From my colleague and fellow CPA Board member Michael Stumo--Dan
Here is a valuable resource for those going through the text of the new Fast Track bill to determine whether or not it’s any better than the Baucus/Hatch/Camp version that was rejected last year.
From CPA’s perspective, it is not. No balanced trade. Vague/toothless currency language. Nothing new on foreign border taxes. Insufficient language on state owned enterprises. ISDS/global court system provisions don’t address treaty forum shopping by foreign companies or provide for a rationale as to why the nation’s court systems are not good enough. Etc.
No analysis as to why past agreements worsened our trade performance, and thus no corrections for past failures.
No increased role for Congress. No ability to rein in executive branch which does what it wants. No addressing the fact that they will be merely ratifying past executive negotiations rather than guiding future ones. No curtailment of excessive designation of negotiating text as “classified” at the whim of the USTR, without a solid national security rationale.
Instead - export opportunity/trade distortion/regulatory harmonization happy talk.
New TPA Bill Nearly Identical to Last Year’s Failed Effort
Side-by-Side Comparison Shows Very Little Changed from Baucus-Hatch-Camp TPA
The TPA bill introduced yesterday is almost identical to the bill introduced in January 2014 by Sens. Baucus and Hatch and Rep. Camp.
See for yourself. This side-by-side comparison of the two bills shows that the legislation essentially changed in only two areas: it includes a negotiating objective on human rights, and it includes what authors describe as a third process to turn off fast track, but only after the agreement is finalized, and even though Congress already holds the authority to change its own rules.
Here’s the bill s side by side, 2014 (Voted Down) vs 2015:
Ways and Means Committee Ranking Member Sander Levin yesterday also released a detailed document laying out how the new TPA bill falls short – just as last year’s version did as well.
Michael Stumo, CEO
Coalition for a Prosperous America
Obama officials ramp up trade pressure with 50-state report--Once again the propaganda machine is in high gear.
Obama officials ramp up trade pressure with 50-state report
Once again the propaganda machine is in high gear. Of course exports are good for jobs and the economy, dah! The issue is the NET trade in goods....NET! The trade agreements we negotiate don't keep imports from being dumped in our markets which overwhelms the positive benefits of exports. The proof of this lies, in of all things, the facts! WOW--How about them apples--I mean facts!!! We have an accumulated trade deficit in goods of over $10 Trillion over the last 20 years; and a total accumulated trade deficit in goods and services of over $8.8 Trillion! Along with this we have allowed our Manufacturing sector to be undermined as it has gone from over 20% of GDP to 11%. Not only do we have this huge negative trade deficit accumulating more everyday, but we have a net loss in jobs in the MILLIONS!!!
We also fail miserably at preventing non tariff trade barriers from overwhelming the, just negotiated, reduction in tariffs and thus keeping many of our exports from being cost competitive, AGAIN! This happens virtually with every trade agreement we have made. Or, we just plain don't negotiate out the non-tariff trade barriers already in place.
What is a must, is a focus that brings us "BALANCED TRADE" not one way trade. Net job creation, not destruction, net increase in GDP-not a huge NET negative. To focus on just one side of the trade equation is not only completely innacurate and deliberately misleading but borderline jury-rigging at the expense of the future economic health of our Country and future generations. But this is just what the special interests are doing.
Once again calling it like it really is, not the way they want it said.
My book, "American Made", is more about doubling the amounts of goods manufactured here than about Buy American, don't confuse the two..........
........Of course getting Manufacturing to be 20%+ of GDP versus today's 11% will significantly increase the amount of American made goods purchased by Americans, but it will also increase the amount of American made goods exported to the world.
Why? As discussed more fully in the book, if we commit ourselves, as a Country, to rebuilding our global competitiveness through policies that foster "BALANCED TRADE", rational and cost effective regulation overhaul, a globally competitive tax system, sound energy policies, and a rebuilt infrastructure, we will see Manufacturing and our Middle Class blossom here at home.
Balanced Trade means paying as much, if not more attention to imports driven by Trade "Cheaters" as we do on increasing our export opportunities, and actually increasing efforts on both. It does little good to focus on exports into countries that stoop to Trade Cheating to gain an export advantage. Why? Simple, if they Cheat on their exports they will, and do, also Cheat when it comes to keeping our exports out of their home markets. This has happened with every so called "Free Trade" we ever negotiated, as they put in place non-tariff trade barriers to replace their tariffs and we do little if anything to stop them. The proof is an accumulated negative trade balance in goods of over $10 TRILLION in the last 15- 20 years.
Trade barriers like VAT (Value Add Tax) systems that get rebated to their companies when they export and added to our products when we "TRY" to import to them, which significantly decreases their costs to export and increases our costs to import. Our companies get no such rebate of our income taxes to foster exports!!!!! Trade barriers like currency manipulation, which includes currency devaluation and then pegging the devalued currency to the dollar so they don't ever lose this "subsidized" advantage (40-50% for China) and also includes regulatory barriers on our products. In extreme cases like Steel, the Chinese Government owns their companies and prevents foreign steel companies to build operations in China or own controlling interest. in fact for over a decade the limits on foreign ownership were 10% or less. Now that is PROTECTIONISM!!!! Then they insist on being allowed to export their massive excess capacity to the world at what ends up being ILLEGALLY DUMPED prices.
Runaway regulations like we have today only drive up our cost to produce and their regulatory environment is non existent. Environmental regulations in particular. US Steel companies like Nucor produce a ton of steel with 1/10 to 1/4 the emissions, in particular CO2, than steel producers in China. Yet as our costs are driven up the tons of steel produced here are increasingly being produced there and pollution/ton is 4-10 x greater. How does that make environmental sense????
I could go on and on for the other issues mentioned in the second paragraph, but I won't. Read the book and remember all my book profits will be donated to various Veterans groups that I and Nucor have supported over many years.
Read the book and become a Champion for a healthier economic future for our Country, our Middle Class, and future generations. A healthy America is a better America for us and the World.
Why A Blog?
I want to help educate Americans about what we can do and need to do to drive economic growth, massive job creation, rebuild our Middle Class, and most of all provide the opportunity for our Children and all future Americans through the Free Enterprise System for a better tomorrow! In doing so we will have a stronger, healthier America and in spite of our imperfections the world will be better off because of our continued leadership in the world.
Also, I want to share my experiences on leadership and what it takes to develop the full potential of individuals, build a successful team, company and long term success.”
Several years ago I started Red Shirt Fridays, asking everyone at the company to wear a red shirt as a gesture of support for our troops. It was something that stuck. Every Friday I wear a red shirt. I hope you will, too