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The Importance of Trade Opportunities for Manufacturers

The importance of trade to small and medium-sized manufacturers was exemplified today by the testimony of Doug Hundt of Vermeer on U.S. trade relations with Brazil. In discussing the opportunities and challenges for Vermeer and other manufacturers before the Ways and Means Trade Subcommittee this morning, Hundt noted how over a quarter of its Iowa workforce – 700 hundred out of 2,400 employees – depends on Vermeer’s global sales.

Hundt also explained how manufacturers in the United States have the technology and products that Brazil and other countries need to meet their infrastructure and economic development goals. Hundt noted how Vermeer’s products can help cities in Brazil put in sewer systems efficiently without tearing up existing city streets. And his testimony provided even more examples of innovative products that can help meet the needs of the global economy.

The examples that Vermeer provided today are important reminders of the power of trade to sustain and grow manufacturing in the United States. Greater commercial engagement in Brazil and throughout the global economy is vital for our manufacturers to reach new customers and markets to grow jobs and manufacturing in the United States.

With continued headwinds in the global economy, the administration and Congress need to step up their activity to level the playing field for manufacturers in America.  From the development and approval of the Executive-Congressional partnership known as Trade Promotion Authority and the completion of comprehensive and market-opening trade agreements to high-level dialogues with key countries that keep trade and economic issues as top priorities, the NAM urges more robust progress and is committed to working aggressively in support of concrete outcomes to open markets and create opportunities for manufacturers throughout the United States.

Linda Dempsey is vice president of international economic affairs, National Association of Manufacturers.

 

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A Full Plate for the Next USTR

This morning, President Obama made it official this morning when he announced the nomination of Michael Froman to serve as United States Trade Representative (USTR).

Mr. Froman’s plate will be full as our global challenges mount with ongoing weakness in the global economy. However, these are issues that he has keenly been aware of in his position as deputy national security advisor for international economic affairs and in his prior work in and out of the government over the past two decades. Mr. Froman’s experience in international trade and with senior foreign government officials should be a strong asset as he becomes the lead trade official for the United States.

Trade is a vital issue for manufacturers as 95 percent of consumers live outside the United States. Opening new markets and leveling the playing field is critical for manufacturers’ success in creating more opportunities for the 12 million men and women who make things here, as well as for their communities and our economy.

Topping our list of action items:

First, market-opening trade and investment agreements. Recently, NAM President and CEO Jay Timmons laid out manufacturers’ goals for ongoing trade negotiations, and we remain hopeful that these talks can achieve the robust outcomes that are necessary to spur growth and innovation.

Second, the protection and enforcement of intellectual property (IP) rights globally. Manufacturers’ concerns over the theft of IP grow by the day. Challenges remain strong in India and China and in other parts of the world. If left unchallenged, these threats to IP protection will destroy manufacturers’ ability to compete—and compete fairly.

These are just two big issues that we must address as a nation. Manufacturers need action on a robust trade and investment agenda, and we stand ready to work with Mr. Froman to tackle these challenges in the days ahead.

Linda Dempsey is vice president of international economic affairs, National Association of Manufacturers.

 

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Let’s Not Let U.S. Inaction Be the Biggest Trade Barrier

On Monday, the Office of the United States Trade Representative (USTR) released its 28th annual National Trade Estimate (NTE) report on trade barriers to U.S. exports in virtually every country around the world.  In addition, USTR issued its fourth annual report on two specific types of barriers – sanitary and phytosanitary barriers to our food and agricultural exports and technical barriers to trade that impose non-tariff barrier standards, testing requirements and technical specifications.  A fourth report – on threats to intellectual property protection globally – will be released at month’s end.

The three reports released on April 1 provide a sobering reality to efforts to achieve our national goal of doubling exports between 2009 and 2014. Substantial and, in many countries, growing barriers limit greater U.S. sales and access to foreign markets. And while some of these issues can be addressed through existing international obligations under trade agreements, many of these countries are not part of agreements with the United States that would discipline such unfair barriers.

For manufacturers, these reports reinforce the importance of a robust trade agenda that is focused on opening new markets and setting in place strong disciplines on a host of unfair trade and investment barriers. For our nation’s manufacturers, trade and investment agreements are an export driver. The United States’ 20 Free Trade Agreement partner countries accounted for 48 percent of total U.S. manufactured goods exports in 2012. And looking at these reports on international barriers helps explain why.  Let’s make these opportunities a reality for growing manufacturing.

The newly announced Transatlantic Trade and Investment Partnership (TTIP) negotiations that will begin this summer with the EU and the ongoing Trans-Pacific Partnership (TPP) negotiations with 10 of our Asia-Pacific trading partners represent huge opportunities for the United States and our manufacturers to secure stronger rules that will break down many of the barriers identified in these reports. Investment treaty negotiations with China, India, and potentially several countries in Africa are also important to set in place basic rules of fairness for U.S. property – including intellectual property – located overseas.  Multilateral negotiations to expand customs rules and facilitate trade, to expand the Information Technology Agreement and to develop a stronger international services framework all would address many of the barriers identified in these reports. (continue reading…)

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2012 Trade Numbers Show Slow Growth

The overall 2012 U.S. trade data were released this morning by the Commerce Department, and the news was disappointing. While there was a decline in the overall trade deficit, another key indicator – exports – showed anemic growth.

U.S. goods exports in 2012 grew by only $66.7 billion, less than half the value of export growth between 2010 and 2011. This 4.9 percent increase in exports is far off the 15 percent rate of increase necessary for the United States to double exports by 2015 and create much-needed new economic opportunities for our manufacturers around the United States.

While global economic slowing has, no doubt, played a major role in these limited export gains, policymakers in Washington, D.C., should heed the call to action that these numbers represent.

With persistent global economic challenges expected throughout this year, the Administration and Congress must develop a greater sense of urgency in the effort to expand trade and achieve the doubling of U.S. exports by 2014. 

Exports are critical to manufacturers in the United States and more substantial export growth is vital to retaining and creating jobs and economic grow domestically.  (continue reading…)

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Banning LNG Exports Will Hurt Jobs and Economy

The National Association of Manufacturers (NAM) supports open and expanded trade and opposes efforts to limit manufacturers’ ability to expand exports overseas. Exports have been and continue to be a critical source of growth and opportunity for manufacturers throughout the United States, and liquefied natural gas (LNG) exports are no exception.  A series of recent studies by energy research firm IHS CERA show that natural gas development has already led to the creation of more than 1 million jobs, and continued development of unconventional energy resources could create millions more.

Proposals that seek to limit LNG or coal or any other product would have far-reaching negative effects on the United States and should be rejected. Such restrictions limit economic opportunities and stifle job growth rather than provide a source of increased economic growth.

Export growth has created and saved manufacturing jobs over the past few years, which were tough economically for the United States. Export growth is vital not just for businesses across-the-board that directly export, but also for the many manufacturers in the supply chain. 

From the President’s first State of the Union address, doubling U.S. exports has been a top goal, supported by both businesses and workers and both Republicans and Democrats. From its origins, the United States has been built on exports. In fact, Article I, Section 9 of the U.S. Constitution provides quite explicitly that “no Tax or Duty shall be laid on Articles exported from any State,” evincing a strong disinclination to limit exports of any product. (continue reading…)

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