Category

Trade

NAM, TPP Coalition Issue State-by-State Calls for Action on TPP

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Manufacturers need their products sold to more markets, so we can grow more jobs in America. They need their inventions and innovations protected.  TPP will protect and sell American-made goods—and that’s why manufacturers support swift approval of this critical trade agreement. To send that message to Congress, today the NAM and U.S. Coalition for TPP issued the following letters to congressional delegations from 10 states, urging support for TPP. Letters will be distributed to the remaining 40 state delegations in the coming months. Click on the state below to view the letter:

Learn more about the importance of TPP to manufacturers in the U.S. by clicking here.

ITC Report Barely Scratches the Surface of TPP’s Impact

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However you analyze yesterday’s report released by the U.S. International Trade Commission (ITC), the fact remains: the global economy requires American leadership and know-how to make it easier to create jobs at home and open up markets abroad. Whether it’s electronics manufacturer Texas Instruments, with multiple facilities employing thousands all over the U.S. and selling its innovative technologies worldwide, or it’s Wisconsin-based Darley with 127 employees, selling fire trucks 100+ to countries including China, Australia, Peru, New Zealand, Vietnam, Singapore, Japan, Nigeria and Brazil– we need free trade agreements like TPP so that manufacturers of all sizes can continue to compete and win.

Manufacturers need their products sold to more markets, so we can grow more jobs in America. They need their inventions and innovations protected.  TPP will protect and sell American-made goods—and that’s why manufacturers support swift approval of this critical trade agreement. Read More

#TruthOnTheTrail: Trade Realities That Campaigns Need to Consider

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trade-truth-05

Trade continues to be a key topic in the campaigns of both major parties. Unfortunately, the most oft-repeated claims are flat-out wrong and portend a dangerous path of retreat from the strong trade approach that has long been a powerful positive force for American workers, consumers and families. With World Trade Week officially under way, let’s look again at how trade drives the U.S. economy, raises standards of living for American families and grows manufacturing in the United States by dispelling some of the top trade myths.

  1. Free Trade Agreements. If candidates want to take aim at free trade agreements (FTAs), why not go after the hundreds of trade agreements being negotiated without the United States that exclude and disadvantage manufacturers in the United States? U.S. exporters face higher tariffs and barriers than most of the world’s exporters in other countries (ranking 130 out of 132) because the United States has too few, not too many, trade agreements. FTAs are huge market boosters for manufacturing in the United States because they promote fair trade by leveling the playing field. That’s why moving forward on the Trans-Pacific Partnership (TPP) is so important to manufacturers in the United States.
  1. NAFTA. The criticism of the North American Free Trade Agreement (NAFTA) is an enduring but deeply flawed myth. The United States implemented NAFTA in 1994 and then experienced four years of economic growth and the creation of more than 800,000 manufacturing jobs. The recession in the late 1990s had a negative effect on the U.S. economy and jobs, but if anything, NAFTA helped the United States endure that downturn more successfully and has been critical to sustaining and growing the U.S. manufacturing sector, which then faced even stronger challenges from Asian emerging economies.
  1. China. It is easy for candidates to go after China as a major villain in the trade stories they like to tell. China is not easy, but it is not a one-sided picture. Yes, China has grown its manufacturing industry heavily over the past 20 years and is now the largest foreign supplier of manufactured goods to the United States. To reach this level, China engaged in a number of unfair trade practices, government subsidization and discriminatory policies. No debate there. At the same time, China also became the third-largest market for U.S.-manufactured goods, from the seventh-largest purchaser in 2002, the year after China joined the World Trade Organization, with U.S. exports growing more than 350 percent to $89 billion. There’s a long way to go in creating a fairer and more reciprocal U.S.China commercial relationship, but it’s a lot more complicated than the campaign promise of putting on new border taxes on Chinese imports, which we all know would be contrary to U.S. international commitments and would likely result in even stronger retaliation against U.S. exports to China. And just a reminder, the TPP does NOT include China.
  1. Trade Deficits. When we buy more imports than sell exports, that’s considered a trade deficit, which is used by candidates as a negative report card on U.S. trade. However, our economy is much more complicated than simple subtraction. Oftentimes, when the U.S. trade deficit is rising, the U.S. unemployment rate is declining and U.S. manufacturing production is growing. Also, the critics conveniently ignore when we do have a surplus, such as the fact that our country sells more manufactured goods overall to our FTA partners than we purchase from them. U.S. manufacturing output and exports have quadrupled over the past quarter century. Trade, boosted by trade agreements, is helping to fuel our economy.

Trade and manufacturing go hand in hand. The United States manufactures more today than we have in our entire history. Trade and trade agreements have opened the door to new global opportunities for manufacturers big and small throughout America, helping to sustain and grow jobs for millions of Americans. Let’s continue to make sure manufacturers and America can continue to grow.

India’s IP Policy Shows Missed Opportunity with Backsliding on Patents, Trade Secrets

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India missed a clear opportunity to signal that it is serious about Prime Minister Narendra Modi’s promises for the country to become an “innovation hub” last week with the release of its long-awaited National Intellectual Property Rights (IPR) Policy. Far from being the breakthrough document that India’s government has claimed, the final policy framework shows little improvement to critical language and new, troubling provisions in key areas, such as patents and trade secrets. Read More

Senate Finance Committee Examines U.S. Customs and Border Protection Agency

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Last week, the Senate Finance Committee held an oversight hearing on U.S. Customs and Border Protection (CBP) that featured testimony from CBP Commissioner Gil Kerlikowske. In his testimony, Kerlikowske highlighted the agency’s “Trade Transformation” initiative to create efficiency at the border and leverage publicprivate partnership programs. For example, the CBP continues to deploy the Automated Commercial Environment (ACE), which will ultimately serve as the central portal where importers and exporters will electronically transmit the data required by the U.S. government to release cargo. Kerlikowske confirmed that the CBP is on track to deliver all core trade processing capabilities in ACE by December 31, 2016. He also highlighted the agency’s enforcement operations, citing enforcement of intellectual property rights and antidumping/countervailing duties as two of the CBP’s priority trade issues. Read More

NAM Podcast: The Opportunities and Realities of Trade

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As the debate over trade continues, NAM Senior Vice President of Communications Erin Streeter sat down with NAM Senior Vice President of Government Relations and Policy Aric Newhouse and Texas Instruments Vice President of Government Relations Paula Collins to discuss what is at stake for manufacturers and their employees in this latest Shopfloor Podcast.

Trade Shopfloor

International trade is more than facts and figuresit’s a critical component of a manufacturer’s story. For Texas Instruments, and companies like it, international trade impacts every aspect of their business. Collins said,

80% of the purchasing power is outside the United States…Just about every employee that works at [Texas Instruments] is engaged in international trade one way or the other…because what we are producing, we are exporting. And there are just myriads of opportunities out there.

Learn more about the changing dynamics of trade and what it means for manufacturers to stay competitive in the global marketplace by clicking here.

Rigorous, Ongoing and Prompt Trade Enforcement Is a Year-Round Manufacturing Priority

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While much of the attention of World Trade Month is focused on the growth that manufacturers can achieve with a strong market-opening trade agenda, that agenda only works if it is backed by strong enforcement. Trade enforcement applies not only to the trade agreements negotiated that eliminate foreign barriers but also to the trade rules that seek to ensure trade that is free from unfair government distortions. Read More

What Happens When You Shut the Door to Trade?

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The fears about an open trading system stoked by candidates and antibusiness NGOs alike are premised on inaccurate assumptions and a misunderstanding of our nation’s history.

From its earliest days, farmers and manufacturers in the United States have relied on international trade to access inputs and final products and sell our products to the world. Our Constitution prohibits export taxes because America’s founders understood something many seem to have forgotten: Read More

Manufacturers Outline “Road Map to Progress” with India

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Last week, Indian media reports broke the news that Indian Prime Minister Narendra Modi would travel to Washington for a bilateral summit with President Barack Obama, marking his fourth trip to the United States in two years. As the two governments prepare for this visit as well as for major bilateral dialogues on economic and commercial issues, the National Association of Manufacturers (NAM) today issued targeted commercial priorities for the U.S. government to engage with India in 2016priorities that require concrete actions by which manufacturers in the United States will gauge the success of this engagement. Read More

As World Trade Month Begins, Could We Agree to Start on the Same Page?

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Trade and manufacturing continues to be bandied about in interviews with presidential and other candidates, achieving a level of national attention that it deserves given the importance of trade to manufacturing. Unfortunately, most of the conversations are totally removed from the reality of manufacturing in America today and both the challenges and opportunities it provides to businesses, small and large, and the American workforce.

As we begin World Trade Month, lets all start on the same page:

Manufacturing Output Is at Record Levels.
In the most recent data, manufacturers contributed $2.17 trillion to the U.S. economy. This figure has risen since the second quarter of 2009, when manufacturers contributed $1.70 trillion.

 Trade Growth Has Quadrupled Over the Past Quarter Century, as Has Manufacturing Output (See Chart Below).
mfgtrade blog

Free Trade Agreements, Such as NAFTA and Those with 18 Other Countries, Have Been Vital to Grow Manufacturing in America

Manufacturers in America sell 12 times more to our 20 free trade agreement (FTA) partners than to the rest of the world, even though they represent only 6 percent of the world’s consumers. The United States has a trade surplus overall with its FTA partners if that’s how you want to judge the relationship.

Exports FTA
MFG Trade Balance

 

Manufacturing in America Will Lose to Foreign Competitors if the United States Does Not Move Forward Aggressively with New Trade Agreements, Such as the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) Agreement.

Other countries are more aggressively negotiating trade agreements that exclude and hurt the United States, meaning U.S. exporters face higher tariffs than most other countries in the world:

Tariffs Faced By Ranking Countries

A robust U.S. trade policy to grow manufacturing in America must open foreign markets, ensure strong trade enforcement and improve U.S. manufacturing competitiveness in the face of substantial global competition. Click here to learn more.