Adam Reiser: Trump administration struggles to enforce ‘Buy American’ EO 13788

Nearly eight months after President Donald J. Trump signed his executive order “Buy American and Hire American,” an expert on certifying whether goods are made in the United States shared with Big League Politics the challenges in certification and enforcing Trump’s intentions.

 

 

 

Adam Reiser, the CEO and founder of Certified, Inc., told Big League Politics he is seeing no action in the executive branch to move the president’s executive order forward.

A source familiar with how the White House drafted the executive order told Big League Politics: “There are zero teeth in it, you know? Let’s of fanfare, lots of publicity, back-slapping and hand-shaking with Trump–and now, it is getting resisted, like as if it meant nothing.”

According to the president’s directive, all agencies were supposed to have turned into both the Department of Commerce and the Office of Management and Budget how they plan to comply. These plans are to include, searchable databases of certified vendors, storage arrangements for the documents and simplifications of their internal procurement procedures.

Reiser said Trump’s executive order was the president’s attempt to bring federal procurement back in synch with the law.

The Buy American Act of 1933 was signed by President Herbert Hoover the day before he handed over the White House to President Franklin D. Roosevelt. The Act was championed by Rep. Joseph W. Byrne, (D.-Tenn.), then the chairman of the House Appropriations Committee and later Speaker of the House.

Byrne’s idea was that given support by the Hearst newspapers and by Hoover’s Commissioner of Customs Francis F.A. Eble, who would go on to start the Buy American Club.

“The law says that the U.S. government has to show preferential treatment to U.S. manufacturers,” Reiser said. “It is so the government has to buy from its own.”

Reiser said that from the 1970s, the federal government has been providing waivers to the 1933 law. “In the 1980s and 1990s, it has picked up big-time.”

When the president signed Executive Order 13788, the White House was optimistic.

President Donald J. Trump holding his Executive Order 13788 at the April 18, 2017 Kenosha, Wis., signing ceremony. (White House photo)

A senior administration official speaking on background on Easter Monday, the day before the executive order was signed in the headquarters of the tool company Snap-On in Kenosha, Wisconsin, said the executive order would correct the abuse of the Buy American Act waiver process.

“Okay, so the culture immediately changes across the agencies.  We have a lax enforcement, lax monitoring, lax compliance,” the official said. Read more of this post

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

 

 

Trump asks the question: Which do you like better Made in America or Made in the USA?

Trump asks the question: Which do you like better Made in America or Made in the USA?

 

Ford NOT moving Lincoln SUV to Mexico

reuters
By David Shepardson | WASHINGTON

 

On Thursday, Trump posted on Twitter: “I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I owed it to the great State of Kentucky for their confidence in me!”

“He will be keeping the Lincoln plant in Kentucky – no Mexico,” the President-elect tweeted.

But Ford has repeatedly said it has no plans to close any U.S. plants and likely could not do so under the terms of the current United Auto Workers contract that expires in 2019.

This is not the first time Trump’s comments about Ford production have been called into question. Laslincoln-suvt year, he took credit for Ford moving work from Mexico to Ohio, while the automaker had already made the decision in 2011 – long before Trump announced a run for president.

Spokeswoman Christin Baker said Ford “confirmed with the President-elect that our small Lincoln utility vehicle made at the Louisville Assembly plant will stay in Kentucky”.

“We are encouraged that President-elect Trump and the new Congress will pursue policies that will improve U.S. competitiveness and make it possible to keep production of this vehicle here in the United States,” she added, in a statement.

 

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Made in USA is Less of an Option

 

Made in USA is Less of an Option

Presidential hopefuls Donald Trump and Bernie Sanders are about as ideologically opposite on the political spectrum as any two candidates in recent memory. Both of them, however, are in agreement on one issue: free trade. Read more of this post

The Not So COOL Reason You Won’t Know Where Your Steak Came From

The Not So COOL Reason You May Soon Not Know Where Your Steak Came From

Cases of bovine spongiform encephalopathy—mad cow disease—have been reported in Brazil as recently as 2014. When a cow was found to have died from the neurogenerative disease, which humans can contract by eating meat from sick animals, in 2012, a number of countries suspended beef imports from Brazil as a precaution. The United States was not among them. Read more of this post

Japan, Laughing at TPP Negotiators, Raises Border Taxes by 60%

Posted on 01 October 2013 by Michael Stumo on CPA – Trade Reform

Prime Minister Abe economic planners in Japan have figured out how to do fiscal devaluation just like he does currency devaluation.  With fiscal devaluation, you raise consumption taxes and keep the benefits inside the economy.  The consumption taxes are charged on imports and domestic goods.  But you concentrate the benefits internally through (1) lowering other employer/domestic taxes; (2) avoiding a domestic tax increase that otherwise would have occurred and/or (3) spend the money domestically for increased competitiveness.japanese carmakers

“Mr. Abe told leaders of the governing coalition that he would raise the tax rate to 8 percent from 5 percent in April 2014. … [B]y returning most of the revenue to businesses and individuals he will show that his government is still focused on triggering sustainable growth.”

This is a fiscal devaluation because it raises the prices of imports in relation to domestically produced goods.  The key is in the differential impact on imports vs. domestic goods… just like in all trade rules or issues.  If you raise money from imports and domestic goods, then concentrate the benefits locally, you get your competitive differential (which can be weaker or stronger depending upon how you do it).

Its a really good idea for Abe to raise a consumption tax in Japan.  But the zombie export only crowd (those that don’t think net trade is important) in the U.S. think consumption taxes are trade neutral and refuse to take them into account during trade negotiations.  And the Congressional tax geniuses debate high vs. low taxes without talking about the tax mix… i.e. we need a U.S. consumption tax of about 12% to massively lower reliance on non-border adjustable taxes like income taxes (while maintaining progressivity) and substantially increase trade competitiveness.

We’ve seen this movie before.  Mexico and Canada had no border adjustable consumption tax prior to NAFTA.  But they enacted one during negotiations.  NAFTA was passed, tariffs across the board went down, and Mexico’s border taxes rose by 15%.  CAFTA countries had not consumption tax until CAFTA was negotiated, when they implemented a shiny new 12% consumption tax that we pay when sending goods there.  The zombie export only crowd is really surprised to hear these facts because their blinders have obscured that information.

What good are trade agreements?  Really.  On the numbers.  Our trade deficits have become the worst ever.  They refuse to deal with currency devaluation, fiscal devaluation (consumption taxes), state owned enterprises so other countries do a bait and switch.  The import penetration to Japan’s market is the same percentage in 2013 as it was in the 1980′s.

The U.S. needs a national strategy to balance trade.  And a national production strategy.  The trade negotiators and trade related committees in Congress are simply screwing up.

To learn more about Made in USA Certification please visit our website: www.USA-C.com

Made in USA Certified

U.S. dairy, poultry producers press for Canada market openings

reuters

A dairy farm on the banks of the Columbia River

Canada uses supply controls to help poultry, dairy farmers

* US producers see 2nd chance in Trans-Pacific Partnership

By Doug Palmer

WASHINGTON, Sept 24 (Reuters) – The United States must fix mistakes it made in the North American Free Trade Agreement by insisting in new trade talks with Canada on unrestricted access to that country’s poultry and dairy market, U.S. agricultural groups said on Monday.

“All we’re asking is that we have an open and free fair trade shot at the border,” Bill Roenigk, senior vice president at the National Chicken Council, said at a hearing conducted by the U.S. Trade Representative’s office on the proposed Trans-Pacific Partnership (TPP) pact.

Canada’s Conservative government, sensitive to sentiment in vote-rich Eastern Canada, has long said it will maintain supply-management measures for dairy, poultry and egg farmers. These measures largely entail matching production to domestic demand and levying high tariffs to discourage imports.

However, the government has also said all goods are subject to negotiation, both in talks on the Trans-Pacific Partnership among 11 countries in the Asia-Pacific region and in free-trade discussions with the European Union.

Four-fifths of Canada’s 13,200 dairy farmers live in Ontario and Quebec, populous provinces that are generally critical to election success.

Roenigk said U.S. producers thought NAFTA, which went into force in January 1994, would eliminate tariffs on U.S. poultry exports to Canada and were shocked when Ottawa, as well as a NAFTA dispute settlement panel, took the opposite view.

Now that the United States has a second chance to address Canada’s poultry tariffs, the U.S. industry’s “view on this is the old Irish proverb: Fool me once, shame on you; fool me twice, shame on me,” Roenigk said in his prepared remarks.

“The U.S. poultry industry strongly opposes Canada’s participation in the TPP unless Canada expressly commits to removing all border restrictions on poultry imports from the United States,” he said.

Jaime Castaneda, senior vice president at the National Milk Producers Federation, said U.S. dairy producers were also disappointed NAFTA did not open up Canada’s market and were determined not to let that happen again.

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