Trade
I am working to dramatically change U.S. trade policy. I believe that U.S. businesses and workers can compete in the global marketplace if the playing field is level, the rules of competition are fair, and unfair barriers to our products are knocked down. I recently spoke at the Peterson Institute for International Economics on “Reshaping U.S. Trade Policy in a Globalizing Economy.” You may read my remarks or watch the video presentation that includes questions and answers.
Make it in America Agenda
The federal government must do everything it can to support the manufacturing base of our economy. Manufacturing is also at the heart of our economic competitiveness and national security though the creation of advanced technology. Manufacturing companies do about 70% of the private sector R&D in the United States.
I have authored two pieces of legislation that our part of a Make it in America Agenda. The Build American Jobs Act extends proven programs that help states and local governments leverage private capital to create jobs today and build the infrastructure that is the backbone of future economic growth. And the Currency Reform for Fair Trade Act levels the trade playing field by holding accountable countries that create an unfair trade advantage by manipulating their currency. You may learn more about the Make it in America Agenda here.
Trade Enforcement
When it comes to trade, the rules of completion are important, and making sure other countries abide by their commitments is a top priority of mine. I have pressed both Republican and Democratic Administrations to pursue trade violations at the World Trade Organization and to utilize U.S. trade remedy laws to defend U.S. business and workers against the unfair trade practices of others.
Non-tariff barriers - When other countries put up unfair barriers in their home markets to U.S. exports we must demand change. For example, South Korea uses all sorts of regulatory measures to keep out U.S. autos. As a result, 75 percent of our trade deficit with them is in autos.
Import surges – When other countries dump their products in the U.S. market at unfair prices that injure domestic businesses, we must take action. I have worked to strengthen these U.S. trade remedy laws that allow us to seek relief and to get the Executive to implement them. For example, two years ago, China was dumping tires in the U.S. market and undercutting the domestic industry. The Obama Administration put in place a temporary import tariff on Chinese tires and as a result domestic tire producers are adding jobs in the U.S.
Intellectual property violations – When other countries counterfeit or steal the intellectual property of U.S. businesses we must stop them. We also must not allow other countries to require the transfer of technology when we are selling in their markets.
Opening Markets for U.S. Exports
Making things in the U.S. and selling them abroad creates jobs here at home. That is why it is important to have trade agreements that stand up for U.S. businesses and workers in the global marketplace. I worked with the Big 3 automakers and the United Auto Workers to ensure that the U.S.-Korea Free Trade Agreement was changed to address Korea’s closed market. You may read more about these changes here.
Making China Play by the Rules
We must have a consistent and active policy toward China so that it follows the rule of law by strengthening enforcement against unfair trade practices and responding to currency manipulation.
For instance, clean energy – wind and solar equipment manufacturing, are often described as the “future” of U.S. manufacturing and the U.S. economy. To get a competitive advantage, China discriminates against U.S. clean energy manufacturers in a variety of ways and has adopted subsidies that are clearly prohibited under WTO rules.
Last fall, I organized a letter from 181 Members of the House of Representatives to President Obama urging the President to address China’s unfair trade practices that benefit its green technology manufacturers to the detriment of their America competitors. You may review the letter here.
China’s currency devaluation costs U.S. businesses an estimated $125 billion in net exports.
Last year, we acted on a broad bi-partisan basis in the House to approve WTO consistent legislation to address China’s currency manipulation, but the Senate failed to act. I have urged the Administration to take a more assertive stance to address China’s currency manipulation – including by filing a WTO case, applying countervailing import duties in appropriate cases, and formally designating China as a currency manipulator.
Worker Rights in Trade Agreements
Workers must have basic rights if they are going to improve their financial standing and climb the economic ladder. This is not only vital to individuals and their families, it is critical to reducing poverty and the development of a country’s middle class. When we are integrating the U.S. economy with that of a developing country, it is important to our businesses, which need consumers to buy their goods and services. And, it’s important to U.S. workers, who should not compete with workers whose rights are suppressed, or who are killed in the exercise of those rights.
I fought to add enforceable international labor standards in the text of the U.S. – Peru Free Trade Agreement (FTA) for the first time, landmark environmental provisions and increased access to generic medicines. I also worked with Peru as they brought their labor law framework into compliance with international standards before Congress approved that FTA.
Now I am working to make sure that the Colombia-FTA reflects this same standard before it is considered by Congress. In April 2009, and again in January of this year, I went on six-day fact-finding trips to Colombia. In over 60 meetings in Colombia, I had the chance to talk first-hand with business representatives, NGOs and workers in a wide variety of fields as well as with an array of government officials at various levels, including top Colombian leadership. Some of the key facts from these trips are included in the trade speech, and you may also review a recent statement I made on Colombia.
(Updated June 13, 2011)