Post for March 10, 2011

FEDERAL BUDGET DEFICIT SETS RECORD

Today in Manufacturing
Government's budget deficit grew by $222.5 billion in February, the largest one-month increase in history, Treasury Department said ... continue

OBAMA TO NAME LOCKE NEW CHINA AMBASSADOR

Global Watch
President Barack Obama will nominate Commerce Secretary Gary Locke, the son and grandson of Chinese immigrants, to be the next U.S. ambassador to China. A formal announcement could come as early as Tuesday.

If confirmed by the Senate, Locke would succeed Jon Huntsman Jr., one of the few Republicans in Obama's administration. Huntsman's recently tendered resignation is effective at the end of April, and he is eyed as a potential GOP challenger to Obama in the 2012 presidential contest.
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CHINA'S TRADE SURPLUS 'TO DECREASE MORE' IN 2011

Global Watch
According to Minister of Commerce, Chen Deming, China's trade surplus will decrease further this year and may even go into deficit for a few months.
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SAUDIS KEY TO SECURING OIL DURING UNREST

Quick Manufacturing News
Former U.S. ambassador says U.S. needs to stand with Middle East allies. Click to continue

PROTECTIVE EQUIPMENT: OSHA CLARIFIES EMPLOYERS' DUTY

Quick Manufacturing News
Employer doesn't have to pay for 'non-specialty' shoes, eyewear and headwear that can be worn at home. Click to continue

UNEMPLOYMENT CLAIMS RISE

Today in Manufacturing
Rise comes after applications hit their lowest level in nearly three years, and economists expect further declines as the economy improves ... continue

JANUARY TRADE DEFICIT JUMPS

Today in Manufacturing
Surge in oil prices helped push imports up at the fastest pace in 18 years in January, giving the country the largest trade deficit in six months ... continue

MANUFACTURERS SUPPORTS BIPARTISAN LEGISLATION TO MAKE R&D CREDIT PERMANENT

NAM
"The National Association of Manufacturers (NAM) supports H.R. 942, The American Research and Competitiveness Act of 2011, sponsored by Reps. Brady (R-TX), Larson (D-CT), Paulsen (R-MN) and Eshoo (D-CA). This bipartisan legislation will make permanent and strengthen the research and development (R&D) tax credit. Strengthening the R&D credit from 14 percent to 20 percent and making it permanent will provide new opportunities for businesses of all sizes to expand and invest in their future, ultimately creating jobs and growing our economy."

Dorothy Coleman, vice president for tax and domestic economic policy, is quoted as saying, "Modernizing, strengthening and making permanent the R&D tax credit is a necessary step toward recapturing our leading role among global manufacturers."

HOUSE SUBCOMMITTEE APPROVES BIPARTISAN ENERGY BILL TO BOOST ECONOMIC RECOVERY

NAM Capital Briefing
On Thursday, March 10, the House Energy and Commerce Committee approved the Energy Tax Prevention Act of 2011 by voice vote. The bill, sponsored by Committee Chair Upton (R-MI), Senate Environment and Public Works Committee Ranking Member Inhofe (R-OK), and Reps. Whitfield (R-KY), Peterson (D-MN), Rahall (D-WV) and Boren (D-OK), would permanently block the Environmental Protection Agency (EPA) from regulating greenhouse gas (GHG) emissions from stationary sources under the Clean Air Act but would keep intact the 2012-2016 GHG emissions rules for cars and trucks.

The National Association of Manufacturers (NAM) supports this legislation and will work with lawmakers to ensure it moves swiftly through the legislative process.

On January 2, 2011, the EPA began regulating GHG emissions from new and modified facilities under the Clean Air Act. While only the largest plants are currently regulated, small to medium-sized facilities soon will be covered by these burdensome rules. At a time when the manufacturing sector has lost millions of high-wage jobs, it now faces significant uncertainty and potential permitting delays that will hinder its decision-making, competitiveness and ability to create jobs.

U.S. manufacturers welcome sensible legislation that will provide the direction necessary to make decisions about expansion and job creation. The U.S. manufacturing sector consumes one-third of the nation’s energy supply, so it is critical that manufacturers have access to affordable, reliable and secure energy supplies. Additionally, consumers will reap the benefit of this proposal to protect them against high energy costs.

“The NAM applauds this legislation and believes it can stop misguided regulations that have been putting manufacturers out of work,” said Aric Newhouse, NAM senior vice president for policy and government relations.

The EPA also has made it clear that it will continue to use its authority under the Clean Air Act to require GHG emission reductions from existing facilities. Congressional action is needed to stop the EPA from moving forward with these burdensome regulations.

As our nation struggles to maintain our current economic recovery, continued regulation of GHGs will impose additional economic burdens and cost jobs with little environmental benefit. To reach out to members of the House and Senate and voice your support for the Energy Tax Prevention Act, click here.

PATENT REFORM ADVANCES IN THE SENATE

NAM Capital Briefing

The Senate approved the America Invents Act this week by a vote of 95 to 5. If signed into law, it will be the first overhaul of the U.S. patent system in almost 60 years. The legislation includes many provisions to update the patent application and review process that will benefit manufacturers. In particular, the bill would give the U.S. Patent and Trademark Office (USPTO) the ability to set its own fees as well as end the diversion of those fees to other government agencies. This will be a critical tool in reducing the backlog of an estimated 700,000 patent applications. It will also allow the USPTO to hire more examiners with specific expertise that will help accelerate the timing of the review process. The bill works to eliminate the issuance of low-quality patents by permitting examiners to access more material known as “prior art” when making a patent application decision. The legislation also includes an NAM-supported provision designed to eliminate frivolous lawsuits based on patent “false marking” claims. Action now moves to the House, where leaders have indicated they will introduce a bill similar to the Senate-passed version later this month.

MANUFACTURERS URGE ADMINISTRATION TO MOVE COLOMBIA, PANAMA AND KOREA FTAS

NAM Capital Briefing
President Obama released his 2011 trade agenda last week, and as one of his top priorities, he called for immediate passage of the U.S.-Korea Free Trade Agreement (FTA). He also vowed to complete work on the U.S.-Colombia and U.S.-Panama FTAs and seek passage of those agreements as soon as possible. Manufacturers must make their voices heard in pushing for an active trade agenda in the 112th Congress. The NAM urges members to contact their legislators and tell the Obama Administration to send up the Korea, Colombia and Panama FTAs without further delay. There is no time to waste—our competitors in Europe, Canada, Australia and other nations are completing FTAs with all three of these countries, and they will reap the benefits. Jointly, these three agreements would result in over $13 billion in new U.S. exports—much of which would be exports of manufactured goods.

U.S.-MEXICO TRUCK DEAL COULD LIFT TARIFFS, BOOST EXPORTS

NAM Capital Briefing
President Obama and Mexican President Calderon announced a tentative agreement March 3, under which the United States would finally implement the cross-border trucking program required by the signing of the North American Free Trade Agreement (NAFTA). The announcement is excellent news for U.S. farmers and manufacturers whose products have suffered from retaliatory tariffs from Mexico. The United States is a global leader in ensuring enforcement of trade laws, and we need to lead by example – by coming into compliance with our NAFTA obligations on Mexican trucks. The NAM has led the effort in urging the Administration to reach an agreement to end these costly tariffs.