There's been a lot said about free trade in recent weeks, some of it true, some of it false and much of it misconstrued. Core to my belief in free markets and American exceptionalism is the importance of free trade. Free trade benefits the United States by opening export markets for our products, providing opportunities for foreign investment here at home and creating jobs.
Tennessee exports $32 billion worth of goods and services annually, and trade provides more than 311,000 jobs. Additionally, 116,000 Tennessee jobs are created by foreign investment. Quality high-paying jobs of the future will rely even more on trade. Simply put: Tennessee needs trade in order to grow and prosper.
There are two separate trade issues currently before Congress. The first is Trade Promotion Authority (TPA), which ensures Congress has the final say on any deal and helps the president negotiate the best trade agreements possible. The second trade issue is the Trans-Pacific Partnership (TPP), which is a proposed free trade agreement among 11 nations in the Asia-Pacific region.
The first issue, TPA, is a well-established practice. Multiple presidents from both political parties have been given this negotiation tool by Congress. The current TPA agreement lays out nearly 150 negotiating objectives, including lowering foreign tariffs, designed to protect American interests. In addition, it requires that any final trade agreement must go through a transparent process and be approved by Congress via an up or down vote.
I've heard concerns from those who are wary of working with President Barack Obama on such a major issue, and I share many conservatives' mistrust of the president. However, I have always said I will work with the president when the policy is right; and in this case, the president has largely adopted a conservative free-market stance on trade. This is best illustrated by the fact most conservative members of Congress support TPA and most liberals, such as Nancy Pelosi, oppose it. Let me be very clear: I will only support and vote for a final trade deal that benefits the people of East Tennessee, regardless of the president in power, Democrat or Republican.
The second issue, TPP, presents the United States with an historic opportunity to advance our economic interests. The vast majority of the nations involved in these negotiations are close U.S. allies, and all are wary of the growing Chinese influence in Asia. The United States can either take a leadership role or sit on the sidelines while countries like China write trade rules to their advantage. In the last decade, U.S. exports to this region have dropped about 42 percent as East Asian countries have negotiated 48 trade agreements without us. This makes U.S. participation in TPP vital to our economic future.
Tennessee currently benefits significantly from trade with TPP countries. We are the No. 2 state in the United States for Japanese investment, with Japanese firms such as Denso, Yamaha and Komatsu all doing business in East Tennessee. Tennessee companies such as International Paper and Eastman Chemical export to Malaysia, Vietnam and Japan. TPP countries are currently five of Tennessee's top 10 export destinations. Breaking down trade barriers in these markets will increase Tennessee exports and help create additional jobs in East Tennessee.
The economy is increasingly global. We can engage and create high-paying jobs, or we can retreat inward while other nations do business without us and write rules to their advantage. I am optimistic about seizing this current opportunity for my constituents and believe we can become a global manufacturing leader right here in East Tennessee.
Chuck Fleischmann, a Republican, is Tennessee's 3rd District Congressional representative.