Friday, March 20, 2020

Trump Takes ACTION, not Meetings

POST-GAZETTE - Res Publica
Trump Takes ACTION, not Meetings
by David Trumbull -- February 20, 2020

"To build on our incredible economic success, one priority is paramount -- reversing decades of calamitous trade policies." -- President Donald J. Trump

President Trump is turning back the failed trade policies of past administrations that closed more than 60,000 American factories and shipped millions of jobs overseas. In the decades following NAFTA's implementation and China's accession to the WTO, America lost 1 in 4 manufacturing jobs.

No longer is America turning a blind eye towards the unfair trade policies that have harmed American companies and workers for far too long. President Trump has delivered for the American people -- negotiating new trade deals that put Americans first.

President Trump signed USMCA into law, making good on his promise to terminate NAFTA, and replace it with a much better deal for the American people.

The President confronted China's unfair trade policies head-on and imposed historic tariffs, resulting in a groundbreaking phase one trade agreement with China. This agreement will begin rebalancing our trade relations, protect American intellectual property, combat counterfeit trafficking, and expand markets for American businesses. In the administrations of George W. Bush and Barack Obama I used to attend quarterly briefings in Washington on developments in trade. Each time, someone from the administration would present a fairly detailed report on all the illegal trade practices of China. We'd ask the administration spokesperson, "What are you doing about this?" The answer was always the same, "We had a meeting with the Chinese recently and we are planning for another meeting soon." Meetings, meetings, meetings -- that all. Trump takes action!

Almost all my clients are getting hit by Trump's 25% tariff on Chinese goods. They can't easily move their sourcing out of China, because the unfair and illegal trade practices of China have destroyed entire industries in the U.S. and elsewhere. China is now the sole source for certain raw materials and intermediate goods needed by U.S. manufacturers. New factories could be built outside of China, but that will take years. So, these U.S. manufacturers are stuck with China and a 25% tariff as the only way to operate. And you know what? Almost every one of them says that Trump took the right action. Just as China put out of business all other sources for these U.S. manufacturers to buy from, they see that they could be the next ones put out of business by China if the U.S. does not act as Trump has.

Thanks to the President’s efforts, we have signed two new trade agreements with Japan that will benefit American agricultural exports and grow our digital trade for the future. Japan will open its market to approximately $7 billion in American agricultural exports. The President’s efforts will help boost the already approximately $40 billion worth of digital trade between our two countries.

The President has renegotiated our trade deal with South Korea, providing a boost to America’s auto industry.

The President is working to negotiate even more new trade deals in the coming year.

Manufacturers around the country are adding thousands of new, high-paying jobs for American workers. Since the President’s election, more than 500,000 manufacturing jobs have been added to the American economy. Comparatively, 20,000 manufacturing jobs were lost in the 12 months prior to the election. Blue collar workers, on average, are on track to see almost $2,500 more in annual wages.

Trump Trade Agenda Results in Blue-Collar Boom

POST-GAZETTE - Res Publica
Trump Trade Agenda Results in Blue-Collar Boom
by David Trumbull -- March 20, 2020

On February 28, 2020, United States Trade Representative Robert Lighthizer delivered President Trump's Trade Policy Agenda and Annual Report to Congress, highlighting how the Administration’s aggressive trade actions have resulted in a "blue-collar boom" with higher wages, more jobs and a stronger economy for all.

Going forward, the report states that President Trump will continue to rebalance America's trade relationships to benefit American workers, aggressively enforce U.S. trade laws, and take prompt action in response to unfair trade practices by other nations.

The President achieved more trade successes over the last 12 months than prior administrations achieved in a typical decade. The result is a stronger economy, rising wages and more jobs -- including more manufacturing jobs.

While 15,000 manufacturing jobs were lost in the 12 months prior to President Trump's election, more than 500,000 manufacturing jobs have been added to the American economy since then.

Real median household income is now at the highest level ever recorded. Wages are growing faster for nearly all groups, but historically disadvantaged groups are seeing the fastest growth.

Wealth inequality has finally declined, as the share of net worth held by the bottom 50 percent of households has increased while the share held by the top one percent of households has decreased.

President Trump kept his promise and confronted China over its unfair trade practices, after years of little more than talk from Washington. The enforceable and historic Phase One Agreement he signed requires major structural changes by China relating to intellectual property protection, technology transfer, agricultural standards, financial services, and currency, while maintaining leverage with significant tariffs on $370 billion worth of imports from China.

President Trump kept his promise to end NAFTA by replacing it with a far better agreement -- the United States-Mexico-Canada Agreement (USMCA). The USMCA is a 21th century agreement that will lead to fairer trade and robust economic growth in North America.

The USMCA encourages U.S. manufacturing by requiring high-wage labor content for autos; strengthens supply chains to provide new market opportunities for the U.S. textile and apparel sector; provides strong protection and enforcement of intellectual property rights; includes the strongest labor provisions of any trade agreement; expands market access for American food and agricultural products; contains the strongest disciplines on digital trade of any international agreement; and makes environmental obligations fully enforceable.

The Administration's goals for the next year include:

New trade agreements with the United Kingdom, the European Union and Kenya, which would be the United States' first free trade agreement in sub-Saharan Africa.

Enforcement of commitments by our trading partners in trade agreements, including the USMCA, the China Phase One Agreement and WTO agreements.

Limiting the WTO to its original purpose of serving as a forum for nations to negotiate trade agreements, monitor compliance with agreements, and facilitate the member-driven resolution of international trade disputes.