Major Issues in International Trade Currency manipulation China and other Asian countries keep the value of their currencies artificially low to make their exports cheaper and imports more expensive Subsidies China has provided billions of dollars in subsidies, directly and indirectly, to its steel industry Attempts to weaken the trade laws Multinational corporations that want to be able to rely on dumped and subsidized merchandise Climate change Some solutions would encourage U.S. manufacturing to move to China and elsewhere, leading to greater greenhouse gas emissions

U.S. Dollars per Chinese Yuan Exchange Rate (1993-2008) Source: Pacific Exchange Rate Service

Illegal and Abusive Subsidies Discounted Land Costs Discounted Energy Costs Low Cost Loans Debt Forgiveness Lack of Environmental Compliance

Chinese Steel Production 1996-2010 Estimated 647 mmt by 2010 Total Production of Crude Steel – International Iron & Steel Institute (IISI), Steel Statistical Yearbook 2007 and Crude Steel Statistics 2007

U.S. Trade Deficit 1997-2008 China will account for over 28% of the U.S. Trade Deficit in 2008! (2007 projection based on monthly average through October 2007.) U.S. Trade in Goods with World (Seasonally Adjusted) in Billions of Dollars through June 2008 (projected through Dec. 2008); U.S. Census Bureau

Trade Deficit Manufacturing Jobs (Not Seasonally Adjusted Figures. For Data, see Document #926177.) Manufacturing Jobs Source: U.S. Census Bureau, U.S. Bureau of Labor Statistics

U.S. Manufacturing Jobs (in thousands) March 1998 17.6 Million Jobs August 2008 13.4 Million Jobs Over 4 million manufacturing jobs have been lost since manufacturing peaked in 1998

North Carolina Manufacturing Jobs Nearly One of Every Three North Carolina Manufacturing Jobs Has Been Lost in the Last Decade.

Endangered Manufacturing Industries 41% 38% 45% 46% 52% 50% 59% 44% Source: U.S. Bureau of Labor Statistics, Current Employment Statistics Survey, Not Seasonally Adjusted

The State Crisis: Manufacturing Jobs Lost June 1998 to December 2007

The Multinationals’ View Large multinational manufacturers and trading companies (“MNCs”) generally oppose any strengthening of the trade laws Their chief focus is maximizing worldwide profits, not achieving maximum production and employment in the United States These companies have a vested interest in bringing dumped and subsidized imports into the United States Because of their size, they have substantial political clout

U.S. - China Direct Investment (2000 – 2007) $28.32 Billion U.S. direct investment position abroad. The value of U.S. direct investors’ equity in, and net outstanding loans to, their foreign affiliates. The position may be viewed as the U.S. direct investors’ net financial claims on their foreign affiliates, whether in the form of equity (including reinvested earnings) or debt. http://www.bea.gov/international/di1usdbal.htm (charts) http://www.bea.gov/international/index.htm (interactive data) $1.1 billion Source: The U.S. Bureau of Economic Analysis, Direct Investment, Direct Investment Position on a Historical-Cost Basis

Major Issues in International Trade Currency manipulation China and other Asian countries keep the value of their currencies artificially low to make their exports cheaper and imports more expensive Subsidies China has provided billions of dollars in subsidies, directly and indirectly, to its steel industry Attempts to weaken the trade laws Multinational corporations that want to be able to rely on dumped and subsidized merchandise Climate change Some solutions would encourage U.S. manufacturing to move to China and elsewhere, leading to greater greenhouse gas emissions