The following is a letter from CPA to Representative Mike Coffman of Colorado's 6th district:

August 12, 2010

Honorable Mike Coffman
U.S. House of Representatives
1508 Longworth House Office Building
Washington, DC 20515

    Re: Endorsement of HR 4866, RESTART ACT

Dear Representative Coffman:

The Coalition for a Prosperous America (CPA) is proud to inform you that we have endorsed your bill, HR 4866, the “Rare Earth Supply–Chain Technology and Resources Transformation Act of 2010” (RESTART Act). 

CPA represents the interests of 2.7 million households through our agricultural, manufacturing and labor membership.  We are very concerned about the need to balance trade.  We are further concerned that our GDP-depressing trade deficit is largely caused by the strategic maneuvering of state-managed economies which are our trade rivals.  One area in which trade rivals such as China have strategically outflanked us is in the rare earth elements (REEs) sector. 

Your bill duly recognizes the strategic value of REEs and the fact that we do not produce them.   Economically, REEs are a small market.  However, the REE importance is substantially magnified by the fact they are indispensable to military defense, electric motors, solar panels, high efficiency light bulbs, wind turbines and other advance technologies.  If the U.S. is to be safe and to prosper, we must have the ability to research and manufacture new technological products in the United States.  Further we cannot depend upon questionable trade rivals such as China to supply our needs. 

One reason your bill is so attractive to CPA is the fact it recognizes the need for a national industrial strategy, albeit in a particularized sector.  A fundamental issue for the U.S. to prosper in the 21st century is that we must recognize we are not in a free trade regime with other countries, rather we are competing with state-managed economies.  We do not even have the terms to define the state-managed economy relationship, much less adequately respond. 

Your bill is a sound attempt to evaluate our supplies, our strategic interests, and prescribed means to achieve a free-flowing market in REEs and restore some semblance of national security in this regard. 

We appreciate as well your cosponsoring HR 2378, Currency Reform for Fair Trade Act.  Together with the RESTART Act, effective currency legislation will begin the process of shaping a national strategy for competing with managed economies.  The CPA has been working hard to build support for HR 2378 and will do the same for HR 4866.    

Thank you again for your leadership on these issues. 

Respectfully,

Brian O'Shaughnessy, Chief Co-Chair, Manufacturing Co-Chair

Joe Logan, Agriculture Co-Chair

Robert Baugh, Labor Co-Chair

The following letter was sent by the CPA Co-Chairs to the Deputy United States Trade Representative, the Honorable Demetrios Marantis.

July 26, 2010

The Honorable Demetrios Marantis
Deputy United States Trade Representative
Office of the U.S. Trade Representative
600 17th Street NW
Washington, DC 20508

Re: China’s Innovation and Domestic Procurement Policies

Dear Mr. Ambassador:

We note with interest that you are in talks with the Chinese government with regard to their indigenous innovation policies that are discriminatory against U.S. companies. These policies threaten global intellectual property protections, fair government procurement policies, market competition, and innovators’ freedom to decide how and when they transfer technology.

It is a laudable goal to eliminate the blatant and outrageous discrimination by the Chinese government in these areas.

We are concerned that negotiations will be fruitless because you have little or no leverage. Similar strategy has been used to no avail with regard to China’s currency manipulation policies. The U.S. is relegated to using persuasion to achieve Chinese policy amendments on currency, but this approach has been unsuccessful for over five years.

You may be aware that Senator Debbie Stabenow has introduced the China Fair Trade Act of 2010. That bill is based upon the fundamental trade principle of “reciprocity.” It provides that the U.S. will not offer China the privilege of buying its companies’ goods and services, until the Chinese government does the same through an appropriate signing of the agreement on government procurement.

Our organization has endorsed Senator Stabenow’s legislation. We urge you to work with Senator Stabenow to utilize the bill to increase your leverage with the Chinese, so that an advantageous agreement can ultimately be concluded.

We remain willing and able to help in any way in this regard.

Respectfully,

Brian O'Shaughnessy, Chief Co-Chair, Manufacturing Co-Chair

Joe Logan, Agriculture Co-Chair

The following is a new video about CPA's work: