Finally, I'm going to talk about how trade is vital to meeting those challenges that we all face. As you can see from this trendline, American farmers have been reaping years of high productivity and high exports. This upward trend speaks volumes about the strengths of U.S. agriculture. It shows the increasingly global nature of agriculture. And, it clearly shows the law of comparative advantage at work, the theory that forms the backbone of trade.
Trade helps countries focus on producing what they do best.
This allows other countries to focus on what they do best. This exchange of goods and services rewards efficiency and creates wealth, which in turn enlarges the economic pie for everyone. When barriers are erected to block the free flow of goods, the opposite occurs. You get inefficiency and high costs. Let's take cars as an example.