Congratulations to Nicole Lamb-Hale, Commerce Appointees

Among the score of presidential nominations confirmed by the U.S. Senate Thursday was Nicole Y. Lamb-Hale to serve as Assistant Secretary of Commerce for Manufacturing and Services within the International Trade Administration.

This is the post that in the past has occasionally been referred to as the Administration’s “manufacturing czar,” although that title now attaches itself to Ron Bloom, appointed by President Obama to serve as Senior Counselor for Manufacturing Policy.

Hale has already been serving in the U.S. Department of Commerce as Deputy General Counsel. As her bio states, Lamb-Hale was previously managing partner of the Detroit office of the law firm of Foley & Lardner LLP where she specialized in business restructuring in the manufacturing sector. She also served as vice-chair of the Board of Directors of the Michigan Land Bank Fast Track Authority, by appointment of Michigan Governor Jennifer M. Granholm, and as a member of the Board of Trustees of Leadership Detroit. She has also been a frequent speaker on business restructuring matters with particular emphasis in recent years on the automotive industry.

Lamb-Hale received her B.A. with high honors from the University of Michigan in 1988, and her J.D. from Harvard Law School in 1991, where she was a classmate of President Obama’s.

Upon her nomination, Secretary of Commerce Gary Locke said:

Our manufacturers and service providers have an excellent advocate in Ms. Lamb-Hale. Nicole has firsthand knowledge of the challenges that our industries face and will be able to serve the interests of industry at every level. Whether their needs are achieving greater competitiveness, advocating for policies that assist industry in competing abroad, or interacting with trade associations, I am confident that our domestic industry will benefit from her leadership.

Also confirmed Thursday in Commerce were Suresh Kumar, of New Jersey, to be Assistant Secretary
of Commerce and Director General of the United States and Foreign Commercial Service; David W. Mills, of Virginia, to be Assistant Secretary of Commerce for Export Enforcement; and Kevin Wolf, an Assistant Secretary of Commerce for Export Administration.

Congratulations to all.

Administration’s National Export Initiative Hits the Mark

Great news about the Administration’s new export initiative! The National Association of Manufacturers has long been supportive of a significant effort to boost U.S. exports. Of the 15 major manufacturing nations the United States is dead last in the proportion of production that we export.

So how do we double exports in five years?

The dollar cannot be overvalued. Global currencies should reflect their actual market values.

Modernize export controls. Modernizing the export control system will strengthen national security, focus limited resources on truly sensitive technologies, promote U.S. technological and scientific leadership, and improve economic competitiveness. In addition, modernization creates more than 340,000 new jobs and increases exports by nearly $60 billion over the next 10 years.

Open access to markets. The United States enjoys a manufactured goods trade surplus with countries we have a free trade agreement with. We already have low tariffs, and FTAs work to lower the tariffs of other countries.

Export promotion. Thousands of U.S exporters export to only one or two countries. Adding one or two more to their markets would increase total exports by a third.

We applaud Secretary Locke’s new export initiative and look forward to work with Administration to increase manufacturing exports.

Frank Vargo is NAM’s vice president, international economic affairs.

How to Double Exports

Commerce Secretary Gary Locke speaks at the National Press Club at noon today to flesh out the President’s State of the Union remarks calling for a doubling of U.S. exports within five years, a speech entitled, “”Back to Basics: A Blueprint for Exports-Driven Job Growth.”

AP reports:

The president’s National Export Initiative will target three key areas - expanding trade advocacy, improving access to credit especially for small and medium-sized businesses and rigorously enforcing international trade laws. The government-wide strategy will be coordinated at the cabinet level, Locke is set to tell a National Press Club audience.

“Increasing the export of American products and services to global markets can help revive the fortunes of U.S. companies, spur future economic growth and support jobs here at home,” Locke said in remarks prepared for delivery to a National Press Club audience. “This initiative will correct an economic blind spot that has allowed other countries to slowly chip away at the United States’ international competitiveness.”

The Washington Post on Wednesday carried an excellent column by C. Fred Bergsten of the international trade think tank, the Peterson Institute, outlining key strategies for achieving the export goal, “How best to boost U.S. exports.”

The AP story cites the National Association of Manufacturers commissioned study by the Milken Institute, “Jobs for America,” on the value of modernizing export controls. The analysis finds that export growth would boost real GDP by $64.2 billion (0.4 percent) relative to the baseline projection in 2019.

UPDATE (9 a.m.): Bloomberg reports:

The U.S. will provide $6 billion in export financing for small businesses and take a tougher line on foreign trade barriers as part of a bid to double exports, Commerce Secretary Gary Locke is due to say in a speech today.

“While the U.S. is a major exporter, we are underperforming,” Locke will say at the National Press Club in Washington, according to excerpts released by the Commerce Department. The administration “is going to provide more funding for export promotion and more coordination between government agencies.”

NPR also had a reasonable, politically oriented story this morning, “Obama’s Efforts To Boost Exports Face Hurdles.”

On Trade Agreements, the Longer We Wait, the More We Lose

During a question and answer period today with members of the National Association of Manufacturers, Secretary of Commerce Gary Locke acknowledged the U.S. loss of market share as a consequence of not enacting U.S. trade agreements with South Korea and Colombia. Secretary Locke:

What is interesting to note is that, for instance, on the Korea trade agreement, the European Union has signed a tentative agreement with Korea, and it will result in substantial market entry for companies from Europe, and the longer we wait to pass an agreement, to ratify an agreement with Korea, the more the relationships between Korean entities and European counterparts will have been solidified. And of course, once you have a business relationship, you’re not just going to jettison that relationship just because someone else is new knocking on your door.

And so we need to finalize that agreement as quickly as possible and try to get it to the Hill. But there are a few outstanding issues that most everyone knows about and we need to address that, and Ambassador Kirk is eager to do that.

Quite frankly, we know that many in Canada and others are going to have unparalleled access to Colombia, and Colombia has been a terrific partner and ally with the United States on a whole host of issues. And so we know that the longer we wait, that the harder it is for the American companies to catch up.

Right!

Secretary Locke’s comments were prompted by a question from a construction equipment manufacturer who noted the Panama Canal expansion project and the huge size of the Colombian market for the company’s products, especially in the mining industry.

This Sunday, November 22, marks the third anniversary of the signing of the U.S.-Colombia Free Trade Agreement. And yes, indeed, the waiting becomes increasingly difficult to justify, especially since the bipartisan agreement between the Bush Administration and Congress in May 2007 addressed the environmental and labor issues previously used to reject the pending FTAs.

Most observers believe the votes are there in Congress to enact the U.S.-Colombia and U.S.-Panama free trade agreements, and most probably for the U.S.-Korea pact, as well. It’s up to the President to submit the agreements to Congress for action.

UPDATE (4 p.m.): For context, the Secretary’s comments before the above quote:

Click to continue reading “On Trade Agreements, the Longer We Wait, the More We Lose”

Recovery, Continued

Secretary of Commerce Gary Locke spoke to members of the National Association of Manufacturers this morning, a general briefing and Q&A session that lasted nearly an hour. It was helpful to hear his and the Administration’s definition of economic recovery. Secretary Locke:

Because of the aggressive actions taken by the President and the Congress, as well as the resilience of the business community, we’ve stopped the economy from sliding into a second depression.

And as you know, a number of economic indicators have turned around since this summer, due in large part to the fiscal stimulus program and the repairs the administration has made to our banking and financial system.

But, by no means do I nor does anyone else in the Administration think that we’re out of the woods yet. We’ve made strides, but unfortunately our unemployment rate is still at an unacceptably high level and will probably stay at that rate, at least through 2010 and possibly even into 2011 despite the recent 3.5 [percent] increase in our GDP growth in the 3rd quarter.

The President does not believe that there is any real recovery until unemployment figures are back down to the pre-recession level, and until that happens, all these other leading indicators, while positive, while encouraging, do not in anyway mean that the job is done.

Other tidbits:

  • Locke introduced the President’s nominee to serve as Assistant Secretary of Commerce for Manufacturing and Services, Nicole Lamb-Hale.
  • Ron Bloom, senior counselor to the president for manufacturing policy, is “on the verge” of presenting to the president a “strategic plan for helping the manufacturing sector.”
  • The Department’s advisory board, the Manufacturing Council, recently recommended three programs to free up financing for manufacturing: a government-guaranteed loan program, a government-guaranteed accounts receivable sales program, and accounts receivable insurance program.

On trade, Secretary Locke reiterated the President’s comments supporting exports and trade agreements.

President Heads to Asia, Commerce Secretary Downplays Trade

Commerce Secretary Locke is a stalwart supporter of expanding trade, so these comments are especially disappointing. From Associated Press, “US commerce secretary: Trade pacts must wait“:

SINGAPORE (AP) — Trade agreements with South Korea, Colombia and Panama won’t be put before Congress until it grapples first with President Barack Obama’s pressing legislative goals, the U.S. commerce secretary said Friday.

Commerce Secretary Gary Locke said Obama has an ambitious high-priority legislative agenda focusing on health care, financial regulation and alternative energy.

“Trade agreements are going to have to wait,” he said at a luncheon hosted by the American Chamber of Commerce in Singapore. “Right now, the administration is focused on a very aggressive and very tight legislative agenda.”

This is a bad message in many ways, and its timing is terrible.

Postponing action invites permanent inaction on the trade agreements. President Obama’s legislative agenda is never going to be finished. That’s the nature of legislative agendas. If the President succeeds in winning Congressional approval of health care, financial regulation and cap-and-trade legislation, the resulting higher taxes, increased regulations and expanded power of the federal government will produce so many unintended consequences that legislative fixes will be demanded. At the same time, changing conditions in Iraq and Afghanistan will continue to require an executive branch agenda for Congress.

Delays are also deadly. In his remarks to the Japan Society of Indiana on Wednesday, NAM President John Engler noted:

The United States and Peru signed a Free Trade Agreement in December 2007. That’s the last bilateral trade agreement the U.S. has actually put into effect.

Since then, the EU, Canada, Korea and Japan have jointly completed or are negotiating 31 separate Free Trade Agreements that cover 80 countries.

The United States already standing on the sidelines as other countries create more advantageous trade relationships with one another. Now the Administration would have us head back to the locker room.

The message also undercuts the President as he prepares to meet major trade partners and competitors in Japan, China and Korea. How can he pressure the Chinese to correct the trade imbalance (see yesterday’s post) when the Administration is at the same time saying trade is not one of its priorities? Most observers say the votes are there to enact at least the Colombia and Panama FTAs, and inaction thus appears guided by other domestic political considerations, which is to say, playing up to organized labor. It’s difficult for the President to tell China’s leaders to pay less attention to its own domestic politics on trade when it’s domestic politics appearing to determine the Administration’s trade agenda.

Finally, jobs. President Obama announced plans for a December “jobs summit” this week and there’s talk of another stimulus bill to boost jobs creation.

But delaying action on these pending free trade agreements takes one of your game-changing jobs-creating players off the field. In his Indianapolis remarks, the NAM’s Engler reported key facts: “Last year, Indiana exported $27 billion of goods. About 90 percent of those exports were manufactured goods. Nearly one in every five Indiana factory workers owes his or her job to exports.”

That’s a jobs agenda right there — exporting more. Get back in the game, Mr. President, and make the free trade agreements a priority.

Making Export Controls Work for Security and Commerce, Both

Speaking at the Bureau of Industry and Security’s Update Conference on Export Controls, Secretary of Commerce Gary Locke proposed changes to the nation’s export control system, well described in the news release’s headline, “Commerce Secretary Gary Locke Proposes Reforms to America’s Export Controls System to Enhance National Security and Improve Competitiveness“:WASHINGTON—U.S. Commerce Secretary Gary Locke proposed reforms to modernize America’s export controls system, which will enhance national security and increase the competitiveness of U.S. companies, in a speech at the Bureau of Industry and Security’s Update Conference on Export Controls today. The United States export control system seeks to prevent sensitive items from falling into the hands of those who seek to do us harm.

“Our current system was designed in the 1950s and its Cold-War-era framework is ill-suited to manage the highly complex 21st century threats currently faced by the United States,” Locke said. “We need to fundamentally revise our export control system to account for the emergence of new foreign markets, competitors and multifaceted threats that have arisen over the past few decades.”The release notes that a U.S. company recently lost two major sales to Italy for predictive maintenance imaging cameras — which is standard, widely available commercial technology — because the U.S. export control system takes too long to deal with. The Japanese got the sale.

Secretary Locke’s remarks are here.

Reuters did a story on the announcement, “US Commerce chief proposes dual-use export reform,” citing the NAM’s Frank Vargo, who calls Locke’s proposals important steps.

Modernizing export controls is one of the NAM’s priority issues, although it doesn’t get all that much media attention. (The issues becomes technical pretty quickly.) In 2007, the NAM helped create the Coalition for Security and Competitiveness to address the issue, and we have posted background information here.

Laws, Costs, Burdens: Where’s the Growth Agenda? Like Trade?

From Dow-Jones, September 29, “US Secy Locke: Colombia Trade Pact Not Likely Ratified In ‘09“:

SANTIAGO (Dow Jones)–The U.S. Congress won’t likely ratify a free trade agreement with Colombia this year as it’s currently focusing on health care reform and energy-related legislation, U.S. Commerce Secretary Gary Locke said Tuesday.

“It’s pretty doubtful” that the pact will be ratified this year, although the Obama administration is pushing forward with this agreement and similar ones with South Korea and Panama, the secretary said, noting that U.S. Trade Representative Ron Kirk is heading up the effort to conclude the trade deals.

Speaking to reporters in Santiago on the sidelines of the third Americas Competitiveness Forum, Locke said the U.S. aims to strenghten its trade ties with Latin America as the U.S. and Latin economies have greatly benefitted from existing ties.

“It’s in everyone’s economic interest to have trade agreements and lower tariff barriers,” Locke said. He added that President Barack Obama has indicated the U.S. is seeking an equal partnership with the countries in the region.

Secretary Locke and U.S. Trade Representative Ron Kirk have been excellent evangelists for the economic benefits of trade agreements, but we’ve yet to see any of the advocacy converted into action.

President Obama spoke to two labor events in September, the AFL-CIO Labor Day picnic in Cincinnati and the AFL-CIO national convention in Pittsburgh. At neither event did he even mention the word “trade.” Organized labor could be forgiven for thinking the unions have been given a de facto veto over White House utterances or Congressional action on the pending free trade agreements with Colombia, Panama and South Korea.

It hardly seems like the political environment will improve for expanding trade in 2010, when labor uses its campaign cash to bludgeon candidates into toeing their line.

See also the Investor’s Business Daily editorial, “Serving Castro First“:

On the very day Colombia was humiliated by Locke’s comments in Chile, the State Department announced it had sent acting Deputy Assistant Secretary Bisa Williams to Havana to negotiate new agreements with the ruling Castro oligarchy…[snip]

So why isn’t Colombia getting the same “pace of steps”? All it gets are sorry excuses. The U.S.-Colombia trade treaty was signed in 2006 and is ready to go. Its only barrier is House Speaker Nancy Pelosi, who doesn’t want a vote because she knows it will pass.

No country has ever been strung along so cynically.

 

Congratulations, Secretary Locke; Good Job, Nano Researchers

Former Washington Gov. Gary Locke, a Democrat, was confirmed by the Senate Tuesday to be Secretary of Commerce, and we wish him well. As a pro-trade governor from a border state — familiar with all those customs and cargo inspection issues — he’s in a good position to promote an agenda of economic growth through commerce at the agency (tautologically enough).

There’s no Locke speech yet up at the Commerce Department’s website, only this routine release with the statement: “I’m honored to take on this challenge and will work every day to make the Commerce Department an engine for improving our competitiveness, encouraging innovation and creating jobs.” Competitiveness, innovation and jobs — Good!

We’ll check back later for the transcript of his remarks to the agency employees. For now, the webpage does have an exciting report about innovation from the National Institute of Standards and Technology, in this case, improvements in an essential tool for developing nanotechnology, ”Making a Point: Picoscale Stability in a Room-Temperature AFM“:

Forget dancing angels, a research team from the National Institute of Standards and Technology (NIST) and the University of Colorado (CU) has shown how to detect and monitor the tiny amount of light reflected directly off the needle point of an atomic force microscope probe, and in so doing has demonstrated a 100-fold improvement in the stability of the instrument’s measurements under ambient conditions. Their recently reported work* potentially affects a broad range of research from nanomanufacturing to biology, where sensitive, atomic-scale measurements must be made at room temperature in liquids.

Atomic force microscopes (AFMs) are one of the workhorse tools of nanotechnology. AFMs have a sharp, pointed probe fixed to one end of a diving-board-like cantilever. As the probe is scanned across a sample, atomic-scale forces tug at the probe tip, deflecting the cantilever. By reflecting a laser beam from the top of the cantilever, researchers can sense changes in the force and build up a nanoscale topographic image of the sample. The instruments are terrifically versatile—in various configurations they can image electrostatic forces, chemical bonds, magnetic forces and other atomic-scale interactions.

Other good reports cover developments in iron-based superconductors, superfluidity and the use of stairwells in evacuations.

The Administration Filling Key Positions in EPA, Labor

From the White House website, a timely (!) posting of nominations made by President Obama yesterday, including these two we’ll be watching with interest.

Jon Cannon, Nominee for Deputy Administrator of the Environmental Protection Agency
Cannon is currently a professor of environmental law as well as the director of the Environmental and Land Use Law Program at the University of Virginia. Cannon has served as senior counsel at Beveridge & Diamond law firm. Prior to joining the University of Virginia, Cannon served in numerous positions within the EPA during the Reagan, George H.W. Bush, and Clinton administrations, eventually rising to general counsel. Prior to serving as general counsel, Cannon was deputy general counsel for Litigation and Regional Operations, Deputy Assistant Administrator for Civil Enforcement, Deputy Assistant Administrator of the Office of Solid Waste Emergency Response (OSWER), Acting Assistant Administrator for OSWER, Assistant Administrator for Administration and Resource Management and Chief Financial Officer. Cannon graduated with a BA from Williams College in 1967 and a J.D. from University of Pennsylvania in 1974.

Seth Harris, Nominee for Deputy Secretary of the Department of Labor
Harris was most recently the Obama Transition Project’s Agency Working Group Leader for the labor, education, and transportation agencies.  He is a Professor and the Director of Labor & Employment Law Programs at New York Law School.  He is also a Senior Fellow of the Life Without Limits Project of the United Cerebral Palsy Association and a member of the National Advisory Commission on Workplace Flexibility.  He served as the Chair of Obama for America’s Labor, Employment, and Workplace Policy Committee and a Co-Chair of its Disability Policy Committee.  During the Clinton Administration, he served as Counselor to the Secretary of Labor and Acting Assistant Secretary of Labor for Policy, among other policy-advising positions.  Before joining the administration, he was a law clerk to Judge William Canby of the U.S. Court of Appeals for the 9th Circuit and Judge Gene Carter of the U.S. District Court for the District of Maine.  He graduated cum laude from New York University School of Law where he was Editor-in-Chief of the Review of Law & Social Change.  He received his Bachelor’s degree from Cornell University’s School of Industrial & Labor Relations.

The Senate is expected to vote on the nomination of Hilda Solis to be U.S. Secretary of Labor this week, with confirmation anticipated but not without some pointed criticisms. There will be a cloture vote today.

There are also reports that former Washington Governor Gary Locke, a Democrat, is topping the list for Commerce Secretary. He was a pro-trade governor who worked with business and has real expertise in U.S.-Chinese relations and energy issues. Excellent.

 

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