(The Packer)
Consolidating food safety oversight into one agency could save the federal
government money and improve performance, the U.S. Government Accountability
Office reports.
The report, called “Opportunities to Reduce Potential Duplication in Government Programs,
Save Tax Dollars, and Enhance Revenue,” concludes the current oversight
of food safety is inconsistent, inefficient and ineffective. Although reducing
fragmentation in federal food safety oversight may not result in significant
cost savings, new costs may be avoided by preventing further fragmentation, the
report said. Read more here.
Monday, March 7, 2011
Faster Border? Let’s Hope So, CTA Says
(Today’s Trucking)
The Canadian Trucking Alliance (CTA) sounded a little world-weary in its response to the announcement that Canadian and U.S. government officials have pledged to improve cooperation and coordination at the border. In an editorial posted on its web site, CTA says it takes the news “with a well-earned and healthy degree of skepticism” since previous efforts to streamline the border have ended in few positive results.
“We have been promised a better balance between security and trade facilitation a number of times over the past decade, only to be disappointed by the results,” the editorial states. “We sincerely hope the outcome will be different this time and are prepared to work with the Government of Canada to ensure this is the case.”
CTA points out that trucking, more than any other industry has been greatly impacted by border delays in the “security-trumps-trade post-9/11 world.” So the alliance says it welcomes the news from U.S. President Barack Obama and Canadian Prime Minister Stephen Harper that the two countries will attempt once again to fix border problems. Read more here.
The Canadian Trucking Alliance (CTA) sounded a little world-weary in its response to the announcement that Canadian and U.S. government officials have pledged to improve cooperation and coordination at the border. In an editorial posted on its web site, CTA says it takes the news “with a well-earned and healthy degree of skepticism” since previous efforts to streamline the border have ended in few positive results.
“We have been promised a better balance between security and trade facilitation a number of times over the past decade, only to be disappointed by the results,” the editorial states. “We sincerely hope the outcome will be different this time and are prepared to work with the Government of Canada to ensure this is the case.”
CTA points out that trucking, more than any other industry has been greatly impacted by border delays in the “security-trumps-trade post-9/11 world.” So the alliance says it welcomes the news from U.S. President Barack Obama and Canadian Prime Minister Stephen Harper that the two countries will attempt once again to fix border problems. Read more here.
Sunday, March 6, 2011
Decision ‘Evens Playing Field’ for Forwarders
(Chris Dupen — American Shipper)
He said the decision could have important implications across the United States and beyond the border of the United States. Read more here.
A recent Ninth Circuit Court of Appeals decision over an
air cargo shipment “has evened the playing field for air freight forwarders
when it comes to third party indemnity claims,” says Peter D. Clark, a partner
at Clark, Atcheson & Reisert.
Clark has written
a detailed article about the decision in Chubb
Insurance Co. of Europe S.A. vs. Menlo Worldwide Forwarding Inc., which is posted on the Sea Law section of his
law firm's Web site.
He said the decision could have important implications across the United States and beyond the border of the United States. Read more here.
Friday, March 4, 2011
News from TAHOCO: Weekly Updates
An updated list of recently published US government
memorandums, notices, regulations and decisions for the week ending March 4, 2011 is now available on our
website here.
Mexico, U.S. Announce Plan to End Border Trucking Dispute
(Bloomberg – Mark Drajem and Jens Erik Gould)
Mexico and the U.S. agreed to end a ban on Mexican trucks crossing the border to operate across the United States.
The agreement, announced today after a meeting by Mexican President Felipe Calderon and U.S. President Barack Obama in Washington, would lead to Mexico dropping tariffs on $2.4 billion worth of U.S. pork, cheese, corn and fruits, the White House said in a statement today.
“We finally have found a clear path to resolve the dispute over trucking between our two countries,” Obama said at a White House news conference with Calderon.
The dispute between the two nations, which have a $393 billion trading relationship, dates to the North American Free Trade Agreement in 1995. U.S. officials have promised on multiple occasions to resolve the standoff. The U.S. initiated a pilot program in 2007 that let as many as 100 Mexican trucking companies haul cargo into the U.S. It was canceled in 2009 under a provision in a spending bill passed by Congress. Mexico responded by placing retaliatory tariffs on U.S. imports. Read more here.
Mexico and the U.S. agreed to end a ban on Mexican trucks crossing the border to operate across the United States.
The agreement, announced today after a meeting by Mexican President Felipe Calderon and U.S. President Barack Obama in Washington, would lead to Mexico dropping tariffs on $2.4 billion worth of U.S. pork, cheese, corn and fruits, the White House said in a statement today.
“We finally have found a clear path to resolve the dispute over trucking between our two countries,” Obama said at a White House news conference with Calderon.
The dispute between the two nations, which have a $393 billion trading relationship, dates to the North American Free Trade Agreement in 1995. U.S. officials have promised on multiple occasions to resolve the standoff. The U.S. initiated a pilot program in 2007 that let as many as 100 Mexican trucking companies haul cargo into the U.S. It was canceled in 2009 under a provision in a spending bill passed by Congress. Mexico responded by placing retaliatory tariffs on U.S. imports. Read more here.
U.S. Trucking Industry Looks for Rate Increases in 2011
(Transport Intelligence – Cathy Roberson)
After experiencing over five years of over-capacity, falling rates, and one of the worst recessions in recent memory, the US trucking industry is experiencing a return to financial success. The industry is now commanding rate increases that appear to be holding with most customers. Industry analysts expect rates to increase at least 5% this year due to a number of factors: Capacity, regulatory changes and rising fuel costs.
For 2011, motor carriers may have found their “sweet spot” as supply now appears to be at equilibrium with demand. From 2006 to 2009, 18% of short-term Truckload (TL) capacity was estimated to have left the market. For Less-than-Truckload, the figure was 8%. Avondale Partners LLC estimated that some 11,000 trucks were withdrawn from the road during Q2 2010 as a result of companies shutting down their businesses and 33,660 trucks pulled off from the road Q1 2010. Large motor carriers, such as JB Hunt, cut capacity, to match demand. From 2006-2010, the company shrank its tractor base in its Truckload, Intermodal and Dedicated divisions by 18.4%. Read more here (subscription required).
After experiencing over five years of over-capacity, falling rates, and one of the worst recessions in recent memory, the US trucking industry is experiencing a return to financial success. The industry is now commanding rate increases that appear to be holding with most customers. Industry analysts expect rates to increase at least 5% this year due to a number of factors: Capacity, regulatory changes and rising fuel costs.
For 2011, motor carriers may have found their “sweet spot” as supply now appears to be at equilibrium with demand. From 2006 to 2009, 18% of short-term Truckload (TL) capacity was estimated to have left the market. For Less-than-Truckload, the figure was 8%. Avondale Partners LLC estimated that some 11,000 trucks were withdrawn from the road during Q2 2010 as a result of companies shutting down their businesses and 33,660 trucks pulled off from the road Q1 2010. Large motor carriers, such as JB Hunt, cut capacity, to match demand. From 2006-2010, the company shrank its tractor base in its Truckload, Intermodal and Dedicated divisions by 18.4%. Read more here (subscription required).
Thursday, March 3, 2011
Sorry, Amigo: Wikileaks Shows Canada Prefers Meeting U.S. Without Mexico
(The Globe and Mail – Stephen Chase)
Canada prefers the Two Amigos to the Three Amigos when negotiating with its most important neighbour, the United States – fearing that adding NAFTA partner Mexico to talks erodes the benefits for Canadians.
It’s a concern Canadian politicians are too polite to voice publicly but one that WikiLeaks aired for all to see Wednesday in a U.S. diplomatic cable.
While Mexico is a partner of Canada and the United States in the groundbreaking North American Free Trade Agreement, the three-way relationship has weakened in recent years – a period in which Ottawa slapped entry restrictions on Mexicans, to the anger of that country’s government. Read more here.
Canada prefers the Two Amigos to the Three Amigos when negotiating with its most important neighbour, the United States – fearing that adding NAFTA partner Mexico to talks erodes the benefits for Canadians.
It’s a concern Canadian politicians are too polite to voice publicly but one that WikiLeaks aired for all to see Wednesday in a U.S. diplomatic cable.
While Mexico is a partner of Canada and the United States in the groundbreaking North American Free Trade Agreement, the three-way relationship has weakened in recent years – a period in which Ottawa slapped entry restrictions on Mexicans, to the anger of that country’s government. Read more here.
Deadlock on Trade Policy in Washington Hurts Developing Country Exporters
(Bridges Weekly)
Roses from Colombia, tuna from Ecuador, and tyres from Indonesia. These are just some of the products that have become more expensive for U.S. consumers in recent months, as two trade preference schemes were allowed to lapse amidst partisan bickering over trade policy in Washington.
A trade preference scheme for Andean countries, benefiting mainly Colombia and Ecuador, expired on 12 February, as House Republicans refused to approve an extension in the absence of a clear timeline from the Obama administration for the Congressional passage of free-trade agreements with Korea, Colombia, and Panama. Extending aid to workers made jobless by imports had become legislatively linked to the Andean Trade Preferences Act; as a result, when the preferences lapsed, so did part of the Trade Adjustment Assistance programme.
Six weeks earlier, the U.S.’s longstanding Generalised System of Preferences, which afforded duty-free entry to some 4800 products from 131 developing countries, expired when its renewal was blocked by a single Republican senator objecting to its inclusion of Bangladeshi sleeping bags.
U.S. importers of goods previously covered by the two preference schemes must now post bonds with US customs authorities worth the amount that would be levied under Washington’s standard import duties for the products. This money could be reimbursed in the future, however, if the preference schemes are reinstated. Read more here.
Roses from Colombia, tuna from Ecuador, and tyres from Indonesia. These are just some of the products that have become more expensive for U.S. consumers in recent months, as two trade preference schemes were allowed to lapse amidst partisan bickering over trade policy in Washington.
A trade preference scheme for Andean countries, benefiting mainly Colombia and Ecuador, expired on 12 February, as House Republicans refused to approve an extension in the absence of a clear timeline from the Obama administration for the Congressional passage of free-trade agreements with Korea, Colombia, and Panama. Extending aid to workers made jobless by imports had become legislatively linked to the Andean Trade Preferences Act; as a result, when the preferences lapsed, so did part of the Trade Adjustment Assistance programme.
Six weeks earlier, the U.S.’s longstanding Generalised System of Preferences, which afforded duty-free entry to some 4800 products from 131 developing countries, expired when its renewal was blocked by a single Republican senator objecting to its inclusion of Bangladeshi sleeping bags.
U.S. importers of goods previously covered by the two preference schemes must now post bonds with US customs authorities worth the amount that would be levied under Washington’s standard import duties for the products. This money could be reimbursed in the future, however, if the preference schemes are reinstated. Read more here.
Obama Administration’s 2011 Trade Agenda Focuses on FTAs, Enforcement
(World Trade Interactive)
The Obama administration delivered to Congress March 1 its 2011 Trade Policy Agenda and 2010 Annual Report. A press release from the Office of the U.S. Trade Representative states that key goals for 2011 include implementation of the U.S.-Korea free trade agreement, work to resolve outstanding issues related to the FTAs with Panama and Colombia, substantial progress in the Trans-Pacific Partnership talks and the Doha Round, and Russia’s accession to the World Trade Organization. The administration has also called for the renewal and long-term extension of key programs such as Trade Adjustment Assistance, the Generalized System of Preferences and the Andean Trade Preferences Act.
Having established that trade is “an engine of economic growth and better jobs,” the Agenda highlights the following initiatives for 2011. Read more here.
The Obama administration delivered to Congress March 1 its 2011 Trade Policy Agenda and 2010 Annual Report. A press release from the Office of the U.S. Trade Representative states that key goals for 2011 include implementation of the U.S.-Korea free trade agreement, work to resolve outstanding issues related to the FTAs with Panama and Colombia, substantial progress in the Trans-Pacific Partnership talks and the Doha Round, and Russia’s accession to the World Trade Organization. The administration has also called for the renewal and long-term extension of key programs such as Trade Adjustment Assistance, the Generalized System of Preferences and the Andean Trade Preferences Act.
Having established that trade is “an engine of economic growth and better jobs,” the Agenda highlights the following initiatives for 2011. Read more here.
Wednesday, March 2, 2011
CBP: Progress Reported on Rollout of Automated Commercial Environment
(World Trade Interactive)
U.S. Customs and Border Protection has posted to its Web site an update on the deployment of the Automated Commercial Environment, which is being developed to modernize and enhance trade processing. Highlights of the CBP fact sheet include the following.
Deployed ACE Capabilities:
There are now more than 18,450 trade user accounts for the ACE Secure Data Portal. The portal enables users to proactively check for unauthorized filers and monitor compliance data not available through the Automated Commercial System, allows truck carriers to file electronic manifests at no charge (which are processed about 20% faster nationwide), and provides access to over 100 customizable reports.
In addition, more than $1 billion in revenue is being collected on average every month via the ACE periodic monthly statement feature, representing more than 55% of all duties and fees collected. This feature allows duty payments to be made on the 15th working day of the month following release.
In a separate press release, CBP announced last month that electronic data interchange participants can now file antidumping and countervailing duty entry summaries in ACE. This functionality allows ACE portal users to search, display and print AD and CV case information and messages, track the lifecycle of an AD or CV duty case, and respond to CBP’s requests for information and action (CBP forms 28, 29 and 4647) via the ACE portal for all entry summaries, even if they are submitted via the older Automated Commercial System.
Finally, 35 entities have been approved to file entry summaries using ACE, and approximately 290,000 such entries have been filed since this functionality was introduced in April 2009.
Document Imaging System:
The DIS provides the capability for trade participants to submit documents electronically for review by CBP and participating government agencies. The DIS was successfully demonstrated at the Import Safety Conference on Oct. 21, 2010, there are three trade participants currently testing in the DIS environment, and efforts to add more PGAs and trade participants to DIS are underway. The next phase (1.5) will provide the ability to move images to the Food and Drug Administration and is expected to come online in about three months. Phase 2 will establish connectivity with ACE functionality for an expanded list of PGAs and should be completed in six months.
PGA Message Set:
The PGA message set adds additional inbound data elements required by other agencies to the major import reporting messages (a/k/a PGA message set for the Customs and Trade Automated Interface Requirements (CATAIR)). CBP would then be able to provide this data to other agencies via a data interface with each agency. Finalization of the PGA message set is planned for March 2011, and completion of the project is estimated at 6-12 months from the point that CBP has procured a contract.
Rail and Sea Manifest (M1):
M1 will provide a consolidated view of rail and sea shipment manifest and entry data at the bill of lading or container level to facilitate the identification of shipments that may pose a risk and will expedite the pre-arrival processing of legitimate cargo. CBP is currently working with the development contractor to resolve testing and software quality issues, and full deployment is scheduled for the winter of 2011/2012.
Post-Summary Corrections:
PSC will allow corrections to ACE entry summaries and the ability for mass updates to entry summaries. CBP deployed PSC with functionality for internal use only on Oct. 31, 2010. CBP is working on enhancements requested by the trade community to make PSC more usable for their businesses, and delivery is currently scheduled for spring 2011. At that point any corrections to an ACE entry summary type 01 or 03 will have to be made via an ACE PSC.
Cargo Release:
The development of the cargo release requirements will focus on the admissibility of imported articles and their release into U.S. commerce. Work is currently underway with PGAs and the trade community to revalidate the previously gathered requirements, map the requirements against the International Trade Data System concept of operations and identify any gaps that need to be addressed. This work is expected to be completed in April. Once the requirements are revalidated, the design and acquisition phase will begin, with an anticipated contract award at the end of 2011 or early 2012.
U.S. Customs and Border Protection has posted to its Web site an update on the deployment of the Automated Commercial Environment, which is being developed to modernize and enhance trade processing. Highlights of the CBP fact sheet include the following.
Deployed ACE Capabilities:
There are now more than 18,450 trade user accounts for the ACE Secure Data Portal. The portal enables users to proactively check for unauthorized filers and monitor compliance data not available through the Automated Commercial System, allows truck carriers to file electronic manifests at no charge (which are processed about 20% faster nationwide), and provides access to over 100 customizable reports.
In addition, more than $1 billion in revenue is being collected on average every month via the ACE periodic monthly statement feature, representing more than 55% of all duties and fees collected. This feature allows duty payments to be made on the 15th working day of the month following release.
In a separate press release, CBP announced last month that electronic data interchange participants can now file antidumping and countervailing duty entry summaries in ACE. This functionality allows ACE portal users to search, display and print AD and CV case information and messages, track the lifecycle of an AD or CV duty case, and respond to CBP’s requests for information and action (CBP forms 28, 29 and 4647) via the ACE portal for all entry summaries, even if they are submitted via the older Automated Commercial System.
Finally, 35 entities have been approved to file entry summaries using ACE, and approximately 290,000 such entries have been filed since this functionality was introduced in April 2009.
Document Imaging System:
The DIS provides the capability for trade participants to submit documents electronically for review by CBP and participating government agencies. The DIS was successfully demonstrated at the Import Safety Conference on Oct. 21, 2010, there are three trade participants currently testing in the DIS environment, and efforts to add more PGAs and trade participants to DIS are underway. The next phase (1.5) will provide the ability to move images to the Food and Drug Administration and is expected to come online in about three months. Phase 2 will establish connectivity with ACE functionality for an expanded list of PGAs and should be completed in six months.
PGA Message Set:
The PGA message set adds additional inbound data elements required by other agencies to the major import reporting messages (a/k/a PGA message set for the Customs and Trade Automated Interface Requirements (CATAIR)). CBP would then be able to provide this data to other agencies via a data interface with each agency. Finalization of the PGA message set is planned for March 2011, and completion of the project is estimated at 6-12 months from the point that CBP has procured a contract.
Rail and Sea Manifest (M1):
M1 will provide a consolidated view of rail and sea shipment manifest and entry data at the bill of lading or container level to facilitate the identification of shipments that may pose a risk and will expedite the pre-arrival processing of legitimate cargo. CBP is currently working with the development contractor to resolve testing and software quality issues, and full deployment is scheduled for the winter of 2011/2012.
Post-Summary Corrections:
PSC will allow corrections to ACE entry summaries and the ability for mass updates to entry summaries. CBP deployed PSC with functionality for internal use only on Oct. 31, 2010. CBP is working on enhancements requested by the trade community to make PSC more usable for their businesses, and delivery is currently scheduled for spring 2011. At that point any corrections to an ACE entry summary type 01 or 03 will have to be made via an ACE PSC.
Cargo Release:
The development of the cargo release requirements will focus on the admissibility of imported articles and their release into U.S. commerce. Work is currently underway with PGAs and the trade community to revalidate the previously gathered requirements, map the requirements against the International Trade Data System concept of operations and identify any gaps that need to be addressed. This work is expected to be completed in April. Once the requirements are revalidated, the design and acquisition phase will begin, with an anticipated contract award at the end of 2011 or early 2012.
U.S. Surface Trade with Canada and Mexico Down Again in December
(World Trade Interactive)
U.S. surface transportation trade in goods with NAFTA partners Canada and Mexico fell 2.2% in December following a 3.6% loss in November. The $66.5 billion total represented a 13.8% increase from a year before, down from the 15.5% year-on-year improvement in the previous month. Surface transportation consists largely of freight movements by truck, rail and pipeline and in December accounted for 84.8% of U.S. trade by value with Canada and Mexico.
Surface trade between the U.S. and Canada totaled $39.8 billion in December, up $0.3 billion from November and 12.2% higher than a year earlier. Exports by truck rose 10.4% from the previous year, down from 12.6% a month earlier, while imports by truck rose 17.7% compared to 11.5% in November. U.S.-Mexico surface transportation trade totaled $26.8 billion, down $2.2 billion from the month before but up 16.3% from December 2009. Exports by truck rose 18.7% from the previous year, compared to 21.9% a month earlier, while imports by truck increased 16.3%, down from 22.4% in November.
According to the DOT, the value of U.S. surface transportation trade with Canada and Mexico in December was up 12.6% compared to December 2005 and 48.6% from December 2000, including a 57.7% gain for exports and a 41.9% rise for imports.
U.S. surface transportation trade in goods with NAFTA partners Canada and Mexico fell 2.2% in December following a 3.6% loss in November. The $66.5 billion total represented a 13.8% increase from a year before, down from the 15.5% year-on-year improvement in the previous month. Surface transportation consists largely of freight movements by truck, rail and pipeline and in December accounted for 84.8% of U.S. trade by value with Canada and Mexico.
Surface trade between the U.S. and Canada totaled $39.8 billion in December, up $0.3 billion from November and 12.2% higher than a year earlier. Exports by truck rose 10.4% from the previous year, down from 12.6% a month earlier, while imports by truck rose 17.7% compared to 11.5% in November. U.S.-Mexico surface transportation trade totaled $26.8 billion, down $2.2 billion from the month before but up 16.3% from December 2009. Exports by truck rose 18.7% from the previous year, compared to 21.9% a month earlier, while imports by truck increased 16.3%, down from 22.4% in November.
According to the DOT, the value of U.S. surface transportation trade with Canada and Mexico in December was up 12.6% compared to December 2005 and 48.6% from December 2000, including a 57.7% gain for exports and a 41.9% rise for imports.
Tuesday, March 1, 2011
Product Safety Law Harming Business, Needs Reforms, CPSC Official Says
(STR/World Trade Interactive)
At a recent congressional hearing, a Consumer Product Safety Commission official said the Consumer Product Safety Improvement Act of 2008 is having a “devastating impact … on American business growth and competitiveness” with “little or no offsetting improvement in product safety.” CPSC Commissioner Anne Northup also laid out four specific actions Congress could take to ameliorate these effects.
Northup said there have already been enormous costs associated with the CPSIA, including re-engineering products to satisfy the new standards imposed by the law, third-party testing of every component of every product to demonstrate compliance with applicable standards, and labeling and tracking of every component. These costs have caused many businesses to cut jobs, reduce product lines, leave the children’s market completely or close. What is worse, she said, “the most onerous provisions of the law have yet to go into effect,” including third-party testing of all children’s products for lead content.
Northup alleged that the CPSIA’s requirements “erect a significant barrier to domestic manufacturing growth” and give “an obvious competitive advantage to large manufacturers who produce items overseas, where manufacturing and testing costs are cheaper.” In addition, by diverting agency resources to the enforcement of “complex, non-risk-based testing and certification requirements,” the CPSIA has reduced the CPSC’s focus on genuine safety hazards. Read more here.
At a recent congressional hearing, a Consumer Product Safety Commission official said the Consumer Product Safety Improvement Act of 2008 is having a “devastating impact … on American business growth and competitiveness” with “little or no offsetting improvement in product safety.” CPSC Commissioner Anne Northup also laid out four specific actions Congress could take to ameliorate these effects.
Northup said there have already been enormous costs associated with the CPSIA, including re-engineering products to satisfy the new standards imposed by the law, third-party testing of every component of every product to demonstrate compliance with applicable standards, and labeling and tracking of every component. These costs have caused many businesses to cut jobs, reduce product lines, leave the children’s market completely or close. What is worse, she said, “the most onerous provisions of the law have yet to go into effect,” including third-party testing of all children’s products for lead content.
Northup alleged that the CPSIA’s requirements “erect a significant barrier to domestic manufacturing growth” and give “an obvious competitive advantage to large manufacturers who produce items overseas, where manufacturing and testing costs are cheaper.” In addition, by diverting agency resources to the enforcement of “complex, non-risk-based testing and certification requirements,” the CPSIA has reduced the CPSC’s focus on genuine safety hazards. Read more here.
Trucking Rates Do Not Reflect Total Costs, GAO Says
(Journal of Commerce Online – R.G.Edmonson)
Costs not factored into freight rates get absorbed by the public
Trucking passes on to customers substantially less of the total cost of transportation than competing modes, and that distorts competition, according to a report by the Government Accountability Office.
The GAO report says costs that were not passed on to customers are six times greater than rail costs and nine times greater than transport on the waterways, calculated on a ton-mile basis. Costs that were not factored into freight rates were absorbed by the public. Read more here.
Costs not factored into freight rates get absorbed by the public
Trucking passes on to customers substantially less of the total cost of transportation than competing modes, and that distorts competition, according to a report by the Government Accountability Office.
The GAO report says costs that were not passed on to customers are six times greater than rail costs and nine times greater than transport on the waterways, calculated on a ton-mile basis. Costs that were not factored into freight rates were absorbed by the public. Read more here.
U.S. Plans for Trade Are Stalled
(New York Times – Sewell Chan)
President Obama has made expanding exports a centerpiece of his plan for accelerating the economic recovery, but in recent weeks, his trade agenda has nearly ground to a halt amid partisan feuding.
Although the White House renegotiated a pivotal free-trade agreement with South Korea in December, scoring rare bipartisan praise, House Republican leaders have refused to allow the deal to move forward. They want the administration to make progress first on similar accords with Colombia and Panama that face stiff opposition from labor unions and liberal Democrats.
To add to the pressure on the administration, House Republicans in February blocked a big expansion of trade adjustment assistance – which provides cash, training, relocation, job search and other benefits to workers displaced by globalization – from being renewed. Many of the 220,000 workers who took part in the program last year could have their benefits reduced as a result.
Another program, which gives duty-free preferences to 4,800 products from poor countries that are allies of the United States, expired in December after a Republican senator, Jeff Sessions of Alabama, blocked a vote to extend it. Mr. Sessions acted partly at the behest of a sleeping-bag manufacturer in his state, which argued that the preferences put it at a disadvantage.
Taken together, the disputes amount to a stalemate on what Mr. Obama has called a critical priority: expanding American competitiveness in manufacturing and other export-related sectors. Read more here.
President Obama has made expanding exports a centerpiece of his plan for accelerating the economic recovery, but in recent weeks, his trade agenda has nearly ground to a halt amid partisan feuding.
Although the White House renegotiated a pivotal free-trade agreement with South Korea in December, scoring rare bipartisan praise, House Republican leaders have refused to allow the deal to move forward. They want the administration to make progress first on similar accords with Colombia and Panama that face stiff opposition from labor unions and liberal Democrats.
To add to the pressure on the administration, House Republicans in February blocked a big expansion of trade adjustment assistance – which provides cash, training, relocation, job search and other benefits to workers displaced by globalization – from being renewed. Many of the 220,000 workers who took part in the program last year could have their benefits reduced as a result.
Another program, which gives duty-free preferences to 4,800 products from poor countries that are allies of the United States, expired in December after a Republican senator, Jeff Sessions of Alabama, blocked a vote to extend it. Mr. Sessions acted partly at the behest of a sleeping-bag manufacturer in his state, which argued that the preferences put it at a disadvantage.
Taken together, the disputes amount to a stalemate on what Mr. Obama has called a critical priority: expanding American competitiveness in manufacturing and other export-related sectors. Read more here.
U.S. Manufacturing Activity Continues to Expand in February
(RTT News)
Activity in the U.S. manufacturing sector unexpectedly saw faster growth in the month of February, according to the results of a survey by the Institute for Supply Management, which said the sector continued to turn in a strong performance. The ISM said its purchasing managers index rose to 61.4 in February from 60.8 in January, with a reading above 50 indicating growth in the manufacturing sector. The increase surprised economists, who had expected the index to edge down to 60.5.
With the unexpected increase, the index rose to its highest level since reaching a matching reading in May of 2004. The reading also indicated the 19th consecutive month of growth in the manufacturing sector. Read more here.
Activity in the U.S. manufacturing sector unexpectedly saw faster growth in the month of February, according to the results of a survey by the Institute for Supply Management, which said the sector continued to turn in a strong performance. The ISM said its purchasing managers index rose to 61.4 in February from 60.8 in January, with a reading above 50 indicating growth in the manufacturing sector. The increase surprised economists, who had expected the index to edge down to 60.5.
With the unexpected increase, the index rose to its highest level since reaching a matching reading in May of 2004. The reading also indicated the 19th consecutive month of growth in the manufacturing sector. Read more here.
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