Posted on April 24, 2018
At the recommendation of Congressman Dave Reichert, John Wolfe, CEO of The Northwest Seaport Alliance, provided the following testimony Thursday to the U.S. House Ways and Means Committee.
“Thank you, Chairman Brady, Ranking Member Neal and members of the Committee for inviting me to testify on the effects of U.S. tariff policy on the economy and jobs today. I also want to offer special thanks to Subcommittee on Trade Chairman Reichert and to Representative DelBene for their support of strong trade policies that contribute so much to the success of Washington state’s economy.
“The Northwest Seaport Alliance is a marine cargo operating partnership of the ports of Tacoma and Seattle, and the fourth-largest container port complex in the country. I am also here on behalf of the Port of Seattle’s Seattle-Tacoma International Airport, which includes a thriving international air cargo facility.
“We are deeply invested in U.S. trade policy discussions because they directly impact our core business, the success of our customers and the lives of our local residents. Our marine cargo operations in our Seattle and Tacoma harbors support more than 48,000 jobs, while Sea-Tac’s air cargo operations help create over 5,200 jobs.
“The port and NWSA gateways are truly national assets, with more than 60 percent of the goods imported through the NWSA destined for the rest of the country. For example, $2.5 billion in imports of industrial and electric machinery move through our ports into Illinois, while Ohio and Indiana respectively import $1.9 billion and $1.2 billion worth of these products through our ports. This is true for exports as well; last year our gateway sent $1.89 billion in soybeans to China yet none are grown in the state of Washington.
“Our success as an airport and seaport gateway is inextricably linked to China. Last year, more than $27 billion in imports from China came through Seattle and Tacoma cargo terminals, with an additional $1.1 billion in imports from China via Sea-Tac. In addition, almost $5 billion in exports to China traveled through our cargo terminals in 2017, plus another $2.2 billion in exports to China through Sea-Tac.
“Creating a fair and level playing field for U.S. exporters competing in the global economy is one of the most important goals of U.S. trade policy. From opening new markets through trade agreements to enforcing existing trade rules, we all win when American businesses and entrepreneurs can sell more goods to more people throughout the world. There is clearly more that must be done to achieve that goal, and I think it is fair to say that the only debate we are having in this country is regarding what are the best tactics to achieve our desired outcome.
“While there are justifiable concerns about China’s trade practices, we continue to believe that productive engagement and negotiations are the best path to ensuring a fair and level playing field for mutually beneficial trade. The U.S. must be clear on the desired remedies sought, and then tariffs should be a measure of last resort that are narrowly targeted to address the problem and minimize the unintended impacts on Americans.
“While it is impossible to truly estimate the impact of these tariffs, roughly $8 billion in two-way trade through our airport and seaport will potentially face some level of increased tariff. The American Association of Port Authorities estimates that for every $1 billion in exports shipped through U.S. seaports 15,000 jobs are created, and the converse is likely true as well, which means that this $8 billion in trade likely represents 120,000 jobs.
“Cherries are a good example of this potential impact. The Northwest cherry harvest creates an estimated 19,000 jobs and $540 million in economic impact. About 30 percent of this crop is exported, a majority shipped by air through Sea-Tac. China is the top export market for Washington cherries, buying 2.9 million cases valued at $127 million each year. If the Chinese market is closed to these exporters, they are going to have a very difficult time finding alternative markets for their seasonal, perishable crop.
“In closing, as large gateways for two-way trade, the Port of Seattle and The Northwest Seaport Alliance are deeply invested in U.S. trade policy discussions because they impact our core business. We believe that over the long term, we must continue to advocate loudly and consistently for new market access opportunities throughout the globe.
“Thank you again for the chance to participate in today’s hearing, and I look forward to responding to your questions.”
About The Northwest Seaport Alliance
The Northwest Seaport Alliance is a marine cargo operating partnership of the ports of Seattle and Tacoma. Combined, the ports are the fourth-largest container gateway in North America. Regional marine cargo facilities also are a major center for bulk, breakbulk, project/heavy-lift cargoes, automobiles and trucks.
Source: The Northwest Seaport Alliance
