Tag: Manufacturing Council

The Manufacturing Council

Commerce Secretary Gary Locke on Thursday announced members of the newly constituted Manufacturing Council, which will operate under the International Trade Administration. From the news release:

The Council’s new charter increases membership from 15 to 25 members and now includes more diverse and expansive industry representation in the manufacturing sector. The appointees represent a broad cross section of the industry and include steel, textile, superconductor and solar panel manufacturers both large and small. Their products support a diverse range of industries such as the auto, aerospace, apparel and energy efficiency sectors.

The Secretaries of Labor, Energy and Treasury have also been added as ex officio members of the Council to better collaborate on cross-cutting issues the Council will address.

 “A vibrant manufacturing sector isn’t just critical for the millions of Americans whose jobs depend on it,” Locke said. “Manufacturing is absolutely central to driving the innovation that fuels the American economy.”

“A strong manufacturing sector is critical to the health of the economy,” said Bruce Sohn, President of First Solar, Inc. and newly appointed chair of the Council. “I am pleased to chair this important committee and look forward to presenting the U.S. government with suggestions and direction to strengthen the American manufacturing sector.”

Locke made the announcement on Capitol Hill with members of the Senate Manufacturing Caucus, Sens. Debbie Stabenow (MI), Sherrod Brown (OH), Jeff Merkley (OR) and Tom Udall (NM).

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Commerce’s Sanchez on Doubling U.S. Exports

The Department of Commerce organized a blogger/media roundtable today with Under Secretary Francisco Sanchez of the International Trade Administration to discuss Obama Administration’s National Export Initiative and its goal of doubling U.S. exports within five years.

Secretary Sanchez drew distinctions between the Administration’s short- and long-term goals in its trade agenda. The short-term ones, measured on a 12-month basis, could be achieved through advocacy, such things as trade missions, export promotion, international trade fairs and the like. In the first eight months of 2010, that approach could account for $11.6 billion in U.S. content being exported, compared to $7.4 billion for all of 2009.

Also, Sanchez said, “We also recognize that we have to be engaged in some things that can give us some long-term successes, mainly that come from reducing barriers.” That includes, but is not limited to free trade agreements.

The National Association of Manufacturers’ new “Blueprint to Double Exports in Five Years” lays out a multifaceted plan for accomplishing the President’s goals. The report is heavy on figures and targets, which led us to ask how the Administration planned to measure its success. What are its metrics?

Sanchez said Secretary Locke stressed metrics, the Department was working to “tighten them up” further, and 12-month, short-term goals have clear standards of measurement.

What’s a little tougher to measure the trade barriers work. No. 1, it’s not something we’re going to knock out in 12 months. You can say we’re going to do 12 trade missions, you can say we’re going to bring 2,000 international buyers to the United States, we’re going work to on a dozen advocacy cases, whatever that is.

The trade barriers work doesn’t lend itself to that type of a measurement, yet it’s a very important part of accomplishing the president’s goals, so I’d say in some areas, yes, I think we have good metrics. In the trade barrier side, it’s a little more challenging to lock it down.

Sanchez did not mention Secretary Locke’s announcement today of a newly constituted Manufacturers Council, which the ITA will direct.

We’ve put two audio (.mp3) segments of today’s interviews online. The first is Undersecretary Sanchez’s opening comments. The second is Sanchez’s comments on metrics, short-term vs. long-term priorities, and free trade agreements. In this segment, he responds to our initial question and another from Ian Talley of The Wall Street Journal. Talley wrote a good story this week exploring industry’s views of the President’s National Export Initiative, “Industry: Trade Deals Vital to Meet Obama’s Export Goal.”

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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.

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Credit, China, Trade and Climate: The Manufacturing Counicl

A Commerce Department’s advisory panel, the Manufacturing Council, held its first meeting since the beginning of the Obama Administration on Monday. We don’t find any details of the discussions on the Commerce website (everything council-related is from the Bush era), but reporters were on hand and covered various aspects of Secretary Locke’s comments.

Bloomberg, “Obama Seeks Ways to Aid Auto-Parts Makers, Locke Says”

Reuters, “US commerce chief worried about firms’ liquidity”

The most important bit of news is that Secretary Locke clarified (retracted, backed off, restated) comments made in China last week that suggested U.S. consumers should bear the costs for controlling emissions blamed for climate change.

Reuters summarizes the shifting expressions, “China must ‘pay’ to cut greenhouse gases – US”:

As the United States and other developed countries make costly commitments to address climate change, “developing countries like China must do the same,” Locke told members of the Manufacturing Council, a private sector advisory group.

“They’ve got to step up. They’ve got to pay for the cost of complying with global climate change. They’ve got to invest in energy efficiency and conservation, but also very definitive steps in reducing greenhouse gas emissions,” Locke said.

The comment followed Locke’s statement last week in China that U.S. consumers should pay for the carbon content of goods they consume from countries around the world.

“It’s important that those who consume the products being made all around the world to the benefit of America — and it’s our own consumption activity that’s causing the emission of greenhouse gases, then quite frankly Americans need to pay for that,” Locke told the American Chamber of Commerce in Shanghai after meetings with Chinese officials in Beijing.

Helpful clarifications, but in the details lie potential trade wars. See the Dow-Jones story, “US Wants China, India Trade To Meet Climate, Labor Standards.” Over the past several years, organized labor and their Congressional allies insisted on environmental and labor standards being included in pending trade agreements with Colombia and Panama, and even when completed, kept adding new demands. Imagine trying to follow that path with China and India — it hands an effective veto to organized labor.

We’ll link ot Secretary Locke’s statement to the council when the Commerce Department posts it.

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