Romney on Trade

On October 16, 2012 Romney repeated his October 3 statement to open up trade particularly in Latin America and crack down on China if they cheat. In his convention speech he said he and Ryan have 5 steps to creating 12 million new jobs; his third step – “We’ll make trade work for America by forging new trade agreements and when nations cheat in trade there will be unmistakable consequences”. On January 7, 2012 Romney said-“We have to open up markets for our goods…this President has opened up none. Not true. In October 2011 free trade deals were reached with South Korea, Columbia and Panama. On November 12^th, the President had an economic summit in Hawaii with Asia-Pacific leaders; it’s reported Canada and Mexico are interested in joining the new Pacific Free Trade Agreement. On January 7 he also said – China is stealing our patents, designs, know how, brand names, hacking into corporate and government computers and manipulating their currency to get American jobs; we have to hold China to the free and fair trading rules. 

China entered the World Trade Organization (WTO) in 2001. The trade figures for January – March 2012 showed the US exported $27 billion to China while it imported $94 billion – a $67 billion deficit. This means US companies bought made in China products while Made in America items weren’t shipped to China. Let’s not forget that in October 2011 infrastructure projects in Alaska, California and New York went to Chinese workers to the tune of $7.8 billion. Although our business community didn’t like it, Obama put sanctions on China and in March 2012 tariffs ranging from 2.9% to 4.73% on Chinese solar cells and panels; Commerce decided in late May to impose additional tariffs ranging from 31% to 250% for China's alleged "dumping" of solar panels in the US at below-market costs. In late May China filed a WTO complaint challenging the US tariffs; to avoid the tariffs some Chinese companies are looking to establish manufacturing supply lines in the US. September 17 the US launched a new trade violation case against China; it sites autos and auto parts. And yet, a new Romney ad said – If Obama would stand up to China – China is stealing American ideas – Fewer Americans are working today than when President Obama took office. The unemployment issue has nothing to do with the US standing up to China. It has to do with Congress’ failure to pass any jobs bill, companies getting tax credits for doing business overseas and other companies purposely waiting until after the election to hire.