Expandingand deepening trade relationships produces stronger national security. That was the message today from newly confirmed Secretary of Defense Ashton Carter. And he‘s calling for a “full-court press“ to advance American trade with other nations. 

Speaking at the Global Chiefs of Mission Conference in Washington, Secretary Carter noted that “by underwriting and accelerating economic growth, new trade agreements like the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership stand to help restore our nation‘s fiscal health and reverse dangerous defense cuts that are threatening our military readiness and technological edge.”

Economic cooperation and prosperity are intrinsically linked with global security. Nations with stronger economies can devote more resources to national defense, and strong economic ties discourage conflict and war. As Secretary Carter put it, “Prosperity will allow our partners to devote more of their own resources to securityfrom humanitarian assistance and disaster relief, to maritime operations and counter-terrorism. Shared growth generates magnetism: attracting new partners from around the region. While far from a guarantee, strong trade patterns also help build trust and raise the cost of conflict, while assuring our allies and partners of our long-term commitment to a shared and interdependent future.”

This reinforces what Ways and Means Chairman Paul Ryan (R-WI) said last month: “We just cannot ignore the foreign policy implications here,” Ryan said. “When we complete trade agreements we strengthen our ties with other countries. Our economy is stronger and our national security is too. It‘s easier to live in a neighborhood thats friendly, prosperous, and free.“

The text of Secretary Carters remarks on trade are below, and you can watch his entire speech here. 

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Full-Court Press on Trade

We also need Congress support for some of the most important investments we can make in our future prosperitynew trade agreements, including Trade Promotion Authority for the President. We must be allowed to clinch new and historic trade agreements spanning from Europe to Asia.

I offer this as a Secretary of Defense, convinced that a full-court press to strengthen our nations trade relationships will reinforce our nations securitywhile neglecting them could undercut it.

The arithmetic is straightforward.

We know that 95% of the worlds customers live beyond our borders, and the spending power of middle-class consumers in todays emerging markets is expected to increase by 20 trillion dollars over the next decade. Also consider that, just five years ago, the U.S. and Europe accounted for around 50% of global middle class consumption. Asia accounted for about 20%. Five years from now, the U.S. and European share of middle class consumption will shrink to about 30%, while Asias will rise to 40%. And this trend will continue as Asias 570 million-strong middle class grows to about 2.7 billion consumers over the next 15 years.

These facts help explain why, since the 2008 recession, our nations exports have contributed to almost a full third of our economic growthexports that support more than 11 million American jobs. At the same time, these numbers tell only part of the story because todays global trade in services and many products defies traditional import and export categories. The U.S. jobs we can chalk up to international trade would be even higher if we fold in American workers outsize contributions to global value chains.

The bottom line is that, as global trade intensifies, we need to be both at the helm, and in the thick of it. Three years ago, trade accounted for about a third of global GDP. In a decade, it could approach half of global GDP. Americas economy, and our security that depends on it, cannot afford to be left behind.

By underwriting and accelerating economic growth, new trade agreements like the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership stand to help restore our nations fiscal health and reverse dangerous defense cuts that are threatening our military readiness and technological edge.

Deeper trade relationships also serve our broader strategic interests. Prosperity will allow our partners to devote more of their own resources to securityfrom humanitarian assistance and disaster relief, to maritime operations and counter-terrorism. Shared growth generates magnetism: attracting new partners from around the region. While far from a guarantee, strong trade patterns also help build trust and raise the cost of conflict, while assuring our allies and partners of our long-term commitment to a shared and interdependent futuresomething that Secretary and General Marshall clearly understood. And the new trade agreements we seek to concludeagreements like the Trans-Pacific Partnershipwould bolster the fundamental principles underpinning a rules-based international order, including accountability, transparency, and the rule of law.

For all these reasons its no coincidence that the European Union emerged from habits of cooperation rooted in a fledgling coal and steel community, or that the United States first Free Trade Agreement30 years agowas with the State of Israel.

For decades, the United States military has helped make the world safe for global commerce that, in full bloom, is delivering prosperity to billions. Americans deserve to fully benefit from the historic opportunity that they as a nation have created, and that they as taxpayers have underwritten.

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