SlideShare ist ein Scribd-Unternehmen logo
1 von 22
Downloaden Sie, um offline zu lesen
A Trade and Economic
  Policy for America
        Michael Stumo, CEO
Coalition for a Prosperous America
CPA: Representing American Producers




 Brian O’Shaughnessy        Joe Logan           Bob Baugh
Revere Copper Products   Ohio Fmrs Union         AFL-CIO




    Pam Potthoff                                Rob Dumont
                          John Hansen
  Women Involved in                        Tooling, Manufacturing
                              NFU
   Farm Economics                           & Technologies Assn
About CPA
A national non-profit group representing the
interests of 2.7 million households through
our farm, ranch, manufacturing and worker
members
Working to balance trade - eliminate the
trade deficit - as the biggest source of jobs
and growth for America
Educating voters on trade issues and the
voting records of elected officials on these
issues
What is economic growth?
  “Recession” = Contraction of GDP
                                      Net Imports/Trade Deficits
   Biggest          Most Volatile
                                         subtract from GDP




GDP = C + I + G + NE
                    Investment
                                                 Net Exports:
      Consumption                             Total Exports minus
                             Government          Total Imports
                             Procurement
National Trade Strategy

Goals
 Net exports
 Net job creation (full employment)
 Wealth creation
 Grow full supply chain
   Auto, computer, food, robotics, etc.
Why trade agreements fail?

Tariff-based focus results in unilateral U.S.
disarmament. Trade rivals replace tariff cuts.
  Currency manipulation
  Value added taxes: 18% avg VAT tariff/subsidy
  State-owned, state-controlled entities
  Indigenous innovation
  Many other state-capitalism tactics
110314 nfu slideshow
Net Imports Harm U.S.
        Economy

Job loss: 10,000 jobs per $1B trade deficit
Wealth loss: Offshoring transfers profits
elsewhere
Innovation loss: New innovation offshored
Future loss: What will our kids do?
110314 nfu slideshow
110314 nfu slideshow
110314 nfu slideshow
Obama: “Double Exports”
Bush already
doubled
exports.
Exports
increases
under Clinton.
Our exports
have grown
almost every
year, including
to China.
Asymmetrical Warfare

America: Free trade
 Unilateral disarmament
 “Faith based” trade
Successful Exporters: State Managed
Capitalism
 China, Japan, South
 Korea, Germany, etc.
Currency Cheating:
 Tariff & Subsidy
Border Adjustable Taxes/Value Added Taxes
Value Added Taxes are tariffs




            $356 Billion trade distortion
How they use VATs

Tariff and a subsidy
  Offset other costs like health care
Offset tariff reduction
  Canada/Mexico: 15% VAT after NAFTA
  Central America: 12% VAT after CAFTA
  Korea: 10% VAT now. Later increase?
  China: 19% VAT
Korea FTA - ITC Net Numbers
 International Trade Commission
   Net trade with world: No change
   Net trade with Korea: $3.5B improve (current is $13B
   deficit)
   Net job creation: None
   THUS, no government argument for net benefit.
 Economic Policy Institute (EPI)
   Net trade with Korea: Negative $13.5
   Net jobs: Negative 159,000
Korea FTA: ITC Credibility



 Projected $1B added deficit - China PNTR
  Actual was $185B added deficit
Korea FTA: Problems
State-managed economy
Currency manipulator: No restriction.
VAT of 10%. No restriction on increases.
Rule of origin: 35%
  China trans-shipment. No. Korea trans-
  shipment
  Beef rule of origin: Last place of substantial
  transformation
Sector Specific Arguments

Tactical opposition on sector specific net
export grounds is a failed strategy.
 Cannot support Korea agreement, then
 oppose Trans Pacific Partnership or
 Colombia
National Trade Strategy based upon
American economic interests is a successful
strategy.
National Trade Strategy

Neutralize state capitalism
Maximize domestic market share
Net exports... or at least balanced trade
Net job creation - full employment
Capture whole supply chain
Capture innovation: Invent it here, make it
here

Weitere ähnliche Inhalte

Was ist angesagt?

business policy and competitive policy
business policy and competitive policy business policy and competitive policy
business policy and competitive policy Ayush Parekh
 
Key vote alert! - Trade Promotion Authority
Key vote alert! - Trade Promotion AuthorityKey vote alert! - Trade Promotion Authority
Key vote alert! - Trade Promotion AuthorityU.S. Chamber of Commerce
 
2017 Political Economy: Impact on agriculture PPT
2017 Political Economy:  Impact on agriculture PPT2017 Political Economy:  Impact on agriculture PPT
2017 Political Economy: Impact on agriculture PPTwww.andrewbusch.com
 
MGF2351 Tutorial 2 week 2
MGF2351 Tutorial 2 week 2MGF2351 Tutorial 2 week 2
MGF2351 Tutorial 2 week 2Kirti Mishra
 
Trump Effect toward Global Economic
Trump Effect toward Global EconomicTrump Effect toward Global Economic
Trump Effect toward Global EconomicWahono Sutanto
 
The Most Challenging economy in Decades
The Most Challenging economy in Decades The Most Challenging economy in Decades
The Most Challenging economy in Decades Qamar Farooq
 
A presentation on growth and trade
A presentation on growth and tradeA presentation on growth and trade
A presentation on growth and tradeMahabub Kabir
 
Political Economy
Political Economy Political Economy
Political Economy atrantham
 
MONY_20161101_78_1286637_ARTICLE
MONY_20161101_78_1286637_ARTICLEMONY_20161101_78_1286637_ARTICLE
MONY_20161101_78_1286637_ARTICLEIan Salisbury
 
Рейтинг вільних економік світу за 2016 рік
Рейтинг вільних економік світу за 2016 рікРейтинг вільних економік світу за 2016 рік
Рейтинг вільних економік світу за 2016 рікtsnua
 
International Business and Marketing
International Business and MarketingInternational Business and Marketing
International Business and MarketingQamar Farooq
 
Political interference
Political interferencePolitical interference
Political interferenceDildar Ali
 
BlackRock Strategic Management in China
BlackRock Strategic Management in China BlackRock Strategic Management in China
BlackRock Strategic Management in China Jake Donahue
 
Will the US election trump the economy in 2017?
Will the US election trump the economy in 2017?Will the US election trump the economy in 2017?
Will the US election trump the economy in 2017?RBS Economics
 
President Obama| Era of Government| May 2020
President Obama| Era of Government| May 2020President Obama| Era of Government| May 2020
President Obama| Era of Government| May 2020paul young cpa, cga
 
United States| Obama Era| Success or Failure
United States| Obama Era| Success or FailureUnited States| Obama Era| Success or Failure
United States| Obama Era| Success or Failurepaul young cpa, cga
 

Was ist angesagt? (20)

121128 cpa slideshow
121128 cpa slideshow121128 cpa slideshow
121128 cpa slideshow
 
business policy and competitive policy
business policy and competitive policy business policy and competitive policy
business policy and competitive policy
 
Key vote alert! - Trade Promotion Authority
Key vote alert! - Trade Promotion AuthorityKey vote alert! - Trade Promotion Authority
Key vote alert! - Trade Promotion Authority
 
2017 Political Economy: Impact on agriculture PPT
2017 Political Economy:  Impact on agriculture PPT2017 Political Economy:  Impact on agriculture PPT
2017 Political Economy: Impact on agriculture PPT
 
Goal 9
Goal 9Goal 9
Goal 9
 
MGF2351 Tutorial 2 week 2
MGF2351 Tutorial 2 week 2MGF2351 Tutorial 2 week 2
MGF2351 Tutorial 2 week 2
 
Chp 003 ib by hills
Chp 003 ib by hillsChp 003 ib by hills
Chp 003 ib by hills
 
Trump Effect toward Global Economic
Trump Effect toward Global EconomicTrump Effect toward Global Economic
Trump Effect toward Global Economic
 
The Most Challenging economy in Decades
The Most Challenging economy in Decades The Most Challenging economy in Decades
The Most Challenging economy in Decades
 
China project
China projectChina project
China project
 
A presentation on growth and trade
A presentation on growth and tradeA presentation on growth and trade
A presentation on growth and trade
 
Political Economy
Political Economy Political Economy
Political Economy
 
MONY_20161101_78_1286637_ARTICLE
MONY_20161101_78_1286637_ARTICLEMONY_20161101_78_1286637_ARTICLE
MONY_20161101_78_1286637_ARTICLE
 
Рейтинг вільних економік світу за 2016 рік
Рейтинг вільних економік світу за 2016 рікРейтинг вільних економік світу за 2016 рік
Рейтинг вільних економік світу за 2016 рік
 
International Business and Marketing
International Business and MarketingInternational Business and Marketing
International Business and Marketing
 
Political interference
Political interferencePolitical interference
Political interference
 
BlackRock Strategic Management in China
BlackRock Strategic Management in China BlackRock Strategic Management in China
BlackRock Strategic Management in China
 
Will the US election trump the economy in 2017?
Will the US election trump the economy in 2017?Will the US election trump the economy in 2017?
Will the US election trump the economy in 2017?
 
President Obama| Era of Government| May 2020
President Obama| Era of Government| May 2020President Obama| Era of Government| May 2020
President Obama| Era of Government| May 2020
 
United States| Obama Era| Success or Failure
United States| Obama Era| Success or FailureUnited States| Obama Era| Success or Failure
United States| Obama Era| Success or Failure
 

Andere mochten auch

Integrated Marketing Communication Plan
Integrated Marketing Communication PlanIntegrated Marketing Communication Plan
Integrated Marketing Communication PlanKaran Shah
 
General motors straddle volatility strategy
General motors straddle  volatility strategyGeneral motors straddle  volatility strategy
General motors straddle volatility strategyKaran Shah
 
Convertible Arbitrage
Convertible ArbitrageConvertible Arbitrage
Convertible ArbitrageKaran Shah
 
Valuation of Family Limited Partnership
Valuation of Family Limited PartnershipValuation of Family Limited Partnership
Valuation of Family Limited PartnershipKaran Shah
 
Investment in Private Equity justification
Investment in Private Equity justificationInvestment in Private Equity justification
Investment in Private Equity justificationKaran Shah
 
Helper renewing us-manufacturing
Helper renewing us-manufacturingHelper renewing us-manufacturing
Helper renewing us-manufacturingIan Hamish Fletcher
 
Long beach d2 p returning manufacturing to america
Long beach d2 p returning manufacturing to americaLong beach d2 p returning manufacturing to america
Long beach d2 p returning manufacturing to americaIan Hamish Fletcher
 
Integrated Marketing Communication Plan
Integrated Marketing Communication PlanIntegrated Marketing Communication Plan
Integrated Marketing Communication PlanKaran Shah
 
Memorial- Análise por Capítulos
Memorial- Análise por CapítulosMemorial- Análise por Capítulos
Memorial- Análise por CapítulosRui Matos
 
TV advertising content and execution of P&G
TV advertising content and execution of P&GTV advertising content and execution of P&G
TV advertising content and execution of P&GKaran Shah
 
Macbeth presentation
Macbeth presentationMacbeth presentation
Macbeth presentationansdpcks
 
Website Analysis as part of an integrated marketing communication plan
Website Analysis as part of an integrated marketing communication planWebsite Analysis as part of an integrated marketing communication plan
Website Analysis as part of an integrated marketing communication planKaran Shah
 
Richard baldwin new_tradetheorylecture
Richard baldwin new_tradetheorylectureRichard baldwin new_tradetheorylecture
Richard baldwin new_tradetheorylectureIan Hamish Fletcher
 
Basics of radiology
Basics of radiologyBasics of radiology
Basics of radiologyEhab Abdu
 

Andere mochten auch (15)

Integrated Marketing Communication Plan
Integrated Marketing Communication PlanIntegrated Marketing Communication Plan
Integrated Marketing Communication Plan
 
General motors straddle volatility strategy
General motors straddle  volatility strategyGeneral motors straddle  volatility strategy
General motors straddle volatility strategy
 
Convertible Arbitrage
Convertible ArbitrageConvertible Arbitrage
Convertible Arbitrage
 
Valuation of Family Limited Partnership
Valuation of Family Limited PartnershipValuation of Family Limited Partnership
Valuation of Family Limited Partnership
 
Investment in Private Equity justification
Investment in Private Equity justificationInvestment in Private Equity justification
Investment in Private Equity justification
 
Helper renewing us-manufacturing
Helper renewing us-manufacturingHelper renewing us-manufacturing
Helper renewing us-manufacturing
 
Long beach d2 p returning manufacturing to america
Long beach d2 p returning manufacturing to americaLong beach d2 p returning manufacturing to america
Long beach d2 p returning manufacturing to america
 
Integrated Marketing Communication Plan
Integrated Marketing Communication PlanIntegrated Marketing Communication Plan
Integrated Marketing Communication Plan
 
Memorial- Análise por Capítulos
Memorial- Análise por CapítulosMemorial- Análise por Capítulos
Memorial- Análise por Capítulos
 
TV advertising content and execution of P&G
TV advertising content and execution of P&GTV advertising content and execution of P&G
TV advertising content and execution of P&G
 
Macbeth presentation
Macbeth presentationMacbeth presentation
Macbeth presentation
 
Gomory baumol ricardo_china
Gomory baumol ricardo_chinaGomory baumol ricardo_china
Gomory baumol ricardo_china
 
Website Analysis as part of an integrated marketing communication plan
Website Analysis as part of an integrated marketing communication planWebsite Analysis as part of an integrated marketing communication plan
Website Analysis as part of an integrated marketing communication plan
 
Richard baldwin new_tradetheorylecture
Richard baldwin new_tradetheorylectureRichard baldwin new_tradetheorylecture
Richard baldwin new_tradetheorylecture
 
Basics of radiology
Basics of radiologyBasics of radiology
Basics of radiology
 

Ähnlich wie 110314 nfu slideshow

Us trade policy agenda in 2016 wenk- joplin mo - may 16 2016
Us trade policy agenda in 2016  wenk- joplin mo - may 16 2016Us trade policy agenda in 2016  wenk- joplin mo - may 16 2016
Us trade policy agenda in 2016 wenk- joplin mo - may 16 2016Bronwen Elizabeth Madden
 
a case presentation on current Chinese economy
a case presentation on current Chinese economya case presentation on current Chinese economy
a case presentation on current Chinese economyArnab Pran Bordoloi
 
PORTFOLIO AUDIO POWERPOINT PRESENTATIONAMERICA’S ECONOMY.docx
PORTFOLIO AUDIO POWERPOINT PRESENTATIONAMERICA’S ECONOMY.docxPORTFOLIO AUDIO POWERPOINT PRESENTATIONAMERICA’S ECONOMY.docx
PORTFOLIO AUDIO POWERPOINT PRESENTATIONAMERICA’S ECONOMY.docxChantellPantoja184
 
Emerging markets finalpresentation
Emerging markets finalpresentationEmerging markets finalpresentation
Emerging markets finalpresentationibc-emerging-markets
 
Trade Deficit Tax Losses Violates Constitutional Law
Trade Deficit Tax Losses Violates Constitutional LawTrade Deficit Tax Losses Violates Constitutional Law
Trade Deficit Tax Losses Violates Constitutional LawAlec Feinberg
 
Unit 2 government and trade academic
Unit 2 government and trade academicUnit 2 government and trade academic
Unit 2 government and trade academicFredrick Smith
 
Should Labor Be Worried
Should Labor Be WorriedShould Labor Be Worried
Should Labor Be Worriedbiyela
 
2008 Charla Presentation
2008 Charla Presentation2008 Charla Presentation
2008 Charla PresentationChile08
 
Young Men, Go East!
Young Men, Go East!Young Men, Go East!
Young Men, Go East!Kenneth Tran
 
International Trade Theories (Revised)
International Trade Theories (Revised)International Trade Theories (Revised)
International Trade Theories (Revised)Gerry Gatawa
 
Global trends an emerging markets perspective presentation for seca, zurich, ...
Global trends an emerging markets perspective presentation for seca, zurich, ...Global trends an emerging markets perspective presentation for seca, zurich, ...
Global trends an emerging markets perspective presentation for seca, zurich, ...Prabhu Guptara
 
International Economics, Cause Trade Restrictions
International Economics, Cause Trade RestrictionsInternational Economics, Cause Trade Restrictions
International Economics, Cause Trade RestrictionsRachel Phillips
 

Ähnlich wie 110314 nfu slideshow (20)

Ogt economics
Ogt economicsOgt economics
Ogt economics
 
Us trade policy agenda in 2016 wenk- joplin mo - may 16 2016
Us trade policy agenda in 2016  wenk- joplin mo - may 16 2016Us trade policy agenda in 2016  wenk- joplin mo - may 16 2016
Us trade policy agenda in 2016 wenk- joplin mo - may 16 2016
 
a case presentation on current Chinese economy
a case presentation on current Chinese economya case presentation on current Chinese economy
a case presentation on current Chinese economy
 
2016 sd county credit
2016 sd county credit2016 sd county credit
2016 sd county credit
 
PORTFOLIO AUDIO POWERPOINT PRESENTATIONAMERICA’S ECONOMY.docx
PORTFOLIO AUDIO POWERPOINT PRESENTATIONAMERICA’S ECONOMY.docxPORTFOLIO AUDIO POWERPOINT PRESENTATIONAMERICA’S ECONOMY.docx
PORTFOLIO AUDIO POWERPOINT PRESENTATIONAMERICA’S ECONOMY.docx
 
Emerging markets finalpresentation
Emerging markets finalpresentationEmerging markets finalpresentation
Emerging markets finalpresentation
 
Goal 9
Goal 9Goal 9
Goal 9
 
The American Economy
The American EconomyThe American Economy
The American Economy
 
Trade Deficit Tax Losses Violates Constitutional Law
Trade Deficit Tax Losses Violates Constitutional LawTrade Deficit Tax Losses Violates Constitutional Law
Trade Deficit Tax Losses Violates Constitutional Law
 
Unit 2 government and trade academic
Unit 2 government and trade academicUnit 2 government and trade academic
Unit 2 government and trade academic
 
Alex Cobham Tax Factor Missing Millions
Alex Cobham    Tax Factor   Missing MillionsAlex Cobham    Tax Factor   Missing Millions
Alex Cobham Tax Factor Missing Millions
 
Should Labor Be Worried
Should Labor Be WorriedShould Labor Be Worried
Should Labor Be Worried
 
TPP Guide- Tax Cuts
TPP Guide- Tax CutsTPP Guide- Tax Cuts
TPP Guide- Tax Cuts
 
2008 Charla Presentation
2008 Charla Presentation2008 Charla Presentation
2008 Charla Presentation
 
Young Men, Go East!
Young Men, Go East!Young Men, Go East!
Young Men, Go East!
 
International Marketing Environment
International Marketing EnvironmentInternational Marketing Environment
International Marketing Environment
 
International Trade Theories (Revised)
International Trade Theories (Revised)International Trade Theories (Revised)
International Trade Theories (Revised)
 
US Tax Policy
 US Tax Policy US Tax Policy
US Tax Policy
 
Global trends an emerging markets perspective presentation for seca, zurich, ...
Global trends an emerging markets perspective presentation for seca, zurich, ...Global trends an emerging markets perspective presentation for seca, zurich, ...
Global trends an emerging markets perspective presentation for seca, zurich, ...
 
International Economics, Cause Trade Restrictions
International Economics, Cause Trade RestrictionsInternational Economics, Cause Trade Restrictions
International Economics, Cause Trade Restrictions
 

110314 nfu slideshow

  • 1. A Trade and Economic Policy for America Michael Stumo, CEO Coalition for a Prosperous America
  • 2. CPA: Representing American Producers Brian O’Shaughnessy Joe Logan Bob Baugh Revere Copper Products Ohio Fmrs Union AFL-CIO Pam Potthoff Rob Dumont John Hansen Women Involved in Tooling, Manufacturing NFU Farm Economics & Technologies Assn
  • 3. About CPA A national non-profit group representing the interests of 2.7 million households through our farm, ranch, manufacturing and worker members Working to balance trade - eliminate the trade deficit - as the biggest source of jobs and growth for America Educating voters on trade issues and the voting records of elected officials on these issues
  • 4. What is economic growth? “Recession” = Contraction of GDP Net Imports/Trade Deficits Biggest Most Volatile subtract from GDP GDP = C + I + G + NE Investment Net Exports: Consumption Total Exports minus Government Total Imports Procurement
  • 5. National Trade Strategy Goals Net exports Net job creation (full employment) Wealth creation Grow full supply chain Auto, computer, food, robotics, etc.
  • 6. Why trade agreements fail? Tariff-based focus results in unilateral U.S. disarmament. Trade rivals replace tariff cuts. Currency manipulation Value added taxes: 18% avg VAT tariff/subsidy State-owned, state-controlled entities Indigenous innovation Many other state-capitalism tactics
  • 8. Net Imports Harm U.S. Economy Job loss: 10,000 jobs per $1B trade deficit Wealth loss: Offshoring transfers profits elsewhere Innovation loss: New innovation offshored Future loss: What will our kids do?
  • 12. Obama: “Double Exports” Bush already doubled exports. Exports increases under Clinton. Our exports have grown almost every year, including to China.
  • 13. Asymmetrical Warfare America: Free trade Unilateral disarmament “Faith based” trade Successful Exporters: State Managed Capitalism China, Japan, South Korea, Germany, etc.
  • 16. Value Added Taxes are tariffs $356 Billion trade distortion
  • 17. How they use VATs Tariff and a subsidy Offset other costs like health care Offset tariff reduction Canada/Mexico: 15% VAT after NAFTA Central America: 12% VAT after CAFTA Korea: 10% VAT now. Later increase? China: 19% VAT
  • 18. Korea FTA - ITC Net Numbers International Trade Commission Net trade with world: No change Net trade with Korea: $3.5B improve (current is $13B deficit) Net job creation: None THUS, no government argument for net benefit. Economic Policy Institute (EPI) Net trade with Korea: Negative $13.5 Net jobs: Negative 159,000
  • 19. Korea FTA: ITC Credibility Projected $1B added deficit - China PNTR Actual was $185B added deficit
  • 20. Korea FTA: Problems State-managed economy Currency manipulator: No restriction. VAT of 10%. No restriction on increases. Rule of origin: 35% China trans-shipment. No. Korea trans- shipment Beef rule of origin: Last place of substantial transformation
  • 21. Sector Specific Arguments Tactical opposition on sector specific net export grounds is a failed strategy. Cannot support Korea agreement, then oppose Trans Pacific Partnership or Colombia National Trade Strategy based upon American economic interests is a successful strategy.
  • 22. National Trade Strategy Neutralize state capitalism Maximize domestic market share Net exports... or at least balanced trade Net job creation - full employment Capture whole supply chain Capture innovation: Invent it here, make it here