Trade and Public Support, There is Some

Missed this from earlier in the week, a new survey released during a Consumer Electronics Association event at the Republican National Convention in Minnesota. From CEA:

Fifty-eight percent of those polled said they consider trade a good thing because it has reduced the costs of goods such as electronics and clothing while at the same time helping Americans to become more competitive with workers overseas. The survey released by the Consumer Electronics Association (CEA)® was conducted by Zogby International.

A vast majority, 69 percent, report that they personally benefit from trade. Support for trade has particularly been drawn from the technology and consumer electronics fields. Sixty-nine percent of Americans called said they support overseas trade in those sectors. In addition, 74 percent said that it was a “good thing” that overseas trade and global manufacturing had reduced the costs of consumer electronics goods in the United States. Fifty-seven percent said that America would not be the economic leader it is today without overseas trade. Only 25 percent disagreed with this statement.

“The verdict is in and the people have spoken. Now it’s time for Congress to grasp what the American people firmly understand – that trade benefits our country,” said CEA President and CEO Gary Shapiro. “It’s time for Congress to listen to the American people and not the protectionists in the media and do what’s right for our economy, which is passage of trade agreements with Colombia, Panama and South Korea.”

The event in Minnesota, which featured Commerce Secretary Gutierrez, was part of the CEA’s month-long “America Wins with Trade” bus tour. Washington Times story here.

Americas Competitiveness Forum, Más o Menos

The Americas Competitiveness Forum brought the presidents of Colombia, Guatemala and El Salvador to Atlanta yesterday to highlight the interconnectedness of the economies and people of North America, Central America and South America. Commerce Secretary Carlos Gutierrez was the keynote speaker, and many top business executives were represented.

The Atlanta Journal-Constitution does have a good story of modest length, noting both the promotion of trade agreements by both Secretary Gutierrez and Colombia President Alvaro Uribe. Energy was also high on the agenda.

Concern about energy costs was also reflected in sessions devoted to renewables, and also to worry about the effect of global prices on small economies.

Ray C. Anderson, CEO of Atlanta-based Interface, said his goal is to create a carpet that has “not a drop of oil” by 2020.

And Elias Antonio Saca Gonzalez, president of El Salvador, asked to list his five most pressing problems, replied, “Oil, oil, oil, oil, oil.”

Canada’s message emphasized energy, as well.

OTTAWA — Industry Minister Jim Prentice touted Canada’s “stable” supply of oil and gas to an audience of American politicians and heads of industry Monday as he called for a relaxing of barriers that hinder cross-border trade.

Speaking at the Americas Competitiveness Forum in Atlanta, Ga., Prentice said freer trade is vital to economic prosperity in the Western Hemisphere.

Otherwise, he warned, there’s a risk the Americas will be left out while others prosper.

“We need to make trade logistics and border infrastructure a priority in the short term or lose opportunities to other global competitors who are better organized to facilitate trade,” he said.

Big story outside North America, though. Granted, much of the conference was conducted in Spanish.


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The Week Ahead: The Week of August 18

The President heads back to Texas, the Commerce Secretary highlights trade and competitiveness in Atlanta, and the politics of energy will no doubt continue to stir.

Executive Branch: President Bush has a busy Wednesday, speaking at the VFW national convention in Orlando, remarking on Gulf Coast recovery in New Orleans, and holding a dinner with community leaders in Mississippi. Otherwise, it’s Crawford.

Secretary of Commerce Gutierrez speaks this morning at the Americas Competitiveness Forum in Atlanta, which also features a panel discussion with President Uribe of Colombia, President Saca of El Salvador, and President Colom of Guatemala. Afterwards, a news conference.

On Wednesday, Labor Secretary Chao will unveil the America’s Heroes at Work initiative at the National Press Club. Thursday, Energy Secretary Bodman is in Las Cruces, NM, for the Domenici Public Policy Conference. Randy Travis tickets still available.

Senate hearings: The Senate Agriculture Commitee has a couple of field hearings today, one in Omaha,  “Food, Feed and Fuel Production: Today and Tomorrow.” In the afternoon, it’s Rapid City, S.D., “Transforming Forest Waste to Biofuels and the Renewable Fuels.”

And the Bureau of Labor Statistics releases the Producer Price Index for July on Tuesday. Inflation will be mentioned in the news reports. More on the week’s economic stuff at Forbes.com.

Exports, a Saving Grace

From The Washington Times:

Exports increased at their fastest pace in more than four years in June, helping to sharply narrow the U.S. trade deficit despite a record rise in America’s payments for imported oil.

AP report tells the same story, based on the U.S. Commerce figures released yesterday, which show a 17.4 percent increase in exports over the previous year.  Secretary Gutierrez’s statement.

And the NAM’s Frank Vargo calls the increase “phenomenal.” From the NAM statement:

“The performance of manufactured goods trade is so strong that it is a major offset to the rising deficit in petroleum,” said Vargo. “The U.S. appetite for imported petroleum remains huge and the deficit in petroleum now accounts for nearly two-thirds of the entire U.S. deficit in goods and services – underscoring the need for further development of domestic energy resources.”

Just think what expanded domestic oil production would mean for those trade figures.

How Trade Helps Michigan

Commerce Secretary Gutierrez released new trade statistics yesterday that calculate exports according to metropolitan areas, using a speech at the Detroit Economic Club to drive home the point for Michigan: For the first half of 2007, the Detroit metro area was the fifth largest export market in the U.S. with sales totaling $24.3 billion.

Consider these statistics:

  • In 2007, Michigan’s merchandise exports to NAFTA were $13.0 billion above 1993—an increase of 72 percent.
  • Between 1993 and 2007, real per capita personal income in Michigan increased by 24 percent.
  • Export-supported jobs linked to manufacturing account for an estimated 6.4 percent of Michigan’s private-sector employment.
  • Nearly one-quarter of all manufacturing workers in Michigan depend on exports for their jobs.

There are three FTAs pending—with Colombia, Panama and South Korea—that would give American companies and workers greater access to 100 million consumers.

Last year, Michigan merchandise exports to Korea totaled $627 million. That was an increase of 72 percent since 2003. An FTA with Korea would level the playing field and provide U.S. automotive exporters a competitive advantage in gaining access to the Korean market. Congress should pass each of the pending FTAs.

A Gutierrez op-ed in the Detroit News made similar points, a news release is here, and the website is www.trade.gov/metrodata

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