trade

Krugman's Back of the Napkin - 1.4 million U.S. jobs lost due to Chinese Mercantilism

Paul Krugman has done a rough, on the back of a napkin calculation on the cost of jobs due to Chinese Mercantilism alone.

if we think of the United States as bearing a proportionate share, and also use the rule of thumb that one point of GDP = 1 million jobs, we’re looking at 1.4 million U.S. jobs lost due to Chinese mercantilism.

Bear in mind this is not a formal result, simply a very rough estimate put forth on his blog for discussion, not a formal research paper.

A couple of IMF researchers estimated China accounts for 0.9% of GWP (gross world product).

Since China's GDP is heavily export driven, Krugman asserts one can look at this as a negative impact on world exports., which in turn, negatively impacts purchases of goods and services from U.S. providers and this is a multiplier effect.

U.S. puts 148% anti-dumping duty on Chinese Steel Grating

A little good news. The United States put a reliminary anti-dumping duties of up to 145.18% on steel grating and also put a 10-16% anti-dumping duty on Chinese steel pipe.

Recall the Bush administration didn't lift a damn finger on China's dumping practices.

The United States imported about $91 million worth of the product from China in 2008. Steel grating is used in industrial floors, docks, ramps, drainage covers, staircases and other applications.

The trade case is one of about a dozen brought by U.S. companies in 2009 against Chinese-made goods that they said have benefited from government subsidies or are being sold in the United States at less than fair value.

The Commerce Department said it set a preliminary anti-dumping duty of 14.36 percent on four Chinese producers or exporters in the steel grating investigations.

U.S. policy for the last 50 years is to get rid of jobs

Few people realize that for the past fifty years the policy of the United States government has been to get rid of jobs.

So says former Senator Fritz Hollings in SOBER UP, a piece calling for an end of the inane rhetoric and a start to seriously formulate trade, labor policy that is in the national economic interest.

Hollings notes on the Stimulus:

With stimulus, we bail as fast as we can to stop the leaks, but do nothing to plug the hole in the hull ripped by offshoring. Stimulation can be a total success and we’ll still loss more jobs than are created.

Hollings calls cash on what globalization is really all about:

Globalization is nothing more than a trade war with production looking for a country cheaper to produce. What we have now is a trade war, without guns.

Obama to Push for "Free Trade" Agreement with Asia

Just when you think it can't get any more obvious, we get this:

President Barack Obama raised hopes for creating an Asia-Pacific free-trade region by announcing Saturday that the U.S. would seek to join a smaller group seen as a precursor to a broader Pacific Rim agreement.

News that the U.S. would participate in the Trans-Pacific Partnership, joining Chile, New Zealand, Singapore and Brunei, was announced in Tokyo and Singapore, drawing applause at the annual Asia-Pacific Economic Cooperation forum.

"Significant steps like the TPP are important to help keep up the momentum in our efforts to realize the ... vision" to create a region-wide free trade area, Singapore Prime Minister Lee Hsien Loong told other leaders at their weekend summit here.

The Headlines on Trade with China are Ridiculous

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.

Take this headline Treasuries Gain as U.S.-China Trade Tensions Threaten Recovery and this one Yen Rises Versus Euro on Signs Trade Protectionism Increasing .

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.

A Free Trade Test for the Obama Administration

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.

Pleading with Obama for a Manufacturing and Industrial Incentive Policy

Leo Hindery, Jr., Leo W. Gerard and Sen. Don Riegle exclaim, It's all about the Jobs!

Our national goals, in the medium term, must be to near fully employ those 30 million currently unemployed American workers, and in the process to more than double the number of Americans working in manufacturing, which is the least amount needed to get our economy back on track sustainably.

It's all about jobs -- whatever it takes!

I will reprint their main policy recommendations, all topics we've covered here.

  • Fund a 10-year (not the current two-year) program of significant public investment to upgrade and rebuild our nation's infrastructure, which will provide the much-needed foundation for higher-value added production and advanced business services.

U.S. Manufacturing Needs to Be Rebuilt - Ralph Gomory

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.

Some Action on China - US Launches WTO Complaint

Shocks of all shocks, the USTR is filing a complaint, along with the EU, against China for trying to hang onto the raw materials which make steel in order to boost their own production.

We are going to the WTO today to enforce our rights, so we can provide American manufacturers with a fair competitive environment and put more American workers back on the job," Ambassador Kirk said. "China is a leading global producer and exporter of the raw materials in question, and access to these materials is critical for U.S. industrial manufacturers. The United States is very concerned that China appears to be restricting the exports of these materials for the benefit of their domestic industries, despite strong WTO rules designed to discipline export restraints.

Obama "Fast Tracks" Offshore Outsourcing

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.

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