Ten Democratic senators urged President Obama today to support stronger protections for U.S. manufacturing in major climate legislation.
In a letter to Obama, the senators asked for a strong "border adjustment mechanism" to help U.S. industries adjustment to higher energy costs. Such a "mechanism" might include a tax or tariff against foreign manufacturers whose costs aren't affected by the legislation.
"Any climate change legislation must prevent the export of jobs and related greenhouse gas emissions to countries that fail to take actions to combat the threat of global warming comparable to those taken by the United States," the senators write.
"It is essential that climate change legislation include a border mechanism, sufficient allowances to energy intensive industries and other effective measures that encourage international agreements and maintain a level playing field for American manufacturers."
U.S. trading partners have warned that a "border tax" might trigger retaliatory tariffs.
The letter's signatories hail mostly from midwest and/or industrial states: Ohio, Wisconsin, Michigan, Pennsylvania, West Virginia, etc.
The climate bill narrowly passed the House but has yet to come up for a vote in the Senate.
The signatories include: Sherrod Brown (D-Ohio), Debbie Stabenow (D-Mich), Russell D. Feingold (D-Wisc.), Carl Levin (D-Mich.), Evan Bayh (D-Ind.), Robert P. Casey (D-Pa.), Robert C. Byrd (D-W.V.), Arlen Specter (D-Pa.), John D. Rockefeller IV (D-W.V), and Al Franken (D-Minn).
President Obama sent his well wishes to those gathered in Nairobi, Kenya for the AGOA Forum, promising U.S. assistance to the continent of Africa.
"Today, it is my privilege to address you as President," Obama said in a videotaped message. "I do not see the countries and the peoples of Africa as a world apart. I see Africa as a fundamental part of our interconnected world. In our global economy, our economic fortunes are shared."
Secretary of State Hillary Clinton is among a number of diplomats in Kenya for talks on the African Growth and Opportunity Act (AGOA), trade legislation instituted in 2000 to help with Africa's economic development.
President Obama hopes to strip trade provisions that he thinks may be too protectionist from major climate change legislation.
The President made the remarks in an Oval Office interview with a select number of reporters.
At a time when much of the world is mired in recession, Mr. Obama said, "We have to be careful about sending any protectionist signals."
He said that certain energy-intensive American industries--like steel, aluminum, paper and glass--had legitimate concerns about competition from developing nations and that he would seek to level the playing field in international negotiations.
But he warned that trade sanctions that are based on the extent to which other countries curb carbon dioxide emissions might be illegal and counterproductive.
"I don't know if tariffs are the way," he said.
Nevertheless, Obama praised the House bill and urged the Senate to take up the legislation, though he did not set a deadline.
White House adviser David Axelrod said today that he expects the Senate to take up healthcare reform before addressing the climate change bill.
A majority of Americans disapprove of the tobacco regulation legislation that President Obama signed this afternoon.
A new Gallup poll finds that 52% of Americans are against granting the federal government new powers to regulate the sale of tobacco. (The legislation in question gives the FDA authority to regulate tobacco products.)
Among smokers, that opposition shoots to 69%. Non-smokers favor the new regulations, but by the slim margin of 50%-48%.
But the sharpest demographic divide is based on education. For example, only 36% of those with a high school education or less favor the new law, compared to 62% of those with a postgraduate degree.
Of course, that's likely because Americans with less education are statistically more likely to smoke.
Only 17% of respondents favor a ban on smoking entirely.
Treasury Secretary Tim Geithner refused to condemn Chinese currency manipulation on Tuesday when pressed in an interview with CNBC.
Geithner would not criticize China's monetary policies, which critics allege skews the trade balance between the U.S. and China toward the latter.
"What we're focused on is fixing the things we have to fix in the United States," Geithner said when asked if previous administrations' tack with China had been too aggressive. The Treasury secretary said he'd focus on "working with countries around the world to address this crisis," including China.
Geithner was pressed on President Obama's statements on the campaign trail calling China a currency manipulator, but still declined to call out the Chinese, instead praising them for taking a "constructive role internationally."
"Look -- you know, we're going through an exceptionally challenging period globally.
The bankruptcy of General Motors means consumers should "buy American" when purchasing a new car, a Michigan lawmaker said Monday.
"A role that every American can play in this process is to renew their support of our domestic auto industry by purchasing an American car if they are in the market for a new vehicle," Rep. Candice Miller (R-Mich.) reacted to GM's filing Monday. "We are all in this together and we must pull together toward a brighter future."
The notion of buying American has long been a tenet of popular sentiment in the Midwest, where a number of unions and supportive lawmakers have fought against some trade agreements that could threaten the weakened automakers.
"The federal government as the majority shareholder in the new GM needs to ensure that the American tax dollars which are being used to fund this bankruptcy are focused on protecting American jobs," Miller continued. "The goal must be to ensure that this money is not used to continue the trend of outsourcing, but instead invest in American manufacturing and American workers."
Miller, like other Michigan lawmakers on Monday, lamented GM's bankruptcy filing, adding her "heart breaks for everyone impacted."
Treasury Secretary Tim Geithner will travel to China early next month to meet with government officials, the Treasury Department announced Tuesday.
Geithner will travel at the end of this month to Beijing to meet with Chinese officials on June 1st and 2nd.
Geithner will meet with senior Chinese officials to "to discuss a range of issues of importance to both countries, including strengthening U.S.-China economic ties to promote stable, balanced and sustained economic growth in the two nations," according to the Treasury.
U.S. -- not Cuba -- is the isolated party in longstanding feud between the two nations, said Rep. Barbara Lee (D-Calif.), one of the lawmakers who traveled to Cuba this week.
"We have to remember, every country in Latin America, 15 countries, have normal relations with Cuba -- most of the E.U.," Lee said Wednesday morning on CNN. "We're the country which is isolated."
Lee said U.S. citizens should have a "right" to travel to Cuba, and said the members of the Congressional Black Caucus (CBC) who met with the country's communist leaders would press their cause soon with President Obama.
"We will communicate this to our president prior to the Summit of the Americas, which will be held in Trinidad, April 17," Lee asserted.
The several members of the CBC to have traveled to Cuba met with former dictator Fidel Castro and current President Raul Castro.
A combination of 200 businesses and trade associations wrote House and Senate leaders, asking them to eliminate a tax in the Obama administration's budget on revenue earned by overseas subsidiaries.
The Obama administration's proposed budget would get rid of "deferral," which allows companies to defer paying U.S. taxes on money earned overseas. The money earned overseas is typically taxed by the government in which the subsidiary is situated.
"The administration's proposal to repeal 'deferral' would impose a unilateral tax on the foreign earnings of American companies, upsetting the competitive balance between U.S. and foreign companies," the letter stated. "We strongly urge Congress to reject this budget proposal that would impair the global competitiveness of U.S. companies and harm American workers and the U.S. economy."
The letter was addressed to Senate Majority Leader Harry Reid (D-Nev.), House Speaker Nancy Pelosi (D-Calif.), Senate Minority Leader Mitch McConnell (R-Ky.), and House Minority Leader John Boehner (R-Ohio).
Former Dallas, Texas Mayor Ron Kirk was confirmed Wednesday afternoon as United States Trade Representative.
In a 92-5 vote, the Senate confirmed Kirk as the top U.S. official for negotiating trade agreements.
Kirk will immediately inherit a delicate trade detente with Mexico; the U.S. closed down some trucking corridors on the Texas-Mexico border, leading to Mexican retaliatory tariffs.
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