Tennessee businesses and manufacturers welcomed the news that our country is one step closer to a new era of free trade, supporting 12 million American jobs.
The House of Representatives voted in favor of the United States-Mexico-Canada (USMCA) agreement, marking a new chapter in free trade for our country and for Tennessee businesses. This bipartisan agreement represents two years of advocacy, collaboration and input from Tennessee's business community, led by the Tennessee Chamber of Commerce & Industry.
Free trade is a cornerstone of Tennessee's growing economy. One in five jobs reies on free trade in Tennessee, and more than 147,000 jobs are supported by our export market alone, as of 2016. Of those exports, Canada and Mexico represent our largest export markets, with $7.9 million (24% of the state's exports) in exports going to Canada and $4.8 million in exports going to Canada, according to the U.S. Census Bureau.
Free trade supports our small businesses, manufacturers and farmers all across the state. In total, goods exported accounted for 8.9% of Tennessee's GDP in 2018, worth $32.7 billion.
In Chattanooga alone, exports represent $1.4 billion in revenue. Local companies, especially in manufacturing, such as Volkswagen continue to provide strong jobs for the community while investing in research and development. Dozens more companies provide medical equipment up and down the supply chain that is in high demand at the domestic and international level.
Strengthening our ties with Canada and Mexico, while also updating trade standards and protecting Tennessee jobs, will further propel our state forward and increase competition for our local businesses. Yet none of this progress would have happened were it not for the endurance and strength of the business community nationally and right here in Tennessee.
As the voice for the statewide business community, the Tennessee Chamber, partnering with a number of national organizations, has been on the front lines of this effort, encouraging our Tennessee congressional delegation to shepherd us into the new phase of free trade in North America. Through every misstep and additional hurdle, our local businesses and entrepreneurs have made it clear how important it is to continue to build on the relationships we've made with our counterparts in Canada and Mexico.
Last week's vote in the House brings us one step closer to creating a level playing field for Tennessee businesses and manufacturers. We will continue to urge Tennessee Sens. Lamar Alexander and Marsha Blackburn to work swiftly and in a bipartisan way to make this trade deal a reality. While no deal is perfect, the USMCA ensures all Tennessee and U.S. exports enter Canadian and Mexican markets tariff free and modernizes the more than 25-year-old North American Free Trade Agreement (NAFTA). USMCA will have important updated provisions to protect digital trade, financial services and agricultural trade, while also preserving hundreds of thousands of good-paying jobs for Tennesseans.
With the coming passage of the USMCA, the Tennessee Chamber is certain our businesses and entrepreneurs are well positioned to build on their success, increase their productivity and create even more jobs for Tennesseans across the state. We look forward to the swift passage of USMCA and the dawn of a new day for Tennessee businesses and manufacturers.
Bradley Jackson / Contributed photoBradley Jackson is the president and CEO of the Tennessee Chamber of Commerce & Industry.