- October 01, 2016 -

MEMO: ​Hillary’s Globalist Trade Agenda Decimated Pennsylvania Manufacturing

FROM: Stephen Miller, National Policy Director; Peter Navarro, Economic Advisor; Curtis Ellis, Senior Advisor
TO: Interested Parties 

Pennsylvania has suffered from the Clinton-Obama policies that sent our jobs and factories to Mexico and China.

Over the last 25 years, Bill and Hillary Clinton have championed one-way deals like 1993’s NAFTA, China’s 2001 entry into the World Trade Organization, and the 2012 South Korea-US Free Trade Agreement. These poorly negotiated deals benefit the elite corporate interests that finance the Washington politicians even as they impoverish our heartland and destroy the livelihoods and lives of working Americans.

Pennsylvania has lost more than a third of its manufacturing jobs – over 308,000 jobs - since Clinton’s NAFTA and China trade deals went into effect.

Three of every five who were rehired in 2014 took home smaller paychecks, and one in three took pay cuts of more than 20 percent, according to Department of Labor data. The Labor Department’s Trade Adjustment Assistance (TAA) program certifies that more than 174,000 Pennsylvania jobs have been destroyed by offshoring or imports since NAFTA. These numbers significantly undercount the full impact as TAA only covers some of the jobs lost to trade.

The U.S.-NAFTA deficit in the 10 sectors that constitute Pennsylvania’s top exports to Canada and Mexico has risen more than 25-fold in the last 18 years – a more than $97 billion increase. That includes large increases in the NAFTA deficits in computer products and transportation equipment.

Pennsylvania farmers lost out too. U.S. exports to Canada and Mexico of cattle – one of Pennsylvania’s top agricultural products - fell 59 percent in the first 22 years of NAFTA.

In 2012, the Obama administration announced it had fixed the problems in past trade agreements. Secretary of State Hillary Clinton promised us that this new Korea deal – she called it “cutting edge” -- would create 70,000 jobs and boost exports.

The U.S. trade deficit with Korea in the top ten products that Pennsylvania exports to Korea – including everything from vehicles to machinery to metal manufacturing – ballooned 66 percent in the first four years after the trade agreement as exports fell and imports rose.

And in the first four years of the Korea FTA, U.S. exports to Korea of eggs and corn – two more top Pennsylvania agricultural products – dropped 45 and 57 percent respectively.

The increase in the U.S. trade deficit with Korea cost more than 100,000 American jobs in the first four years of the free trade agreement. The surge of imports of auto parts and vehicles from Korea hit the auto industry particularly hard.

The Trans-Pacific Partnership that Hillary supports will kill even more Pennsylvania jobs as more of the auto industry and suppliers move to China and Southeast Asia.

The TPP would allow a majority of the component parts of a car assembled in Mexico to be made in China or other countries even though they are not signatories to the TPP.

The Trans-Pacific Partnership would wipe out what’s left of the U.S. automotive industry and the machine shops, tool-and-die makers, die-casters, steel mills foundries and molded plastic fabricators that depend on it.