At a Joint Economic Committee hearing last week focused on the need to facilitate free digital trade, U.S. Rep. Erik Paulsen (R-MN) underscored the importance of digital commerce and its powerful impact on U.S. economic growth and jobs.
The bipartisan hearing examined the United States’ leading role in digital trade and the costs associated with impediments to free digital trade. Covering a wide range of economic activity, examples of digital trade include orders transmitted over the internet, international banking and data transmissions to manage supply chains around the world, lawmakers said.
Paulsen, the co-founder and co-chair of the bipartisan House Digital Trade Caucus, said digital trade has staying power.
“There are hundreds of thousands of U.S. small businesses in nearly every sector, from manufacturing to financial services to mining to agriculture and food, in every single state and every single congressional district across the country that are harnessing the power of the internet and new technology to reach new customers around the world,” Paulsen said during the hearing.
Digital trade accounts for more than half of all U.S. service exports and is behind nearly 67 million U.S. jobs, added Paulsen.
Lawmakers agreed that businesses and consumers gain a great deal from digital trade. The Office of the U.S. Trade Representative has noted foreign barriers to trade faced by American companies when engaging in the digital economy and has numerous areas they are monitoring and enforcing. The government has also detailed its goals for U.S. trade negotiations that include expanding digital trade.
During the hearing, Paulsen sought to find ways to help small businesses overcome barriers and grow their companies through improving the free flow of digital trade.
Specifically, Paulsen introduced and questioned Nick Quade, the general manager of Relay Networks, a Minnesota-based provider of network, wireless and telecom equipment, in an effort to acquire information on how best to assist small businesses through legislative efforts.
“Advancements in technology mean that digital trade is capable of delivering ongoing improvements in production, distribution, and value for Americans,” said U.S. Rep. Mike Lee (R-UT), the vice chair of the Joint Economic Committee. “American consumers and businesses greatly benefit from the ability to buy and sell across borders and gain access to new products and customers.”