Will Trade Deals Benefit The U.S.?

This week, Congress is set to debate the merits of a "fast-track" bill that will give President Obama more leeway to negotiate trade-partnership deals in both Europe and Asia.

Although the Senate has already agreed to pass the bill, it still needs to pass through the House, where opposition is growing amid worries that the bill will stifle the labor market's recovery.

However, Obama has been adamant that the deal will be beneficial to U.S. consumers, as well as creating jobs rather than sending them overseas.

Trade Deals Create Jobs

Lawmakers in support of the bill say that the free flow of trade between nations will increase exports and create jobs in America.

Athletic apparel maker Nike Inc NKE has forecast the creation of 10,000 new jobs if a trade partnership deal is struck with Asia.

The company, whose manufacturing facilities have long been outsourced overseas, says that it will have a need for skilled workers in the U.S. as its sales increase.

Related Link: Obama Pushes Trans-Pacific Trade Partnership Forward

U.S. Consumers Reap The Benefits

Obama has touted the trade deal as positive for U.S. consumers who will likely see the cost of many goods fall. For the several U.S. firms that already manufacture their goods in foreign nations where labor is cheap, import fees dramatically increase the cost of their products when they are shipped back to the U.S. to be sold.

With relaxed trade regulations, specifically in Asia, U.S. products manufactured overseas will probably become cheaper to consumers at home.

Worries Persist

Critics of the trade deals worry that the elimination of trade tariffs will lead to further outsourcing by U.S. firms, thus eliminating American jobs.

Others are concerned about rising competition from foreign firms that will find it easier to sell goods at low prices in the U.S.

The auto industry in particular has raised concerns about the strength of the US dollar in comparison to Asian currencies, saying that the exchange rates will work in favor of foreign firms.

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