Today South Korean President Park Geun-hye addressed a joint meeting of Congress as part of her visit to Washington. NAM Board Member and Quality Float Works CEO Sandra Westlund-Deenihan and company President Jason Speer attended the speech today as special guests of Speaker Boehner.

Quality Float Works CEO Sandra Westlund-Deenihan and President Jason Speer attend South Korean President Park Geun-hye's Speech before a joint session of Congress.

The South Korean market is extremely important to the Schaumburg, IL based Quality Float Works which manufactures metal floats and valves used for the gas, plumbing oil and agricultural industries. The trade agreements passed in 2011 with South Korea, Panama and Colombia have helped Quality Float Works and other small and medium-sized manufacturers expand into new markets which in turn supports economic growth and job creation here in America.

Free trade agreements are critical to our export growth. Exports to just our 20 FTA partners grew by more than $41 billion in 2012 and are up by nearly $230 billion since 2009. This makes up nearly 48 percent of all U.S. manufactured goods exports for 2012 and 60 percent of the increase in 2012 exports.

We must continue to do more to open new export markets for companies like Quality Float Works. With 95 percent of the world’s consumers outside our borders we rely on exports to grow our economy and jobs.

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.

The Bureau of Economic Analysis and the Census Bureau said that the U.S. trade deficit fell from $43.63 billion in February to $38.83 billion in March. This is the second-lowest level since January 2010, almost equaling the trade deficit of $38.14 billion of December 2012.

This was a significant and unexpected narrowing in our trade position, resulting from a sharp drop in goods imports which exceeded the decline in goods exports. Goods exports decreased from $132.18 billion to $130.35 billion; whereas, goods imports went from $192.93 billion to $186.49 billion.

Unlike the changes seen in the past couple months, the narrowing in March was due mostly to non-petroleum factors. The petroleum trade balance eased marginally from $21.45 billion to $21.13 billion, with the non-petroleum trade balance dropping from $38.62 billion to $34.76 billion. With that said, petroleum exports and imports were lower, with cost mostly likely helping to reduce these values by almost equal amounts. The average price of West Texas intermediate crude in March was $92.94 per barrel, down from $95.31 a barrel in February.

There were declines across-the-board in goods exports categories. The largest decrease was in foods, feeds, and beverages, which were down $1.05 billion. This was followed by lower exports for the following major groups: motor vehicles and parts (down $331 million), non-automotive capital goods (down $269 million), consumer goods (down $260 million), and industrial supplies and materials (down $288 million). There were some exceptions, with the most notable being increases in exports for civilian aircraft (up $582 million) and pharmaceuticals (up $441 million).

Meanwhile, goods imports were also lower, as noted above. These declines were as follows: consumer goods (down $3.41 billion), non-automotive capital goods (down $1.51 billion), industrial supplies and materials (down $1.42 billion), and motor vehicles and parts (down $771 billion). This suggests that U.S. consumers have slowed their purchases of foreign goods, much as we have seen with the recent easing in the pace of retail sales data. (continue reading…)

Today USTR released its annual Special 301 Report on Intellectual Property Rights. The report highlights countries of concern with regard to intellectual property (IP) protections and enforcement and examines market access issues. This report is of great interest to the NAM, as manufacturers increasingly rely on robust protection and vigorous enforcement of IP rights.

Most notably, the report underscores serious concerns with China’s misappropriation of trade secrets and other issues; adds Barbados, Bulgaria, Paraguay and Trinidad and Tobago to the Watch List; and, designates Ukraine a Priority Foreign Country (PFC). In addition, manufacturers note that Canada was upgraded in this year’s report.

While USTR praises the progress that Canada has made in a number of IP areas in the last year, the NAM would be remiss if we failed to note that the pharmaceutical IP situation in Canada, particularly patent utility, remains a serious concern to manufacturers. Canadian courts have invalidated pharmaceutical patents for major products based on a heightened standard for what is useful under patent law. This makes Canada unique among developed countries – and not in a positive way. Our hope is that USTR will continue working with Canada to address this, as all pharmaceutical patents, and potentially those in other industries, are now seriously under threat.

This year’s Priority Watch List includes the following nations: Algeria, Argentina, Chile, China, India, Indonesia, Pakistan, Russia, Thailand, and Venezuela.  While manufacturers face serious challenges in many of those countries, we are particularly concerned by India’s recent actions.  Manufacturers have seen firsthand the situation in India deteriorating over the last year and a half as India has taken a number of deeply troublesome actions, particularly through the rejection of legitimate patent applications, the issuance of compulsory licenses in flagrant disregard of international rules, and the implementation of India’s preferential market access (PMA) policy.

The NAM’s statement for a recent House Trade Subcommittee hearing summarizes some of the key barriers in India as follows: “Manufacturers face persistent challenges in India, including tax and market access issues, localization barriers to trade, lack of or inadequate protections for intellectual property rights and other investment or trade-restrictive policies.” IPR protection and enforcement challenges in India are indeed mounting, raising serious questions about India’s business and innovation climate and undermining the business community’s confidence in India.

IP rights are the lifeblood of the U.S. economy, and the protection of those rights assures manufacturers that their innovations will be secure as build industries around them and create jobs. Manufacturers in every U.S. state rely on IP rights as an integral part of business both domestically and globally. As the U.S. Department of Commerce found in its April 2012 report, IP-intensive industries accounted for $775 billion, or 60.7 percent, of total U.S. merchandise exports in 2010.  For all these reasons, manufacturers will continue to be vigilant in their work with the Administration and Congress to address serious IP violations and lack of enforcement in numerous countries.

Jessica Lemos is director of international trade policy, National Association of Manufacturers.

This past Tuesday was National Golf Day, making this a fitting week to bring you the story of PING and how policies in Washington, particularly the miscellaneous tariff bill, are impacting golf equipment manufacturers.

In 1959, Karsten Solheim, a Norwegian immigrant and engineer, designed and manufactured a putter in his garage to address his frustration with putting, dubbing the new putter the PING putter because of the unique sound made when it struck the ball. A local golf professional was so impressed by the accuracy of the putter that he suggested Karsten make his invention available to other golfers.  Soon after, Karsten transformed the family garage into a miniature manufacturing and assembly facility.

By 1966, Karsten Manufacturing Corporation became his full time job. Karsten pioneered the idea of custom fitting each golfer for golf clubs with specifications to fit each golfer’s characteristics and swing. Now PING manufactures and delivers premium, custom fit golf clubs to its customers within 48 hours of receiving an order.

Manufacturing workers assemble golf equipment at a PING facility in Arizona

Karsten’s youngest son, John Solheim, assumed leadership of the company in 1995 and has overseen its growth while building on the foundation of innovation, quality and integrity established by his father over 50 years ago. (continue reading…)

Here is the summary from this month’s Global Manufacturing Economic Update:

The global economy has seen some progress since last fall, but growth remains modest at best. There is also a “two steps forward, one step back” feel to some of the latest data. Six of the top 10 markets for U.S.-manufactured goods expanded in March, according to Markit. This is down from seven last month, but up from four last October. Canada, our largest trading partner, saw its manufacturing activity decline, with weaknesses in new orders, exports and hiring. Softness in the United States and Europe were cited as factors.

The other three markets with contracting sales, output and employment levels were in Europe, with its economic downturn widening. The Markit Eurozone Manufacturing Purchasing Managers’ Index (PMI) fell from 47.9 in February to 46.8 in March. This index has now contracted for 20 straight months, with little hope of improving anytime soon. While many of the recent headlines have surrounded the failure of the banks in Cyprus or the inconclusive Italian elections, the challenges are ones that confront the entire continent. The unemployment rate has risen to 12 percent, with more than one-quarter of the working population in Greece and Spain out of work, and real GDP is expected to contract throughout the year. This morning, we should learn even more about the manufacturing sector in Europe when new data on industrial production will be released. The data are expected to show a slight decline. (continue reading…)

Today the Washington International Trade Association held the third panel of a four part breakfast series on the Transpacific Partnership (TPP). The title of today’s panel was “U.S. Priorities and Objectives” and focused on many of the important issues that are part of the TPP talks when it comes to manufacturers, exporters, American workers and the environment.

The NAM's Linda Dempsey speaks during a WITA panel discussion on the TPP.

National Association of Manufacturers (NAM) Vice President of International Economic Policy Linda Dempsey participated in the panel discussion along with Stephen Schaefer of ECAT, Ilana Solomon of the Sierra Club and Thea Lee of the AFL-CIO. The panelists engaged in a robust discussion on what each group is looking for in the TPP negotiations.

Market opening agreements like the TPP are essential to the competitiveness of manufacturers in the United States. With 95 percent of the world’s consumers outside of the U.S. we have to find ways to lower trade barriers to increase U.S. manufactured goods exports. “The U.S. can’t sit around and just sell to itself,” said Dempsey.

One topic the panelists could agree on was the need for strong enforcement of an agreement. It doesn’t do much good to have an agreement with high standards if it is not enforced, which is absolutely necessary to give manufacturers a level playing field.

Today’s panel was a good discussion of the many different points of view on the TPP. Manufacturers are committed to continuing to work with the Administration and Congress to ensure a robust outcome to the TPP negotiations that strengthen opportunities for manufacturers in the United States.

Today marks 100 days since the Miscellaneous Tariff Bill (MTB) expired. The MTB cuts costs for manufacturers in the United States by eliminating or reducing import tariffs on necessary manufacturing inputs that are not produced domestically.  The 112^th Congress failed to act on the MTB by December 31^st, resulting in a substantial tax hike on manufacturers, both large and small.

Unfortunately, the MTB has been mired in inside-the-beltway politics, damaging manufacturers’ competitiveness and threatening jobs.  Job creators in the United States, like BASF and Lasko Products, rely heavily on the MTB to keep their costs down, make investments in their facilities and in R&D, and better compete in a challenging global economy.  The lack of action by Congress is significantly hurting manufacturers and each day that passes without action means higher costs for manufacturers in the United States.

For three decades, Congress has passed this commonsense legislation with broad bipartisan support. The 113^th Congress must act quickly in order to reverse this damaging tax increase on manufacturers in the United States. Manufacturers can’t wait any longer and are calling on Congress to act now on this critical job-supporting, export-enhancing legislation.

Jessica Lemos is director of international trade policy, National Association of Manufacturers.

While the United States and EU share the world’s largest economic relationship, the NAM has long believed that eliminating transatlantic barriers and improving commercial relations through an extensive trade agreement would generate substantial new opportunities for manufacturers and the U.S. and EU economies more broadly.

The March announcement by the United States and EU that negotiations for a Transatlantic Trade and Investment Partnership (TTIP) would formally begin was a critical first step towards that objective, which the NAM strongly welcomed.

Today, the NAM joined with others in the business community to launch the Business Coalition for Transatlantic Trade (BCTT) to further that objective with a broad industry coalition seeking similarly ambitious and growth-producing outcomes. As a Steering Group member and a co-leader of several key working groups within the BCTT, the NAM welcomes the opportunity to amplify and advance key outcomes on a host of critical issues, from intellectual property and regulatory cooperation to investment and supply chain and trade facilitation.

As part of the NAM’s efforts to ensure that the outcomes of the TTIP are commercially meaningful, NAM President and CEO Jay Timmons recently sent a letter to President Obama, outlining manufacturers’ goals for the TTIP negotiations, which will officially be launched this summer. The letter urges the Administration to work towards a final agreement that will tear down barriers and substantially reduce the cost of doing business across the Atlantic, and promote economic and job growth. It is critical from the NAM’s perspective that the TTIP create new commercial opportunities – not new regulations or barriers – for manufacturers in the United States.

Removing regulatory barriers to trade and reducing unnecessary divergence between EU and U.S. regulations will be an important focus of these negotiations. These barriers not only limit market access on both sides of the Atlantic, but also significantly increase costs for U.S. and EU manufacturers, undermining their global competitiveness. Strong outcomes on intellectual property, investment and a host of other issues must also be secured.

Major opportunities for increased trade and investment between the United States and EU remain untapped.  Manufacturers look forward to working with our BCTT colleagues and with U.S. and EU negotiators to help them craft an agreement that creates further trade liberalization, allowing both of our economies to benefit from those opportunities.

Jessica Lemos is director of international trade policy, National Association of Manufacturers.

President Obama’s FY2014 budget was released this morning, and it includes some mixed messages on trade. Perhaps most significantly, the budget proposal includes a plan to reorganize – and consolidate – the government’s trade functions. As outlined in the FY2014 budget proposal, the President would like to consolidate six primary business and trade agencies into a new Department. The new Department would include the Commerce Department’s core business and trade functions, the Small Business Administration (SBA), the Office of the U.S. Trade Representative (USTR), the U.S. Export-Import Bank (Ex-Im), the Overseas Private Investment Corporation (OPIC), and the U.S. Trade and Development Agency. It would also incorporate related programs from a number of other departments, including the Agriculture Department’s business development programs, the Treasury Department’s Community Development Financial Institutions Fund program, the National Science Foundation’s (NSF) statistical agency and industry partnership programs, and the Bureau of Labor Statistics.

The President outlined a similar proposal in his 2012 State of the Union address, with a resoundingly negative reaction from the business community. In response to that plan, the NAM joined more than 80 other business groups in a letter arguing that subsuming USTR into a broader trade and business government department would severely harm its credibility and hamper USTR’s ability to play its unique coordinating role within the U.S. government. USTR is statutorily responsible for developing and coordinating U.S. international trade and direct investment policy as well as overseeing negotiations with other countries. The head of USTR is the U.S. Trade Representative, a Cabinet member who serves as the President’s principal trade advisor, negotiator, and spokesperson on trade issues. The NAM continues to be troubled by this reorganization proposal, given the importance of trade to manufacturers in the United States.

In looking at the budget proposals for specific departments, the budget proposal would provide additional resources for trade promotion initiatives and agencies. The Commerce Department budget overview includes an increase for the International Trade Administration (ITA), with a proposed a budget of $520 – or a 14 percent increase over the 2012 enacted level. ITA helps promote U.S. trade and investment and also ensures fair trade through rigorous enforcement of trade laws and agreements. The agency is home to the U.S. and Foreign Commercial Service, which promotes U.S. exports and provides commercial diplomacy support for U.S. business interests around the world.

The Commerce Department’s budget proposal also supports the President’s Export Control Reform Initiative, with $112 million for the Bureau of Industry & Security (BIS) to help sustain export licensing and enforcement activities while moving toward a more predictable, efficient and transparent export control system. The proposal would give BIS an $11 million increase from the 2012 enacted level.

The State Department’s budget proposal includes $307 million for the U.S. Trade and Development Agency, USTR, U.S. International Trade Commission and OPIC – a combined $46 million increase over the 2012 enacted level. The President’s budget proposal also includes $131 million for the Ex-Im Bank’s administrative expenses and Inspector General, a $37 million increase over the 2012 enacted level.