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America Needs Fair Trade

By U.S. Senator Debbie Stabenow

We live in a global economy that continues to grow and expand. And over the last century, we have consistently proven that Michigan businesses and workers can successfully compete with anyone in the world when the playing field is level.

Unfortunately, persistent unfair trade practices by other countries are costing us jobs every day.

That’s why I recently brought together Michigan manufacturers from across our state and one of the nation’s top trade enforcement officials, Christopher Padilla, who serves as Undersecretary of Commerce for International Trade.

This meeting provided an open venue to discuss our current trade enforcement system and the unfair trade practices that are hurting companies and workers across the nation. We discussed issues ranging from the stealing of patents to illegal subsidies.

The outcome of the meeting was clear. No one is looking for a free ride. Our businesses are simply looking for a level playing field.

Lack of trade enforcement has made it harder and harder for Michigan companies to compete. We have 230 trade agreements on the books to enforce. But as Former Secretary of Commerce Mickey Kantor pointed out, while testifying before the Senate Finance Committee, we still have the smallest trade enforcement agency of any country in the industrialized world.

I was pleased with the World Trade Organization’s recent finding that China’s policy of charging a higher tax on American-made auto parts violates WTO rules.

However, while our workers and business waited for this ruling, six of our nation’s largest auto suppliers declared bankruptcy, we lost 3.4 million manufacturing jobs, and our trade deficit with China grew to a record $1.1 trillion dollars- all while our state’s unemployment rate climbed to 7.6 percent.

Of course, China is not the only country refusing to play by the rules. South Korea is blocking American products from entering its economy by doing everything from instituting excessively rigorous testing on American appliances to placing higher insurance premiums on American cars, many of which are made here in Michigan.

The results have been telling. For example, last year U.S. automakers sold 9,723 vehicles in Korea out of 1.2 million total sales. Meanwhile, Korean automakers sold nearly 773,000 vehicles in the United States.

That’s why I have joined with Senator Lindsey Graham of South Carolina to lead the fight to establish an office of Trade Prosecutor, to investigate other countries’ illegal trade practices and take enforcement action on behalf of American businesses.
Meanwhile countries, like Japan and China, are manipulating their currencies to make their products artificially cheaper. For example, this practice provides a $2,100 to $6,300 per car subsidy to Japanese automakers.

That’s why I have joined with Senator Bunning of Kentucky to author legislation to provide U.S. manufacturers with the legal means to fight back against what amounts to an illegal trade subsidy.

The bottom line is we need a comprehensive trade policy in this country that enforces our trade laws, provides real assistance to workers and communities who are hurt by trade, improves product safety, and most importantly, puts Michigan workers and business first.