Posted on 05/12/2007 5:02:32 AM PDT by Ultra Sonic 007
WASHINGTON, D.C. - The “New Trade Policy” compromise announced yesterday by House Democratic leaders, House Republicans, and the Bush administration will become a simple sell-out of U.S. producer and worker interests if not quickly accompanied by more fundamental changes in America’s global trade strategy, the U.S. Business and Industry Council (USBIC) charged today.
According to USBIC President Kevin L. Kearns, “Trying to raise world labor and environmental standards through trade policy is a worthy goal. Unfortunately, given the number of third world trading partners and the size of their combined populations, the measures proposed in the New Trade Policy are completely unenforceable. To date the United States has not been able to enforce current trade agreements with provisions on, for example, subsidies or theft of intellectual property. Why would anyone expect a better track record on labor and environmental provisions simply because they too become part of trade agreements? More fundamental changes to trade policy are necessary to accomplish our goals of restoring a healthy manufacturing and technology base, as well as a rising standard of living for all Americans.”
Added Kearns, “This New Trade Policy completely ignores numerous other and vastly more important problems with U.S. trade policy and world trade patterns that are endangering not only America’s economic future, but also the sustainability of the entire global trading system.”
“The biggest such problems,” explained Kearns, “are currency manipulation, pervasive subsidies, intellectual property theft, discrepancies in tax systems (particularly Value Added Tax rebates), and numerous other non-tariff barriers used by most foreign governments to distort world production patterns and trade flows – usually at the expense of U.S. domestic companies and their workers. Further, Washington’s decision to focus trade expansion on low-income countries unable to afford U.S. products, as well as regions addicted to export-led growth strategies, represents a failed approach.”
The latter approach inevitably has helped boost the U.S. trade deficit to already dangerous levels because it involves countries too poor to become consumers of U.S.-made goods but able to become producers of goods destined for the U.S. market. Thus current U.S. trade policy, which is only marginally altered by the New Trade Policy, keeps moving the entire world economy ever closer to a dollar crash and deep depression.
Because of its narrow approach, argued Kearns, the New Trade Policy “is almost completely irrelevant to the interests of America’s domestic manufacturers, farmers, ranchers, and service providers and their employees – not to mention the global imperative of restoring healthy, balanced, and sustainable growth.”
“As a result,” he continued, “the new framework itself won’t change world trade flows one bit and doesn’t address the issues of unfair competitive practices faced every day by U.S. producers and their employees at home and abroad. Nor will it offset the enormous labor glut that is the main cause of rock-bottom third world wages. Therefore, the New Trade Policy won’t preserve or create a single high quality American job or reduce the trade deficit by a penny – much less boost incomes abroad enough to begin to re-balance trade flows.”
In addition, noted Kearns, “The most problematic provisions of the New Trade Policy deal with Strategic Worker Assistance and Training (SWAT), which are naive at best. Promising workers training for good replacement jobs may assuage some consciences but is misleading. Due to current trade policies, this nation is not now creating any jobs in internationally traded industries. These are the higher-paying, better-benefits jobs. Promising portability in health care and pensions likewise sounds good, but these two traditional benefits are being phased out as remaining American businesses try to survive in the globalized economy. As for improving education and technical skills, we have been trying to do so since the Soviets put up Sputnik fifty years ago. No one has yet figured out how to do so successfully. In fact, the best way to assure decent jobs, good incomes, and reasonable benefits is to preserve and expand manufacturing, technology, and high-tech service bases – as well as to see that our farmers and ranchers survive.”
“No wonder ardent outsourcers ranging from the U.S. Chamber of Commerce to Republican Congressmen like Jim McCrery and Roy Blunt are so pleased,” said Kearns. “They know that this deal will permit multinational companies to continue the unabated increase of their profits by hollowing out America’s productive base.”
Among the measures USBIC proposes to address America’s biggest trade policy challenges include:
– imposing a moratorium on all new U.S. trade agreements and rejecting renewal of fast track trade negotiating authority for President Bush until the United States figures out how to reduce our massive current account imbalances, to enforce effectively existing trade agreements, and to make trade policy work for all Americans.
– identifying currency manipulation – along with a host of other similar practices – as a substantial and actionable trade subsidy, and applying countervailing duties against imports from offending countries. This goal could be accomplished through prompt passage of the Ryan-Hunter currency manipulation bill or similar, broader measures that attack subsidies across the board.
– promptly passing the bipartisan border equalization tax measure about to be introduced by Reps. Bill Pascrell (D-NJ), Michael Michaud (D-ME), Duncan Hunter (R-CA), and Walter Jones (R-NC). This bill would redress the inequities faced by U.S.-based producers by the World Trade Organization’s failure to address the trade distortions created by foreign Value Added Tax systems and their rebates to exporters.
– placing a cap on U.S. trade deficit by limiting it to one percent of GDP. Separate measures introduced in the last Congress by Rep. Michael Michaud (D-ME) and Sen. Byron Dorgan (D.-ND) would prevent the U.S. trade deficit from spiraling out of control and restore the balances necessary to preserve the world trading system.
According to Kearns, “The New Trade Policy represents a small, but likely ineffective, step in the right direction. If we really want to solve the problem of our massive current account deficits and the wrenching dislocations they cause, much stronger medicine is necessary. The longer we wait to take effective action, the more difficult it becomes. USBIC strongly supports the efforts of genuine trade reformers among House Democrats to use the above-mentioned and other related measures to hold their leaders accountable for their promises to turn U.S. trade policy into an engine of domestic growth, not to continue as an incentive to offshoring factories and jobs.”
http://www.gohunter08.com/inner.asp?z=11
Keeping American Industry and Jobs in the U.S.
“American workers are the most productive and innovative labor force in the world. Unfortunately, they are asked to compete in an unfair environment against other workers who make only a fraction of a living wage and are employed by companies that face few, if any, responsibilities to the environment or the long-term prospects of their employees. Our domestic manufacturers are forced to compete against foreign companies that benefit from their country’s currency and regulatory regimes. Ominously, China is cheating on trade and using billions of American trade dollars to build ships, planes and missiles at an alarming rate while, at the same time, taking millions of American jobs. I will reverse this “one-way street” with a new policy of fair trade for the American worker.
American workers are the most productive and innovative labor force in the world.
Yes we are.
Unfortunately, they are asked to compete in an unfair environment against other workers who make only a fraction of a living wage
What does that mean? They earn so little they die?
and are employed by companies that face few, if any, responsibilities to the environment or the long-term prospects of their employees.
Yes, just like many American companies 100 years ago.
Our domestic manufacturers are forced to compete against foreign companies that benefit from their country’s currency and regulatory regimes.
Yes, China overpays for raw materials and undercharges for finished goods.
and using billions of American trade dollars to build ships, planes and missiles at an alarming rate while
That's true.
at the same time, taking millions of American jobs.
We're up to an alarming 4.5% unemployment rate. Maybe they didn't take millions?
I will reverse this “one-way street” with a new policy of fair trade for the American worker.
So spill, what's the policy?
I do not agree with the fair trade idea if that means we think we can didtate wages and environmental regs in other countries. Hunter makes a good case for renegotiating the terms of some agreements, though. We needs to always be looking out for our interests as things change.
“Would you rather be a lawyer’s proctologist or a proctologist’s lawyer? They both do pretty much the same thing to each other...”
ROTFLMAO!!
Like the drywallers
Carpenters
roofers
who lost their jobs to illegal immigrants.
Well, they weren’t really a middle class, in the sense of being bourgeoisie, and they certainly weren’t a class, in the true sense of the word. They were unionized workers who ended up in the suburbs with 2 cars in the garage.
How can they be your jobs? They are not, and never were.
read later
Bump for a later read. From what I’ve heard so far...not good.
Here’s just some interesting tidbits on the election:
http://seattlepi.nwsource.com/national/1131AP_Children_Glance.html
Presidential candidates’ children
By THE ASSOCIATED PRESS
A look of the children of the 2008 presidential candidates:
DEMOCRATS:
-Delaware Sen. Joe Biden: Sons Beau, 38, and Hunter, 36, and daughter Ashley, 25. An infant daughter, Naomi, died in an auto accident in 1972, along with Biden’s first wife, Neilia.
-New York Sen. Hillary Rodham Clinton: Daughter Chelsea, 27.
-Connecticut Sen. Chris Dodd: Daughters Grace, 5, and Christina, 2.
-Former North Carolina Sen. John Edwards: Daughters Cate, 25, and Emma Claire, 9, and son Jack, 6. Another son, Wade, died in an auto accident in 1996 at age 16.
-Ohio Rep. Dennis Kucinich: Daughter Jackie, 24.
-Illinois Sen. Barack Obama: Daughters Malia, 8, and Sasha, 5.
-New Mexico Gov. Bill Richardson: No children.
REPUBLICANS:
-Kansas Sen. Sam Brownback: Sons Andy, 19, and Mark, 9. Daughters Abby, 20; Elizabeth, 17; and Jenna, 9.
-Former Virginia Gov. Jim Gilmore: Sons Jay, 23, and Ashton, 19.
-Former New York City Mayor Rudy Giuliani: Son Andrew, 21, and daughter Caroline, 18.
-Former Arkansas Gov. Mike Huckabee: Sons John Mark, 30, and David, 27, and daughter Sarah, 24.
-California Rep. Duncan Hunter: Sons Duncan, 30, and Sam, 24.
-Arizona Sen. John McCain: Sons Doug, 47; Andy, 45; Jack, 21; and James, 18. Daughters Sidney, 40; Meghan, 22; and Bridget, 16.
-Former Massachusetts Gov. Mitt Romney: Sons Tagg, 37; Matt, 35; Josh, 31; Ben, 28; and Craig, 25.
-Colorado Rep. Tom Tancredo: Sons Ray 40, and Randy, 36.
-Former Wisconsin Gov. Tommy Thompson: Daughters Kelli 36, and Tommi, 35, and son Jason, 31.
How can they be your jobs? They are not and never were.<
The were American’s jobs, and they always were until they outsourced. The US = the U.S.. :o)
This is taken from a speech delivered by Duncan Hunter’s 2008 Announcement Speech - Found as part of many DH items on Blog4President.US -
http://blog.4president.org/2008/duncan_hunter/index.html
“America’s Arsenal of Democracy is reflected in the thousands of factories, plants and businesses that make domestic products in peacetime, but can be called on to make military equipment in a time of war.
Three times in the last century we saved the world for freedom: WWI, WWII and the Cold War.
In World War II, our manufacturing base made more than: 100,000 tanks; 2.4 million vehicles; 36 billion yards of cloth; 3 million rifles; 41 billion rounds of ammunition; and 41,000 artillery pieces.
The Arsenal of Democracy carried Eisenhower’s forces to Berlin and paved the way for the Marines in the Pacific as they pushed the Japanese back to their mainland. This great arsenal, our industrial base, was important to collapsing the Soviet Empire and the Berlin Wall because it provided the strength in Ronald Reagan’s stand against the forces of evil.
Today my friends, the Arsenal of Democracy is being pulled away. Massive production of textiles, steel and machine tools are no longer found in South Carolina, or Ohio, or Pennsylvania, nor dozens of other states. In fact, as Chairman of the Armed Services Committee, when I sent my team to get more steel to protect troops against roadside bombs in Iraq, they found only one company in the U.S. making armor plate grade steel.
When a Swiss company cut off the critical component for our smart bombs only one U.S. company remained which could supply it.
Now, if you want to find where our Arsenal of Democracy has gone, you must look in places like Korea, France and, perhaps more ominously, China.
China is cheating on trade. They are piling up over 200 billion U.S. dollars each year as a result and they are buying ships, planes and missiles with American trade dollars.
They have purchased Russian Sovreignny Class missile cruisers designed to destroy American aircraft carriers.
They have built between 750 and 1,000 medium range ballistic missiles and they have 17 submarines under construction.
How are they cheating? China gives 17% tax rebate to their exporters and a 17% penalty to our businesses who export to them. In addition, they maintain a 40% currency devaluation just to make sure the U.S. business doesn’t win.
This is not free trade. This is not fair trade. It’s cheating and if we put up with it, then we are disserving not only business and workers, but also our security.
If this was a football game, it means China has put 74 points on the score board before the opening kick-off.
Our own head of the Federal Reserve Board, Mr. Bernanke, went to China a few weeks ago and wrote a speech describing China’s currency manipulation as a “subsidy.” Then he pulled those words out so as not to anger his Communist hosts.
I thought Republicans didn’t believe in appeasing Communists.
This isn’t a game. It is pulling apart American’s Arsenal of Democracy which has saved the world three times in the last century and will be called on to do so again.
As President, I will make sure that our businesses and workers get a level playing field. I will do this because our security is at stake.
We will be able to do this because we still have the most important thing in a trade deal: we have the market, and to reach our market other nations will have to make a deal that gives our citizens a chance to win.
Today starts a time for choosing for every American manufacturer and worker. Choose to give in to China’s cheating, to the one-way street that takes good profits, businesses and jobs and makes us a debtor nation to a country which has never shown mercy.
Or, choose to join me to enforce fair trade with a two-way street that gives every business and worker the chance to succeed.
Will you join me?”
Yes, I believe all countries with a VAT do the same.
In addition, they maintain a 40% currency devaluation just to make sure the U.S. business doesn’t win.
Over paying for their raw materials and undercharging when they sell makes it difficult for their companies to make a profit and difficult for our companies to compete.
The rest sounds good but I didn't see any specifics for making trade "fair".
It isn’t “free’ either, but Hunter would make it “fairer” for American businesses and workers, and keep vital military items from being produced by potential enemies.
Right now we’re helping build up China’s military on the backs of the Chinese workers, and at the expense of Americans.
NAFTA and CAFTA didn’t turn out all that good for America.
How's that?
We’re already having trouble keeping businesses from outsourcing.
This makes it even easier, so it will only get worse.
I admit, I’m not a globalist nor a NWO guy. And I don’t claim to be an expert on the subject.
But let me ask you - what are we getting out of the two that benefits America?
Whatever comrade.. No one here in America is entitled to a job..
And those insourcers are killing us too.
I admit, I’m not a globalist nor a NWO guy.
Neither am I.
But let me ask you - what are we getting out of the two that benefits America?
More exports, more imports.
Too much government regulations and union demands, IMO.
More exports, more imports.
Am I wrong in thinking we're paying more in tariffs (if that's the correct word) on our exports and they're not on our imports from outside?
More exports, more imports.
-
WHAT are we exporting more of?
Other than our factories, and our national treasure?
All we’re doing is importing more, and more, and more.
We’re losing our ability to manufacture. We’re losing our programming and technical abilities. We’re amassing trillions of dollars in debt.
In what way have we benefitted from “free trade”?
Seems to me, like we’re very quickly, turning America into the next Rome.
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