Stop hostile china trade practices
- von: Saving American Jobs and Pride
- empfänger: US Congress
US companies are facing daunting challenges, including unfair trade practices by the chinese, such as currency manipulation, dumping and counterfeiting.Thats why its critical that the Obama administration increase pressure on china to cease its unfair trade practices.
John Engler, president and CEO of the National Association of Manufacturers (NAM), in February called on President Bush to take action against China to show that we are serious about these issues. Engler urged Bush to gather support from Canada, the European Union, Japan and other trading partners affected by chinas unfair trade practices, and to initiate a World Trade Organization (WTO) case against them. This would underscore the magnitude of the offenses and help preserve our manufacturing base, which is the foundation of our standard of living and our economic and national security. CBIA agrees with Engler that the president needs to take these actions now.
U.S. manufacturing accounts for three-fourths of U.S. exports, the majority of private-sector research and development, and 11% of U.S. employment.
Manufacturing is more productive, innovative and critical to America economy than ever, but its also facing historic challenges. Fierce global competition prevents manufacturers from raising prices even though costs keep increasing often because of government policies. We must all work together to reduce or control rising external costs that make it difficult for U.S. manufacturers to compete in the global marketplace.
According to a NAM tax-cost study released last year, external costs associated with taxes, litigation, regulation, health care and energy add at least 22.4% more to U.S. manufacturers average labor costs, compared with those of our major trading partners. The Chinese can produce goods at prices their U.S. counterparts cant match. In fact, Connecticut manufacturers have told us that the chinese sell their final products in the United States for what state companies pay just for the raw materials.
The United States must take action, first through the WTO and then if necessary alone, to remove trade barriers that are hurting our manufacturers and to get our trading competitors to play by the rules.
NAM is calling for more bilateral trade agreements because they bring down foreign barriers. CBIA agrees. There are few, if any, trade barriers to U.S. manufactured goods left in place in countries with which we have trade agreements.
Another way to level the playing field is to stop flagrantly illegal trade practices such as product counterfeiting, government subsidies and currency manipulations.
The chinese currency is estimated to be as much as 40% undervalued. This means U.S. manufacturers prices for products they sell in china are unnaturally inflated, while the chinese receive a huge price advantage for anything they sell here. This has contributed to a more than $160 billion bilateral trade deficit with china. china has stated it will take action to revalue its currency, but in light of its inaction regarding counterfeiting, these promises seem hollow.
The chinese also engage in counterfeiting of U.S. products as diverse as glue, aircraft parts, music and computer software. U.S. industries estimate that 90% of U.S.%u2013produced music, movies and software sold in china is pirated. chinese companies package goods in ways that make it appear as if the products were American-made. Products are boxed and labeled with an American address or with red, white and blue color schemes to give the impression they were made in the United States. The chinese repeatedly say they will enforce counterfeiting laws, yet we still see a globe awash in chinese counterfeits.
The United States cannot afford to ignore this growing crisis, nor can it retreat from the global marketplace. President Bush must take the proper actions to preserve the U.S. manufacturing base while continuing to promote global trade with china. In a free and fair marketplace, Connecticut manufacturers can compete successfully, continue to grow and provide high-quality jobs for residents in our state.
Subject: End Unfair Trade Practices by communist china
Dear [ Congressman's name] ,
The time is now for the U.S. Congress to take strong action against china and other countries that engage in unfair trade practices.
In 2007, the United States lost more than 212,000 manufacturing jobs, adding to the more than 3 million lost since President Bush took office in 2001. Many of these jobs were lost when domestic businesses shifted jobs overseas or shut down because our tax, trade and currency policies put them at a competitive disadvantage.
I urge you to support strong, meaningful legislation to address unfair trade practices that includes:
1 H.R. 2942, the bipartisan Currency Reform for Fair Trade Act of 2007, introduced by Reps. Tim Ryan (D-Ohio) and Duncan Hunter (R-Calif.).
2 H.R. 1229, the Nonmarket Economy Trade Remedy Act of 2007, which would make clear that U.S. anti-subsidy rules apply to all countries, including China.
3 Measures to address and reverse several flawed World Trade Organization decisions that weaken U.S. trade laws.
4 Bill S. 1586, introduced on September 5 by a bipartisan group of U.S. Senators led by Charles Schumer (D-NY) and including Jim Bunning (R-KY), Lindsey Graham (R-SC), Elizabeth Dole (R-NC), Richard Durbin (D-IL), and Evan Bayh (D-IN). It has since picked up Hillary Clinton (D-NY), Mark Dayton (D-MN), Michael Enzi (R-WY), Herb Kohl, Herb (D-WI), Arlen Specter (R-PA) and Debbie Stabenow (D-MI) as co-sponsors.
The bill would impose an across-the-board tariff of 27.5 percent on any imported article, product, or manufacture of the people's republic of china. The bill bases the authority to impose such a countervailing duty on Article XXI of the GATT 1994 which the lawmakers argue %u201Callows a member of the World Trade Organization to take any action which it considers necessary for the protection of its essential security interests. Protecting the United States manufacturing sector is essential to the interests of the United States.%u201D
5 invoking the safeguard mechanisms that were part of the U.S.-china agreement allowing beijing to join the WTO. Designed to prevent injury to American industries and workers from import surges or unfair trade practices, these include provisions allowing restrictions on chinese imports that disrupt U.S. markets.
6 Section 201, which protects American firms from injury by imports, appears to be an ideological decision. NAM is torn between its transnational corporate members, who have invested heavily in china, and a larger number of smaller American member companies facing import competition from china. NAM has to say something on behalf of the majority of its members, but cannot advocate import restrictions that are opposed by its biggest financial contributors, who are themselves exporting from china. By framing their action as a support for exports, they can appear to be boosters of trade rather than as %u201Cprotectionists.%u201D Their approach is thus likely to be ineffective, which will keep their transnational members happy, but continue to ruin their American members and the U.S. economy.
Finally, the recent recalls of dangerous toys and contaminated food from china have created significant public health and safety concerns. I urge you to include measures to address these issues.
The time is now for Congress to stand with American workers by making China and other nations play by the rules.
Sincerely,
(Your name)
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