In 2000, Oklahoma had roughly 177,000 manufacturing jobs. Today there are only 135,000.
If you think those jobs disappeared naturally, I have some magic beans for sale. Offshoring and import competition contributed to a healthy chunk of those job losses. It’s true that America has some of the world’s best products, modern production techniques, innovative production techniques, and a highly skilled workforce. But even the best firms and workers can’t compete against the unfair trade practices of other governments, especially when our own government stands idly by.
Countries like China and Japan have manipulated their currencies – effectively putting their thumbs on the trade scales – and that constant pressure on American manufacturing has resulted in lost jobs. It’s been happening for years, and it has got to stop. But the Obama response? Quiet, ineffectual diplomacy.
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Even though all of our trade partners have agreed in principle not to manipulate their currencies to gain a trade advantage, our domestic manufacturers and workers have absolutely no recourse if they lose market share, profits, or face layoffs or closure because of this cheating. And under our trade laws, American manufacturers must wait until they’re in the economic equivalent of the Emergency Room to seek relief against unfair trade.
A recent poll of Oklahomans shows a strong majority think any trade deal must address this problem. And fortunately, key Republican and Democratic lawmakers agree that must change. But they’re being blocked on Capitol Hill.
Our government is gearing up to sign a huge new trade deal called the Trans-Pacific Partnership with known currency manipulators like Japan. It has the opportunity to do something about this problem, like it should have done when we signed NAFTA, or when America helped serial currency cheater China get into the World Trade Organization. But the Obama administration, which is negotiating the TPP, isn’t interested in a stronger response.
When he was a senator running for the White House, Barack Obama said he’d get tough on currency. But now he’s changed his tune.
That means it’s up to Congress to make sure this gets fixed. Our Congressional delegation, including senators James Lankford and Jim Inhofe, will have a chance to make sure tough rules on currency manipulation and trade enforcement are set in place as Congress considers “fast track” authority, giving the White House an okay to present a finished TPP for an up-or-down vote.
If the senators really support Made in America and our manufacturing workers, they will vote to include enforceable mechanisms to deter currency manipulation and strengthen our domestic trade laws before we okay this trade deal.
Our nation racks up incredibly high manufacturing trade deficits with countries like China and Japan. And despite all of the grand promises the TPP’s defenders have made about the deal, deficits like those will continue if we don’t do anything about currency manipulation. A trade deal without a currency rule in it is not free trade, and it’s definitely not fair – to American manufacturers or American workers. Let’s give Made in America a fresh opportunity.
Scott Paul is president of the Alliance for American Manufacturing.