Ron Kirk Archives - Shopfloor

Hearing Set on Trade Pacts as Senators, WaPo Call for Action

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From the Senate Republicans, @Senate_GOP:

At 3:30 ET today, Leader McConnell, Sen. Orrin Hatch, and Sen. @robportman will hold a press conference on free trade agreements.

Sens. McConnell, Hatch, and @robportman will call for immediate action from the president on pending free trade agreements.

Washington Post editorial, “Time to act on free trade:U.S. agreements with South Korea, Colombia and Panama should be approved — soon“:

The potential for a trade policy train wreck is real. Everyone needs to focus less on the political tit for tat and more on the policy case for getting these deals done as soon as possible, which is clear and strong. “It is time to identify the specific steps Colombia and Panama must take to move forward,” Mr. Baucus said Wednesday, “so we can finally approve our free-trade agreements with these countries, increase U.S. exports and create jobs here at home.” From a Democrat, that can hardly be considered unfriendly advice, and Mr. Obama would be wise to take it.

House Ways and Means Subcommittee on Trade, “Brady Announces First in a Series of Three Hearings on the Pending, Job-Creating Trade Agreements“:

Congressman Kevin Brady (R-TX), Chairman, Subcommittee on Trade of the Committee on Ways and Means, today announced that the Subcommittee will hold a series of hearings on the pending trade agreements with Colombia, Panama, and South Korea. According to the President’s own statements, these agreements have the ability to create over 250,000 American jobs. The first hearing will address the agreement with Colombia. The hearing will take place on Thursday, March 17, 2011, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 A.M. The Subcommittee will soon advise regarding hearings on the trade agreements with Panama and South Korea.

Testifying on behalf of the National Association of Manufacturers will be William D. Marsh, vice president legal – Western Hemisphere — for  Baker Hughes. Also scheduled to testify is Ambassador Miriam Sapiro of the U.S. Trade Representatives Office.

The USTR on Tuesday also hosts the American Chamber of Commerce in Korea on its annual visit to Washington, D.C. Last week U.S. and Colombian officials met in Washington to discuss the pending FTA. (Also here.)

The Miami Herald reports on President Obama’s upcoming trip to Brazil, Chile and El Salvador, “President Obama’s Latin agenda takes shape.”

Senators Tell Administration: Move All Three Trade Agreements

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U.S. Trade Representative Kirk testified on the President’s 2011 Trade Agenda at the Senate Finance Committee this morning. As expected, the focus was squarely on lack of progress on the Colombia and Panama free trade agreements. Unfortunately, despite an advance request by the Chairman and Ranking Member for a specific timetable on concluding the two agreements, Ambassador Kirk did not provide much of a road map on how the U.S. will proceed in addressing what the Administration feels are outstanding issues in both agreements.

U.S. Trade Representative Ron Kirk

When he appeared in front of the House Ways and Means Committee last month, Kirk promised the Administration wants to move the Korea trade agreement (KORUS) as soon as possible, and it would intensify efforts to resolve outstanding issues in the Colombia and Panama agreements so they could be moved as quickly as possible to Congress for approval –- by the end of 2011 if possible. At the time, we argued that all three agreements need to move as quickly as possible. We still absolutely believe this is the way things should proceed. The agreements with Colombia, Korea and Panama have languished since 2007, while our competitors in Europe and Asia continue to move aggressively to open those markets and gain preferential access for their manufactured goods exports.

The Chairman and Ranking Member of the Senate Finance Committee made it very clear they feel the same way. Chairman Max Baucus (D-MT) was crystal clear: “The time is long past to ratify the Colombia agreement,” said, continuing, “None of these agreements will pass unless they are all packaged together this year.” Ranking Member Orrin Hatch (R-UT) told Ambassador Kirk that he was tired of unfulfilled promises on Colombia and Panama. “It is the Administration’s inaction that speaks volumes – and these promises we’ve heard are inadequate,” the Senator said. Sen. Hatch pulled no punches in saying that he will view any attempt to move the KORUS FTA without action on Colombia and Panama in a very negative light. Read More

On Trade: Promises, Promises

By | Trade | One Comment

U.S. Trade Representative Ron Kirk is testifying before the House Ways & Means Committee on the Obama Administration’s trade agenda this morning. I am sitting in the hearing, and there is good news and bad news.

Good news: We are extremely pleased to hear Ambassador Kirk indicate the timeline for Congressional consideration of the Korea Free Trade Agreement (FTA) is “weeks.” (Ambassador Kirk’s opening statement.) The European Union’s FTA with Korea (to be approved next month) threatens U. S. manufacturing exports to Korea, and swift completion of our agreement is necessary to keep our competitive balance. 

Bad news: No real new thoughts on how to move our languishing agreements with Colombia and Panama.  Amb. Kirk did say the Administration will “immediately intensify our engagement to resolve the outstanding issues with Colombia and Panama so that Congress can consider them this year.”

We did that with Korea on autos, and it resulted in real improvements to that agreement. The National Association of Manufacturers supported the supplemental agreement.

But it took six months, and addressed a real problem of specific market access. With Colombia and Panama, the issues are not specific. In fact, we would argue they aren’t even real issues. We would argue that the enforceable labor provisions included in our agreements as a result of the May 10 2007 bipartisan agreement addressed these concerns.

Efforts have also been made by Colombia and Panama in recent years. Colombia was removed from the International Labor Organization’s watch list this year. In short, this Administration has had two years to provide an actionable list of concerns. As Rep. Sam Johnson (R-TX) has just noted, these agreements were signed in 2007, and it is now 2011.

Chairman Camp (R-MI) has just asked Ambassador Kirk to elucidate the outstanding issues in Colombia, noting the agreement was signed in 2007. “We need to address underlying concerns on labor rights” was the response.

“We need specifics and an action plan, we need benchmarks” responded the Chairman.

We couldn’t agree more. What I am fairly certain about is that our competitors in Europe, Canada, Korea and MERCOSUR have a pretty specific list of manufactured products they’ll be shipping to Colombia and Panama as they take advantage of THEIR trade agreements.

American workers benefit from our nation’s exports. Exports create jobs in American factories. Agreements with Colombia and Panama will lead to billions in increased U. S. exports. We need all 3 agreements. And we need them now. In fact, we needed them in 2007.

Cross-Border Trucking Plan Boosts Manufacturing Exports to Mexico

By | Infrastructure, Regulations, Trade | One Comment

We can’t say the Mexican trucking dispute is over, but we can now say that, at last, the end appears to be in sight. Almost two years after Mexico imposed retaliatory tariffs on billions of dollars of American manufactured goods exports, the Obama Administration has released a long-awaited “Concept Document” that provides a foundation that, if it can be successfully turned into a mutually acceptable proposal, will lead to compliance with our NAFTA commitments and the removal of Mexico’s retaliatory tariffs on billions of dollars of U.S. exports.

While release of the interagency document is an excellent development and very good news, we are not out of the woods just yet. It will take substantial effort on the part of the Obama Administration and Congress to work through the concepts in this proposal and create a final agreement acceptable to all parties. Public comments will be solicited. And, of course, the Mexican government will need to be an integral part of any agreement. A solution will need to ensure that Mexican and American cross-border trucking takes place in a manner similar to the existing cross-border trucking that has existed between the United States and Canada. The good news is that a successful solution will speed commerce and increase productivity and efficiency in supply chains.

But only after a final agreement is reached and we are compliant with our NAFTA commitments will the tariffs be removed. And Mexico’s retaliatory tariffs have had an significant impact on a wide variety of industrial sectors across the entire country. For two years, manufacturers around the United States have faced these retaliatory tariffs on their exports to Mexico. As a result, our competitors from Canada, Latin America, China and elsewhere have had an opportunity to increase their market share in Mexico at our expense. We need to move swiftly toward a solution so the tariffs can be eliminated.

Still, we appreciate the efforts put forth by the Administration in its interagency process to develop and release this concept document. The proposal released today will form the basis on which discussions between the United States and Mexico (with input from Congress and a public comment period) will take place. We strongly encourage all parties involved to buckle up, buckle down and get moving. Every day that passes means unnecessary barriers to American exports remain in place.

Department of Transportation release, “U.S. Cross-Border Trucking Effort Emphasizes Safety and Efficiency

We Need To Lead Public Opinion On Trade, Not Follow It

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It was troubling to see U.S. Trade Representative Ron Kirk’s comments in The Dallas Morning News today on pending trade agreements. According to the article, “Trade pacts could boost Texas, but other states wary,” Ambassador Kirk does not want to rush all of the pending agreements to Congress because of American public opinion on trade and the unemployment rate in the United States.

These comments are alarming as trade agreements not only help create jobs but they also contribute to economic growth. While it may be true many people are misinformed or unaware about the benefits of trade, that’s a reason to explain the facts, not to delay. America continues to stand on the sidelines while our competitors reach trade agreements with each other.

The U.S. Department of Commerce’s data show that the U.S. trade agreement partners have never been a major factor in our U.S. trade deficit and have actually given us a trade surplus for the last three years in manufactured goods.

Further, trade agreements reduce foreign barriers or the cost of doing business for U.S. companies. As a result, these companies are able to hire more employees and make more investments. The United States is already a wide open market, with very few barriers, while others are not. When a foreign country is willing to enter into a trade agreement with us, we are the winner: Our barriers to their imports fall only a little, while their barriers to our exports fall a lot.

The article correctly reports how important the growth of exports to our trade partners has been for Texas. But then it follows with this erroneous claim: “But what’s good for Texas is not necessarily good for states like Michigan, Wisconsin and North Carolina, which have lost millions of manufacturing jobs because of America’s great appetite for imports.”

To set the record straight, two-thirds of Michigan’s manufactured goods exports go to U.S. trade agreement partners that have eliminated barriers to our exports, and over the last five years Michigan employment related to manufactured goods exports grew 26 percent. In comparison, other private employment in the state fell by 10 percent.

The story is similar for North Carolina, where more than 40 percent of its exports go to U.S. trade agreement partners, and employment related to manufactured goods exports grew 24 percent while other private sector employment grew only 5 percent. And Wisconsin? Half of its manufactured goods exports go to trade agreement partners, and employment related to manufactured goods exports grew 51 percent while other private employment fell 3 percent. State after state tells the same story.

Rather than hesitancy about moving forward with the pending trade agreements including Colombia and Panama as well as Korea, the Administration should move full speed ahead at educating the public with the truth about trade agreements and should hurry the agreements to Congress.

Read More

USTR: ‘Substantial Progress’ Made on U.S.-Korea Trade Pact

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A flurry of news reports this morning about a deal being reached between U.S. and South Korean negotiators on a free trade negotiation.

U.S. Trade Representative’s Office:

United States Trade Representative Ron Kirk made the following statement on Friday morning in Columbia, Maryland, at the conclusion of meetings with Korean Minister for Trade Kim Jong-hoon to discuss issues related to the U.S.-Korea trade agreement.

“We’ve made substantial progress in our discussions. It’s time now for the leaders to review this progress before we move forward.”

From The Hill, “U.S. cites ‘substantial progress’ in trade talks amid report of possible deal“:

President Obama’s trade chief says the U.S. and South Korea have made progress but stopped short of announcing a trade deal.

In a statement, U.S. Trade Representative Ron Kirk said he and Korean Trade Minister Kim Jong-hoon had made “substantial progress” and that it was time for leaders to review their work “before we move forward.”

Kirk spoke after South Korean media reported a possible deal between the two sides. The Yonhap News Agency, quoting the South Korean embassy, reported the two sides had reached “a substantial outcome.”

Yonhap News Agency (Korea), “S. Korea, U.S. reach deal on FTA: embassy“:
WASHINGTON (Yonhap) — South Korea and the United States have reached a deal on a free trade agreement (FTA) pending for more than three years over U.S. demands for wider access to the South Korean auto and beef markets, the South Korean embassy here said Friday.

“We’ve produced a substantial outcome on the autos and other limited areas during the ongoing talks,” the embassy said in a statement. “A final announcement will be made after the delegations reported outcome to their respective governments for confirmation.”

The chief South Korean trade negotiator will leave for Seoul early Friday after concluding the fourth and final day of talks on a free trade deal with the United States here, a South Korean official said.

Smaller Manufacturers Play Outsized Role in Exporting

By | Small Business, Trade | 2 Comments

The U.S. International Trade Commissioner this month released a report requested by the U.S. Trade Representative,  “Small and Medium-Sized Enterprises:  Characteristics and Performance.” From the Executive Summary:

[Despite] facing trade barriers and other impediments, small and medium-sized enterprises (SMEs) in the United States that export goods and services are more productive than their nonexporting counterparts. SMEs (defined in this report as firms with less than 500 U.S.-based employees), through their role as suppliers to exporting firms, make a larger contribution to U.S. exports than standard trade statistics suggest, and SMEs in the services sector are more export-intensive (i.e., reliant on exports) than large exporters of services.

U.S. Ambassador Ron Kirk commented in a release, “Smaller Exporters Play Large Role in Trade“:

USTR is focused on making trade work to benefit small businesses. Under the Obama Administration, we are committed to helping small businesses increase their sales to foreign customers. In turn, that leads to the creation of new jobs here at home. We will use our enhanced understanding of SME challenges and opportunities, while negotiating with foreign governments to open their markets and reduce trade barriers, to benefit American workers and businesses of all sizes.

Some key findings:

  • U.S. manufacturing and services SMEs that export outperform their non-exporting SME counterparts according to several key measures, including greater revenue growth and labor productivity between 2005 and 2009.
  • While large multinational firms sell primarily to foreign customers through foreign affiliates, SMEs tend to export directly to foreign customers. An estimated 73 percent of foreign sales by SMEs were conducted through direct exports, while an estimated 85 percent of foreign sales by large firms were conducted through foreign affiliates. Read More

Trade Boosts New England Economy, Heartland Candidates

By | Economy, Trade | No Comments

From The Associated Press, reporting its monthly analysis of conditions around the country.

Even as the national unemployment rate remained at 9.6 percent in September, New England states benefited from more hiring. Except for Rhode Island (Stress score: 12.08), New England has been recovering from the recession better than much of the nation.

The region has an educated work force in professional and high-tech jobs, it avoided the real estate boom and bust and it’s home to a high-end manufacturing sector. Manufacturers in New England export electronic parts and biomedical products to developing nations like China, India and Brazil, said Ross Gittell, an economist at the University of New Hampshire.

“New England is outperforming the rest of the country in many respects,” Gittell said.

Investor’s Business Daily editorial, “Free Trade Sweeps The Heartland“:

Elections: Among the biggest but least-noticed winners in last week’s election were free-trade supporters in, of all places, the industrial Midwest. And here we thought free trade was an electoral loser.

One of the sweetest victories for free-trade proponents was Ohio’s election of Republican Rob Portman to the U.S. Senate. Portman served as U.S. Trade Representative under President Bush from 2005 to 2006. During his short tenure, six of America’s 17 free-trade pacts were passed. Portman also valiantly tried to get the U.S. onboard for a global free-trade pact at Doha.

Organized labor hammered candidates all across the nation for supporting trade, IBD notes, and yet pro-trade Senate candidates Ron Kirk in Illinois and Pat Toomey in Pennsylvania won. The editorial concludes: “After four years of Democrat-led protectionism, unemployment in states like Ohio nears 10%. The incoming free-traders signal that it’s time Washington gave free trade a chance.”

Ambassador Kirk’s Reminder: Global Operations Create U.S. Jobs

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The U.S. Trade Representative’s blog includes this Oct. 14 entry, “Ambassador Kirk Meets with Honeywell International CEO “:

Today Ambassador Kirk met with Honeywell International CEO David Cote. Mr. Cote serves on the President’s Deficit Commission and was named co-chair of the U.S.-India CEO Forum by President Obama in 2009.

Honeywell International is a global company headquartered in New Jersey that supports about 58,000 jobs in the United States and 122,000 total jobs worldwide. The company strives to invent and manufacture new technology that will help increase global safety and security.

It’s a company that thrives on trade to do business. In fact, it’s a leading exporter in over 100 countries worldwide. USTR is dedicated to opening markets and maintaining a level playing field so that companies like Honeywell can export more in support of U.S. American jobs.

And right beneath it, an Oct. 13 post, “USTR Ambassador Ron Kirk and Commerce Secretary Gary Locke tour FedEx global export operations in Memphis, Tennessee“:

This week, Ambassador Ron Kirk and Commerce Secretary Gary Locke are visiting the front lines of global trade in Memphis, Tennessee. That’s where Ambassador Kirk and Secretary Locke got a behind-the-scenes look at the FedEx global operations hub, one of the busiest transportation and logistics centers in the world. They toured the site at midnight to get a sense of how FedEx operates around the clock, sending over eight million packages daily to more than 220 countries. That enormous volume of trade activity supports 230,000 FedEx jobs in the United States, including 30,000 in the Volunteer State.

That’s right on. U.S. manufacturers and logistics/shipping companies support domestic U.S. jobs through their global operations.

These USTR blog posts serve as a timely rebuke to those who for political purposes misrepresent overseas operations as somehow deleterious to the U.S. economy and job creation.

U.S. Manufacturing Affected by Mexico’s Retaliatory Tariffs

By | Infrastructure, Trade | One Comment

From Bloomberg, “Mexico Puts Tariffs on Some U.S. Pork Cuts in Truck Program Retaliation“:

Mexico will impose import tariffs on some U.S. pork cuts, ketchup, cheeses, sweetcorn and some fruits because of the U.S. government’s failure to restore a program allowing Mexican trucks to operate north of the border, the nation’s official gazette said.

The list includes a tariff of 5 percent on some cuts of pork and as much as 25 percent on fresh white cheese, according to the notice. Onions, apples, pears, oranges, cherries, soy sauce, mineral water and sunglasses are also on the list.

Mexico’s official gazette lists all the products in Spanish. Media reports focus on the agricultural and retail products because consumers/readers can easily grasp the impact. The economic on manufactured goods could be as great or greater, however. Here’s Google’s translation of part of the list, including the percentage tariffs applied. Most of it reflects the original list of products announced in March 2009.

 We note the addition of heavy machinery, such as trenchers (8429.59.01), hit with a 15 percent tariff.  That’s a big ticket item which other countries such as Canada are more than eager to supply.