More than $1.8 billion dollars in taxes. That is what manufacturers in the U.S. are facing because of nearly 900 days of inaction by the House and Senate on a longstanding program to eliminate outdated tariffs on imported inputs and other products not even made in the U.S. (continue reading…)
Bipartisan approval of Trade Promotion Authority legislation offers the promise of new trade agreements that will boost the competitiveness of U.S. exports and ensure that countries play by rules consistent with U.S. and international norms. And yet, as we celebrate this success, U.S. exporters face the prospect of billions of new tariffs on exports to Canada and Mexico because of the U.S.’s continued failure to bring its Country-of-Origin Labeling, or COOL, rules for muscle cuts of meat into compliance with its World Trade Organization (WTO) obligations. (continue reading…)
Today, the Senate will take a final vote on the renewal and modernization of the long-standing congressional-executive framework known as Trade Promotion Authority (TPA). Movement on this top trade priority for manufacturers across a wide variety of industries throughout the United States has been a long time coming, since the expiration of the last TPA in mid-2007. Manufacturers in the U.S. have been at the forefront in pushing this legislation forward, from setting forth TPA priorities in 2013, issuing a unanimous Board resolution later that year, testifying, taking out advertisements, activating call-in campaigns, appearing on TV and radio and of course holding many hundreds of meetings with Members of Congress in Washington and around the country. (continue reading…)
Members of Congress, policy experts, economists, and industry leaders gathered at the Newseum in downtown Washington, D.C., yesterday morning for a policy breakfast briefing event to examine an important question: “Is India Open For Business?” after the first year of the Modi government. (continue reading…)
Here is the summary for this month’s Global Manufacturing Economic Update:
There continue to be mixed assessments of the economy, including from reports released last week. For instance, the Organisation for Economic Co-operation and Development (OECD) lowered its forecasts to 2.0 percent growth for the United States, with the global economy growing just 3.1 percent. This fell from the 3.1 percent and 3.6 percent, respectively, seen in its November 2014 outlook. It also mirrors the downgrade of the National Association of Business Economists’ (NABE) estimated U.S. growth this year, from 3.1 percent in the March survey to 2.4 percent now. Business leaders were also less upbeat in the latest National Association of Manufacturers (NAM) Manufacturers’ Outlook Survey, with the headline index down from 59.9 in the first quarter to 51.7 in the second quarter. (continue reading…)
The global market for manufactured goods is enormous and far exceeds U.S. consumption of manufactured goods. Just look at the huge growth in world trade in manufactured goods since 1980. (continue reading…)
Manufacturers spoke out this morning in support of the U.S. Export-Import (Ex-Im) Bank, with more than 1,000 businesses and organizations calling on Congress to move on a long-term reauthorization before Ex-Im Bank’s current charter expires on June 30. A few of those companies also appeared at a news conference with NAM President Jay Timmons, urging lawmakers to take up a long-term reauthorization. Executives from Vermeer Corporation, Special Products & MFG. and Click Bond, Inc. joined several House Republican Congressmen to explain how small and medium-sized businesses can grow and expand because of exports supported by Ex-Im Bank financing. (continue reading…)
NAFTA and free trade agreements (FTAs), what do you think? Good or bad for manufacturers in United States? While a small group of anti-trade critics would have you believe lots of myths, in fact, NAFTA and past FTAs have been critical to the growth of U.S. manufacturing. Moreover, more market-opening trade agreements negotiated with Trade Promotion Authority (TPA) are even more critical to America’s manufacturing future. (continue reading…)
Trade critics like to decry unfairness in the global economy, trade deficits and more in their fight against Trade Promotion Authority (TPA). But what solution do they provide? Not one.
Manufacturers are in Washington, DC, today as part of the NAM Manufacturing Summit to talk about solutions and ways to grow manufacturing. For those concerned about the lack of a level playing field, TPA is key to solve the status quo disadvantage faced by manufacturers in the U.S.
Consider the status quo for U.S. manufacturers:
- The U.S. has the most open market of any major economy, with more than two-thirds of all manufactured imports entering the U.S. duty-free in 2014. Under our Constitution and laws, the U.S. already accords the basic non-discrimination, fair treatment and private property protections found in our trade agreements to foreign products and investments.
- Except with our 20 free trade agreement partners, U.S. manufacturers face far greater barriers overseas for our exports, products and innovation. According to the well-respected World Economic Forum, U.S. exporters face steeper trade barriers abroad than virtually any other major country, including Mexico, China and European countries largely because those countries have entered into more market-access agreements than the United States.
In the markets where the U.S. is currently negotiating free trade agreements, U.S. manufacturers face substantial barriers. Manufacturers face tariffs as high as 83 percent on automotive products, 70 percent on machinery and capital equipment, and 30 percent or more on chemicals, health and medical equipment and infrastructure products with some of the Trans-Pacific Partnership countries. Manufacturers face tariffs as high as 20 percent on electrical equipment, 15 percent on consumer goods, 14 percent on information technology products and 10 percent on machinery, capital equipment and metal goods in the European Union. Beyond tariffs, manufacturers face a wide range of other discriminatory barriers around the world—from local production requirements and discriminatory regulations and standards to weak protection and enforcement of U.S. property, innovation and inventions.
How do we solve this status quo disadvantage? Certainly not by standing still as TPA critics seem to believe. In fact, TPA is critical to reverse this disadvantage so that the U.S. can negotiate and conclude new market opening trade agreements that will open markets and help make sure other countries treat our manufacturers and goods as we already treat them.
Manufacturers urge Congress to move quickly to pass TPA so that we can grow manufacturing in the United States, not fall farther behind.
This week, over 400 manufacturers will be coming to Washington D.C. as a part of the NAM’s Manufacturing Summit. While in town, they will be meeting with leaders and policymakers to discuss key policy issues that are critical to the success of manufacturing, including the need for Trade Promotion Authority (TPA). But there are a lot of myths about manufacturing and trade. So let’s set the record straight: (continue reading…)