October 9, 2001

Washington, D.C.-A new report issued today by the Small Business Survival Committee (SBSC) emphasizes how important international trade and granting the President trade promotion authority (TPA) are to small business.

The new report, entitled "International Trade: The Business of Small Business," documents the widespread economic benefits of free trade, as opposed to the weighty costs of protectionism, and the important role that small businesses play in international trade.

"With the economy stumbling, one of the most important things Congress should do right away is give President Bush the ability to negotiate new trade agreements and expand overseas markets," said SBSC President Darrell McKigney. "With small businesses making up 97% of exporters, increasing trade offers a huge opportunity for moving toward economic recovery."

SBSC's trade report clearly spells out many of the benefits of free and expanding trade, including:

Smaller businesses play a big part in trade.  For example, almost 97 percent or 223,681 exporters in 1999 were small or mid-sized companies with fewer than 500 employees; 95 percent of manufacturing exporters were small and mid-sized companies; and 99 percent of wholesalers involved in exporting were small and mid-sized firms.

From 1990 to 2000, real U.S. GDP expanded by 37.5%, while total U.S. real exports grew by 96.8%, and real imports by 142.4%, over the same period.  Therefore, total U.S. trade (exports plus imports) expanded by 120.7%.  In the end, the growth in real total U.S. trade accounted directly for 57.9% of total U.S. real economic growth from 1990 to 2000.  Over the past decade, U.S. total trade grew from about 20% of the U.S. economy to 26%.

The U.S. clearly has benefited from freer trade under NAFTA, as real U.S. exports to Mexico between 1993 and 2000 grew by 135.3%, imports from Mexico jumped by 199.2%, and total trade with Mexico expanded by 166.6%.

SBSC chief economist Raymond J. Keating, author of the report, observed: "Lowering U.S. trade barriers, and entering into free trade agreements with other nations are positive steps for the U.S. economy and for the small business community.  That, of course, means that Congress should quickly grant President Bush trade promotion authority, which will help to re-energize efforts to reduce trade barriers, expand U.S. trading opportunities, and thereby provide a real boost to entrepreneurs, the U.S. economy and job creation."

For more information or to acquire a copy of "International Trade: The Business of Small Business," please visit SBSC's website at www.sbsc.org, or call SBSC at 202-785-0238.  SBSC is a nonpartisan, nonprofit small business advocacy group headquartered in Washington, D.C.