Today the House Ways and Means Trade Subcommittee held a hearing on U.S-India trade issues. India represents a large market for U.S. manufactured goods exports and it’s important that India is playing by the rules.

The hearing today really looked at how we can strengthen and expand trade and investment with India, as well as what can be done to better protect investors and manufacturers who export and sell in India. It is important to enforce existing disciplines on intellectual property (IP) in the WTO and continually make progress in improving those disciplines. We have yet to reach our full potential for U.S. exports to India and there are several intellectual property risks which need to be resolved.

Testifying on these issues from a manufacturing perspective today was Roy Waldron, senior vice president and chief intellectual property counsel for Pfizer. Mr. Waldron’s duties include protecting the company’s intellectual property portfolio throughout the world. The pharmaceutical industry supports more than 4 million jobs in the United States and exports $46 billion in goods. (continue reading…)

Earlier this afternoon, the Senate passed a bill with overwhelming bipartisan support to establish Permanent Normal Trade Relations (PNTR) with Russia. The Russia and Moldova Jackson-Vanik Repeal Act of 2012 (H.R. 6156), which passed by a vote of 92-4, will now head to President Obama for signing.

The NAM, after several months of extensive outreach on Capitol Hill, was instrumental in convincing Congress to pass the legislation. Russia PNTR will provide a tremendous opportunity for U.S.-manufactured goods exports and ensure manufacturers in the United States operate on a level playing field with our global competitors. The NAM sent a Key Vote letter to senators yesterday, urging their support. The House passed the same bill on November 16.

On August 22, Russia officially joined the World Trade Organization (WTO) and made commitments on increased transparency, lower tariffs and binding dispute resolution. Russia is the ninth largest economy in the world, making it a key emerging market for U.S.-manufactured goods exports. Manufacturers have urged the Senate to pass Russia PNTR, which will grow U.S. exports and secure market access to help create jobs. Click here for more information on Russia PNTR or read testimonials from small and medium manufacturers on the importance of establishing PNTR with Russia.

Lauren Airey is director of trade facilitation policy, National Association of Manufacturers.

Senate Finance Committee Chairman Max Baucus (D-MT) introduced bipartisan legislation yesterday to provide Permanent Normal Trade Relations (PNTR) with Russia. The bill was co-sponsored by Sens. Kerry (D-MA), Thune (R-SD) and McCain (R-AZ).

The NAM released a statement urging Congress to act quickly on PNTR. The NAM also released a new ManuFACT highlighting the urgent need for PNTR with Russia.

Sen. Baucus has reportedly agreed to link the PNTR bill to the so-called Magnitsky bill, a bill to sanction Russian human rights violators, and pledged to pass them both this year. The latest draft version of the Senate Magnitsky bill, circulated by Sen. Ben Cardin (D-MD), would make it more difficult to add names to the list of human rights violators that the bill creates and add ways for the President to waive penalties against those violators. (continue reading…)

This morning the Senate Finance Committee held a hearing on Russia’s accession to the World Trade Organization (WTO) and what this means for the United States. The National Association of Manufacturers has been urging Congress to grant Permanent Normal Trade Relations (PNTR) to Russia.

A few manufacturers were among the witnesses testifying at the hearing today including Chairman and CEO of Deere and Company Samuel Allen and President and CEO of GE Russia/CIS Ronald Pollett.

The chairman of the NAM’s Russia Trade Relations Task Force Daniel Cruise, vice president for global public and government affairs of Aloca, Inc. submitted a statement for the record on the importance of granting PNTR status to Russia.

Here is a brief excerpt from the statement:

Russia offers an excellent opportunity for U.S. manufacturers, and the President’s Export Council has estimated that U.S. exports to the country could double over the next five years to $12 billion. This will create manufacturing jobs in a wide variety of industries and boost economic growth, if Congress establishes PNTR with Russia.

Russia was officially invited to join the WTO on December 16, 2011, and will formally accede to the WTO upon action by the Russian Duma to ratify the agreement. The NAM strongly supports PNTR with Russia because it will give manufacturers better access to the Russian market and commit Russia to an enforceable set of international standards. Manufacturers in the United States will benefit from tariff reductions, Russia’s commitment to join the Information Technology Agreement, non-tariff barrier reductions, enhanced intellectual property rights protection and enforcement, and loosened restrictions on services trade. Each of these additional protections will help American manufacturers sell more goods in Russia.

The NAM will continue to urge Congress to move swiftly to grant PNTR status to Russia. This is not a vote for Russia but a vote for manufacturers in the United States and jobs.

The National Association of Manufacturers on April 14 joined other trade associations in a letter to Obama Administration officials opposing the latest proposal from the European Union on international standardization under the Non-Agricultural Market Access portion of the WTO negotiations, that is, provisions dealing with limits on trade of such items as manufactured goods. From the letter:

The EU’s newest NAMA proposal on international standards restricts choice and flexibility not only by naming their list of preferred standardizing bodies and suggesting that only standards developed by these bodies are relevant internationally within the context of the WTO Agreement on Technical Barriers to Trade, but by essentially requiring countries to use standards from those bodies. While this proposal is consistent with traditional European standards strategy, it fails to recognize that thousands of international standards and test methods that emanate from other globally respected standardizing bodies that currently serve as the basis for effective technical regulations or conformity assessment procedures which facilitate trade and enhance protection of public health, safety and the environment across many WTO Members and observers. The proposal also ignores significant proposals in Europe, Japan and elsewhere to expand the range of legally acceptable standards, including those developed by fora and consortia. (continue reading…)

With China’s top government official, Hu Jintao, meeting with President Obama today, The Washington Post uses the experience of a Wisconsin equipment manufacturer, Manitowoc Co., to highlight the positives and negatives of business dealings and U.S. economic relations with China.

From “Wisconsin firm learns ups and downs of doing business in China“:

MANITOWOC, WIS. – As much as any U.S. firm, Manitowoc Co. has tied its fortunes to China’s star, designing its corporate strategy around the promise of a booming billion-person market.

But as President Obama and Chinese President Hu Jintao prepare to meet this week, Manitowoc’s fitful performance illustrates the challenges of U.S. trade with China, even as it has become crucial for many companies, particularly in the decade since Beijing joined the World Trade Organization.

From the shores of Lake Michigan, the oddly diverse company – a manufacturer of industrial cranes, commercial ice makers and high-tech ovens – has pumped out exports for China and helped sustain a workforce of about 8,000, mostly in Wisconsin. But the company has also been slapped by China with unexpected import taxes that threaten to put some of the employees out of work.

It’s a thorough, serious story. (Although we’d say “oddly diverse” isn’t right: Many manufacturers produce a wide variety of products, the result of innovation, growth, acquisitions and mergers.)

UPDATE (9:35 a.m.): AP reports on other business concerns with China, including theft of intellectual property and the anti-competitive procurement policy, “indigenous innovation.” From “US companies expand goals as China leader arrives“:

When it joined the World Trade Organization 9 years ago, Beijing promised to give foreign companies a fair chance to sell to the government. By most accounts, it hasn’t done so.

“In terms of government procurement, every year is the year of the snail in China,” said Frank Vargo, vice president for international affairs at the National Association of Manufacturers. “China is still a state-managed economy, and government procurement is enormous. China has simply not opened that market.”

But Hu told the Journal and the Post that foreign companies’ “innovation, production and business operations in China enjoy the same treatment as Chinese enterprises.

In Washington, D.C., the local Fox News affiliate reports on the impact of a potential shortage in rare earths on consumer electronics, “China Mineral Shortage Could Affect Consumer Electronics”>China Mineral Shortage Could Affect Consumer Electronics.” The NAM devote a lot of energy to this issue.

[Manufacturers] of everything from automobiles to MRI machines are nervous about a potential shortage.

“And they have reason to be,” says Patricia Mears, director of International Commercial Affairs for the National Association of Manufacturers. “There are probably going to be short term difficulties with this.”…

Rare earths are essential in industry and defense. They’re used to refine petroleum, create green energy technologies like hybrid batteries, wind turbines, and compact fluorescent bulbs. They also help operate radar and missile guidance systems, which is why the United States is “very concerned” about China’s actions. (continue reading…)

Trying to regain the momentum for the Doha Round of global trade talks, the National Association of Manufacturers and other business groups outlined a set of priorities and strategies in a letter Wednesday to Karel De Gucht, the European Union’s trade commissioner, and U.S. Trade Rep Ron Kirk.

Reuters covered the story today, “Business groups press emerging economies over Doha“:

BRUSSELS, July 22 (Reuters) – Brazil, China and India must use their growing economic might to help revive deadlocked global trade talks, a coalition of business lobby groups said in a letter to U.S. and European Union trade negotiators.

The letter …is the latest sign that interest is growing in completing the Doha round of talks, which was launched in 2001 to help poor countries prosper through trade but has been stalled since 2008.

The business groups, from Europe or the United States, said the Doha round would progress only if Europe and the United States convince the big emerging economies to reduce tariffs on important industrial sectors and services.

Right. As the letter (available here) stated:

The success of the Doha Round depends on the willingness of the large emerging countries —especially Brazil, China and India—to assume the responsibility commensurate with the economic benefits they have been realizing as a result of global trade and investment liberalization. The large emerging countries now have the fastest growing economies in the G-20, and will clearly be major beneficiaries of the Doha Round. With their new economic power, they are now clearly distinguished from the least developed members of the WTO and, as a result, have a new and greater responsibility to share in leading the Doha Round forward in the NAMA, agriculture and services negotiations. Indeed, most of the significant additional market access available for the least developed countries lies in the reduction of market access barriers to the rapidly emerging economies—which could substantially boost south-south trade.

The NAM was joined by Business Europe, the Business Roundtable, Coalition of Service Industries, European Services Forum and the U.S. Chamber of Commerce. Chris Wenk of the Chamber writes about the letter at the Chamber Post, “Deliverable from Chamber Doha Mission.”

Trade ministers from the Asian-Pacific Economic Cooperation group have finished their meeting in Sapporo, Japan, with a statement pushing for a conclusion to the Doha Round of WTO negotiations, “Statement on Supporting the Multilateral Trading System and Resisting Protectionism.” Excerpt:

We, the APEC Ministers responsible for Trade, gathering for our XVI meeting in Sapporo, Japan, express our strong commitment to the multilateral trading system and our unwavering determination to bring the Doha Development Agenda (DDA) to a successful conclusion as soon as possible.

(Promoting the Doha Development Agenda)
1. The strengthened multilateral trading system is a source of economic growth, development and stability. Bearing in mind that further reform and liberalization of trade policies will bolster economic recovery, we reaffirmed our resolve to seek an ambitious, balanced, and prompt conclusion to the DDA, consistent with its mandate, built on the progress achieved, including with regard to modalities.
2. When the G20 finance ministers meet again in Toronto later this month, they’ll be asked to support the political momentum to speed up negotiations on the stalled Doha talks on global trade. That was the pledge made by a meeting of Asia Pacific trade ministers in Japan at the weekend. The ministers of the Asia-Pacific Economic Cooperation forum also agreed to outline a plan on possible ways to reach a regional free trade area.

Radio Australia has a good interview with Simon Creen, Australia’s trade minister, on the APEC meeting: (continue reading…)

The National Association of Manufacturers (NAM) Vice President for International Economic Affairs Frank Vargo issued the following trade commentary regarding the Paris meeting of trade ministers this week to discuss the Doha Round:

The only way that a balanced Doha Round outcome that benefits all nations – including the United States, but especially including the least developed countries – can be obtained is if U.S. Trade Representative Ron Kirk and his negotiating team make it plain that the United States will settle for nothing less.  The U.S. has been the primary force for global liberalization in all previous rounds of global trade negotiations, and that role now falls to Ambassador Kirk in the Doha Round. In Paris this week, Ambassador Kirk stood firm, saying “The real question is whether India and Brazil and China are ready to assume a role and responsibility commensurate with their benefits that have been realized under global liberalization…We can talk around it, but that’s the only way this is going to happen.”  The NAM agrees, and believes this is the only way a successful Doha Round is possible.  We appreciate Ambassador Kirk’s clear and determined position, which has led to a growing number of WTO members beginning to support the U.S. view.