All the year-to-date numbers are headed in the wrong direction.
The decline in the trade deficit this month “masks an uncomfortable truth” about the state of trade in the United States.
Although the Commerce Department released new figures Wednesday showing the deficit decreased to $40.9 billion in April, Alliance for American Manufacturing President Scott Paul says we shouldn’t be fooled by the drop in the April figures:
“The monthly decline in the trade deficit masks an uncomfortable truth: Global industrial overcapacity, an overly strong dollar, and unfair trade practices are contributing to a surge in our 2015 trade deficit. All the year-to-date numbers are headed in the wrong direction, and they help to explain the sudden drop in manufacturing hiring so far this year.”
Washington is standing in the way of American businesses and workers, but there’s a lot they could do.
Passing a long-term infrastructure plan would improve our global competitiveness with the added bonus of creating jobs. More than 2.5 million new jobs would be created by a long-term transportation bill worth $114 billion annually. Each $1 billion in infrastructure investment creates more than 21,000 new jobs. Unfortunately, it looks like Congress will continue to kick the can down the road on this issue.
Congress also has the chance to improve conditions for American manufacturers and workers. A new bipartisan bill, the American Trade Enforcement Effectiveness Act, would level the playing field for U.S. workers by strengthening our enforcement laws against unfair trade practices. The bill seeks to make it easier for companies and workers to seek remedy against trade cheating like this — before the layoffs and plant closures begin.
With Congress currently debating fast-track trade legislation and new free trade agreements, now is the time for action.