International Trade News from Across the World

Wall Street Journal

• Comment: "A free-trade agreement with South Korea is politically toxic in Michigan, whose auto-industry workers fear a deal would unfairly favor South Korean car makers. U.S. Trade Representative Ron Kirk recently visited Michigan, and is working to hammer out an agreement that could pass Congress in coming months.South Korea has refused to renegotiate the entire FTA, a process that would inflame farmers and union workers there.The reworked agreement, which the White House says will address barriers to U.S. beef and auto imports, will be unveiled by the president at the Group of 20 global leaders' summit in Seoul in November."

China overtakes Japan as No.2 economy: FX chief

Reuters

• Comment: "China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty. Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others."

China aims to make yuan convertible: chief currency regulator

People's Daily Online

• Comment: "Yi, also deputy governor of the People's Bank of China, the central bank, made the remarks in an interview with Caixin media's China Reform magazine, which is posted on the SAFE website. "There is no official timetable for a convertible yuan," he said in the interview with the magazine's executive editor Hu Shuli."

WSJ729 Beijing Defends FastTrain Strategy

CMEMarkets

• Comment: "China's rail plans have meant billions of dollars of contracts for foreign companies such as Bombardier Inc., Siemens AG, and Alstom SA. But foreign companies were allowed to enter China's market only as joint-venture partners after China abandoned efforts to develop its own super-fast trains in 2003, and foreign executives say their companies were required to transfer technology as part of those ventures to gain market access."

Guatemala labor practices violate trade deal: U.S.

Reuters

• Comment: "The United States on Friday accused Guatemala of violating labor provisions of a free-trade agreement and said it would file a formal complaint that could lead to hefty monetary fines."

U.S. Plans to File a Trade Complaint, Citing Labor Violations in Guatemala

New York Times

• Comment: "The first step to bringing a case under Cafta is a request for a formal consultation with the Guatemalan government. If the talks fail to yield a resolution within 90 days, the United States could take the dispute before an arbitration panel. If the case were decided in favor of the United States, and Guatemala did not comply, it could be subject to penalties of up to $15 million a year, with the money dedicated to improving enforcement of labor laws"

NC hoping to land Caterpillar plant, 500 jobs

South Carolina Enquirer-Herald

• Comment: "Heavy-equipment manufacturer Caterpillar Inc. said Friday it will build a parts plant for large mining machines and it expects to employ about 510 full-time and contract workers in five years."

Restore America’s pride in its manufacturing

The Hill

• Comment: "So far, the Make it in America agenda has resulted in the passage of the U.S. Manufacturing Enhancement Act, which helps American companies get the affordable materials they need; it has passed the Senate and is on the way to becoming law. The House has also passed the SECTORS Act, which invests in 21st-century workforce training to make sure that our people have the skills to make it in America."

China urges change in U.S. policy to avoid friction

Reuters

• Comment: "If the United States cannot find a way of recognizing and accepting China's entrance on the world stage as a big player, relations will swerve up and down like a roller coaster,"

IMF: China currency undervalued but policy sound

Miami Herald

• Comment: "The International Monetary Fund said China's yuan is undervalued in a mildly worded assessment Wednesday of its controversial currency controls and praised Beijing's response to the global crisis."

The job machine grinds to a halt

Washington Post

• Comment: "Why invest in new plants, offices and workers, particularly here at home? Spooked by the 2008 crash, corporations want to keep more money under the mattress. More important, they're sitting pretty as profits rise."

House approves bills to boost manufacturing

Reuters

• Comment: "Lawmakers moved closer on Wednesday to creating a commission to find ways to cut the huge trade deficit with China and other countries, while also pushing a strategy to promote U.S. manufacturing."

House Democratic leader issues party's election battle cry Read more: http://www.miamiherald.com/2010/07/23/1743374/house-democratic-leader-issues.html#ixzz0v2Ieslux

Miami Herald

• Comment: "Now, he says, Democrats will push what they call "a comprehensive strategy to boost American manufacturing. -The U.S. Manufacturing Enhancement Act, which passed the House on Wednesday and which makes it easier for American companies to get the materials they need to manufacture goods."

Democrats' fix for thorny economic debate:

CNN

• Comment: "Enter the campaign to boost manufacturing, an agenda born from a poll. A survey by Democratic pollster Mark Mellman and Republican Whit Ayers, which was conducted in the spring but became a hot topic among national party leaders starting last month, found deep popular angst with the decline of America's manufacturing might. Nearly four in ten said industry is the most important to the overall strength of the American economy, far ahead of other sectors. About six in ten believe the United States no longer has the strongest economy in the world, with the overwhelming majority of those identifying China as the nation that has displaced it. And 78% want the U.S. to develop a national manufacturing strategy to respond."

A Weak Outlook for Steel Makers

New York Times

• Comment: "Steel makers painted a gloomy picture for the short-term prospects of the industry on Tuesday, saying global prices had fallen and industrial demand was not recovering as quickly as expected."

IMF Sees Yuan as Undervalued

Wall Street Journal

Is America Surrendering to China’s Trade War?

Big Government

• Comment: "America was caught flat-footed in Pearl Harbor and 9-11. There should be no confusion this time around. China, with one fifth of the world’s population and a failed domestic economy, has launched a Trade War to export its problems. The U.S. public understands the dangers and is increasing saving to sustain for the battle ahead. Chinese intelligence operatives read the New York Times and watch CNN. What they see in the media is a country staggering under debt, undermining business competitiveness, mired in deflation and ready to surrender its economic independence to China’s export onslaught. Are we? "

China invests heavily in Brazil, elsewhere in pursuit of political heft

Washington Post

• Comment: "The investments in Brazil reflect China's "going out" strategy, which seeks to guarantee natural resources for development purposes and to shield the country's state-owned enterprises from slower growth at home. Flush with more than $2 trillion in foreign exchange reserves, China has directed its state firms to scour the globe for opportunities. As it does so, China is playing by its own rules, giving its firms an edge over U.S. and other multinational companies bound by internationally mandated restrictions intended to promote fair competition"

Exports seen as key to boosting economy, creating jobs in Texas

Dallas Morning News

• Comment: "While the Brookings report noted that the doubling of exports is rare in U.S. history, increasing exports is a key strategy in addressing economic woes. It's especially helpful for the United States, which imports more goods and services than it exports, creating a $42 billion trade deficit."

Industries Find Surging Profits in Deeper Cuts

New York Times

• Comment: "Many companies are focusing on cost-cutting to keep profits growing, but the benefits are mostly going to shareholders instead of the broader economy, as management conserves cash rather than bolstering hiring and production. Harley, for example, has announced plans to cut 1,400 to 1,600 more jobs by the end of next year. That is on top of 2,000 job cuts last year — more than a fifth of its work force."

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