John McMillan: Global trade vital to Alabama ag, industry
As Agriculture & Industries Commissioner, I work closely with the Alabama farming and business communities to grow the economy and create prosperity for our state. This provides firsthand knowledge that one of the most important factors in generating this kind of growth and prosperity is international trade. That’s why Congress needs to take a bold step and pass Trade Promotion Authority (TPA). TPA has been in the national news quite a bit lately, and garnered a fair share of controversy. But much of what one reads or hears about TPA is misleading or misinformed. Heated rhetoric aside, TPA is nothing more than an agreement between Congress and a U.S. president as to how they will work together to negotiate, consider, and vote on international trade agreements. TPA allows both branches of the federal government to participate in trade development and set up an expedited process for trade deals. TPA does not take power away from Congress and give it to President Barack Obama. Presidents can negotiate trade deals any time they want — with or without TPA, they still need Congressional approval of any trade deal they negotiate. In fact, TPA provides for more oversight of and transparency from the administration, and gives Congress a voice in the entirety of the process, instead of just a vote at the end. TPA also makes sure the public has its say by requiring any agreement to be published for public review 60 days before it can be finalized. Why is TPA necessary? Because Congress is Congress, and no matter how beneficial a trade agreement would be for the nation, there will always be one or two legislators who have a political axe to grind who will hold up the process. TPA makes sure the narrow interests of the very few don’t trump the broad interests of the very many. In doing so, it lets our potential trade partners know they can rely on the terms of the agreements they negotiate with a president and that they will not be changed or unduly delayed by a highly politicized Congress. That’s why it is so important to get TPA back on the books for our state. Alabama is a major exporter, and our farms and businesses count on new global markets to grow their businesses and create jobs. Without TPA, we cannot finalize the kinds of deals that open up these markets. TPA is not some abstract federal legislative issue — it has a direct impact on Alabama’s economy and the 90,000 jobs supported by Alabama exports. Recently, U.S. Trade Representative Michael Froman described Alabama as an “exporting powerhouse,” and said that Alabama “exports are supporting well-paying jobs.” These are not understatements: In 2014, Alabama exported $19.5 billion in goods. In 2013, almost 4,000 companies exported from the state, more than 80 percent of which were small- and medium-sized companies. It’s no surprise, then, that a recent poll found that an overwhelming majority of Alabamians support free trade. Last week the U.S. Senate voted in favor of TPA with a strong, bipartisan majority. I strongly urge Reps. Robert Aderholt, Gary Palmer and Terri Sewell — as well as the rest of Alabama’s congressional delegation — to support TPA as it moves through the U.S. House of Representatives. John McMillan is the Commissioner of Agriculture & Industries for the state of Alabama. You may contact him at john.mcmillan@agi.alabama.gov.
Aerospace, automotive industries driving healthy business outlook for state
The message from Gov. Robert Bentley and the Alabama Department of Commerce is that Alabama’s business sector is thriving. According to figures released Tuesday, more than 70 new companies announced facilities in Alabama this past year and more than 300 companies expanded operations. The combined boost to Alabama’s economy, according to their data, was as many as 18,000 new jobs and nearly $3.4 billion in new investment. In 2013, the total was 16,847 jobs and $4.4 billion invested. “Job creation has been my top priority, and we have worked diligently as a team across Alabama to target well-paying jobs and projects that can make a difference in the lives of our residents and in the communities where they live,” Bentley said in a written statement. “It’s been a successful formula, and we are going to make it even better with new recruiting tools and fresh ideas on improving workforce development.” The 2014 New & Expanding Industry Report credits the growth to expansion in the automotive, aerospace, and manufacturing sectors in Alabama. For example, Science and Engineering Services launched a $70 million expansion of its Huntsville facility last summer and Mercedes-Benz also announced plans to expand its Tuscaloosa operation. Tuesday’s announcement follows a visit last week by President Barack Obama’s chief official on international trade, U.S. Trade Representative Michael Froman, and a discussion on the importance of exports for the state economy. During his visit, Froman warned that high tariffs in foreign markets for two Alabama’s strongest sectors – automotive and manufacturing industries – could jeopardize growth in the state’s overall economy.
Terri Sewell hosts Obama trade chief Michael Froman for trade summit
U.S. Rep. Terri Sewell says Alabama businesses and workers would benefit from expanding U.S. trade opportunities. Sewell invited U.S. Trade Representative Michael Froman, President Barack Obama’s chief official on international trade, to visit Alabama to discuss the importance of exports for the state economy. “Exports help drive Alabama’s economy,” Sewell said. “Alabama businesses exported $19.5 billion in merchandise last year, which supported more than 95,000 jobs. Access to foreign markets and fair trade policies that benefit American workers are integral, necessary components that will help Alabama exporters to continue to thrive and spur new job growth.” Froman said reducing taxes that the U.S. pays to export products from Alabama and other states, as well as improving labor standards abroad, were key to supporting jobs in the state. “By tearing down those barriers and raising the standards in other countries, we level the playing field,” Froman said. “And we know when we level the playing field, our workers, our farmers, our ranchers, and our small to medium-sized businesses can compete and win.” Alabama exports — transportation equipment, poultry, soybeans, and cotton — could face tariffs as high as 50 percent, Froman said. “If we can get rid of those taxes and we can eliminate those tariffs, right now 62 percent of all Alabama’s exports go to either the Asia Pacific or the European Union,” he said. “They can do so much more if they get rid of those other barriers. Every billion dollars of additional exports support up to 5,000 jobs. These are good, high-paying jobs.” The ambassador’s visit comes at a pivotal point in the Obama Administration’s battle with Congress over expanding the President’s authority to negotiate trade agreements. Politico reported that so far only 20 House Democrats have agreed to vote in favor of giving the president “fast-track” authority to negotiate trade agreements and that the bill has well below the votes needed on either side to pass in the House and Senate. The legislation would also grant the president authority to finish a sweeping trade deal with several Asian countries. The Trans-Pacific Partnership (TPP) has taken more than 10 years to negotiate and sets trade terms with 11 countries along the Pacific Rim, including Vietnam, Australia, Singapore, Malaysia and Japan. The group of nations has a combined gross domestic product of $28 billion and represents about 40 percent of the world economy. Sewell called the “fast track” or trade promotion authority a “hallmark” legislation that would provide a framework for the upcoming discussions over trade between the U.S., Asia, and the European Union. Passing the agreement is one of the president’s last major priorities, but so far Democrats have been unwilling to support the deal. “Congress has before it some big decisions when it comes to trade,” Sewell said. “Today has given me the opportunity to ask some very important, pressing questions from my constituents, especially labor, and to raise concerns that they’ve had. The ambassador has left me with a lot of food for thought.” Among those concerns, Sewell said, were that companies not be lured away by relaxed labor and regulatory standards in other countries. “I think it’s important that, especially in Alabama, where we’ve seen some trade agreements in the past have caused certain companies to close and take up shops overseas,” Sewell said. “I just want to make sure that the American workers are not left behind and so one of the big concerns that I had, and that some of the local labor unions had, was making sure that they had a seat at the table and that the negotiating would take into account their concerns as well.” In a prepared statement issued late Monday, U.S. Sen. Jeff Sessions called the fast track legislation “unenforceable” and said that the administration is seeking “blind faith” that the Trans-Pacific Partnership will increase U.S. jobs and wages. “Everyone supports trade. The question — the most fundamental question of all — is whether they are good trade deals, that advance America’s core national interests, or bad trade deals, that undermine them,” Sessions said. “Poorly negotiated trade deals, instead of opening new markets for our industries, tilt the playing field even further in their competitors’ direction. The result is not freer global trade, but more mercantilist market domination.” Congresswoman Sewell remains undecided on both TPP and TPA. U.S. Sens. Richard Shelby and Sessions voted against expanding trade promotion authority in 2002. It remains unclear whether Shelby will support the deal.
