U.S. Representative Sandy Levin
12th District of Michigan
| For Immediate Release February 10, 2006 |
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TRADE DEFICIT SETS ALL-TIME HISTORIC HIGH AS BUSH ADMINISTRATION FAILS TO ENFORCE TRADE AGREEMENTS, KNOCK DOWN TRADE BARRIERS AND STOP UNFAIR TRADE PRACTICES Manufacturing and Automotive Sectors Struggle as Trade Deficit Soars |
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(Washington D.C.)- With today's announcement of the highest trade deficit in U.S. history, U.S. Rep. Sander Levin (D-MI), a senior member of the House Ways and Means Committee, reacted by calling on the Bush Administration to "get into the game and use the tools of the federal government to shape trade to our advantage."
The Commerce Department reported a record-breaking trade deficit of $725.8 billion in 2005, the highest ever in history. This year’s trade deficit is 17.5 percent higher than last year’s record and accounts for about 6 percent of the U.S. economy. The skyrocketing trade deficit with China is just one reason for the explosive increase that has contributed to the overall trade deficit. The enormous trade inequality between the U.S. and China was $202 billion during 2005 – a 25 percent increase over 2004. In the face of this inequality, the Bush Administration refuses to address China’s management of its currency policy, which imposes a direct cost on U.S. exports to China and subsidizes imports from China by 15-40%.
“These startling numbers must serve as a call to action that more of the same from the Bush Administration is simply unacceptable for the U.S. automotive and manufacturing sector,” said Rep. Levin, also a member of the House Ways and Means Trade subcommittee. “The federal government is not without the tools to enforce our trade agreements, knock down foreign barriers to U.S. products and stop unfair trading practices – the current Administration is just without the resolve and refuses to use them.”
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