Financing the U.S. Trade Deficit
"The U.S. merchandise trade deficit is a part of the overall U.S. balance of payments, a summary
statement of all economic transactions between the residents of the United States and the rest of
the world, during a given period of time. Some Members of Congress and other observers have
grown concerned over the magnitude of the U.S. merchandise trade deficit and the associated
increase in U.S. dollar-denominated assets owned by foreigners. The recent slowdown in global
economic activity has reduced global trade flows and, consequently, reduced the size of the U.S.
trade deficit. This report provides an overview of the U.S. balance of payments, an explanation of
the broader role of capital flows in the U.S. economy, an explanation of how the country finances
its trade deficit or a trade surplus, and the implications for Congress and the country of the large
inflows of capital from abroad..."

The Future of U.S. Trade Policy: An Analysis of Issues and Options for the 111th Congress
"U.S. trade policy is at a cross-roads as the Obama Administration and the 111th Congress face a
range of policy issues and challenges. The future direction of trade policy and how the issues will be addressed are unclear at this time and the subject of sharp debate within Congress, the
Administration, and the trade policy community at large. While a number of issues are related to
trade policy, the fundamental question that is the subject of this debate is which trade policy, if any, will maximize the benefits of trade and boost U.S. living standards...

The debate on trade is framed by three groups of views. One group, who might be called “trade
liberalizers,” assert that on a net basis the benefits to the United States of trade liberalization are greater than the costs and, therefore, should be encouraged through trade barrier reductions. A second group—“fair traders”—acknowledge the benefits of trade liberalization but assert that U.S. firms and workers are often forced to compete under unfair conditions. They support trade agreements, but only if the agreements provide for a “level playing field.” A third group—“trade skeptics”—tends to argue that the costs of trade liberalization outweigh the benefits for the United States, and therefore, reject unrestricted trade liberalization. Where policymakers fit on this continuum of views could help to determine how they decide to address the outstanding and emerging trade issues before Congress.."

Trade Agreements: Impact on the U.S. Economy
"The United States is in the process of considering a number of trade agreements. In addition, the
111th Congress may address the issue of trade promotion authority (TPA), which expired on July
1, 2007. These agreements range from bilateral trade agreements with countries that account for
meager shares of U.S. trade to multilateral negotiations that could affect large numbers of U.S.
workers and businesses. During this process, Congress likely will be presented with an array of
data estimating the impact of trade agreements on the economy, or on a particular segment of the
economy...

This report examines the major features of economic models being used to estimate the effects of
trade agreements. It assesses the strengths and weaknesses of the models as an aid in helping
Congress evaluate the economic impact of trade agreements on the U.S. economy. In addition,
this report identifies and assesses some of the assumptions used in the economic models and how
these assumptions affect the data generated by the models. Finally, this report evaluates the
implications for Congress of various options it may consider as it assesses trade agreements."

The Future Role of U.S. Trade Policy: An Overview
"The United States has become increasingly integrated with the rest of the world economy. This integration has offered benefits and presented challenges to U.S. business, agriculture, labor, and consumers. Those who can compete in the more integrated economy have enjoyed opportunities to broaden their success, while those who are challenged by increased foreign competition have been forced to adjust and some have exited the market or relocated overseas. Some observers contend that, in order to remain globally competitive, the United States must continue to support trade liberalization policies, while assisting those hurt by trade. Others have raised doubts over whether free trade policies benefit the U.S. economy (e.g., some blame such policies for the large U.S. trade deficit, declining wages, and growing income disparity). Many contend that trade liberalization works only when everyone plays by the rules and have urged the aggressive enforcement of U.S. trade laws to address unfair trade practices. Still others maintain that such issues as labor rights, the environment, and climate change should be linked to trade policies. These competing views are often reflected in the struggle between Congress and the Executive branch in shaping U.S. trade policy."