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AAmerican MManufacturing TTrade AAction CCoalition
AMTACAMTAC910 16th Street, NW
Suite 410Washington, DC 20006
Phone: (202)452-0866 Fax: (202) 452-0739 E-mail: [email protected]
Visit our website at:
www.amtacdc.org
Free Trade and Deepening Deficits
-70
-60
-50
-40
-30
-20
-10
0
101.3 billion
-14 billion
CANADA
Net Change of $51.8 billion
MEXICO
Net Change of 46.4 billion
-45.1 billion
-65.8 billion
|1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001| 2002 | 2003 | 2004|
Trade with NAFTA Countries (in billions)
Source: US Department of Commerce – San Diego Union Tribune – May 1, 2005
Source: MBG Information Services
Latest Trade Deficit Numbers • U.S. trade deficit in 2004 was $617 billion, an increase of 24%
over 2003’s deficit of $561 billion.
• For Jan-Feb 2005:
► Trade deficit was $127.2 billion for Jan-Feb 2005 • Already $28 billion above the Jan.- Feb.2004’s record of
$99.5 billion.. • Puts the country on track to reach a trade imbalance
topping $750 billion.
► Autos, Trucks and Parts trade deficit was $137 billion in 2004, $10 greater than in 2003 deficit.
► Aerospace trade surplus peaked in 1998. In steady decline since 1998.
US Trade in Advanced TechnologyTraditional Large Surplus now Equally Large Losses
© MBG Information Services
China's Export Boom:Iron, Steel and Fabricated Products
China's New Iron/Steel SurplusIron, Steel and Fabricated Products
US Global Trade in Autos/Trucks/Parts:Unprecedented Losses
© MBG Information Services
AMERICAN MANUFACTURING TRADE ACTION COALITIONTelephone: (202) 452-0866 Fax: (202) 452-0739 E-mail: [email protected]
Colorado After the Bubble:Sharp Loss of Good Jobs
Colorado Key Votes On Trade
Morocco FTA (2004) Australia FTA(2004) Singapore FTA (2003)Senator Allard (R)—YES Senator Allard (R)—YES Senator Allard (R)—YESSenator Campbell (R)—YES Senator Campbell (R)—YES Senator Campbell (R)—YES
CO 1 DeGette (D)—YES CO 1 DeGette (D)—YES CO 1 DeGette (D)—YESCO 2 Udall (D)—YES CO 2 Udall (D)—YES CO 2 Udall (D)—YESCO 3 McInnis (R)—YES CO 3 McInnis (R)—YES CO 3 McInnis (R)—YESCO 4 Musgrave (R)—YES CO 4 Musgrave (R)—YES CO 4 Musgrave (R)—YES CO 5 Hefley (R)—YES CO 5 Hefley (R)—YES CO 5 Hefley (R)—NOCO 6 Tancredo (R)—YES CO 6 Tancredo (R)—YES CO 6 Tancredo (R)—NOCO 7 Beauprez (R)—YES CO 7 Beauprez (R)—YES CO 7 Beauprez (R)—YES
Chile FTA (2003) Fast Track (2001) Africa/Caribbean Basin (2000)
Senator Allard (R)—YES Senator Allard (R)—YES Senator Allard (R)—YES Senator Campbell (R)—YES Senator Campbell (R)—NO Senator Campbell (R)—YES CO 1 DeGette (D)—YES CO 1 DeGette (D)—NO CO 1 DeGette (D)—YES CO 2 Udall (D)—YES CO 2 Udall (D)—NO CO 2 Udall (D)—NO CO 3 McInnis (R)—YES CO 3 McInnis (R)—YES CO 3 McInnis (R)—YES CO 4 Musgrave (R)—YES CO 4 Schaffer (R)—YES CO 4 Schaffer (R)—YES CO 5 Hefley (R)—NO CO 5 Hefley (R)—YES CO 5 Hefley (R)—YES CO 6 Tancredo (R)—NO CO 6 Tancredo (R)—YES CO 6 Tancredo (R)—YES CO 7 Beauprez (R)—YES
Key Trade Votes Continued
MFN with China (2000) WTO (1994) NAFTA (1993)
Senator Allard (R)—YES Senator Brown (R)—NO Senator Brown (R)—YES Senator Campbell (R)—NO Senator Campbell (D)—NO Senator Campbell (D)—NO CO 1 DeGette (D)—YES CO 1 Schroeder (D)—YES CO 1 Schroeder (D)—YES CO 2 Udall (D)—NO CO 2 Skaggs (D)—YES CO 2 Skaggs (D)—YES CO 3 McInnis (R)—YES CO 3 McInnis (R)—NO CO 3 McInnis (R)—YES CO 4 Schaffer (R)—YES CO 4 Allard (R)—YES CO 4 Allard (R)—YES CO 5 Hefley (R)—NO CO 5 Hefley (R)—NO CO 5 Hefley (R)—YES CO 6 Tancredo (R)—NO CO 6 Schaefer (R)—NO CO 6 Schaefer (R)—YES
Factory Closings/Layoffs Mean:
• Decline in tax revenue for federal, state and local governments. Budget crises.
• Increase in social costs for unemployment welfare, training, food stamps, crime, etc.
• Multiplier effect in reverse. Every manufacturing job gained or lost creates or destroys 3 jobs.
• Loss of utility revenue, tax revenue, health insurance raises rates for ‘survivors.’
Share of Global Outsourcing.
Total Contract Value. 2004.
Other Europe13%
Britain20%
France4%
Germany13%
United States41%
Rest of the World7%Japan
2%
Source: The Economist Print Edition, March 5, 2005
Manufacturing Cost of Dell Printer
$270.93
$670.61
$11.96
$38.02
$529.38
$11.50
$578.90$953.50
0 500 1000 1500
Labor
Materials
Tooling Costs
Total Cost USAChina
Dell Model #5100CN Printer(250,000 units)
The cost of manufacturing in China is 2/3 that of the United States. Source: Current Analysis, Inc via Electronic Engineering Times. January 24, 2005.
GRAPHIC | 7E7 Dreamliner
Nuts-and-Bolts Savings
Source: U.S. Comptroller General
National Debt
• $412,000,000,000 – Budget deficit, 2004
• $7,600,000,000,000 National debt (7 trillion)
U.S. government past liabilities paid for with borrowed money still outstanding ($20,000 for every man, woman, and child)
• $33 trillion national debt for future U.S. gov’t liabilities already incurred - pensions, healthcare, SSA ($100,000 for every man, woman, and child)
Foreign Central Bank Currency Reserves(In Billions of Dollars)
Figures for China, and EU are as of 12/31/04; other countries are as of 2/28/05. Sources: the bank of Tokyo, Mitsubishi; Bloomberg
0 100 200 300 400 500 600 700 800 900
Japan 820.5
China 609.9
Taiwan 246.6
South Korea 202.2
EU 180.7
Ratio Soars of Household Liabilities to Assets
Personal Liabilities Soar vs Disposable Income
Declining Dollar Means:
• Rising global price of commodity inputs like oil, steel, copper and grain hurt America’s global competiveness.
• Rising interest rates in the U.S.
• Rising cost of consumer imports.
• Impact heaviest on fixed-income retirees.
94.2% of FDI is Merely to AcquireThe Global Assets of US Firms
FDI to Establish New US Businesses
FDI to Acquire Existing US Businesses
Foreign Ownership Means:
• Choice of suppliers in the hands of foreign owners less likely to ‘Buy American.
• Profits, technology gains, client base belongs to foreign owners.
• Repatriated Profits add to our current account deficits.
• Foreign interests gain political/economic power in U.S. policy making process.
I.R.S. Says Americans’ Income Shrank in 2001, 2003
The New York Times
Top Ten Categories of Expected US Job Growth 2002 through 2012
623,000
603,000
596,000
460,000
454,000
454,000
414,000
376,000
367,000
343,000
Seven of these only require on-the-job-training. All are in non-tradable sectors. Source: U.S. Department of Labor
Registered nurses*
Postsecondary teachers*
Retail salespersons
Customer service representatives
Food preparation
Cashiers
Janitors and cleaners
General and operations managers*
Waiters and waitresses
Nursing aides, orderlies, and attendants
ACTION STEPS
• Connect the dots between trade policy and the steep losses to the U.S. manufacturing base, and spread the word.
• Find trustworthy sources of expert advice on trade-related legislative and policy issues that impact your company.
• Network with other manufacturing companies and local institutions to increase you influence and political clout.
• Sensitize candidates for public office on all levels about the significance of their position on trade issues.
Actions Steps Continued...
• Meet with Congressmen and Senators as a group. Be prepared with a specific agenda and very specific requests.
• Follow up persistently until a result is achieved.
• Get your employees registered and facilitate their vote.
• Rally your local communities institutions to join the effort.
• Engage the local and national media to gain attention to the issue.
ACTION AGENDA• DDemand a moratorium on Free Trade Agreements, especially with
countries that maintain significant advantages in terms of low labor and production costs, while having little purchasing power for U.S. products.
• Preserve U.S. Industrial Tariffs as part of ongoing World Trade Organization trade negotiations, the Doha Round.
• Strengthen the current Defense Department Buy-American purchase requirements, known as the “Berry Amendment” and expand them to other national security agencies, namely the new Homeland Defense Department.
• Insist upon tax reform that rewards true domestic manufacturing and removes tax credits and incentives for the overseas outsourcing activities of U.S. corporations.
ACTION AGENDA Cont.
• Strengthen U.S. trade remedy law against predatory import competitors. Anti-Dumping, Countervailing Duty laws, China Surge Safeguards, Sections 301 (steel) and 201 and action against currency manipulation by China are not being vigorously pursued.
• Strengthen Country of Origin labeling requirements so that consumers know where their products are made. Work on ‘Buy- American’ or consumer boycott campaigns.
• Insist that State and Local governments ‘Buy American’.
• Hold candidates responsible for their votes in favor of free trade. Election results trump all other agenda items.
AMTAC Tool Chest
• Plant Poster Voting Drive, Registration Drive• Billboards, Media Campaign• Candidate Questionnaires• Buy American Initiative• State Committees Examining Trade Policy • Product-Specific Safeguard Petitions - China• Organized Group Visits to Legislators• Fielding Candidates Running on Trade Policy
Stop Sending Jobs OverseasCHANGE TRADE POLICY
NOW!
Register. . . Vote!WWW.MYJOBCOUNTS.ORG
Contact AMTAC!Contact AMTAC!
AAmerican MManufacturing TTrade AAction CCoalition
AMTACAMTAC
910 16th Street, NW
Suite 410
Washington, DC 20006
Phone: (202)452-0866 Fax: (202) 452-0739 E-mail: [email protected]
Visit our website at:
www.amtacdc.org
