As U.S. government support to agriculture declines, understanding the economic impacts of agricultural trade and how markets and competition are affected will take on added importance for farmers, agribusinesses, policy makers, and agricultural leaders. International trade accounted for 18 percent of U.S. GDP in 1996 compared to 12 percent in 1994. In fact, the United States is now more dependent on international trade than at any time since 1880-1914 when 16 percent of GDP was generated by merchandise trade.
Agricultural trade contributes employment, income, and economic activity to the U.S. economy.
Estimated trade-impact multipliers for 1996 indicate that to produce one million dollars of agricultural exports required 15 workers. 32 of economic activity. Imports also generate jobs and create economic activity. Despite the contributions of international trade, some still believe that the U.S. should not participate in an open international trading system. Calls for increased protection and isolationism are heard in some quarters.