Dear Friend,

I know that many families are still struggling to make ends meet in these difficult times.  Until our economy is working as it should for all Americans, creating jobs must be our first priority.  Long-term economic security will come from advancing strategies that invest in our infrastructure, reinvigorate our manufacturing sector, and increase our exports to world markets.

Make It In America

In the House of Representatives, we have begun work on what we call the “Make it in America” agenda. 

New laws resulting from the “Make it in America” initiative include:  

• Closing the tax loopholes that encouraged companies to ship jobs overseas 
• Modification of certain trade policies to make it cheaper for U.S. companies to obtain the materials they need to manufacture goods
• Reducing the backlog in patent applications and improving efficiency of patent examinations so that American innovators can get their products to market and be protected against piracy of their technologies
• Increasing access to capital for small businesses so that they can hire and grow

Other bills have passed the House of Representatives but still require Senate action:  

• Strengthening “Buy American” requirements for government agencies
• Improving worker training programs for growth industries so that American workers can be on the cutting edge
• Encouraging growth of a clean energy industry in America

Promoting American Exports

President Obama’s National Export Initiative (NEI) seeks to double U.S. exports and support two million new jobs in our country by creating new opportunities to sell American-made products overseas.  Through the NEI: 

• The Export-Import Bank will offer an additional $2 billion a year in loans to small businesses, helping them to finance export opportunities and create new jobs. 
• U.S. Ambassadors and trade officials have been directed to expand their efforts abroad to introduce domestic businesses and identify export opportunities. 
• The President has directed his Administration to pursue a tougher trade policy, strictly enforcing existing agreements and pursuing violations aggressively.
• Additional resources are now available for American businesses that need technical advice to market their products abroad, including trade experts that can consult directly with business owners. 
• The President has created a private sector advisory committee, comprised of business leaders throughout the country that will work with the Administration to help identify and remove barriers for American companies that wish to export goods overseas.

Trade Policy

Unfortunately, our trade policies have long assumed that “free trade” is the same as “fair trade.”  That assumption has touched off a race to the bottom where American jobs are shipped overseas to countries with non-existent labor standards or environmental protection laws.  My highest priority is preserving high-wage jobs and increasing the competitiveness of American companies domestically and abroad.  We must reset our nation’s trade policies to ensure that fairness and American values regarding worker rights guide U.S. trade agreements so that we can level the playing field for American businesses.

China Case Study. One example of an unfair trade relationship that has significantly impacted the United States and our workers is our trade with China.  China has been allowed to reap the benefits of free trade agreements and global markets while, at the same time, skirting the rules that apply to other nations and govern international commerce.  They have implemented policies blocking foreign companies from access to their domestic markets; illegally subsidized their own domestic industries; and manipulated the value of their national currency so that foreign goods are more expensive and Chinese goods are cheaper.  It is long past time to toughen our trade policies with China, and other countries pursuing similar strategies, so they cannot exploit unfair advantages.

On September 29^th, I voted to place tariffs on certain Chinese goods that will take effect if China continues its policy of currency manipulation.  Estimates are that if China allowed the value of its currency to respond to market forces, it could create over one million U.S. manufacturing jobs and cut our trade deficit with China by $100 billion a year, with no cost to the U.S. Treasury.  Additionally, the Obama Administration is considering an investigation of China’s subsidies of clean energy products.  If the Administration moves forward with an investigation, this may lead to a formal complaint before the World Trade Organization and penalties for illegal trade behavior.  The U.S. and China have recently held two high-level meetings to determine the next steps in our political and economic relations.  It is my hope that, as these talks progress, the Administration will press China to resolve some of these challenging issues for the benefit of workers and consumers in both of our nations.

Rebuilding America

We must put Americans to work rebuilding our nation’s critical infrastructure – roads and bridges, public transportation, and water and sewer systems.  This has been a focus since the outset of the recent recession but, thus far, we have only made a down payment on the vast infrastructure needs of our country.  Because the unemployment rate in the construction industry remains high at 17.2 percent, this is the perfect opportunity to put those individuals back to work meeting those needs.

We must also invest in our energy infrastructure to relieve congestion on our electrical grid and create new capacity to generate energy from renewable resources.  By developing a long term and sustainable energy strategy, we can address economic, national security, and environmental policy priorities in one fell swoop.  We can diversify our energy portfolio and end our dependence on energy sources from volatile parts of the world.  The potential for economic growth and energy savings is vast if we establish a framework for more Americans to invest in energy efficient and renewable energy technologies. Doing so will create thousands of new jobs in an emerging, growth industry; save billions of dollars in energy costs for consumers; and make significant progress in our efforts to reduce greenhouse gas emissions. 

By taking action now on these fronts, we can literally build stronger communities and a more secure America. 

John P. Sarbanes