April 24, 2007

The President of the United States

The White House

Washington, D.C. 20500

Dear Mr. President,

On June 30, 2007, Trade Promotion Authority (TPA) is set to expire. Without TPA, it will be far more challenging to negotiate new trade agreements. This authority is instrumental in allowing for the continued expansion of American economic interests and export opportunities abroad. Since enactment in 2002, TPA has helped open markets for U.S. exporters through the successful negotiation and implementation of free trade agreements with ten partner countries. Several other significant agreements are pending conclusion or implementation. Additionally, TPA is vital to the completion of the WTO Doha Development Agenda. Due to the necessity of TPA in negotiating pending and future trade agreements, the President’s Export Council strongly supports the renewal of Trade Promotion Authority. To that end, we urge your Administration to work in partnership with the U.S. Congress to renew TPA.

Failure to renew TPA will severely hinder the U.S. position in the global economy. Our trading partners will hesitate, or even refuse, to enter into trade negotiations with the United States without TPA. At the same time, our economic competitors will continue to negotiate trade agreements, which could give them an advantage over U.S. manufactured goods, agricultural products and services in key markets if the United States is not similarly engaged. U.S. companies could face limited export and investment opportunities if the United States fails to secure a level playing field in terms of market access. Even if negotiations are possible, our trading partners will be unwilling to make the concessions that are necessary to reach comprehensive trade agreements without the assurances of TPA.

The benefit of free trade for the U.S. economy is shown in the growth of U.S. exports following the enactment of agreements negotiated under TPA. For example, since the entry into force of FTAs, U.S. exports to Chile have grown 150%, Singapore 49%, Australia 25%, Morocco 67%, CAFTA countries 18%, and Bahrain 40%. U.S. goods export growth to the 10 trade partners with whom FTAs began implementation between 2001 and 2006 has been twice as fast as U.S. export growth to the rest of the world (26% vs. 13%). Export growth has a direct effect on U.S. employment, as approximately 5.1 million manufacturing jobs in the United States are dependent on exports.

Renewal of TPA will also provide evidence of the United States’ continued support for a successful conclusion of the Doha Development Agenda negotiations. Progress in the Doha Round is essential to dismantle the tariff and non-tariff barriers that restrict trade and investment, especially in the developing world. It is in the U.S. interest to see the WTO negotiations move forward, as economic liberalization is a major contributor to the development and stability of emerging democracies.

Trade Promotion Authority is vital to the continued negotiation of bilateral, regional and multilateral agreements that open markets for U.S. exporters. These negotiations also ensure that the United States is a leader in shaping the framework of rules that govern the global economy. For all of these reasons, the President’s Export Council calls for the renewal of Trade Promotion Authority.

Sincerely,

J.W. Marriott, Jr.

Chairman