U.S. Files Trade Case Against China Over Cars

The following is an excerpt from an article in:


The New York Times
Tuesday, September 18, 2012

News Analysis: U.S. Files Trade Case Against China Over Cars

By KEITH BRADSHER BEIJING — President Obama’s trade case against China on cars and auto parts will have little immediate impact on jobs and companies in the United States, but it is one of the few legal options available to the United States as China’s auto industry faces overcapacity problems and looks overseas to increase sales.

In filing the case on Monday with the World Trade Organization, Mr. Obama is making a political gesture to Midwestern states coping with the pressure that Chinese exports are placing on the American auto industry. But actual effects are likely to be delayed and limited.

World Trade Organization cases typically take a year and a half to resolve. And unlike antidumping and antisubsidy cases, which can result in steep tariffs on imports that stay in place for years, the trade organization cases often end with the losing country simply abandoning the offending policy.

There can be a requirement that companies repay previous subsidies, but that is often difficult to enforce and can require further years of legal wrangling.

The subsidies at issue are also small relative to the scale of Chinese exports, which may mean that China’s low wages, high investment rate and other advantages may have played a bigger role in the spectacular expansion of Chinese auto exports than government subsidies.

American trade officials respond that while China may have many strengths underlying its export prowess, they are doing what they can to address those policies that may violate international trade rules — particularly China’s emerging policy of setting up so-called export bases in which automakers receive incentives to make cars and car parts for overseas markets.

For more, visit www.nytimes.com.

Obama & Romney Must Concentrate on SMEs

Clay Carter, Head of International Equities, Perennial Investment Partners believes the next president will have to focus on building up confidence amid SMEs in order to spur job creation.

Video from CNBC (4:26).

Obama & Romney Must Concentrate on SMEs

Obama Responsible for Greater Oil & Gas Production?

U.S. Chamber’s Energy Institute Comments on President Obama’s Energy Speech

February 23, 2012

WASHINGTON, D.C.—Karen Harbert, president and CEO of the U.S. Chamber’s Institute for 21st Century Energy, issued the following statement in response to President Obama’s remarks on energy delivered at the University of Miami today:

 

“As the President said, there is no silver bullet that will decrease gas prices and improve our energy security. However, there are a series of significant steps that this President could take that would lead us to a more secure energy and economic future, but this Administration has rejected that path.

 

“Today’s speech contained two fundamental mischaracterizations. The first is the notion that raising taxes on oil companies is going to lower gas prices. It won’t, and we know it won’t because it has been tried before. The result was higher prices and more imports. 

 

“The second is that this Administration is somehow responsible for the uptick we’ve seen recently in domestic production. It’s not. Because of the restrictions this Administration has placed on accessing public land, as well as the ever-increasing amount of red tape, the energy industry has moved to produce oil and gas on private lands. Also, credit is due to policy decisions made years ago in previous Administrations. The fact that the Administration would repeatedly try to take credit for this shows a troubling lack of understanding of energy production in this country. 

 

“The results of the President’s ‘just say no’ energy policy will be felt in the years to come. The facts speak for themselves. President Obama’s administration has issued 50.7 percent fewer annual leases on public lands than President Clinton’s did. Gulf of Mexico energy production is down 16 percent since 2009 and is projected to decrease even further in 2012. President Obama denied the Keystone XL pipeline permit, which would have created thousands of jobs and provided all Americans with a steady supply of oil from a friendly ally. He also has banned new offshore areas from oil and gas exploration, and recently his Administration took one million acres of onshore land rich with oil shale off the table.

 

“The American people can see that the current approach is not working. But we cannot have a constructive conversation about energy policy as long as this Administration fails to put forward any new ideas, relying instead on four year old campaign rhetoric. It isn’t enough just to be for an ‘all of the above’ energy policy in a speech. It’s time to actually propose one.”

 

The mission of the U.S. Chamber of Commerce's Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.

 

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.