Auto Chiefs Concerned with NAFTA Stance

The auto industry has warned that significant changes to the so-called rules of origin could undercut the president’s America-first goals.

Top executives from Detroit automakers met Monday with Vice President Mike Pence and other administration officials and aired their concerns about changes the Trump administration is seeking to the North American Free Trade Agreement.

Trump has pushed for companies to construct more auto assembly plants in the U.S., while also pushing for major changes to NAFTA that the automakers oppose. U.S. negotiators have proposed significant changes to the so-called rules of origin for autos in a bid to ensure more U.S.-made parts are used in vehicles assembled in North America, a change that the auto industry has warned could undercut Trump’s America-first goals.

“We view the modernization of NAFTA as an important opportunity to update the 23-year-old agreement and set the stage for an expansion of U.S. auto exports,” Matt Blunt, a former Missouri governor who leads the American Automotive Policy Council, a trade association representing Ford Motor Co., General Motors Co., and Fiat Chrysler Automobiles NV said in a statement. “We also appreciate the opportunity to directly address the industry’s concerns with the administration’s rule of origin proposal.”

Blunt said there are other things the group would like to have added to NAFTA, including a provision to guard against currency manipulation by Mexico and Canada.

Fiat Chrysler Chief Executive Officer Sergio Marchionne, GM CEO Mary Barra and Joe Hinrichs,  Ford’s president of global operations, attended the White House meeting. U.S. Trade Representative Robert Lighthizer and National Economic Council Director Gary Cohn were also scheduled to attend the meeting, Pence’s office said earlier on Monday.

By Ryan Beene Bloomberg: https://www.bloomberg.com/news/articles/2017-11-27/auto-chiefs-air-concerns-with-trump-nafta-stance-in-white-house

 

 

General Motors To Announce Big Expansion Of Texas SUV Plant

General Motors To Announce Big Expansion Of Texas SUV Plant

(AP Photo/David Zalubowski)

General Motors will announce Tuesday that it’s spending more than $1 billion to expand an SUV factory in Arlington, Texas. Read more of this post

Treasury: China Isn’t Currency Manipulator Under US Law

China isn’t a currency manipulator under U.S. law, though the yuan “remains significantly undervalued” and needs to rise further, the Treasury Department said.

China “has substantially reduced the level of official intervention in exchange markets since the third quarter of 2011,” the Treasury said in a statement accompanying its semi- annual currency report to Congress yesterday. The yuan has gained 9.3 percent in nominal terms and 12.6 percent in real terms against the dollar since June 2010, the Treasury said.

“It appears that the strategy of the last two administrations to use diplomacy rather than confrontation in dealing with the yuan’s value is having some positive results,” William Reinsch, president of the National Foreign Trade Council, a Washington-based business group, said in an e-mail after the report. “There is clearly room for further appreciation, however.”

In declining to brand China a manipulator, the Treasury cited the reduced intervention and “steps to liberalize controls on capital movements, as part of a broader plan to move to a more flexible exchange-rate regime.” The U.S. hasn’t designated another nation since 1994, when it named China.

Critics of China’s exchange-rate policies, including former Republican presidential candidate Mitt Romney, say the nation deliberately suppresses the value of its currency, making its goods cheaper in overseas markets and costing jobs in the U.S.

Same Rules

“This report all but admits China’s currency is being manipulated, but stops short of saying so explicitly,” U.S. Senator Charles Schumer, a New York Democrat, said in a statement. “The formal designation matters because there can be no penalties without it. It’s time for the Obama administration to rip off the Band-Aid, and force China to play by the same rules as all other countries.”

Read more of this post

General Motors is becoming China Motors

General Motors is becoming China Motors. Watch and Listen to the candid comments of GM’s CEO.

The Factory Factor: Why Outsourcing and ‘Made in America’ Could Decide this Election

Scott Paul

Executive Director, Alliance for American Manufacturing

American manufacturing is like apple pie to American voters: we love it and want more of it regardless of our politics, race, gender, income, or hometown. If you live in a swing state like Ohio, you already know that, because both presidential candidates have flooded the airwaves with ads labeling the other guy as the “outsourcer-in-chief.”

Beneath the recent accusations and counter-accusations on outsourcing, there is a simple truth: citizens believe manufacturing is central to our nation’s economic health, that America is in economic decline, that outsourcing to China is largely responsible for this condition, and they want their elected leaders to do something bold about it.

Voters of all political stripes are far ahead of the debate inside Washington, D.C. More importantly, perhaps, is that nearly all Americans — not only working-class Ohioans — share this view.

So don’t be surprised if both campaigns escalate the rhetoric and attacks on shipping jobs overseas in the coming weeks, in part to mask their own shortcomings.

That’s because no one is a knight in shining Made in America armor when it comes to this issue. Mitt Romney (rightly) criticizes President Obama for not labeling China as a currency manipulator, but glosses over the fact that Republican leaders in Congress are blocking a bipartisan currency bill that would pass overwhelmingly. Romney has also been on the wrong side of Administration decisions to defend American tire workers against China’s cheating and successfully rescue Chrysler and General Motors.

The GOP hypocritically accuses Obama of sending stimulus dollars overseas, while Republican Senators tried to block Buy America requirements for stimulus spending.

The fact is, accusing your political opponent of shipping jobs overseas is now an established American campaign tradition. What is missing is an honest debate about what could actually be done to promote American manufacturing jobs. Voters are ready for such a dialogue.

Read more of this post

How U.S. Lost Out on iPhone Work

iPhone - People flooded Foxconn Technology with résumés at a 2010 job fair in Henan Province China NYT   1-22-12

iPhone - People flooded Foxconn Technology with résumés at a 2010 job fair in Henan Province, China.

By NYT  and   Published: Jan. 21, 2012

When Barack Obama joined Silicon Valley’s top luminaries for dinner in California last February, each guest was asked to come with a question for the president.

But as Steven P. Jobs of Apple spoke,President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States?

Not long ago, Apple boasted that its products were made in America. Today, few are. Almost all of the 70 million iPhones, 30 million iPads and 59 million other products Apple sold last year were manufactured overseas.

Why can’t that work come home? Mr. Obama asked.

Mr. Jobs’s reply was unambiguous. “Those jobs aren’t coming back,” he said, according to another dinner guest. Read more of this post

Americas Dirty War Against Manufacturing (Part 1): Carl Pope

Illustration by Tomi Um

Illustration by Tomi Um

“I’d love to make this product in America. But I’m afraid I won’t be able to.”

My host, a NASA engineer turned Silicon Valley entrepreneur, has just conducted a fascinating tour of his new clean-energy bench-scale test facility. It’s one of the Valley’s hottest clean-technology startups. And he’s already thinking of going abroad.

“Wages?” I ask.

His dark eyebrows arch as if I were clueless, then he explains the reality of running a fab — an electronics fabrication factory. “Wages have nothing to do with it. The total wage burden in a fab is 10 percent. When I move a fab to Asia, I might lose 10 percent of my product just in theft.”

I’m startled. “So what is it?”

“Everything else. Taxes, infrastructure, workforce training, permits, health care. The last company that proposed a fab on Long Island went to Taiwan because they were told that in a drought their water supply would be in the queue after the golf courses.”

So begins my education on the hollowing-out of the American economy, which might be titled: “It’s not the wages, stupid.”

Manufacturing’s share of U.S. employment peaked in 1979 and has since fallen by almost half. Although manufacturing has been a relative bright spot in the dismal economy of the past couple of years, in the last decade, the U.S. lost a third of its manufacturing jobs, with the damage rippling far beyond that base to erode millions of jobs that are dependent on it. Read more of this post

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