When the North American Free Trade Agreement (NAFTA) went in to effect in 1994, the digital economy was in its infancy — the internet wasn’t even mentioned in the agreement.
Fast forward 25 years, and consumer technology sector supports 18.2 million U.S. jobs and represents 12% of our GDP.
The U.S.-Mexico-Canada Trade Agreement (USMCA) is the first trade agreement to address digital trade and include specific language to protect the internet. Tell Congress it's time for a "New NAFTA" that addresses the digital economy — and USMCA needs their support.
The digital economy is critical to the U.S. economy. The entire U.S. economy relies on digital technologies and the seamless flow of data across borders for industries including manufacturing, services and agriculture — not just those commonly labeled “tech.”
Small businesses and entrepreneurs in every American state and every community use the internet to sell and export their goods and services across the globe. Internet-connected small businesses are three times as likely to export and create jobs, grow four times more quickly and earn twice as much revenue per employee. The internet cuts the trade deficit in every sector of the U.S. economy.
Today, the U.S. tech industry faces challenges from foreign governments trying to displace U.S. technology leadership. American companies are especially under threat from discriminatory policies, market-distorting industrial policies and inadequate intellectual property protection and enforcement in China.
USMCA’s robust digital chapter highlights the importance of strengthening trade rules to reflect the 21st century economy.
products and services exported by U.S. manufacturers through digital trade each year
global GDP increased by global data flows in 2015
International trade is vital to the consumer technology sector in the U.S. and global economies. Unfair trade practices should be addressed at the World Trade Organizaton, not by taxing U.S. businesses with increased tariffs.