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Recent articles by Jeff Ferry

  • CPA Reshoring Index Quarterly Report: US Manufacturers Lost Domestic Market Share in Q3 During COVID

    By Steven L. Byers, PhD, and Jeff Ferry Key Points The CPA Reshoring Index (CRI) came in at 69.0 in Q3 2020, a decline of 165 basis points (1.6 percentage points) as compared to the Q2 level of 70.6, indicating that US manufacturers lost share to imports in Q3. Read more
  • The Year in Trade 2020

    By Steven L. Byers, PhD, and Jeff Ferry Last year the US registered its largest trade deficit in 12 years and its largest-ever deficit in goods trade. In this article, we review the main trends in US international trade in 2020. Read more
  • Book Review: The World Turned Upside Down: America, China, and the Struggle for Global Leadership by Clyde Prestowitz

    Book Review by Jeff Ferry, CPA Chief Economist This book by foreign and economic policy veteran Clyde Prestowitz would make ideal bedside reading for every member of Joe Biden’s cabinet. In crystal-clear terms and with a deep historical perspective, Prestowitz explains the threat posed to the US and the west by the Chinese Communist Party and the need for new American policies to address this threat to the entire free world. Read more
  • Jaw-Dropping Solar Manufacturing Expansion by China Threatens US Industry

    By Jeff Ferry, CPA Chief Economist In the last two years, the US solar manufacturing industry has rebuilt itself and reached a stronger position than at any time in a decade, helped by tariffs on imported solar modules produced by subsidized Chinese companies. The US now has two gigawatt (GW)-scale module producers in First Solar and Q Cells. In addition, another dozen or so firms bring U.S. manufacturing capacity to over 5 GW. With many US producers hoping to expand production, the US could be on a strong path to meeting all or more than the U.S. demand for solar panels. Read more
  • Cut Out the Middlemen to Make Room for US Pharmaceutical Manufacturers

    By Jeff Ferry, CPA Chief Economist Drug shortages are a widespread problem in the US today. The American Medical Association reported a spike in drug shortages in early 2020 as COVID cases required doctors to write prescriptions for patients afflicted with the virus. The shortage particularly affected “analgesics, sedatives, and paralytics,” the AMA said, because these were needed especially by patients who needed to go on ventilators. Read more
  • Ten Proposals for the Biden Administration

    By Jeff Ferry, CPA Chief Economist As the Biden administration takes office, our nation is in the grip of bitter bipartisan divisions. However, beneath the superficial rhetoric, there is a surprising degree of agreement on some important issues. Read more
  • Five Signs of the Coming Deglobalization

    By Jeff Ferry, CPA Chief Economist As 2021 begins, there are some encouraging signs of the coming deglobalization. Globalization in the economic sense is the process by which production moves from high-income nations to low-income nations, driving all nations towards a global mean, with a reduction in living standards for the richer nations, a rise in living standards for the poorer nations, and huge benefits for the multinational corporations that can produce in low-income nations and sell in the high-income. Read more
  • Why There Will Be a UK-EU Trade Deal By New Year’s Eve---and What the US Can Learn From It

    By Jeff Ferry, CPA Chief Economist If you’re not following the UK-EU trade deal negotiations, this is Europe’s greatest current cliffhanger, pushing even the COVID crisis off the front pages in Britain and many EU nations. The European Union is no stranger to last-minute, through-the-night negotiations, but the stakes are very high in this one, as Britain is only days away from spinning out of its temporary transition period with the 27-nation EU and into a new world of mutual 10 percent tariffs, with the likelihood of chaos at all the ports and airports in the United Kingdom as flustered Customs officials try to figure out how to levy new tariffs on truckers who will be furiously impatient, having spent a week or more sitting in lengthy queues at ports like Dover and Calais. British consumers are reportedly stocking up on household goods this week and the phrase “panic buying” is on everyone’s lips. Read more
  • A National Manufacturing Strategy for Semiconductors

    By Jeff Ferry, CPA Chief Economist Joe Biden is getting lots of advice from many quarters for his new administration. But last week he got some from an unexpected quarter: Bob Swan, CEO of Intel, published an open letter urging Biden to pursue a national manufacturing strategy for the US semiconductor industry. “Rising costs and foreign government subsidies to national champions are a significant disadvantage for US semiconductor companies,” Swan wrote. Read more
  • U.S. Steel Production is Booming Due to Steel Tariffs

    By Jeff Ferry, CPA Chief Economist On Oct. 20th, US Steel produced the first ton of steel from a brand new steelmaking facility in Fairfield, Alabama. The new facility uses the latest, cleanest steelmaking technology, an electric arc furnace (EAF), and will produce 1.6 million tons of steel a year. Three days later, Nucor broke ground at Brandenburg, Kentucky on a new steel plate mill that will employ 400 staff at an average annual salary of $72,800. In August, Commercial Metals Company announced plans to build a second rebar mill at its Mesa, Arizona location, to employ 185 staff when complete. The new mill will use an innovative process to reduce power consumption and will also include a solar array on the premises to generate renewable energy, making it one of the cleanest steel mills in the world. Arizona officials say the new mill will bring a total of 1,000 new manufacturing jobs to the state. Read more
  • How Tariffs Are Benefiting US Manufacturing

    By Jeff Ferry, CPA Chief Economist Last year, the US raised the share of domestic demand for manufactured goods met by US production for the first time in six years. Read more
  • US Must Resist China’s Latest Efforts to Dominate Solar Power Industry

    By Jeff Ferry, CPA Chief Economist Last year was a great year for the US solar power industry. Read more
  • Towards Better Economic Modeling of Trade Agreements

    Summary of CPA Testimony to the ITC on Oct. 6, 2020 By Jeff Ferry, CPA Chief Economist On Oct. 6th, CPA submitted oral and written testimony to the US International Trade Commission on the economic modeling of trade agreements (TA’s). Read more
  • Aluminum Tariffs Re-Imposed After Canada Breaches USMCA Commitment

    By Jeff Ferry, CPA Chief Economist Last week the Trump administration re-imposed aluminum tariffs on imports of Canadian aluminum to stem the Canadian surge which violated Ottawa’s USMCA promise to avoid increased imports. Read more
  • June Trade Deficit Falls Slightly In Pandemic, Stands At $50.7 Billion

    By Ken Rapoza, CPA Industry Analyst The pandemic has curtailed exports and imports and today’s trade numbers showed a slight decline in the trade deficit. The June deficit came in at $50.7 billion, 7.5 percent better than the $54.8 billion deficit in May, based on the Bureau of Economic Analysis data. Read more
  • US Trade Deficit Deepened to $54.6 Billion in May As COVID Impacted Trade

    By Jeff Ferry, Chief Economist The monthly US trade deficit climbed to $54.6 billion in May as the COVID crisis dented exports more than imports. Read more
  • US and UK Should Partner on a “Multiplier” Fund to Back 5G Startups

    By Jeff Ferry, CPA Chief Economist The United Kingdom is close to pulling out of its previous compromise solution for 5G telecom, which involved keeping Huawei at the so-called “edge” of British wireless networks. Read more
  • Coronavirus Crisis Drives Collapse in April Trade, Deficit Worsens to $49 Billion

    By Steven L. Byers, PhD and Jeff Ferry The coronavirus disrupted international trade and led to a collapse in US trade volume which makes it difficult or impossible to draw conclusions about underlying trends. Read more
  • CPA’s New Manufacturing Reshoring Index Shows Strong Gains in 2019

    CPA Working Paper By Stephen L. Byers PhD and Jeff Ferry Abstract The Coalition for a Prosperous America is introducing the new CPA Reshoring Index to track the success of US manufacturing industry in meeting domestic demand for manufactured goods. Read more
  • Is China Even Trying to Fulfill its Phase One Commitments?

    Beijing buys Brazilian soy and homegrown polysilicon rather than US By Jeff Ferry, CPA Chief Economist It is starting to look like China is unlikely to fulfill the terms of the so-called Phase One agreement on purchases of US goods and services. Read more