A federal agency estimated in 2007 that the impact on employment would be “negligible” and that the deals would increase gross domestic product by about $14.4 billion, or roughly 0.1 percent.
The White House depended on Republican support for the trade agreements to overcome the passionate opposition of Democrats concerned about the loss of American jobs to foreign competition but it agreed to submit the deals to Congress only after receiving what administration officials described as sufficient assurances that House Republicans would also approve an expansion of benefits for displaced workers. The Senate approved an expansion of the benefits program-me in September 2011.
Service providers like banks and law firms are expected to benefit But many manufacturers and the textile industry in particular have argued that they will be disproportionately hurt. Under special rules that govern the consideration of trade deals, Congress had 90 days to approve or reject the agreements, but could not amend the terms.
Trade agreements reduce the price of American goods and services in foreign markets and foreign goods and services here by eliminating tariffs, or taxes, on those products. Most economists say the overall benefits are substantial, increasing demand and reducing prices. But the outcomes for individuals are much more varied. Consumers may benefit from the availability of cheaper foreign goods even as more expensive American workers are losing their jobs.
