The ongoing trade and tariff fight between the United States and Canada is hurting state businesses. That’s the view of Lori Otto Punke, the president of the Washington Council on International Trade in Seattle. She said Canada is Washington’s second largest trade partner, behind China.
Otto Punke spoke with KNKX’s Gary Davis about how trade-dependent businesses are being impacted.
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Interview Highlights
State businesses involved in trade
Almost 11,000 to 12,000 small businesses in Washington State are trading abroad, and so it's really about the small to medium-sized businesses that can't plan, that can't predict, and really have a hard time trying to decide what investments they should or should not make, what employees they can or cannot keep, because they don't know what their cost structure is going to be next month, let alone next year.
Washington industries hurt by tariffs
Agriculture has been really struggling throughout the trade wars because global buyers can come to the U.S. for goods and services, and they long have because we've had some of the most favorable tariff rates. Also because we're just a really easy partner to work with, and so when tariffs go up, and then you know there's other hiccups in the relationship, it really is damaging all around. Customers around the world can just choose to buy goods and services from other parts around the world, and are choosing to do that more and more because they don't see the U.S. as a reliable trade partner. Trade is truly about a trading relationship, and so when we see these fractures and when we see the language and the rhetoric really heating up, it doesn't really do much good for the Washington State businesses here — a farmer in Pasco or a hops grower in Chelan. It really has long term damage.
Congressional power in trade negotiations
I think the Washington state [congressional] delegation has long been a strong supporter of trade and investment policy for the U.S. because they know how much it is meant to Washington State from a jobs perspective. I think Congress is really kind of looking back decades (at the) ceding of congressional authority on trade to the executive branch. I think there is more movement to kind of grab back some of that authority. That is going to have to be a longer-term agenda to get something like that between the House and the Senate and signed into law by an administration, I think that you're probably looking at a decades-long project.
