Trading Changes In the USA

By SAM GREENBLATT
Updated: MAY 3, 2017 19:11
Today the United States imposed tariffs on Canada to the surprise of very many Americans.  When you look at the history, you will see that this was long overdue. Softwood lumber which Canada has been dumping in this country for a very long time are supported by subsidies in Canada. In Canada, the Provinces are sending timber, and they charge very very low price below-market fees for what's called Stumping.  They cut the trees down, and that lets the Canadians ship lumber into the US at a subsidized price. Canadian lumber is up to 31 1/2% market share in the whole US market. The Obama Administration had let this go on for quite a while. The new administration put them on notice that this had to change. The US has imposed a fine of $1 billion per year. This is retroactive, and a 250 million penalty since the were first notified. They begin paying those funds immediately. The US has done these type of fines in the past and never collected. It is a major source of revenue going forward. When Wilbur Ross entered the Department of Commerce, he learned that there are billions of dollars of uncollected countervailing duties and it was never required the importers to put up any bonds or letters of credit, so by the time you would win the trade case be no financial resources left. It so hard and takes so long and is expensive to win a trade case. President Trump says  "Smart government we have got to behave smartly." Wilbur Ross is emphasizing the enforcement. Including filtered milk and the lumber. If NAFTA worked, there would be a well-functioning trade agreement. The trade agreement would allow things to go smoothly to create an architecture a mechanism for resolution. He is working towards creating balance in our trade relationship. It's very encouraging because of the impact of trade deficits on economic growth. He is very focused on the number of companies and employees involved in outsourcing and offshoring also. So that the Commerce Department can better understand what is happening to the economy as a result of the willful trade practices that have been pursued. In this country,  70,000 manufacturing plants closed in the US since NAFTA was originated this was not all due to NAFTA.  Some of it was due economic planning like ODMs with companies like Apple. Since 70,000 plants are gone, you can figure out how many people per facility jobs were taken out of the United States. These jobs concern the Wilbur Ross, Secretary of Commerce. It didn't worry President Obama. This is one of the real secrets behind the President's first 100 days. I applaud him for having Secretary Ross in action and it's time to make America Smart Again.