The Opportunity for a Chinese Trade Deal Is There, If Trump Can Seize It.

Scott Paul

Scott Paul Director, AAM

As negotiations enter the finer points of the deal next week, it’s vital that Trump leverage the momentum his administration has cultivated in the trade talks and truly address China trade cheating.   

Alliance for American Manufacturing President Scott Paul writes in the Washington Examiner:

Trump, meanwhile, has prepared the ground to make it more favorable to U.S. negotiating positions. The threat of lasting tariffs on most Chinese exports into the American market has made an impression; it has added billions in costs to Chinese businesses, and therefore has drawn the Chinese side to the bargaining table.

It’s no easy feat to persuade China’s economic managers to make structural reforms to a wildly successful mercantilist model that would result in more parity for U.S. trade interests. It remains to be seen how far a deal will go.

Most likely, it won’t go far enough. U.S. Trade Representative Robert Lighthizer has been working diligently through a prescribed set of issues with his Chinese counterparts. Based on some reports, they’ve been able to make more progress on some issues, such as forced technology transfers and IP theft, than on others, such as scaling back state-owned enterprises and improving enforcement mechanisms. Those unaddressed issues may be the most important results of what will eventually come out of this.

And still, the window of opportunity is open. The time to deal is now.

It’s time to demand more market access for American firms; firmly enforced intellectual property rights; enforced labor standards for Chinese workers; equivalent standards and enforcement for pollution controls; and escalated tariffs, should China fail to meet its obligations, rather than a lengthy and frustrating consultation process.

But what if, instead, Trump loses a fight with congressional Democrats, or has an executive order halted by the courts, or catches too much grief from Iowa soybean farmers over sales in this trade dispute, and decides a simply finished deal will serve him best? What will be left on the table when that window closes?

If the administration ends negotiations having sold a hill of beans to China and extracted few meaningful reforms, it will be a long time again before the U.S. can reset this trade relationship. History doesn’t remember missed opportunities fondly.

Read the rest here.

Posted In: Allied Approaches, From Alliance for American Manufacturing

Union Matters

Steel for Wind Power

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities. 

Siemens Gamesa last month laid off 130 workers at its turbine blade manufacturing plant in Iowa, just months after GE Renewable Energy decided to close an Arkansas factory and eliminate 470 jobs.

The companies reported shrinking demand for their products, even though U.S. consumption of wind energy increases every year.

America’s prosperity depends not only on harnessing this crucial energy source but also ensuring that highly skilled U.S. workers build the components with the cleanest technology available.

Right now, the nation relies on imported steel and turbine components from foreign manufacturers like China while America’s own steel industry—well equipped for this production—struggles because of dumping and other unfair trade practices.

Steel makes up the bulk of turbine hubs and the wind towers themselves. It’s also used to make the cranes and platforms necessary for installing the towers.

Yet the potential boon to America’s steel industry is just one reason to ramp up domestic production of wind energy infrastructure.

American steel production ranks among the cleanest in the world, while China has the highest carbon emissions of any steelmaking nation and flouts environmental regulations.

The nation’s highly-skilled steelmaking workforce must play an essential role in the deeply-needed revitalization and modernization of the nation’s failing infrastructure. Producing the components for harnessing wind energy domestically and cleanly is an important step that will put Americans to work and position the United States to be world leaders in this growing industry.

 

More ...

There is Dignity in All Work

There is Dignity in All Work