U.S. Sen. Sherrod Brown (D-OH) joined the Economic Policy Institute (EPI), the Alliance for American Manufacturing (AAM), and Policy Matters Ohio to unveil a new report showing the effect of addressing trade deficits, currency manipulation, and other illegal trade barriers on jobs and growth--particularly in the manufacturing sector. Brown was joined by Randy Solganik, owner of City Plating, an auto parts supplier in Cleveland, who discussed how currency manipulation and unfair trade practices have hurt his business.
"Our nation's record trade deficit is more than just a statistic: it affects real jobs in important industries. When industry and the government get tough on cheaters and enforce our trade laws, America wins. That's why we need to act now on the recommendations published in this new report--and stand up for Ohio's workers and businesses."
The report, entitled "Reducing U.S. trade deficit will generate a manufacturing-based recovery for the United States and Ohio", provides Ohio-specific information on the number of jobs that could be created by addressing the U.S. goods trade deficit and comes one day before the release of 2012 U.S. trade deficit figures, including an expected record bilateral trade deficit with China. According to the report released today, the U.S. goods trade deficit could be reduced by up to $400 billion over three years by eliminating global currency manipulation. The report finds that reducing the trade deficit would help Ohio by:
Creating up to 199,700 jobs;
Reducing the state's unemployment rate by between 1.3 and 2.7 percentage points;
Creating as many as 75,900 Ohio manufacturing jobs; and
Increasing Ohio GDP by between $8.3 billion-$17.4 billion.
Brown, the lead sponsor of bipartisan legislation to address Chinese currency manipulation that passed the U.S. Senate in 2011 but stalled in the U.S. House, urged congressional action on legislation that addresses trade deficits and promotes job creation in the American manufacturing industry by ensuring a level playing field for American workers.
He was joined by Dr. Robert E. Scott, Director of Trade and Manufacturing Policy Research at EPI and author of the report, Scott Paul, President of AAM, and Amy Hanauer, the founding executive director of Policy Matters Ohio.
Currency manipulation is a trade practice in which governments intentionally devalue its own currency-- artificially lowering the cost of U.S. imports and raising the cost of U.S. exports. This puts Ohio and American manufacturers at a serious disadvantage, and makes it more difficult for American companies to compete against products from countries that persistently engage in this practice.