The VAT already does that,
No it doesn't. VAT does not facilitate economic freedom. VAT is a nightmare and most countries that use it also have an income tax.
In some ways it is amazing that America has stayed competitive with Europe since our products have embedded taxes and theirs have much of them taken out when they are exported.
The FairTax would easily out-compete the VAT in creating new jobs and economic growth.
And you are naive to think we will really adopt the fairtax and completely eliminate the income tax. When we do adopt a sales tax, it will be in conjunction with the income tax no matter what the current bill says. BTW, that is why Europe still can't beat us. Even with the VAT their government is so big Europe has to maintain a large income tax as well.
The FairTax would easily out-compete the VAT in creating new jobs and economic growth.
The fairtax has only limited advantages over the VAT, mainly being quite a bit simplier. The impact on products will be pretty much the same with some benefit in compliance costs.