Obama Pushing For New Trade Deal

[bdegrand]

I noticed that Obama is pushing for a new trade deal that will apparently affect Ford and GM. I recall the UAW stood strongly for and supported Obama in his elections and now wonder why they are all protesting his efforts to help the foreign automakers gain a stronger foothold in the U.S. car market. Anybody know the details?

http://www.detroitnews.com/story/business/autos/2015/04/24/detroits-big-three-fear-asian-trade-pact/26344181/

Edited April 25, 2015 by bdegrand

[aneekr]

I noticed that Obama is pushing for a new trade deal that will apparently affect Ford and GM. I recall the UAW stood strongly for and supported Obama in his elections and now wonder why they are all protesting his efforts to help the foreign automakers gain a stronger foothold in the U.S. car market. Anybody know the details?

http://www.detroitnews.com/story/business/autos/2015/04/24/detroits-big-three-fear-asian-trade-pact/26344181/

 

Here are details about the Trade Promotion Authority legislation (TPA-2015, S.995):

 

Hatch, Wyden and Ryan Introduce Trade Promotion Authority Legislation

 

The "protesting" taking place by AFL-CIO, UAW, Ford, and General Motors doesn't have a logical basis. The concept of TPA goes back to the FDR administration and does not grant extraordinary negotiating powers to the President of the USA. The most recent "fast-track" bill expired in 2007 prior to Obama being elected President. The 2015 bill is a key first step toward signing agreements like the Trans Pacific Partnership, which would be a huge boon for U.S. economy by opening up a market of 485 million potential customers to U.S. businesses and their employees.

[bdegrand]

Here are details about the Trade Promotion Authority legislation (TPA-2015, S.995):

 

Hatch, Wyden and Ryan Introduce Trade Promotion Authority Legislation

 

The "protesting" taking place by AFL-CIO, UAW, Ford, and General Motors doesn't have a logical basis. The concept of TPA goes back to the FDR administration and does not grant extraordinary negotiating powers to the President of the USA. The most recent "fast-track" bill expired in 2007 prior to Obama being elected President. The 2015 bill is a key first step toward signing agreements like the Trans Pacific Partnership, which would be a huge boon for U.S. economy by opening up a market of 485 million potential customers to U.S. businesses and their employees.

I think one issue that threatens Ford and GM is trading countries like Japan, refusing to accept our vehicles. Compare how many Ford and GM cars are bought in Japan versus how many Japanese cars are bought here....no comparison. In addition to Japan's long standing culture to mostly buy from themselves, they charge more than double premiums on vehicle insurance for any Ford , GM or other imported vehicles. It's not a fair playing field.I read "Agents of Influence" by author Pat Choate which highlighted the threat Japan poses to the domestic auto industry. It's a slow methodical transition. Japan subsidizes their auto industry, they manipulate the yen to their advantage (Mulally begged Obama to address that unsuccessfully), their U.S. Assembly plants are mostly leased and/or tax abated. It's not just Japan, let's also include Korea...they are booming in vehicle sales lately and it continues. However, I also must add that the UAW hasn't helped Ford and GM very much with their constant demands for higher salaries, benefits etc...

Hopefully, all parties involved can work out a somewhat fair deal and Senators like Mr Hatch can initiate that. Time will tell.

Edited April 26, 2015 by bdegrand