The Coalition for a Prosperous America filed official comments with the U.S. Trade Representatives office.  The 1974 Trade Act, as amended, requires the USTR to annually inventory the most important foreign barriers affecting U.S. exports.  This report is submitted to the President and Congress.

USTR has not, in the past or present, commented on the impact of foreign consumption taxes (VAT) or currency manipulation.  It seems the belief is that those are U.S. Treasury issues.  However, when USTR formally published a request for comment, CPA responded by placing the VAT and currency issues front and center.

The foreign VAT issue is quantifiably the biggest trade distorting practice we face.  Currency is likely second. 

CPA's comments are below.  The full 48 page submission is here.

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Re: Docket No. USTR-2009-0033

Dear USTR Trade Policy Staff Committee

The Coalition for a Prosperous America (CPA) appreciates the opportunity to provide input relating to significant barriers to the export of U.S. goods.  CPA represents the interests of 2.6 million Americans - through our association and company members - who make and grow things.

Your Request for Comment seeks information on trade barriers including:

1. Import policies (e.g., tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers);
2. Export subsidies (e.g., export financing on preferential terms and agricultural export subsidies that displace U.S. exports in third country markets)
   

The Coalition for a Prosperous America met with representatives from the U.S. Department of Commerce on October 21, 2009.  We sent this letter as a follow-up, which describes the topics discussed. 

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Dear Messrs. Siger and Sullivan:

Thank you for meeting with us on October 20, 2009.  All of us attending from the Coalition for a Prosperous America (CPA) appreciated hearing your thoughts and future plans.

We are pleased that the Administration has placed a high priority on enforcing trade agreements and trade laws.  It is hard to justify the position that trading partners should not abide by those rules.  Lack of enforcement hampers public confidence, and our confidence, in U.S trade policy.  However, enforcement is insufficient alone to solve the trade deficit problem.

October 26, 2009 - CPA letter to Chairman Baucus and Ranking Member Grassley of the Ways and Means Committee 

CPA sent a letter to Chairman Baucus and Ranking Member Grassley regarding a Customs-related act that they are co-sponsoring.  There is an advisory board associated with the customs agency that is dominated by the importers and multinationals, just as the Industry Trade Advisory Committees are dominated by them. 

The letter asks the Senators to include more diversity, to include domestic producers, on the customs advisory committee.  

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CPA Labor Co-Chair Bob Baugh presented oral testimony before the Subcommittee on Railroads, Pipelines & Hazardous Materials (a subcommittee within the House Transportation and infrastructure Committee).  Rep. Corrine Brown (D-FL-3) called the hearing to discuss high speed rail as a possible U.S. infrastructure initiative.

Bob Baugh presented in his capacity Executive Director of the AFL-CIO Industrial Union Council.  His written testimony is below the fold.

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CPA presented the following written testimony on July 21, 2009 to the Trade Subcommittee of the Ways and Means Committee.  Rep. Sandra Levin (D-MI-12) held the hearing.  The topic of the hearing was to examine the Industry Trade Advisory Committee (ITAC) system created by the 1974 Trade Act. 

CPA's testimony argued that more domestic producer interests should be included in the ITAC system because the current representation is skewed too much towards the multinational and exporter interests.

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