International Trade News from Across the World

In Obama Interview, Signs of China’s Heavy Hand

New York Times

• Comment: Anyone who thinks that this repressive regime is a US "partner" has redifined the word to suit his world view.

South Korea Trade Pact is Revived by Obama

New York Times

• Comment: Not only has the president been dissed in Beijing, but he also has done harm to US economic interests in Korea by appearing to give the go-ahead for a free trade pact with one of the world's most protectionist, mercantilist economies.

U.S. Mortgage Delinquencies Reach Record High

New York Times

• Comment: Not working: the stimulus plan, the foreclosure plan, the banking bailout plan. Let's see, all three were supposed to save the economy. Do we have this right -- we lent the banks trillions so they could screw their customers and take their homes away -- plus ratchet up their credit card rates so they can't pay either their mortgages or credit cards. And this path destroys the home values of those of us still paying our mortgages. Is this a great country for capitalist greed or what?

Air tanker battle: Boeing says Pentagon should factor WTO decision in choice

AL.com

• Comment: "A bipartisan group of 14 lawmakers backing Boeing's tanker bid said the failure to consider a recent ruling by the WTO against Airbus, part of a trans-Atlantic team that is battling Boeing for the potential $40 billion tanker contract, would put Boeing at a competitive disadvantage and undercut American workers. "The Pentagon cannot remain on this course of once again ignoring illegal subsidies and waiving expensive regulations for foreign companies that leaves American companies at a clear disadvantage," said U.S. Rep. Todd Tiahrt, R-Kan., at a news conference in Washington, D.C. "If it does, we risk seeing thousands of American jobs, technology and a vital national security component shipped off to France."

Escalation of US-China trade row biggest global threat-M.Stanley

Forbes.com

• Comment: "South Carolina Republican Lindsey Graham and Democrat Senator Charles Schumer asked the Commerce Department on Thursday to investigate alleged Chinese currency "manipulation" and if so, impose tariffs on Chinese imports.The two lawmakers have attempted to pass punitive tariff legislation against China in recent years to pressure it into floating its currency, and Schumer threatened on Thursday to revive the effort."

The Big Squanderer

New York Times

• Comment: It's too bad that Krugman still does not understand that a completely misguided and rotten trade policy is at the root of the Great Recession. Its failings were multiplied many times over by a financial elite that gave up on making things and thought it could replace productivity activity with financial chicanery. In short, Wall St. and others delusionally thought they created wealth themselves -- as opposed to lending money and brokering deals for entrepreneurs who actually had a reasonable chance of creating wealth. Instead, Wall St. looked for quick gains and, in addition to all its other sleight-of-hand and illusory financial instruments, pushed factories to China by refusing to lend for long-term growth and profits here.

Rich Vs. Poor Is Not The Right Debate

Forbes.com

• Comment: "this is a class of people who are under tremendous pressure right now. They are facing an unprecedented credit crunch, a tight-fisted consumer economy because of the lost jobs, and they are physically and emotionally drained. Fifty-year-old family businesses are closing shop, demolishing the very foundation upon which the American economy has been built."

US report sounds China spying alarm

Al Jazeera

• Comment: "In an annual report to congress on Thursday, the US-China Economic and Security Review Commission reported a steep rise in the disruption and infiltration of websites of the US government.Colonel Gary McAlum, a senior military officer, told the commission that the US defence department detected 54,640 malicious cyber incidents to its systems in 2008, a 20 per cent rise from a year earlier.The figure is on track to jump another 60 per cent this year."

A Review of Pat Choate's New Book, 'Saving Capitalism, Keeping America Strong'

Manufacturing News

• Comment: "On trade, for instance, he points out that the basic problem is that American trade policies have been premised on the false assumption that other nations think like Americans. Of course, they don't; and the whole history of America's efforts to "show leadership" in trade policy in the last six decades provides voluminous support for this inference. Noting that the United States Trade Representative's 2009 report on foreign nations' trade barriers runs to an astounding 547 pages, he comments:"The ways, means, and combinations foreign governments use to thwart imports of U.S. goods, services and investments are varied and numerous. The list of barriers for China took 56 pages of the USTR document. Korea and India each required 14 pages, Japan 22 pages. Strikingly, these barriers still exist despite more than 60 years of intensive post-war trade negotiations with other countries beginning in 1947."

Nielsen's Oldsmar facility cuts 57 jobs, some for outsourcing

St. Petersburg Times

• Comment: "About half of the jobs were cut for "efficiency reasons," he said. The other half will be outsourced to Tata Consultancy Services in India."

Impasse on China Currency Policy Shadows Global Economic Recovery

Fox40 KTXL

• Comment: "Throughout his Asia trip, Obama pushed host governments to adopt policies that relied less on selling exports to U.S. consumers and to open up their markets to more U.S. goods. The responses were muted at best.In the case of China, that means it will stick to a policy of using government authority to peg the value of its currency to the dollar instead of letting it fluctuate freely in response to independent market forces, as other major currencies do.China's policy of mandating a set relationship with the dollar helps the Chinese economy even as it hobbles efforts in the U.S. to create jobs and return to prosperity by stepping up imports"

Obama lands in Korea for talks on trade, North Korean nuclear program

Fox40 KTXL

• Comment: "Less clear is what will come out of their talks on the U.S.-Korea free trade agreement. Many people on both sides of the Pacific will be looking closely at Obama's statement or any initiatives launched that could determine the fate of the agreement, which has languished in Congress for more than two years. In his major Asia speech, delivered last weekend in Tokyo, Obama said that "we will work through the issues necessary to move forward" on a free-trade pact with Korea.Cha isn't optimistic. But other analysts say it is possible that Obama and Lee will announce efforts, such as assigning a high-level task force, that could propel the agreement to conclusion"

What's Obama Bringing Home From Asia?

Forbes.com

• Comment: "Just before Obama's arrival, a senior Chinese official criticized loose U.S. monetary policy for the first time. As in their trade meeting in Hangzhou last month, China and the U.S. pledged to work together to avoid a trade war as pressure builds in both countries' export sectors. As the global economy has begun to stabilize, the number of anti-dumping complaints has grown."

Mexico's economy: A different kind of recession

The Economist

• Comment: "NAFTA has left Mexico highly dependent on the health of the American economy, and on a few lines of cross-border business in particular. These include car manufacturing, the construction industry and tourism. They have been among the hardest hit by this recession. Scarcer credit and shredded confidence have caused American consumers to delay as many purchases as possible, particularly those of the pricier durable goods Mexico produces. With exports plummeting, unemployment in northern industrial cities such as Saltillo has leapt into double digits."

WTO authorises Brazil sanctions over U.S. cotton

Yahoo! India

• Comment: "The formal move at the WTO's dispute settlement body (DSB) brought Brazil one step closer to retaliating against the United States, the world's biggest cotton exporter, in the highly sensitive 9-year-old row.The reduction of rich countries' cotton subsidies is seen by developing countries as the litmus test of efforts to reform the world trading system in the WTO's Doha round, with African producers in particular demanding radical change."

Worst over for China's export hub-Guangdong chief

Interactive Investor International

Obama's Democrats call for trade policy overhaul

Yahoo! India

• Comment: "We believe the Doha round should be declared dead," Representative Michael Michaud, the chairman of a working group of U.S. lawmakers on trade issues, said at a news conference.The group is deeply skeptical of the free trade agenda that has dominated U.S. policy in recent years, saying it has cost the United States many manufacturing jobs. Members say they are still waiting for Obama to keep campaign promises to reform U.S. trade policy to be more protective of American workers."

The Big Picture: Looking at the Jobless Recovery Ahead

BriefingMarket

• Comment: "Twenty-two months after the start of the recession in 2001, the number of employed workers in the civilian labor force had dropped by 2.1 million.The job losses in this recession have been pronounced at virtually all levels and in virtually most areas. Striking to us, though, is that the job losses run higher up the educational curve this time. The unemployment rate for workers with a bachelor's degree, or higher, and who are over 25 years old, is at its highest point since records started being kept in 1992. Granted this unemployment rate is "only" 4.7%, but that is still nearly 50% higher than the peak rate for this group during the jobless recovery from the 2001 recession"

Tide Led by Exports Won't Lift U.S. Boat (Global Recovery Watch)

Smart Money

• Comment: "Everyone talks like China is doing something that helps the rest of the world, but China is taking from the rest of the world through domestic stimulus as an export-led economy," Brusca says. "Germany has export-led growth too. Where is the demand that's stimulating all this export-led growth?"

Obama: Job Creation Not Goal Of Dec. Forum

The Indy Channel

• Comment: "Obama told NBC that the forum will give him and other administration officials a chance to talk to CEOs, small-business owners and other experts to find out what's going on"

The other side of the dollar

MarketWatch

• Comment: "Deflation in a fractional reserve banking system means policymakers have, for all intents and purposes, lost control of the economy. It would also impact the top-tier of the societal spectrum tied to financial assets, which would be problematic for politicians and the constituencies that bankroll them. Election aspirations, however, may be the least of the concerns; this economic maelstrom is bigger than any particular political agenda"

Obama, South Korean leader accentuate the positive

Lexington Herald Leader

• Comment: "A remaining sticking point has been trade. To South Korea's dismay, a free trade agreement that was signed in 2007 by the two governments under previous leaders has been stalled ever since in Congress. The pact was already going nowhere on Democratic-run Capitol Hill during the Bush administration, which struck the deal after painstaking negotiations. Obama's election, with his concerns about U.S. access to the South Korean market for U.S. auto exports, put the deal in further doubt."

CNN - 1 Million Jobless Face Benefits Loss In January

BayInsider

• Comment: "One million people could lose unemployment benefits in January if Congress doesn't extend federal aid, according to a report released Wednesday.The report is likely to turn up pressure on lawmakers and the president, who earlier this month enacted a record-long extension of federally paid benefits. But the law only helps those who exhaust their lifelines by year's end.As it stands now, the deadline to apply for federally paid benefits is Dec. 31. So while unemployment benefits now run as long as 99 weeks, depending on the state, not everyone will receive checks for that long a stretch."

Obama wants "deal done" on South Korea trade pact

Reuters

• Comment: "The trade deal was struck more than two years ago but has yet to be approved by legislatures in either country.If implemented, it would be the biggest U.S. free trade deal since the NAFTA accord with Canada and Mexico in the mid-1990s.The Obama administration has cited concerns about the impact of the deal with South Korea on some U.S. industries, such as car makers."Overall, I think it's a potential good deal for U.S. exporters," Obama said."

Chinese Yuan ETF in Focus as the Currency Debate Heats Up

Seeking Alpha

• Comment: “Allowing the renminbi and other Asian currencies to rise would help increase the purchasing power of households, raise the labor share of income, and provide the right incentives to reorient investment,” said Strauss-Kahn. “Higher Chinese domestic demand, along with higher US saving, will help rebalance world demand and assure a healthier global economy for us all.”

US copper tube case vs. China, Mexico still facing hurdles

American Metal Market

• Comment: "(The) unanimous ITC vote should send a clear signal to copper tube producers in China and Mexico that unfair trade practices will be met with anti-dumping duties at the U.S. border," Jack Levy, counsel for the petitioners and partner at Washington law firm DLA Piper US LLP, said in a statement."

Side talks on services could spur WTO: US nominee

Forbes.com

• Comment: "But the most-advanced developing countries must ensure they open up their markets to trade, said Punke, citing China, Brazil and India as examples. "The power and influence of these countries in the world economy has expanded dramatically, even since the beginning of Doha negotiations in 2001. It is vital for them to accept the responsibility that goes along with this power and influence," he said."

China's Wen seeks to reassure Obama on trade

Vancouver Sun

• Comment: "China does not pursue a trade surplus," Wen said, adding that his government wants "to encourage a steady balancing of bilateral trade.""Lively global trade and investment will help to overcome the international financial crisis and accelerate global economic recovery," said the Chinese Premier, also urging both countries to "together oppose trade and investment protectionism."Wen's comments are unlikely to mollify U.S. industry groups and politicians who say Beijing is holding its yuan currency so low against the dollar that it is stoking a U.S. trade deficit with China and worsening global economic imbalances."

Obama, Hu show cooperation _ and differences

Fresno Bee

• Comment: "Stung by new U.S. levies on imports of Chinese-made tires and steel pipes, Hu said he told Obama that given a still struggling global economy both countries "need to oppose and reject protectionism in all its manifestations in an even stronger stand."Obama later called on China to relax controls that keep the Chinese currency relatively weak and thus help fuel exports - something Beijing officials have rejected in recent days"

Obama in China faces currency strains and a Great Wall

Reuters via Yahoo!

• Comment: "The issue of currencies has drawn testy comments from U.S. and Chinese officials. China's Commerce Ministry on Monday rebuffed calls for the yuan to appreciate, signaling resistance to change foreign exchange policy.Outside pressure has been building on Beijing to let the yuan rise after more than a year of it being nearly frozen in place against the dollar, with the latest appeal voiced by the head of the International Monetary Fund on Tuesday. But Chinese officials have swatted down speculation of any big moves soon, and the government appears likely to keep the currency on a tight rein at least until the middle of 2010 to cement the country's economic recovery."

China: U.S. relations 'most important'

CNN

• Comment: "Let me make the record straight. Over the past few months since the outbreak of the financial crisis, China has continued to purchase Treasury bonds issued by the U.S. government, rather than reducing them in any way," he said."So I think the American people need to realize that China has applied a very steady hand and very responsible hand in dealing with issues involving the dollar."

House Democrats To Call On Obama To Rethink US Trade Policy

Morningstar.com

• Comment: "The rally will feature six members, including Rep. Louise Slaughter (D., N.Y.) , the chair of the House Rules Committee, and Rep. Michael Michaud (D., Maine), who has long advocated a rethink of U.S. trade policy.Michaud introduced legislation this year that formally calls for a review of the WTO, the North American Free Trade Agreement and the Central American Free Trade Agreement. The aide said that bill has 127 co-sponsors, nearly half the House Democratic caucus.The group of lawmakers is also opposed to the ratification of three outstanding bilateral trade deals negotiated by the Bush administration: pacts with Colombia, Panama and South Korea."

WRAPUP 3-Obama nudges Hu on yuan; agree to ease trade tensions

Forbes.com

• Comment: "Investors betting the yuan will soon rise may be disappointed as Beijing is likely to keep the currency on a tight leash at least until mid-2010 to cement China's recovery. At the same time, U.S. pressure on China to act makes it hard for Beijing to move because it could be seen as bowing to Washington's demands."

Much work needed for 2010 Doha deal: WTO's Lamy? 10 hrs ago? -

CNBC

• Comment: "In one critical but controversial area progress had been only "subliminal," Lamy said. This is a proposal to end duties in some industrial sectors beyond any general cuts in duties, which the United States is pushing strongly while big emerging countries such as China are resisting."

Obama in China grapples with economic strains

WELI

• Comment: "At a gathering of Asia-Pacific leaders in Singapore over the weekend, Hu pointedly ignored international calls for his government to help ease global imbalances by raising the value of the yuan, making Chinese exports relatively more expensive.He and other senior Chinese officials have instead accused other countries -- implicitly including the United States -- of embracing damaging trade protectionism aimed at Chinese goods.On Monday, Chinese Commerce Ministry spokesman Yao Jian was equally blunt in rejecting calls to raise the value of the yuan, which would make the country's exports relatively more expensive."

Don?t Rule Out A Trade War Just Yet

I Stock Analyst

• Comment: "If provoked, the US has the economic depth to retreat into near autarky (with NAFTA) and retool its industries behind tariff walls – as Britain did in the 1930s under Imperial Preference. In such circumstances, China would collapse. Mao statues would be toppled by street riots."

Obama prods China on yuan

stuff.co.nz

• Comment: "Sun Zhe, director of the Center for U.S.-China Relations at Tsinghua University in Beijing, said Hu's silence on the currency may stem in part from a reluctance by China to be seen making policy concessions under foreign pressure."I personally think that there may be some slight, symbolic adjustment on exchange rate policy after Obama leaves, but not during the visit itself," said Sun. But don't expect much. China believes that the main problem is not the weakness of the yuan but the weakness of the dollar. The feeling here is, 'Why should we be the scapegoat for your dollar problems?"

Hu, Obama agree to cooperate more

SINA

• Comment: "Under the current circumstances, our two countries should oppose and reject trade protectionism in all its manifestations in an even stronger way," President Hu Jintao told visiting US President Barack Obama."

Worl Out of Balance

New York Times

• Comment: Rip Van Krugman finally woke up to China's trade cheating. the Nobel Laurate has been asleep since China's competitive devaluations in 1993 and 1994 -- which were designed to steal factories and jobs from the rest of the world.

Minnesota Manufacturing Jobs Fell 6.4% Over Past Twenty-Four Months

KLFY

• Comment: "Manufacturers' News reports Minnesota is now home to 10,192 manufacturers employing 471,621 workers, compared to a high of 548,061 industrial workers recorded by MNI in 2000. Manufacturing jobs have declined in the state since then, dropping 76,440 jobs or 14%. The loss of 23,000 manufacturing jobs over the past year marks the sharpest decline MNI has ever reported in the twenty-five years it has been tracking the state's industry, and represents nearly a third of all industrial jobs lost since 2000."

New round in U.S.-China trade fight

Caribbean Business Online

• Comment: “China’s government and exporters are being told we are fed up with their cheating on our fair-trade laws, and penalties for these transgressions are long overdue,” USW President Leo Gerard said."

Why Obama faces a brush off from China

Telegraph

• Comment: "right now China's is swinging along. It's not just Beijing, Shanghai, and the export orientated coastal areas. The pace and scale of development in the regions is much greater than generally realised in the West, with every chance that private demand will substitute when the fiscal stimulus wears off. It would be almost suicidal to go much faster."

Profiling Michigan's jobless

Wood TV

• Comment: "Jobless workers are profiled by running those education and job characteristics through a mathematical formula. Age, race or ethnic origin and gender are not considered. Michigan's formula was developed by Chris O'Leary and others at the W.E. Upjohn Institute for Employment Research."

Bernanke, On the Outlook for the Economy and Policy

Federal Reserve

• Comment: "The best thing we can say about the labor market right now is that it may be getting worse more slowly. Declines in payroll employment over the past four months have averaged about 220,000 per month, compared with 560,000 per month over the first half of this year. The number of initial claims for unemployment insurance is well off its high of last spring, but claims still have not fallen to ranges consistent with rising employment."

Lost There, Felt Here

New York Times

Obama: US Must Consume Less

Washington Post

• Comment: Obama has it backwards -- no surprise given the free trader that he is and his his top advisors, like Summers, Romer, Locke, Kirk, Furman, Goolsby, Tyson, et alia are. The real point is that US consumers must produce what they consume. In this way they will earn-- not borrow -- the income that they need to consume and satisfy their wants. The money will stay in the US economy and create a virtuous wealth-creating cycle -- as opposed to the current death cycle of borrowing from foreign central banks, credit cards, and home equity to consume without first earning.

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