International Trade News from Across the World

Trade deficit widens more than expected in September

WFAA.com

• Comment: "The Commerce Department said Friday that the trade deficit jumped 18.2 percent in September to $36.5 billion. That was the largest deficit since January and more than the $31.7 billion imbalance economists had expected."

China's Hu prods West on trade, investment

Yahoo! India

• Comment: "China's commerce minister hammered home the point by later telling reporters that developed members of APEC should live up to their pledges of free trade by 2010.Chen Deming said the use of safeguard measures by "a certain large country" violates international pledges against protectionism, adding that not recognizing China as a free market leads to abuse of anti-dumping rules." -- China complaining they aren't treated as a free market? Yes they are.

U.S. consumer, trade data paints bleak picture

Forbes.com

• Comment: "Separately, the government reported the U.S. trade deficit widened in September by an unexpectedly large 18.2 percent, the biggest monthly rise in 10 years, as oil prices rose for the seventh straight month and imports from China increased.The trade gap grew to $36.5 billion, from a slightly revised estimate of $30.8 billion in August, and added urgency to talks President Barack Obama will hold with Chinese leaders in coming days."

Chinese company to launch maquiladora

Brownsville Herald

• Comment: "Kohler Co. is in the process of closing an Arkansas plant to fold the production of stainless steel sinks into its maquila. Steelcase, a Grand Rapids, Mich.-based office furniture manufacturer, is expected to open a new factory in early 2010. South Korea’s LG Electronics said in July that it was creating 1,200 jobs by shifting production of electronics from a plant across the border from California, to its Reynosa facility."

Dollar decline continues as trade deficit widens

Washington Post

• Comment: "The trade deficit with China deepened as well. On Thursday, a quarterly report from China's central bank signaled that Beijing may let the yuan resume its appreciation, which was paused last summer as global trade collapsed.U.S. manufacturers argue that the yuan, which Beijing has effectively pegged to the dollar, is undervalued by up to 40 percent. This makes Chinese goods cheaper for consumers and businesses, but it makes American products more expensive for China's huge market."

Is Mexico the âNewâ China?

The Market Oracle

• Comment: "According to corporate consultant AlixPartners, Mexico has leapfrogged China to be ranked as the cheapest country in the world for companies looking to manufacture products for the U.S. market. India is now No. 2, followed by China and then Brazil."

Latest casualty of job losses: plant that makes work boots

Bellingham Herald

• Comment: "Red Wing Shoe Co. announced Thursday that the plant which employs 206 people will close as part of a restructuring . . . "We were optimistic that the economy would recover sooner than later, however the continued record unemployment in the blue collar segment, which is our core consumer base, shows no sign of a quick recovery," Murphy said."

NUMMI-reliant firm will be closing, too

Contra Costa Times

• Comment: "This is what we have talked about, that more than the immediate plant workers will be impacted by NUMMI closing down," said Bruce Kern, executive director of the East Bay Economic Development Alliance. "You have the jobs from suppliers and other vendors that provide goods and services to NUMMI." About 4,700 people work at the NUMMI factory. In addition, another 50,000 people work for suppliers and other businesses that depend on NUMMI's ongoing operations."

Ax finally falls as word 'jobless' hits home

Detroit News

• Comment: "Every few months, a row of dominoes fell. Whole floors of the office building emptied out. Men and women carrying boxes full of personal effects to their cars became commonplace. The parking lot began to sprout weeds -- the white-collar version of a shuttered factory."

China pressed to let yuan rise

New Zealand Herald

• Comment: "Assistant Finance Minister Zhu Guangyao told reporters at Apec that one of China's contributions to the global economic recovery had been maintaining "currency stability".There would be a "big cost" for any early withdrawal of its measures to boost the economy, including fiscal, monetary and exchange-rate commitments, he said."

Trade Gap Up Sharply in September

FOXBusiness.com

• Comment: "In hard goods, purchases of foreign-made autos and parts rose to $1.7 billion to $16.4 billion. The rise was primarily because of a $1.3 billion increase in imports from Canada and Mexico as the nation’s auto makers rose last month.The deficit with China rose to its highest level in nearly a year at $22.1 billion from the previous month's $20.2 billion."

For many ill with the flu, staying home isn't an option

Los Angeles Times

• Comment: "I've known people who were sick as a dog and come into work anyway and loaded up on Theraflu and energy drinks, and that's how they got through their shift," he said, adding he knows that employers, particularly those at smaller businesses, may not be in a financial position to offer sick days. One in six workers say they or a family member have been fired, suspended, punished or threatened for staying home sick or caring for a sick relative, according to a survey last year by the Washington, D.C.-based Public Welfare Foundation. Many large employers, such as Disney and Wal-Mart, dock workers disciplinary points for staying home even when they are ill."

Ahead of the Bell: Trade

San Francisco Chronicle

Out of work, out of luck

Times Union

• Comment: :The workers who lost their jobs when Millbrook Custom Cabinetry abruptly closed last Friday may be out of luck when it comes to health insurance coverage.That's because a program intended to subsidize payments depends on an existing health insurance plan and an employer who pays 65 percent of the premium and then is reimbursed through tax credits."

A POTENTIAL JOB BONANZA

Mississippi Press

China to push for

People's Daily Online

China: Aim To Grow Auto, Parts Exports 10% A Year Until 2011

Morningstar.com

• Comment: Looks like the Obama administration has succeeded in getting China to focus on de-emphasizing exports and increasing domestic demand.

Chinese builders take B.C. wood

Sicamous Eagle Valley News

US climate bill needs strong border measures-Baucus

Forbes.com

• Comment: Where Baucus been for his last three Senate terms? AWOL. Why the sudden concern about manufacturing's decline and climate change? What about all the years of trade cheating by our "trading partners"? Are subsidies, currency manipulation, import barriers, etc. any less effective at skewing the market than greenhouse gas emissions?

Recession-Recovery Strategies for Manufacturers

Supply and Demand Chain Executive

US Government Data Contains Major Flaws on Productivity and Growth

New York Times

• Comment: We at USBIC pointed out this problem in 2004. Rep. Don Manzullo (R-IL) held a roundtable with the Department of Labor officials who werre responsible for publishing the productivity data. They admitted that there were problems with their model and data collection. Subsequently, they published a defense of their methodology, but it didn't pass intellectual muster. Official Washington doesn't like accurate data because it doesn't really want to know what is happening. If it did, it might be called upon to act decisively.