Memo to Leaders Meeting with China: Time for U.S. Policy that Aids Our Economy
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Here in Washington, D.C., President Obama, Secretary of State Hillary Rodham Clinton and Treasury Secretary Timothy Geithner are taking part in a big-time summit with China. Let’s hope they have substantive discussions on economic policies that aid U.S. workers. Over the past few days, several great pieces on trade and manufacturing have been published that should feed into the discussions of U.S. participants in what is officially called the “sixth Strategic and Economic Dialogue with China.” Here’s a summary.
**U.S. “protectionism” is a myth. There’s an “untold story of protectionism,” say United Steelworkers (USW) President Leo Gerard and Scott Paul, executive director of the Alliance for American Manufacturing. That is, the set of barriers other governments erect to block American goods and the mercantilist measures they utilize to gain market share in the United States.
These practices range from China’s currency misalignment and massive industrial subsidies to non-tariff barriers in Korea and Japan. All these impediments have been well documented by U.S. trade officials, but the mere act of identifying these practices is now viewed as protectionism, even though taking action to eliminate them would expand world trade, reduce global imbalances and preserve the free market.
Buy American Is About Building Jobs, Not Protectionism
The attack by corporations and their media mouthpieces on the Buy American provision in the economic recovery package illustrates just how far removed Big Business is from the needs of U.S. workers—and, ultimately, from what will benefit the nation.
Last night on the PBS “NewsHour with Jim Lehrer,” AFL-CIO international economist Thea Lee honed in on the false arguments pushed by corporate interests who mutter darkly about how Buy American provisions will lead to “trade wars.” The Buy American provision mandates that only U.S.-made goods be used in projects funded by the bill—and requires that these steps are taken in a manner consistent with U.S. international trade obligations. So screams of “protectionism” are a red-herring.
Buy American Opponents: Un-American
What do Russian Prime Minister Vladimir Putin and the U.S. Chamber of Commerce have in common?
They both oppose provisions in the economic recovery package that would ensure that taxpayer dollars are spent on products that are made in America-to the maximum extent possible. The Buy America provision survived the recent Senate debate, despite attempts to kill it by someone who consistently wraps himself in the American flag: Sen. John McCain.
In the words of United Steelworkers President Leo Gerard, organizations like the Chamber of Commerce and Business Roundtable “want to give American tax dollars to foreign manufacturers to create jobs overseas.”
