US Exports are still small - globalization is more important for China and Germany

Exports are still only 11.1 percent of US GDP while trade is 35 percent of Germany and just under 25 percent for China. The fear that globalization is holding back the US is overdone. Similarly, the idea that we can export our way out of slow growth is fallacy. At only 11 percent, the impact of even a doubling of exports will not have a strong impact on US growth. Additionally, much of US growth is coming in the form of services which will not affect the key manufacturing sector. Manufacturing jobs were negatively affected by global competition, but the more importantdriver of lost manufacturing jobs was an increase in productivity.

Exports are, however, very important for China and Germany the to largest exporters around the world. For them trading is a life blood. they have strong interest to see that free trade is followed around the world. This important role of trade for these two surplus countries will be an critical economy theme in the next two years. These will be the countries who will have to be at the vanguard of global trade