House Democrats demand a new course for U.S. trade policy

WASHINGTON -- The trade deficit figures released today by the U.S. Department of Commerce served as a stark reminder that America is losing its competitive edge in international trade.  The nation’s trade deficit for May 2006 rose to $63.8 billion, the third highest monthly deficit in U.S. history.  At this pace, the final trade deficit for 2006 is expected to surpass $800 billion, well above last year’s $716 shortfall, the largest annual deficit on record.

Meanwhile, China, one of America’s main trading partners and competitors posted a record $14.5 billion trade surplus for the month of June.  China’s growing surplus, combined with America’s staggering debt causes worry for many economists concerned that the imbalance could destabilize the global economy. 

America’s trade deficit with major trading partners has grown recently.  America’s deficit with China alone surged to $17.7 billion in May, up from a previous deficit of $17 billion in April.
 
“America is rapidly falling behind our largest competitors because we do not enforce our trade laws and stand up for our workers, farmers and businesses,” cautioned U.S. Rep. Benjamin Cardin, the Ranking Democrat on the Ways and Means Subcommittee on Trade.  “American goods and services can compete, and win, in any market if the rules of trade are enforced.  These deficit figures unmask the painful truth that our nation needs a new approach to its trade policy to reestablish America’s place in the global economy.”

Congressional Democrats have called for a new course in US trade policy including:

• Creation of a Congressional Trade Enforcer (“CTE”)  to promote and protect the rights of American workers, farmers and businesses, so that instead of exporting jobs, the United States will be exporting goods and services. 
 
• Aggressive enforcement of U.S. rights under trade agreements - The Bush Administration filed only 13 cases in the WTO in its first five years, as compared to the Clinton Administration, which brought an average of 11 cases per year.
 
• Filing a case on Chinese currency manipulation within the WTO
 
• Strengthening US anti-dumping enforcement

• Applying countervailing duties to non-market economies

• Ensuring international agreements do not weaken US trade remedy law

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