Monday, February 28, 2005

International Trade: Promoting America's Competitiveness

It's "INTERNATIONAL" trade, NOT "foreign" trade or "global" trade. For many reasons unrelated to this issue, the word "foreign" conjures up very negative images. Since Americans are more "pro-international" than they are "pro-foreign" or "pro-global" (globalization is a particularly frightening term to many Americans), we suggest you accept this terminology. INTERNATIONAL trade is favored over FOREIGN trade by 68% of Americans.

"A level playing field" is what Americans want, expect and demand from international trade. This is the only issue we have studied where the process is as important as the result. The level playing field concept is what Americans believe is the fundamental principle behind trade expansion and new trade agreement. This is how we currently define "free and fair trade."

Jobs are what Americans most want from international trade. Even though most companies and many in the Administration make the case for cheaper products and more choices, in the current economic climate, what matters most is the number of jobs created by trade and/or jobs lost because of it. If you are a proponent of greater trade, you will need to use employment facts/statistics to prove that trade yields a net positive number of jobs. A majority of Americans are still not sure.

Appeal to America's greatness. Americans love being told we're the best, that we're number one. We will do anything—ANYTHING—to remain number one, and will oppose anything that undermines that superiority. It is essential in any discussion of trade to declare that we are "the greatest economic power in the world" and that "we will remain the greatest economic power in the world only so long as we continue to do business with other nations."

When it comes to competition, WINNING is the only acceptable outcome. Other than the Germans, we are probably the most competitive population on the globe, and we take economic competition just as seriously as sports or politics. As long as Americans believe we can and will win in the global markets, they will want to play. However, winning is not defined by "balance of payments" or by "trade deficit figures." The public does not care about how many foreign products are sold in America. Winning is determined by our ability to get our products into foreign markets and keep our economy healthy. And those who oppose international trade should be called "defeatists" for they have given up on our products and our workers without even a fight.

The overarching trade objective is "ENHANCEMENT." Americans are skeptical of "trade expansion" because they're not really sure whether our companies, products and employees are truly benefiting from additional trade, and "promotion" also fails to address the perceived systematic shortcomings. Enhancement is about the quality of the agreements, not just the quantity - and that's exactly what Americans want to see.

"Fairness" is the strongest weapon in the anti-trade arsenal. The primary reason why about a third of the population (and the percentage is growing) opposes free trade is because they think our competitors are not competing fairly. That's why the "fairness" component must be a part of any communication strategy-talking about putting U.S. businesses "on an even footing" or "guaranteeing a level playing field" or about fair trade, NOT just free trade" is essential to winning the trade argument.

The best financial statistic: expanding international trade is the equivalent of a $1,300 to $2,000 tax cut for the average American family. Americans like to save money, particularly those who shop at Target, Wal-Mart and the other stores most likely to offer foreign-made products. The problem is, while consumers see the benefits every day - right in their own wallets and pocketbooks - of less expensive imported products, they do not recognize why prices are cheaper and selection greater. You need to explain it better by making a DIRECT connection through the statistic above.

High-wage jobs, highly-skilled workers and high-tech products are more important than trade deficit numbers. We asked Americans whether a country that has low-wage jobs, low-skilled workers, and produces labor-intensive products but has a large trade surplus is better off than a country that has high-wage jobs, highly-skilled workers, and high-tech products but a large trade deficit. The answer was a resounding NO for two reasons. First, many people confuse the trade deficit with the budget deficit ("they're all just numbers... big numbers") and their eyes glaze over. Second, most Americans truly would rather live in a high-wage, highly-skilled, high-tech country. So don't forget to name the many foreign companies that have opened facilities that employ significant numbers of Americans (Honda, Toyota, and BMW manufacturing plants, for example).

Don't forget American farmers. No profession's members care more about selling American products abroad than do American fanners, because no one has more at stake, in fact, if we are to save the farm economy, it is essential that we expand markets abroad to American agricultural products. Let farmers know you are fighting for them in the capitals of Europe and Asia, not just in Washington.

Don't talk like economists, Words like "protectionist," "capitalist, " and "isolationist" turn the average voter off. In this case, I am sorry to say that emotion beats intellect. All your facts must ring true, but they should be couched in terms that appeal to our hearts as well as our heads.

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