How would President Trump stop a business from moving overseas?

American Thinker ^ | April 28, 2016 | Silvio Canto

[expat_panama]

Let me agree with Mr. Trump, and supporters, that it's a very bad idea for U.S. companies to move overseas and take those jobs elsewhere.

I have personally seen the consequences of these moves in Mexico.

You can see all of these companies in the industrial sectors of Monterrey, Queretaro, Tijuana, and other Mexican cities.

They are down there hiring Mexicans, from floor sweepers to engineers to lots of people with university degrees. They are hiring professionals from the top schools south of the border.

Again, I don't like it but what can a U.S. president really do about it? What legal authority does a U.S. president have...

...the reasons that US companies move to Mexico. This is the one that caught my attention:

Duty-free imports, tax credits & incentives: maquiladoras operate in free trade zones, enabling companies to import materials and equipment without paying taxes or duties, then re-exporting finished products.

The Mexican government also offers a variety of incentives, from capital equipment grants and help with infrastructure to real estate grants, the Aerospace Training Center in Querétaro and tax credits.

How does a U.S. president stop this? He can't unilaterally, no matter how much pressure he puts on the executives not to make the move.

Furthermore, renegotiating NAFTA would mean undoing the economic infrastructure that ties Mexico, Canada, and the U.S. It would likely mean that Congress...

...Trump is raising a lot of expectations rather than proposing solutions to fix the problem of jobs going overseas.

Again, I hate jobs going overseas as much as Trump. At the same, all I've heard so far are slogans rather than solutions. In other words, this is a lot more complicated than we've heard from Mr. Trump. d from Mr. Trump.

[expat_panama]

The question here's "how to do it?".

Sure, the easy first thoughts from some will be that anyone who asks the question is a traitor but be that as it may we still need an answer. Back in '08 O promised to see that the uninsured got insurance, and while lots of folks imagined 'free' insurance what really happened was that anyone who refused to buy it got fined, imprisoned, or shot for resisting. Is that how we'll keep Americans on the payroll, by confiscating all the "you didn't build that" stuff?

[agere_contra]

Establish zones in America that work to the same competitive rules as the overseas locations.

[VitacoreVision]

You the economic environment so favorable that companies don’t want to leave.

[kjam22]

In the debates King Trumpy said he would slap a huge tax on them. He used the example of Ford building a new plant in Mexico and said he would just tax them so that it would unprofitable for them. He didn’t use the word, but I will... by DECREE I assume.

[GOPJ]

Furthermore, renegotiating NAFTA would mean undoing the economic infrastructure that ties Mexico, Canada, and the U.S.

The 'economic infrastructure' that ties us to Mexico is abusive to American workers. Trump's position: American citizens first - is a sane position - and long overdue...

[tophat9000]

Some seem to be confused... you don’t “stop” them.

But neither to do you make it attractive to them to move overseas.

Our laws our tax policy our trade policies make it attractive to move job out of the country...

you first start by taking away the attractive policies to move jobs out of the country

you can do that before you start putting unattractive laws in place that make.job less likely to move out of the country

it works just the same way as States that drivers jobs and Company out of their state like California..... or states that attract jobs to them like Texas

the same economic rules that make companies attracted to one state and leave another state ....work internationally

[grania]

Part of it is educating US consumers to demand made-in-the-USA products. Younger generations seem clueless that they can help solve the problem. Another part is framing taxes in a way that there’s no advantage to going overseas.

[WhiskeyX]

“The question here’s “how to do it?”. “

A starting point is to require future trade agreements to impose reciprocity in the terms. Current trade agreements allow foreign access to our markets while denying access to their markets.

[expat_panama]

Good Morning All!  Yesterday stock indexes closed flat/down in mixed trade and now stock index futures see more to come.  Metals have been climbing (gold/silver @ $1,258.75 and $17.43) while metals futures see even more gains.

Today's "GDP Day"!

8:30 AM GDP-Adv.
8:30 AM Chain Deflator-Adv.
8:30 AM Initial Claims
8:30 AM Continuing Claims
10:30 AM Natural Gas Inventories

--and---

No, VAT Taxes Are Not Bad for Small Bus. - William Gale, RealClearMarkets
All Candidates Want to Keep Tax Code the Same - David Cay Johnston, DB
Gig Economy Work: Desirable and Detestable - Rick Wartzman, Fortune
How Overregulation Is Wrecking the Economy - Peter Ferrara, Investor's
Treasury & Fed Team Up to Ignite the Next Meltdown - Ike Brannon, RCM
Is Guaranteed National Income a Poverty Cure? - Michael Tanner, NRO

[PapaBear3625]

President Trump would have a lot of influence over Congress to change the tax laws.

How many Republican congressmen would want to be called out, by name, in a presidential address, as having voted in favor of exporting American jobs? During primary election season?

[Sasparilla]

American Thinker didn’t think too hard about this, did they?

[RFEngineer]

“how to do it?”.

Bring reason to regulation. If you must have regulation, then make sure it applies equally to imports, at least from a price impact perspective.

Today we are literally chasing businesses away. If you stopped doing that, you may find that they don’t leave.

Mexico is a perfect example. The cost of manufacturing is a fraction of what it is in the US and labor costs are not the only reason.

[Thibodeaux]

there are no union free zones. even in right to work states unions harass business with threats of death by politics

there are duty free zones where components can be imported and then reexported

[Alberta's Child]

Why "zones?"

How about establishing the entire U.S. as a place where companies can have the same competitive rules as overseas locations?

[cincinnati65]

One of the easiest ways to motivate companies here is to include stipulations in the terms of government bids, and trickle them further down to grants to states where their bids have to include the same stipulations.

For example, companies bidding must complete at least 75% of the manufacturing in the U.S., with no less than 60% parts manufactured in the U.S. Or, companies who have moved a factory of more than 300 employees from the United States to a location outside the United States within the past five years, are prohibited from bidding.

Stuff like that.

Even it that disqualifies some good companies, other companies will have to spring up to fulfill the bids.

[SaraJohnson]

They expect too much to keep their business here already. They act like little princes...big fat fascists.

Look at them all line up to threaten NC that if they don’t let men into women’s bathrooms, they will cut off their business.

[Tupelo]

What can a President do?
Same as Ronald Reagan did when he saved Harley Davidson.

He can lobby Congress to make and change laws.
He can use the “Bully Pulpit” to speak against any move. If he can turn the American People against such a move.......................

The first is iffy, considering the current congress is in the pockets of the Chamber of Commerce and big Corporations.

The second, coming from a popular president would be very effective.

[agere_contra]

I have to disagree: we should not presume to educate Americans over how they use their freedom of association.

Your countrymen should continue to buy on merit from whomever they wish - we just need to remove the barriers that thwart American wealth-producers.

Give businesses a competitive environment and then the American-made product will become competitive.

[SoothingDave]

Build a wall

[meatloaf]

Eliminate the corporate income tax for companies that manufacture their products in this company and/or base their services including customer service, entirely in this country. That may be the only way to get around the WTO and being sued.