Max Baucus: “I rise to address the value of free trade, and of the process by which we get it. From ancient times, people have…”

“I rise to address the value of free trade, and of the process by which we get it. From ancient times, people have learned that trade among nations means more economic growth and higher incomes. People have better standards of living, thanks to trade. Free trade allows each nation to devote more resources and energy to those things for which it has a comparative advantage. Partners to free trade thereby get goods and services at lower cost than they would in isolation. Conversely, protectionism stunts growth and reduces income. Tariffs are taxes. And like other taxes, they can impede the efficient allocation of resources. Where nations impose quotas and tariffs, goods and services cost more. People live less well than they would with free trade. But you don't have to take my word for it. Look at the record. Take America's two biggest recent trade agreements. America entered into the North American Free Trade Agreement, NAFTA, in 1993, and the Uruguay Round Agreements, the WTO, in 1994. In the years following those major trade agreements, America experienced one of its strongest economic expansions. Yes, balancing the budget and funding education also had something to do with it. But trade helped. America experienced 8 years of economic growth. The American economy created more than 20 million new jobs. The average household's real income rose 15 percent. Americans' standard of living improved.”