Because the United States showed just a little sign of life and challenged China's dumping of tires in yet another unfair trade practice, the main stream media screams absurdities.
What really happened? China was dumping tires to U.S. markets in order to destroy and capture yet another good by producing under cost, flooding the market to drive down prices temporarily and plain put U.S. tire makers out of business.
On September 17, President Obama will have to decide whether to accept the U.S. International Trade Commission's recommendation to impose tariffs on imports of Chinese tires. Here are the findings of the USITC. And here is their final determination:
On the basis of information developed in the subject investigation, the United States International Trade Commission (Commission) determines, pursuant to section 421(b)(1) of the Trade Act of 1974,1 that certain passenger vehicle and light truck tires from the People’s Republic of China are being imported into the United States in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products.
Remember that cash for clunkers success? Guess what? It looks like it added to the trade deficit, which in turn detracts from overall U.S. GDP.
That means we stimulated other national economies, not our own.
The trade figures for July 2009 have been released. The trade deficit jumped it's highest one month change since 1999 to $32 Billion.
The June to July increase in exports of goods reflected increases in automotive vehicles, parts, and engines ($1.3 billion); capital goods ($0.7 billion); industrial supplies and materials ($0.4 billion); consumer goods ($0.4 billion); and other goods ($0.2 billion). A decrease occurred in foods, feeds, and beverages ($0.4 billion).
We already know Stimulus money has been used to offshore outsource jobs and now we have a new tactic to avoid the meager Buy American clause....waivers.
As local governments race to spend stimulus money, many are seeking exemptions from the law’s “Buy American’’ restrictions, which were intended to prevent taxpayer money from ending up in foreign pockets.
The administration has granted waivers for goods as varied as steel for public housing projects, high-speed Internet equipment, and Auburn’s manhole covers, which have heavy-duty hinges to help withstand the town’s heavy truck traffic.
Total June exports of $125.8 billion and imports of $152.8 billion resulted in a goods and services deficit of $27.0 billion, up from $26.0 billion in May, revised. June exports were $2.4 billon more than May exports of $123.4 billion. June imports were $3.5 billion more than May imports of $149.3 billion.
I've been waiting for this one. The Financial Times, in Crisis and climate force supply chain shift, reports increasing energy costs will cause more regional sourcing for parts and supplies.
Supply chain experts agreed, with Ernst & Young underlining how as much as 70 per cent of a manufacturing company’s carbon footprint can come from transport and other costs in its supply chain.
What kills me is the article mentions the closest cheap labor market as the location...not the country where the final product is planned for sale.
If supply chain analysts could figure this out, one would expect there are some numbers that might show one could actually create jobs and source domestically (God Forbid!)
Ralph Gomory explains comparative advantage once again and also calls cash on the latest nonsense in trade policy suggestions from the Financial Times claiming Japan should abandon manufacturing and is the cause of Japan's financial malaise.
Ignored in all these discussions is the obvious fact that when you don't make for yourself the things you need, you will have to trade for them. If you have to import cars and all sorts of manufactured goods, you will be importing on a large scale; to trade for them you will need to create additional goods or services that you can export on an equally large scale.
Remember all of that rhetoric on the campaign trail about outsourcing and trade agreements?
Guess what the Obama administration is doing? Fast Tracking Trade with the most common landing place for your job, India.
The United States has announced a new programme to fast-track high-technology trade with India from which General Electric's India division will be the first Indian company to benefit.
"This is an important step in enabling a more rapid and efficient flow of sensitive technology between India and the United States," US Secretary of Commerce Gary Locke announced at the US-India Business Council's 34th Anniversary "Synergies Summit" Wednesday.
"This is an important step in enabling a more rapid and efficient flow of sensitive technology between India and the United States," Locke said.
The Bureau of Economic Analysis released the April 2009 Foreign Trade statistics. Here is the BEA Foreign Trade Press Release and the full report.
The Nation's international deficit in goods and services increased to $29.2 billion in April from $28.5 billion (revised) in March, as exports decreased more than imports.
Our trade problem can be summarized in one word: China. Imbalanced trade with China is responsible for over half (57%) of the overall U.S. trade deficit in April.
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