isnotnecessarilyidenticaltothelocationwhere
internationaltradeandthosethatarelinkedto thegoodswereproduced.Thus,despitetheincli-
suchfirms.Whileanumberofsmallandmedium- nationtothinkthatexportsfromArkansaswere
sizedenterprisesareexporters,numeroussmall producedinArkansas,thatisnotnecessarilythe
andmedium-sizedenterprisesarealsolinked case.CertaingoodsproducedinArkansasmay
viaoutsourcing,technologytransferandtraining becountedasexportsfromsomeotherstate.
oflocalsupplierstomultinationalcorporations. Keepingthisnoteofcautioninmind,the
Theselinkagescancreatebusinessopportunities extentofArkansas’sinvolvementininternational
andenhancetheproductivityofsmalland tradeappearssomewhatlowerthanthatofthe
medium-sizedenterprises. nationasawhole;however,Figure4indicates
Dataoninternationaltradeandtrade-related thatfirmsinArkansasareincreasinglyinvolved
employmentforArkansasindicatethatthereare ininternationaltradeandthattheincreaseduring
undoubtedlymanylinkagesbetweenexporting recentyearshastendedtomirrorthatoftheUnited
firmsandotherfirms.Beforediscussingexports Statesasawhole.Inprice-adjustedterms,exports
fromArkansas,Ineedtoprovideanoteofcaution. fromArkansasasashareofgrossstateproduct
TheexportdataIwillbeusing,whicharethe increasedfrom2.4percentin1990to6.1percent
bestavailable,allocateexportstostatesbasedon in2006,anincreaseof3.7percentagepoints.
thestatefromwhichgoodsbegantheirjourney Meanwhile,U.S.exportsasashareofGDP
4
U.S.ExportOpportunities
15
10
5
0
increasedfrom7.8percentto11.4percent,an tries.Transportationequipmentisthelargest
increaseof3.6percentagepoints.Thesegrowth exportcategory,accountingfor28percent,or
ratesaresignificantand,ifprojectedforward, $1.2billion,ofArkansas’merchandiseexports
showthatexportswillbecomeincreasinglyimpor- in2006.Otherleadingexportcategorieswere
tantfortheArkansasandnationaleconomies. chemicalmanufactures,machinerymanufactures,
In2006,Arkansas’exportshipmentsofmer- processedfoodsandprimarymetalmanufactures.
chandisetotaled$4.3billion,anincreaseof52 Withregardtoemploymentrelatedtomanu-
percentoverits2002value.2In2006,these facturedgoodsexports,Arkansas’involvement
exportswereshippedto159foreigndestinations. isalsoslightlybelowthenationasawhole.Using
Figure5providesasummaryviewofthesedes- datafor2003,themostrecentavailable,estimates
tinationsandthemagnitudeofexports.Thetwo bytheInternationalTradeAdministrationindi-
largestmarketsareCanada($1.1billion)and catethat43,100jobsinArkansaswererelated
Mexico($528million).Inadditiontothesizesof toexports.Ofthesejobs,18,400wereinthe
thesemarkets,proximityaswellastherelatively manufacturingsector,while24,700wereinnon-
freetradeenvironmentstemmingfromtheNorth manufacturingsectors.Thesedatashowthe
AmericanFreeTradeAgreementcontributedto importanceoflinkagesacrossvarioustypesof
thelargeexportsharesofthesemarkets.Othertop firms.Manufacturing-relatedexportemployment
exportmarketsareFrance,theUnitedKingdom, asashareofprivatesectoremploymentin
China,Portugal,Japan,SouthKorea,Germany, Arkansaswas4.3percent,slightlybelowthe
andRussia. nationalaverageof4.5percent.Thus,slightly
Turningtospecificindustries,Figure6pro- morethanoneofevery25jobsinArkansaswas
videsaviewoftheexportsharesofspecificindus- linkedtomanufacturedexports.
2 ForasummaryofArkansas’internationalinvolvement,seewww.ita.doc.gov/td/industry/otea/state%5Freports/arkansas.html.
5
0991 3991 6991 9991 2002 5002
AR
tnecreP
Figure 4
AR State Exports and U.S. Exports as a Percent of Real GSP, 1990-2006
U.S.
SOURCE:WISERTrade,BEA,andHaverAnalytics.
INTERNATIONALTRADEANDFINANCE
Figure 5
Global Pattern of Arkansas 2006 Exports ($ USD)
SOURCE:TradeStatsExpress.PresentedbytheOfficeofTradeandIndustryInformation(OTII),
ManufacturingandServices,InternationalTradeAdministration,U.S.DepartmentofCommerce.
Figure 6
Product Profile of Arkansas 2006 Global Exports ($ USD)
28.2%
39.2%
11%
10.7% 10.9%
Transportation Equipment Chemical Manufactures Machinery Manufactures
Processed Foods All Others
SOURCE:TradeStatsExpress.PresentedbytheOfficeofTradeandIndustryInformation(OTII),
ManufacturingandServices,InternationalTradeAdministration,U.S.DepartmentofCommerce.
6
U.S.ExportOpportunities
Atotalof1,396companiesexportedgoods attentiononforeigncountriesthataregrowing
fromlocationsthroughoutArkansasduring2005. themostrapidly.
Roughly76percentofthesecompanieshad U.S.exportgrowthtoacountryandthe
employmentof500orlessand,thus,weresmall growthofthatforeigncountryarecloselyrelated.
andmedium-sizedenterprises.Thesefirms Whenweexamineexportgrowthfrom2002to
accountedfor19percentofArkansas’merchan- 2006andthetop50U.S.exportdestinationsin
diseexportsin2005. 2006,wefindthatthesimplecorrelationbetween
exportgrowthandincomegrowthis0.63.Given
thishighcorrelation,itisnotsurprisingthatU.S.
THE IMPORTANCE OF FOREIGN exportstoChinaandIndia,tworapidlygrowing
countries,increasedatarapidpacebetween2002
INCOME GROWTH FOR
and2006.U.S.exportstoeachofthesecountries
EXPORTS
increasedbyafactorofroughly2.5,whichis
Increasesininternationaltradedependon substantiallygreaterthanthe1.5factorbywhich
incomegrowthandchangesinthecostsofinter- overallU.S.exportsincreased.AswiththeUnited
nationaltrade.Sometradecostsreflectbarriers Statesasawhole,Arkansas’exportstoChina
imposedbygovernmentsandsomearetheresult andIndiagrewrapidlybetween2002and2006.
ofnature.Atariff,whichisataximposedon Infact,Arkansas’exportsincreasedmorerapidly
importedgoods,isanexampleoftheformer, thanforthetotalUnitedStates—byafactorof4
whiletransportationcostisanexampleofthe toChinaandbyafactorof7.3toIndia.Arkansas’
latter.Whentworesearchersexaminedtherela- totalexportstoalldestinationsabroadincreased
tiveimportanceofincomegrowth,reductionsin byafactorof1.5.
governmentbarrierstotradeanddeclinesintrans- ConsideranexampleofhowChina’sgrowing
portationcosts,theyfoundthatincomegrowth economyisprovidingopportunitiesforfirms
wasthemostimportantofthesethreefactors basedinArkansas.Aninevitableconsequenceof
stimulatingtradeworldwide,withreductionsin economicgrowthistrash.ASpringdale,Arkansas
tradebarriersadistantsecondanddeclinesin company,JVManufacturing,isprovidingtech-
transportationcostsanevenmoredistantthird.3 nologyforhydrauliccompactorsthatsmashthe
Thisranking,though,reflectsexperienceovertwo refusebeforeitistakentoalandfill.4Currently,
particularperiodsinthelatterhalfofthe20th thesecompactorsarebeingusedinHuaibei,
century—theanalysisusestheaveragetradeof China.Plansareintheworkstoexportthetech-
1958-1960and1986-1988.Weshouldnotforget nologytootherregionsofChina.
thattradebarrierswerecriticallyimportantin Anotherconsequenceofeconomicgrowthis
depressingtradeatcertaintimesinthepast,espe- increaseddemandforfoodproducts.Increases
ciallyduringtheGreatDepression,andcould inincomefromlowlevelsinvariablyleadto
besoagainshouldtheUnitedStatesbecome increaseddemandforanimalprotein.Chicken,
involvedintradewars. porkandbeefareallexportedfromArkansasto
Asforeigneconomiesgrow,thepurchasing China.5TysonFoodsexportedthemajorityof
powerofitsresidentsincreases.Totapintorising frozenchickencuts,whichistheleadingfood
purchasingpowerabroad,U.S.firmsmustpro- exportfromArkansastoChina.
videgoodsandservicesdesiredbythesepotential Thekeyrolethatincomegrowthplaysin
consumers.Asensibleexportstrategyistofocus internationaltradesuggeststhat,fromanational
3 SeeBaierandBergstrand(2001).
4 SeeMorasch(2006).
5 SeeSmith(2007).
7
INTERNATIONALTRADEANDFINANCE
perspective,exportsandimportsarelinked.One wouldincreaseprofitopportunitiesfromexport-
linkageisasfollows:Foreignincomegrowth ingtoaspecificdestinationandwouldreduce
affectsU.S.exports,whichhelptodetermineU.S. theinitialproductivitylevelnecessarytoenter
incomeand,therefore,imports.Consequently, theexportmarket.Reducedbarrierswillinduce
changesthataffectexportswillaffectimportsand morefirmstoexport.Increasedexportsinturn
viceversa.Thus,actionsthatlimitU.S.imports wouldgenerateanincreaseddemandforlabor
willalsotendtoreduceU.S.exportsbecausethey and,therefore,higherwages.Low-productivity
depressincomegrowthabroad.Fewpeopleseem non-exportingfirmswouldbeforcedtoexitthe
tounderstandthatraisingimportbarrierswill industry,andbothcapitalandlaborwouldbe
tendtoreduceexportopportunities.Countries reallocatedfromthelessproductivenon-export
withhightradebarriersandrelativelylowlevels firmstothemoreproductiveexportingfirms,
ofimportswillalsohaverelativelylowlevelsof increasingaverageproductivity.Becausethe
exports. reallocationofproductivefactorsisfoundto
occurbothwithinandacrossindustries,this
processcreatesaggregateproductivitygains.
THE CURRENT POLITICAL Theproductivityfactsrelatingtoexporting
firmssuggestanimportantrolefortradeliberal-
ECONOMY OF INTERNATIONAL
izationinimprovingtheaggregateproductivity
TRADE
oftheeconomy.Productivitygainsstemming
EarlierinmypresentationIdiscussedsome fromtradeliberalizationallowforincreasesin
keyfindingsconcerningfirmsthatexport.I’ll outputandincome.Recentresearchindicates
returntooneofthesefindingsandthenuseitas thatthepayofftotheUnitedStatesofliberaliza-
afoundationforabriefdiscussionoftradepolicy. tionoftradeandinternationalinvestmenthas
Let’slookmorecloselyatthefindingthatexport- beenquitelarge.6Basedonseveraldifferentsta-
ingfirmshaverelativelyhigherproductivity tisticalapproaches,theestimatedpayoffranged
thannon-exportingfirmsdo. from7.3percentto13.2percentofU.S.GDPin
Researchshowsthatthehigherproductivity 2003.Using2006dollars,theseestimatessuggest
ofexportingfirmsrelativetonon-tradingfirms ahigherpercapitaincomeintheUnitedStates
existsevenbeforetheyenterexportmarkets. rangingfrom$3,000to$5,436.Thesearenot
Furthermore,theproductivityofexportingfirms smalleffects.
aftertheyenterexportmarketsdoesnotgrowmore Theprecedingreasoning,supportedby
rapidlythantheproductivityofnon-exporting empiricalestimates,impliesthatnegotiations
firms.Theconclusionisthathigherproductivity thatreducetradebarrierscanbeverybeneficial.7
isarequirementfor,ratherthanaconsequence Conversely,legislationthatimposestradebarriers
of,engagingininternationaltrade.Apossible willlikelybeharmful.Tomydisappointment,as
reasonfortherequirementofhighproductivity Isurveythecurrentstateoftradenegotiations
isthathighentrycostsofbecominganexporter andnumerouslegislativeproposals,Iamtroubled
canonlybeborneprofitablybythemostefficient thatthedirectionoftradepolicyintheimmedi-
firms. atefuturemaynotbetherightone.Letmegive
Interestingly,researchhasshownthatafter youfourexamplesthatcreatemyconcern.
firmsenterexportmarketstheydoexperience First,fast-tracknegotiatingauthorityexpired
fastergrowthofemploymentandoutputthan onJune30.Thisauthorityallowsthepresident
non-exportersdo.Areductionintradebarriers tonegotiatetradeagreementsthatCongresscan
6 SeeBradford,Grieco,andHufbauer(2006).
7 Bradford,Grieco,andHufbauer(2006)conservativelyestimatethatglobalfreetradewouldproducehigherpercapitaincomerangingfrom
$1,540to$2,069using2003dollarsorfrom$1,635to$2,255using2006dollars.
8
U.S.ExportOpportunities
eitheracceptorreject,butcannotamendorfili- illegallyhighChinesetariffsonautomobileparts
buster.Thelackoffast-trackauthoritymatters importedfromtheUnitedStates.U.S.pressure
becausetradingpartnersareextremelyreluctant toreducebarriersforU.S.exportsshouldideally
tonegotiatewiththeUnitedStateswhenexperi- encourageamoreopenworldtradingsystem;
enceindicates,unfortunately,thatagreements however,theprospectsforsuccessfulnegotiations
maybesubstantiallyalteredduringthelegislative dimwhen,simultaneously,theUnitedStatesis
process. itselfimposingimportbarriers.
Second,theDohaDevelopmentAgenda SomeU.S.legislativeproposalsseemtobe
multilateraltradenegotiationsareontheverge basedonapresumptionthattraderetaliationis
ofcollapse.AcollapseoftheDoharoundwould aneffectivestrategy;however,economichistory
raisedoubtsaboutthefutureeffectivenessof suggestsotherwise.Ratherthanpassivecompli-
theWorldTradeOrganization,whichisthekey ancewithtraderestrictions,thetargetedcountry
internationalorganizationfornegotiating, tendstoretaliate.Successiveroundsofretaliation
implementingandenforcingmultilateraltrade canspiralintoatradewar.Actually,theprocess
agreements. shouldbecalled“ananti-tradewar.”Restriction
Third,manyintheUnitedStatesseemto ofacountry’sexportsforcesittoreorientitsecon-
favoramoreconfrontationalapproachwiththe omytowardalternativesuppliersandmarkets.
Chinese.8Chinaisanincreasinglyfrequenttarget Suchareorientationisfacilitatedbythefactthat
foranti-dumpingactions.Ininternationaltrade atraderetaliationpolicytendstoexpandthe
law,“dumping”issaidtooccurwhenafirmsells roleofgovernmentinthetargetedcountry.Inthe
aproductatahigherpriceinitshomemarket presentcase,U.S.interestsarelikelybestserved
thanthepriceitchargeswhenitexportsthesame byanincreasingroleforindividualconsumers
producttoanothercountry.IfU.S.manufacturers andfirmsinamoremarket-orientedChinese
canestablishthattheyarebeingharmedbydump- economy.
ingonthisdefinition,thenduties(i.e.,import Atragicepisodefromeconomichistorypro-
taxes)areimposedtocounteractthecalculated videsadditionalreasonsformyconcernsabout
extentofthedumping.Theillogicofanti-dump- thefuturecourseoftradepolicy.TheGreat
inglawsisclear:WouldwepreferthatU.S.con- Depressionwasaglobalcatastrophe.Most
sumerspayhigherpricesthanchargedabroad? researchersagreethattheSmoot-Hawleytariffs
WouldU.S.consumersbeharmedinthemost of1930precipitatedretaliationandlikelywors-
extremepossible“dumping”scenarioinwhich enedtheeffectsoftheGreatDepressionbycon-
theyreceivedgoodsfromabroadforfree? tributingtothecollapseoftradethroughoutthe
Currently,theChineseshareofanti-dumping worldintheearly1930s.Anall-outtradewar
actionsisnearlydoubleitsshareofU.S.imports. seemsunlikelytodaybutaseriesofsmallerbar-
Moreover,inMarch2007,theCommerceDepart- riersinflictingeconomiccostsonatradingpartner
mentbeganapplyinganti-subsidylawstoChina. hasthepossibilityofinflictingharmfarbeyond
Thisactionreversed23yearsofpolicyandled theoriginaltarget.Iamveryuncomfortablewith
tofilingsthatChinahasillegallysubsidized thenumerousactionsandproposedlegislation
exportsoftires,paperbags,steelpipesandsteel thatnotonlyareunlikelytoaffectthelargeU.S.
nails.Theselegalactionsareanti-consumer. tradedeficitbutalsoareincreasingthechances
TheU.S.isalsopursuingcomplaintsagainst ofescalatingtradefrictions.
ChinawithintheWorldTradeOrganization.The Thereisarole,ofcourse,forprotectingU.S.
U.S.traderepresentativehasinitiatedfourcases consumersfromunsafeproductsbutthisrole
againstChina,whichismorethanagainstany shouldnotdependonwhethergoodsarepro-
othercountryatthistime.Thechargesinclude ducedintheUnitedStatesorabroad.Akey
8 SeeWeisman(2007).
9
INTERNATIONALTRADEANDFINANCE
principleisthatidenticalstandardsthataddress izationsoftradeandinvestmentflowshavebeen
genuinesafetyissuesbeappliedtoagoodregard- quitelarge.Iamcertainthatactionshindering
lessofwhereitisproduced.Oneunfortunate entryofU.S.innovatorsandentrepreneursin
possibilityisthatproductsafetyissuesbecome globalmarketswillultimatelyproveharmfulto
partofatradewar.Forexample,recentlythe economicwell-beinginArkansasandtheUnited
UnitedStatessuspendedsomeChineseseafood Statesgenerally.Thus,weshouldallbeconcerned
importsafterfindingtracesofcancer-causing aboutthecurrentlackofprogressinliberalizing
chemicals.Shortlythereafter,theChinesesus- tradeflowsandtheincreasingthreatoflegisla-
pendedimportsofchickenfeet,pigearsandother tiontendingtowardeconomicisolation.Such
animalproductsfromsevenU.S.companies,one actions,iftheyoccur,willdepressexportsinthe
ofwhichwasTysonFoods.9TheChinesejustifi- futurefromArkansasandtheUnitedStatesasa
cationfortheiractionwasthattheproductscon- whole.Moreimportantly,governmentalactions
tainedbacteriaaswellasresiduesofdrugsand thatdepressexportswillultimatelyharmU.S.
pesticides.Thereisnoreasonwhythetwocoun- incomeprospectsbyinhibitingproductivityand
triesshouldnotworkcooperativelyonafood incomegrowth.
inspectionprogramtoservetheircommoninter-
estsinhigh-qualityfood.
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11
Cite this document
APA
William Poole (2007, August 16). Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/speech_20070817_poole
BibTeX
@misc{wtfs_speech_20070817_poole,
author = {William Poole},
title = {Speech},
year = {2007},
month = {Aug},
howpublished = {Speeches, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/speech_20070817_poole},
note = {Retrieved via When the Fed Speaks corpus}
}