Trade Matters to Ohio's 16th Congressional District Trade…

           Trade Matters to Ohio's 16th Congressional District

Trade Matters to Manufacturing and                                                             SUMMARY FACTS
Services
Trade matters to manufacturing and services companies                     In 2003, Ohio exported nearly $170 million worth of
and workers located in the 16th Congressional District                    goods to the DR-CAFTA countries.
of Ohio. District steel, transportation equipment, and
pharmaceutical companies export their products and                        76% of U.S. steel exports to the DR-CAFTA countries
                                                                          will receive immediate duty-free treatment. Tariffs on
services to customers around the world, and imports are
                                                                          the remaining products will be eliminated over 5 to 10
key ingredients for producers who rely on inputs to                       years benefiting District steel producers like Timken
manufacture or process products in the District.                          and Republic Engineered Products.

      Trade supports jobs in the 16th District. Nearly                    U.S. pharmaceutical companies believe that the DR-
      one in four manufacturing jobs in Ohio depend                       CAFTA's IPR provisions and tariff reductions will lead
      on exports, and research demonstrates that                          to an increase in U.S. pharmaceutical exports
      exporting jobs pay 13-18 percent more than the                      benefiting District companies like Hospira, Inc.
      U.S. average.
                                                                          Under DR-CAFTA, tariffs on transportation equipment
                                                                          and parts (currently as high as 30%) will either be
      Export dependence is much higher for
                                                                          immediately eliminated or phased out over 10 years
      manufacturing sectors of importance to the 16th                     benefiting District manufacturers like Gerstenslager Co.
      District: Forty percent of the workers in Ohio's                    and ArvinMeritor Inc.
      primary metals (including steel) industry owe their
      jobs to exports. Exports also support 28 percent
      of jobs in Ohio's transportation equipment
      industry.

      Many companies in the District use imported raw                Trade Matters to Small Business
      materials and other components to manufacture
      their products.
                                                                     Trade matters to small businesses located in the 16th
      Trade is also important to services sectors that are           District.
      large employers in the District. Economists
      estimate that a one-third cut in barriers to                           Eighty-seven percent of the Ohio companies that
      services trade generally would boost U.S. GNP                          export goods are small and medium-sized
      growth by 1.5 percent a year.                                          businesses.

      Thus, as trade increases, business opportunities                       Nationally, we know that small businesses already
      for services companies and the high-wage jobs                          export $4.5 billion to the countries in Central
      related to them increase for sectors important to                      America.
      the District, such as insurance and accounting
      services.




      For further information, please contact Brigitte Gwyn, Director, International Trade and Fiscal Policy, Business Roundtable
                        1615 L St. NW, Washington, DC 20036 202-496-3263 trade.businessroundtable.org
Trade Matters to International Investors                          TOP EXPORTERS TO DR-CAFTA COUNTRIES
Fair international investment rules, which promote                        IN OHIO'S 16TH DISTRICT
trade, matters to foreign investors in the 16th District of
Ohio.                                                         Adelmans Truck Parts        Canton

        Foreign investors located in the United States        Camo                        Orrville
        support millions of American jobs. In Ohio,           Central American Medical    Orrville
        foreign investors employ 212,800 workers.             Outreach
        Approximately 52 percent of Ohio workers
        employed by foreign investors are employed in         Chick Master Incubator      Medina
        the high-paying manufacturing sector.                 Company

        The strong Ohio and District economies are            Crop King                   Seville
        magnets for foreign investment and job-
        creating "insourcing." Germany-based LuK Inc.         Hospira (formerly Abbott    Ashland
        employs 750 workers at its Wooster facility           Laboratories)
        designing and producing clutches and torque
                                                              Newell ­ Rubbermaid         Wooster
        converters for the automotive industry.
                                                              Packaging Corp of America   Orrville
        Further engagement with the international
        economy through trade will improve the                Wayne Dalton Rolling Door   Dalton
        competitiveness of companies and workers in
        the District, making it a still more attractive
        location for new investment for manufacturing
        and services.                                             progress at the World Trade Organization
                                                                  (WTO), known as the "Doha Round."
    Trade Liberalization Matters to Ohio's                        In 2003, Ohio exported nearly $170 million
    16th District                                                 worth of goods to the DR-CAFTA countries.
    District companies, workers and consumers have                Even without DR-CAFTA, the region has been a
    benefited from trade liberalization.                          growing market for Ohio goods, expanding at
                                                                  an average annual rate of nearly 22 percent.
        NAFTA partners Canada and Mexico are Ohio's
                                                                  Seventy-six percent of U.S. steel exports to the
        largest export markets. Since NAFTA went into
                                                                  DR-CAFTA countries will receive immediate
        effect, Ohio's exports to Canada and Mexico
                                                                  duty-free treatment. Tariffs on the remaining
        have increased by 118.4 percent.
                                                                  products will be eliminated over five or ten
                                                                  years. The elimination of duties and increased
        The average U.S. family saves $930 annually
                                                                  market access could benefit District steel
        thanks to income gains and tariff -- tax -- cuts
                                                                  producers like Timken and Republic Engineered
        due to NAFTA alone. For the District, this
                                                                  Products.
        equals nearly $147 million annually just for
        families in the District.                                 The DR-CAFTA countries currently impose
                                                                  tariffs on transportation equipment and parts
    DR-CAFTA and Doha Matter to Ohio's                            ranging up to 30 percent. The District's
                                                                  transportation equipment producers will see
    16th District                                                 benefits under DR-CAFTA: half of U.S.
    Other trade liberalization initiatives under way will         transportation equipment exports will receive
    boost the gains to the 16th District, and merit               duty-free treatment immediately. Tariffs on
    strong support. The most important initiatives                the remaining half will be phased out over ten
    include Congressional approval of the Dominican               years. District manufacturers, such as
    Republic-Central American Free Trade Agreement                Gerstenslager Co. and ArvinMeritor Inc., could
    (DR-CAFTA) and strong support for a successful                benefit from increased access to the DR-CAFTA
    conclusion of multilateral trade negotiations in              markets.
U.S. pharmaceutical companies believe that the           Expanded protection of intellectual property
DR-CAFTA's intellectual property rights                  rights around the globe will benefit the
provisions, coupled with tariff reductions, will         research and development of cutting-edge
lead to an increase in U.S. pharm-aceutical              products under way in the District as those
exports. U.S. exports now face varying tariffs           products are eventually marketed around the
rates in the region of up to 15 percent. These           globe.
tariff reductions could benefit District
companies like Hospira Inc.                              Total elimination of barriers to trade in goods
                                                         and services would increase U.S. GNP growth
The DR-CAFTA makes modest changes in U.S.                by 5.5 percent.
sugar quotas that will benefit District food
product manufacturers, including J. M.                   The global reduction of many agricultural
Smucker Co. and Heinz Frozen Food Co. In                 subsidies through the Doha Round will open
addition, it immediately eliminates tariffs on           more markets for U.S. agricultural exports.
U.S. exports of Prime and Choice cuts of beef
and eliminates all other tariffs on beef over 15         Services trade liberalization contemplated in the
years, potentially benefitting Fresh Mark, Inc. in       Round will benefit District services companies
Canton.                                                  who have limited access at present to
                                                         potentially large developing country markets
The DR-CAFTA goes beyond all previous free               for computer and telecommunications
trade agreements in empowering citizens to               consulting and software design and consulting.
enforce environmental laws and creates
mechanisms to improve environmental
protection in the DR-CAFTA countries. The                 TOP IMPORTERS TO DR-CAFTA COUNTRIES
Agreement also provides a framework for                           IN OHIO'S 16TH DISTRICT
undertaking environmental capacity building in
the DR-CAFTA countries, explicitly recognizes          Chardon Rubber              Alliance
multilateral environmental agreements and calls        DDU Lippert Entrerprises    Ashland
on the parties to the Agreement to enhance the         Hospira (formerly Abbott    Ashland
effectiveness of these multilateral agreements.        Laboratories)

The DR-CAFTA will protect the District's
manufacturers from injurious dumping or
subsidization. The Agreement does not change
U.S. trade remedy laws. In addition, it              In Short ...
establishes a bilateral safeguard mechanism
that could temporarily suspend duty reductions       Trade matters importantly to the 16th District, and
if increased imports from one or more DR-            pending trade agreements and ongoing
CAFTA countries are injuring or threatening to       negotiations will boost the benefits of trade to the
injure a U.S. industry.                              District. Increased U.S. exports boost productivity
                                                     for U.S. companies and generate higher wages for
A tariff-free world by 2015, under                   U.S. workers. Trade agreements lower the cost of
consideration in the Doha Round, is expected         products purchased by consumers and U.S.
to result in $1,600 in increased income for the      companies and farmers who use imported raw
average U.S. household annually. For the             materials in their U.S. factories and farms. Trade
District, this represents an additional $252         also strengthens foreign economies, increasing their
million saved by District families annually.         demand for U.S goods and services at the same
Economists estimate that total elimination of        time it promotes political stability, security and
barriers to trade in goods and services would        democracy. Expanded trade opportunities in our
increase U.S. GNP growth by 5.5 percent a            Hemisphere are therefore particularly important to
year.                                                the residents of the 16th District.
Sources:

U.S. Bureau of the Census.

U.S. Department of Agriculture, Foreign Agricultural Service.

Organization for International Investment, "Investing in American Jobs: State by State."

Drusilla Brown, Alan Deardorff, and Robert Stern, "Multilateral, Regional, and Bilateral Trade-Policy
  Options for the United States and Japan," December 2002.