U.S., E.U. and Japan Will Team Up to Take on China’s Overcapacity

Matthew McMullan

Matthew McMullan Communications Manager, Alliance for American Manufacturing

China’s out-of-control industrial overcapacity is among the problems stemming from its state-run economy. And while the United States has been skeptical of the global trading system in addressing some areas, it doesn’t look like it is abandoning its trading partners in this particular fight.

The U.S., European Union and Japan will announce announced on Tuesday that they are forming a new alliance to take on China over trade issues such as steel overcapacity and forced intellectual property transfers, the Financial Times reports. Although China was not directly named in the statement, it is clear that it is the target of the new alliance — something E.U. Trade Commissioner Cecilia Malmstrom confirmed on Tuesday. “There’s no secret that we think that China is a big sinner here,” she said.

The statement isn’t out yet (we’ll post it when it becomes available). UPDATE: Here it is! But along with being another step to finally tackle industrial overcapacity, it also appears to be an effort to delay or halt national security investigations into steel and aluminum imports that were launched by the Trump administration earlier this year. The Financial Times explains:

“Mr. Trump and his aides have lashed out at China and revived US trade statutes to launch controversial investigations that could lead to punitive tariffs and other trade sanctions.

But the EU and Japan have been seeking to talk the administration out of unilateral action, arguing that co-operating with the EU and countries like Japan would better serve US interests and do more to raise pressure on Beijing.”

As we’ve outlined numerous times before, China is driving global overcapacity — it is subsidizing the production of its industrial industries, which make far more product than the world needs. All that steel, aluminum and more is dumped into the global market at rock-bottom prices. This has created a massive glut in sectors like steel and aluminum and led to major layoffs and plant closures in the United States and around the world

To be honest, we’re doubtful that what the U.S., E.U., and Japan promised in their statement will be super effective unless there are tangible, enforceable actions put into place to finally halt China’s out-of-control industrial overcapacity. If the language released on Tuesday is just another strongly worded statement, similar to the one put out by the Global Forum on Steel Excess Capacity a few weeks ago, we can expect the crisis to continue. (Update: It was indeed strongly worded. We still need tangible actions.) 

Meanwhile, the Trump administration continues to sit on its national security investigations into steel and aluminum imports. It’s past time to release the findings of these “Section 232” investigations and take meaningful action to safeguard American steel and aluminum.

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Reposted from AAM

Posted In: Allied Approaches, From Alliance for American Manufacturing

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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There is Dignity in All Work

There is Dignity in All Work