trade

Press release:

After fiercely advocating for federal aid to New York’s dairy farmers in the beginning of the coronavirus (COVID-19) crisis, U.S. Senate Minority Leader Charles E. Schumer today urged United States Trade Representative Robert E. Lighthizer to quickly raise concerns about Canada evading its commitments under the United States-Mexico-Canada Agreement (USMCA).

Canada agree to eliminate harmful dairy trade practices, including its Class 7 pricing program (Class 6 in Ontario) and lack of transparency in milk-pricing regulations. Both were explicitly addressed in the agreement, which enters into force next week on July 1.

“New York’s dairy farmers are the lifeblood of the Upstate economy, but unfortunately, they have been squeezed by the economic effects of the COVID-19 crisis,” Senator Schumer said. “That is why I am calling on Ambassador Lighthizer to do everything in his power to ensure that Canada abides by its dairy trade obligations and eliminates its unfair and harmful pricing programs and practices that unfairly impeded Upstate New York dairy farmers from freely selling their product – as agreed to in the new trade agreement with Canada, the USMCA.

As the trade deal enters into force next week, it is imperative that our New York dairy farmers are able to sell their products into Canada and churn up profits that mitigate the huge losses they have suffered this year.”

“USMCA requires Canada to provide new market access for American dairy products and to eliminate its destructive Classes 6 and 7 milk pricing schemes,” said Jaime Castaneda, senior vice president for Policy Strategy and International Trade with the National Milk Producers Federation and the U.S. Dairy Export Council. “While not unexpected, Canada’s efforts to manipulate its agreed upon trade obligations to protect its tightly controlled dairy market are unacceptable.

"Canada needs to live up to the commitments it made to the U.S. on dairy. America’s dairy industry appreciates Senator Schumer for his leadership on this issue and we support Ambassador Lighthizer and Secretary Purdue as the U.S. works to hold Canada accountable to its commitments under USMCA.”

“Cayuga Milk Ingredients applauds the efforts of New York’s Senator Schumer for raising concerns over Canada’s recent request for dairy pricing secrecy within the Ontario Provincial Tribunal and their most recent administration of TRQs," said Kevin J. Ellis, CEO Cayuga Milk Ingredients. "On both issues, Canada is showing they have no desire to act in good faith with respect to the trade commitments they made underneath USMCA.

"Cayuga Milk Ingredients suffered a loss of nearly $24 million of sales in 2016 when Canada implemented a National Class 7 pricing scheme that was specifically and intentionally designed to stop the importation of ultra-filtered milk. Based on these latest events, it appears Canada cannot be trusted to honor its trade commitments with the United States,”

Craig Alexander, senior director, Milk Planning and Regulatory Affairs at O-AT-KA Milk Products in Batavia, said, “A foundation principle of the new USMCA pertaining to Canada was transparency of pricing formulation and the elimination of its Class 7 pricing. We appreciate Senator Schumer’s push for Canada to live up to its commitments in this agreement.

"Canada should not obscure information on pricing now in order to artificially create a pricing environment that will keep us at a disadvantage once these USMCA provisions go into force. Furthermore, Canada’s implementation of TRQs negotiated as part of USMCA and reserving increased access almost entirely to existing Canadian dairy companies is evidence that Canada has not changed its past history of circumventing trade agreements.

"If Canada simply held up their end of the deal on eliminating Class 7 and fair implementation of TRQs, we could again get a fair shake at the opportunities to serve the Canadian market going forward.”

Schumer explained that under USMCA, Canada agreed to eliminate Class 6 & 7 pricing within six months. However, the Senator revealed, Dairy Farmers of Ontario (DFO), which represents approximately 4,000 Canadian dairy farmers, has recently requested that Ontario’s tribunal, which provides an avenue of appeal on agriculture issues, grant restricted access to DFO’s pricing regulations.

Schumer argued that with only a few days left until the USMCA is set to enter into force, the lack of transparency and timing of DFO’s request raises questions about whether or not Canada is seeking to circumvent its dairy commitments in USMCA.

Additionally, Schumer pointed out, under USMCA, Canada agreed to an expansion of tariff rate quotas (TRQs) for several categories of U.S. dairy products. However, the U.S. dairy industry has raised concerns that Canada’s recently released TRQ allocations weaken the intent of USMCA and will prevent New York dairy farmers from fully benefiting from the agreement’s expanded market access opportunities.

Press release from the NYS Farm Bureau:

“The Senate’s passage of the United States-Mexico-Canada (USMCA) trade agreement clears the final hurdle that stood in the way of progress for New York’s farmers.

"Nearly half of our state’s agricultural exports go to our North American neighbors, providing vital market opportunities that will remain open thanks to USMCA.

"The certainty that this agreement provides to farmers, plus the potential for expected growth for our dairy farms, are reasons to commend lawmakers for getting the job done in a strong bipartisan fashion.

"Combine this news with yesterday’s announcement of the phase one trade deal with China, and there is renewed hope that United States’ trade policy is headed in the right direction.”

The dairy industry needs exports to really thrive, according to an Elba dairy farmer who, like a lot of dairy farmers these days, is happy there is a potential new trade agreement between the United States and its largest agricultural trade partners, Canada and Mexico.

"The name of the game in dairy now is exports," Jeff Post said. "Years ago it was all about national consumption, but if we're going to survive as the dairy industry in this country, we need to export as much product as possible and we have to rely on our government to help us with trade deals."

During the 2016 presidential campaign, Donald Trump knocked the North America Free Trade Agreement (NAFTA) as "a really bad deal" and promised a better deal if elected. For the most part, local farmers think they got that with the new deal with a new acronym, USMCA.

The deal must be ratified by the legislative bodies of all three countries before going into effect.

For dairy farmers in New York, the big hang-up with NAFTA was its lack of provisions for Class 6 and Class 7 milk, also known as ultrafiltered milk, which has become a big part of cheese production. Those classes didn't exist when NAFTA was approved in 1994 and nearly two years ago, Canada blocked imports of those classes.

Once elected, Trump took up the cause of dairy farmers and used the increased difficulty in exporting U.S. dairy products to Canada to push for a new deal and threatened to withdraw from NAFTA.

Craig Yunker, CEO of CY Farms, approves of the new deal but thought the heated rhetoric from the president, such as accusing Canada of cheating the United States,was unneccessary.

"Generally, it's a positive for dairy and for wheat, specifically, but I'm not sure that it's going to completely undo the hard feelings north of the border," Yunker said. "That's going to take some time, but it's going in the right direction. I think it'll take some time to repair the hard feelings."

Le Roy dairy farmer Dale Stein sides a little more with the president on his view that the United States hasn't been treated well by its trading partners, and while he welcomes the new provisions related to dairy, he thinks overall the new deal will help out the country as a whole.

"Our trading partners have been abusing us and that's been a fact," Stein said. "All the previous presidents have allowed it. There are other things in this trade agreement that I think will help with everything and have nothing to do with farming."

In 2017, the United States had a $63.6 billion trade deficit with Mexico on a total of $615.9 billion in trade. While the United States imported more goods than it exported, it still exported $276.2 billion in goods to Mexico, up from $52 billion in 1993. The U.S. Chamber of Commerce estimates that some six million jobs in the United States depend on trade with Canada and Mexico.

Besides agriculture, much of what's new deals with auto production. New provisions require at least 45 percent of an automobile to be built by people earning at least $16 an hour, and that at least 75 percent of the auto's content be made in North America.

Whether these provisions will result in more car production jobs in the United States in unclear, according to economists, but it is likely to make cars more expensive.

Yunker thinks the new deal is much like the old deal with many provisions that had been part of the Trans Pacific Partnership agreement, which Trump scraped as soon as he took office.

"I don't see it as a major accomplishment," Yunker said. "We had NAFTA in place and while it needed some tweaking, this is a big improvement over it throwing Canada out of the deal altogether. Well, I don't see that as a major accomplishment of the Trump Administration. The major accomplishment is that it was negotiated after the rhetoric insulting Canada."

One of the big issues besetting the dairy industry is oversupply and Yunker noted that Cornell ag economist Andy Novakovic doesn't anticipate the new agreement doing much to increase milk prices anytime soon.

"He hasn't really changed his price projects for 2019 based on this," Yunker said. "It is good it opens up the market for ultrafilteration milk; that's a positive. But we still have an oversupply of milk, so I'm not sure that this cures the low price for producers but it's certainly the right direction."

Yunker remains dissapointed that TPP didn't go through.

"A lot of work went into (TPP)," Yunker said. "We lost the initiative to be the lead in Asia trade and then replaced by China taking the lead in that. I'm still disappointed over pulling out of the TPP but I'm a free-trade guy."

Post is less enthused about TPP but believes U.S. dairy farmers need Asian markets and hopes now that the NAFTA makeover is done there's a chance to open up Japan and other Asian nations.

"I look forward to hopefully getting some of these Asian markets opened up, too," Post said. "I wasn't a big fan of the TPP agreement -- only for what it did for ag. Hopefully, he government is negotiating with Japan and negotiationing to South Korea and we're going to get more more access to export to markets there."

Stein is also looking forward to getting past the trade conflicts and open up more export markets.

"We were looking at very high prices this fall or the end of the year until all this (trade conflict) started because of the exports and now we will get the exports back," Stein said. "We should be able to compete against against anybody. We haven't really sold a lot to China to begin with. We've exported dairy to Mexico primarily and a fair amount in Canada. By reopening them up again, hopefully, they will get back trading so we can use up some of our milk supply."

Press release:

In the wake of the trade tariffs instituted by the Trump administration, Nate McMurray is touring businesses across Western New York, talking to business owners to understand how the changing economic climate is affecting them.

McMurray met with the owners of Catalpa Farms today in Canandaigua who grow soy, which they primarily export to China.

The price of soy has tumbled from a high of $10.70 at the start of this year's growing season to $9.60 today as a result of the 25 percent tariff instituted on soybean imports, in reaction to Trump's tariffs.

The farmers said that the price drop is "killing them" and that there is a likelihood that China will begin to import soy from Argentina due to the uncompetitive price of our export. This is unacceptable.

There are no other words for the tariffs except economic warfare. McMurray believes that this is posturing at the expense of the American people.

The administration's careless trade war endangers the welfare of the American people and of the people of New York's 27th district, whose livelihoods are among the industries affected.

Trump's increasingly combative rhetoric with Canada, one of our closest allies, as well as his erratic behavior at the G7 summit casts into doubt the administration's commitment to the economic well-being of our citizens.

"Our region is interdependent on Canada," McMurray said of New York's 27th Congressional District, "turning our backs on our Canadian neighbors is unthinkable.

"Even just the petty words coming out of the White House are enough to seriously threaten jobs and incomes here at home. Actions have consequences. It's not fair to our working men and women and it has to stop."

Press release:

U.S. Senate Minority Leader Charles E. Schumer and U.S. Senator Kirsten Gillibrand today joined their Senate colleagues in urging United States Trade Representative Robert Lighthizer to continue to ensure Mexico honors its existing trade commitments.

They want Lighthizer to fight back against the EU’s recent proposal to exclusively use common cheese names, like “parmesan,” “feta,” and “asiago” in Mexico.

According to the senators, through a recent trade agreement with Mexico, the EU is seeking to prevent cheese producers from exporting their products using common cheese names or geographical indications.

Schumer and Gillibrand argued that this would be a huge hit to Upstate dairy farmers as they look to continue to export cheese and compete for new markets.

“No matter how you slice it, Upstate New York’s cheese producers could lose a big chunk of their business if the EU successfully convinces Mexico to place geographic restrictions on cheese labeling,” Senator Schumer said.

"From Western New York to the Hudson Valley, cheese production is an important industry in Upstate New York, which is why I'm urging Ambassador Lighthizer to hold nothing back and use every tool in his disposal to protect U.S. cheese producers and ensure that Mexico continues to honor their existing trade commitments."

“This harmful proposed trade agreement between the EU and Mexico could hurt our farmers and rural communities by taking away export opportunities for New York cheese producers,” said Senator Gillibrand, a member of the Senate Agriculture Committee.

“We need to do everything possible to protect and promote New York’s dairy industry, which is already struggling in the face of historically low milk prices and other challenges, and I’m urging U.S. Trade Representative Lighthizer to fight against any proposal that would hurt local cheese producers.”

Schumer and Gillibrand pointed out that Mexico is the largest export destination for American cheese, accounting for virtually one-third of the $1.3 billion in dairy products the United States exported to Mexico last year and that implementing geographic indications on cheeses could devastate New York’s cheese industry.

The senators explained that this is not the first time the EU has tried to claim cheese names based on geographic locations, in the same way, that the EU has argued that champagne can only be sold as "champagne" if produced in the Champagne region of France.

Among the labels sought by EU are muenster, feta, parmesan, fontina, gorgonzola and others. Schumer warned that if the EU succeeds in claiming those names, New York producers will no longer be able to export cheeses with their current names. They would have to export the cheese under a different name, meaning that producers could lose market share they have spent years fighting for.

A copy of the joint Senate letter to Trade Representative Robert Lighthizer appears below:

Dear Ambassador Lighthizer:

We write today expressing our concerns about Mexico’s recent trade negotiations with the European Union (EU) and the devastating impact these actions could have on American cheese exports to Mexico. On April 21, 2018, the EU and Mexico reached an agreement in principle to modernize their current trade agreement.

A summary of the agreement provided by the European Commission notes that Mexico agreed to protect 340 European geographical indications. While the final text of the agreement—and the full list of restricted names—has not been released, media reports indicate that Mexico has agreed to restrict food imports with names—most notably of cheeses—considered generic in the United States.

As you work to re-negotiate the North American Free Trade Agreement (NAFTA), we urge you to engage with your Mexican and Canadian counterparts to ensure that future trade policies do not limit export opportunities for American dairy farmers and processors. In light of Mexico’s proposed agreement with the EU, we are deeply concerned that American cheesemakers will be harmed by a reversal of their current access to the Mexican market, and will be denied the opportunity to sell products to Mexican consumers using common cheese product names that have been marketed for decades.

In addition, this threat to American dairy exports underscores and reaffirms the need for a renegotiated NAFTA that ensures strong market access for dairy exports to Mexico and Canada and addresses Canada’s trade-distorting Class 7 dairy pricing scheme.

Geographical indications link a product to a particular region, implying that the product possesses a certain quality or reputation associated with that locale. The EU has aggressively pursued restrictions for cheeses, such as feta (Greece), muenster (France), and parmesan (Italy), in their domestic and international trade policies. While these names are covered as geographic indications within the EU, they are generic in the United States and in numerous other countries around the world.

Mexico is the largest export destination for American cheese, accounting for roughly one-third of the $1.3 billion in dairy products the United States exported to Mexico last year. If Mexico grants European cheese producers exclusive rights to use common cheese names, as reports indicate it has agreed to do, American producers will lose market share they have spent years developing.

This policy change will have a detrimental impact on American cheese and dairy producers, who are already adversely impacted by Canada’s trade-distorting policies.

The 2015 Trade Promotion Authority statute—which is currently in force—included a principal negotiating objective on geographical indications:

“The principal negotiating objective of the United States with respect to agriculture is to obtain competitive opportunities for United States exports of agricultural commodities in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in United States markets and to achieve fairer and more open conditions of trade in bulk, specialty crop, and value-added commodities by [. . .] eliminating and preventing the undermining of market access for United States products through improper use of a country’s system for protecting or recognizing geographical indications, including failing to ensure transparency and procedural fairness and protecting generic terms.”

In order to meet this objective, the United States should engage with Mexico on geographic indication restrictions to ensure Mexico honors its existing trade commitments with the United States. American cheese exporters should be allowed to continue using common food names that Mexican consumers are familiar with.

Anything less would grant European producers access to the market share that American producers have developed over decades and unjustly award them the future growth opportunities of those products. We appreciate your attention to this matter and stand ready to work with you to protect American cheese exports.

Press release:

U.S. Senate Minority Leader Charles E. Schumer today called on U.S. trade officials to secure a level playing field with Canadian producers during the renegotiation of the North American Trade Agreement (NAFTA).

Schumer said that in recent years, Canada has established dairy pricing policies and has maintained high tariffs that have effectively created a “Dairy Wall” stopping most U.S. dairy products from accessing Canadian markets and distorting global trade.

Dairy farmers and producers, like the 340 dairy farmers who make up Upstate Niagara Co-Op, which supplies O-AT-KA Milk Products Cooperative Inc. in Batavia, have been severely hurt by Canada’s manipulative trade practices and it will only get worse without action.

O-AT-KA Milk Products Cooperative Inc., with more than 400 employees and majority owned by Upstate Niagara, has already lost millions of dollars in contracts due to Canada’s actions “Dairy Wall.”

Schumer said that the time to secure a level playing field with Canada by expanding market opportunities and eliminating Canada’s unfair pricing policies – is now and we cannot let this opportunity go to waste.

“Our hardworking New York dairy farmers and producers like Upstate Niagara Co-Op’s 340 farm family members across the Finger Lakes and O-AT-KA Milk Products in Batavia are the most competitive in the world, but they depend on stable and fair rules to compete in a global economy, to sell their dairy products, expand their business and create new local jobs,” Schumer said.

“As trade officials near a deal to renegotiate NAFTA – an issue President Trump and I both agree on – we must make it a top priority to begin reversing restrictive dairy pricing policies in Canada that are hurting our dairy producers at their core, and now is a real opportunity to do just that.”

Schumer explained Canada has an unfair advantage over New York dairy farmers and producers. In addition to Canada’s 270 percent tariff on milk, a program called the “Class 7” pricing program, a market-distorting supply management system, has caused severe pain to New York dairy producers like Avon’s Anderson Farm and their fellow Upstate Niagara Co-Op dairies since it came into force last year.

In fact, Canada has used the Class 7 program to triple its milk powder exports in the past year by creating excess milk production capacity within Canada, then dumping the resulting milk powder onto world markets. To further prove this dumping exists, Schumer added that Canada’s dairy farmers are some of the highest paid in the world, yet Canadian dairy companies are still able to be among the lowest cost sellers of Class 7 products globally.

Anderson Farm is one of the 340 dairy farm members of the Upstate Niagara Co-Op, which is the majority owner of the O-AT-KA Milk Products facility in Batavia. More than 400 employees work at O-AT-KA. Upstate Niagara dairies throughout the Rochester Finger Lakes Region like Anderson Farm depend on O-AT-KA to purchase their milk to then manufacture and sell milk products for the domestic and international markets.

Since Canada’s implementation of Class 7, O-AT-KA lost $19 million in annual sales of Ultra Filtered milk (UF Milk), a product used to make cheese and other dairy products that it had been exporting into Canada. Moreover, the production of this UF milk for the Canadian market had accounted for 20 percent (about 180 million pounds) of all of O-AT-KA’s milk volume.

This severely undercut a $16 million investment made by O-AT-KA in 2012 to build a two-story addition at its Batavia plant to manufacture UF Milk to support its export business to Canada. When Canada unfairly cut off UF Milk imports and implemented Class 7, it dealt a significant blow to the local agriculture economy and was a factor in the current U.S. milk inventory imbalance that is contributing to now drive the price of milk down.

Schumer was joined by Jim Anderson, fourth generation owner of Anderson Farm, O-AT-KA Milk Products Cooperative Inc. President & Chairman John Gould, local dairy farmers, and elected officials.

Gould, who also owns an Upstate Niagara Co-Op dairy farm in Genesee County, said “Canada has a long history of erecting barriers to trade when it comes to dairy and the creation of Class 7 is an example of that. Canada's Class 7 market manipulation has caused harm to O-AT-KA Milk Products and their farm family owners, whose investments in serving legitimate customers in Canada have been blocked.

"As NAFTA is renegotiated, it is time that Canadian gamesmanship ends and a constructive agreement is reached that allows market participation and access under rules that all trading partners can follow. We thank Senator Schumer for his leadership and work in keeping this important issue top of mind as negotiations proceed."

As U.S., Canadian and Mexican trade officials are closing in on a deal to revamp North American Free Trade Agreement (NAFTA), Schumer said now represents a real opportunity to dismantle Canada’s market-distorting policies and ensure a level playing field for American dairy farmers and producers.

Schumer noted that he has directly stressed the importance of securing meaningful changes in our dairy trade relationship with Canada to past and current administration officials, including current United States Trade Representative Robert Lighthizer, President Trump, Canadian Ambassador to the U.S. David MacNaughton, and the U.S. Ambassador to Canada Kelly Craft who have all committed to address this issue.

Right now, products manufactured by O-AT-KA Milk Products include non-fat dry milk powder, buttermilk powder, whey powder, canned evaporated milk, butter, fluid condensed milk, iced coffee, nutritional beverages and other various drinks.

O-AT-KA has gross annual sales of more than $300 million and is a significant employer and economic development engine in Upstate NY’s dairy and manufacturing industries. Schumer said that in order for Upstate Niagara member dairies and O-AT-KA to continue to be global leaders, Canada’s rapacious dairy-related trade policies need to be addressed and that NAFTA represents a major opportunity to do so.

Here's Schumer's letter to Ambassador Robert Lighthizer, United States Trade Representative:

Dear Ambassador Lighthizer:

As the North American Free Trade Agreement (NAFTA) renegotiations come towards a conclusion, I would like to again emphasize the importance of securing meaningful concessions from Canada to provide stable market access for our dairy producers. Securing meaningful and enforceable commitments that will allow U.S. dairy producers to compete with Canada’s on a level playing field should be a top priority in NAFTA renegotiations. As I have expressed to you many times, I strongly believe that we should not miss this opportunity to protect our dairy producers from Canada’s recent predatory trade practices.

As you know, Canada’s Class 7 pricing program, a market-distorting supply management system, has caused severe pain to New York dairy producers since it came into force last year. Canada has also maintained large tariffs on dairy products, including a 270 percent tariff on milk. New York’s dairy farmers and companies like Cayuga Milk Ingredients, O-AT-KA Milk, and Ideal Dairy Farm, rely on market-based trade with Canada for a significant percentage – millions of dollars – of their revenue. Not only are New York’s producers locked out of Canada’s ultrafiltered milk market, but in just a year’s time, Canada has used its Class 7 program to triple its milk powder exports, dumping powdered milk products into global markets and undercutting New York dairy producer’s exports. This Class 7 system is likely a violation of Canada’s World Trade Organization (WTO) commitments, but addressing it quickly through NAFTA renegotiation is needed, rather than waiting for years for a WTO determination. This Class 7 system should be dismantled through new NAFTA commitments.

In our discussions, you have committed to me that you would prioritize addressing this issue through NAFTA renegotiations. The President has also privately expressed to me his explicit desire to address this issue and has publically emphasized, many times, the unfair way that Canada has treated our dairy producers, noting just last month: “Canada must treat our farmers much better. Highly restrictive.”

Our hard working dairy producers are the most competitive in the world, but they depend on stable and fair rules to compete in a global economy. Again, I urge you to make meaningful and enforceable commitments that level the playing field for our dairy producers a top priority as NAFTA renegotiations conclude.

Thank you for your attention to this issue.

Press release:

“President Trump and I spoke yesterday about reversing Canada's new and unfair dairy-pricing policy. It is an unwise policy that violates our agreements and hurts our farmers, and we agreed to work together to immediately address the issue.

"Since Canada’s damaging policies also impact dairy farms in Wisconsin, I suggested reaching out to Speaker Ryan. The three of us, in conjunction with Senator Tammy Baldwin and other stakeholders, will develop a comprehensive plan to tackle this issue.

"We can all agree that, it is critical to level the playing field for our hard-working dairy farmers and make sure our Canadian neighbors rescind their unfair policy and again play by the rules,” said Senate Minority Leader Charles E. Schumer.

Previously: Schumer uses stop in Bergen to raise concerns about rail safety and trade with Canada

Press release:

Congressman Chris Collins (NY-27) today released the following statement after President Trump signed an executive order to support American manufacturing and bolster America’s job growth.

“In implementing a ‘Buy American, Hire American’ federal initiative, President Trump has delivered on one of his most important promises to the American people. Voters here in Western New York supported President Trump because for too long, status quo politicians have put the economic interests of foreign nations ahead of our own and have left too many promises unfulfilled.

"If we want our community and our country to succeed, we need to put people back to work and get back to ‘Made in America.’ Today’s executive action is a significant step in accomplishing those goals. I commend President Trump for putting America first and working to bring our jobs home."

New York is the fifth hardest hit state in the union in terms of jobs lost since the ratification of NAFTA, according to a study released by the Economic Policy Institute, and in New York, the NY-26 Congressional District has lost the most jobs after the NY-29.

The 26th district, which is currently up for grabs in a May 24 special election, has lost 1,800 jobs since 1994.

The study does note that some of the job loss may have been driven by the recent economic downturn, but says in all more than 500,000 U.S. jobs were displaced as a direct result of the ratification of NAFTA.

New York has lost 34,300 jobs. Most of the jobs were in the manufacturing sector.

The study takes into account new U.S. jobs created as a result of trade with Mexico.

Before the passage of NAFTA, the U.S. had a trade surplus with Mexico of $1.6 billion. By 2010, the trade deficit with Mexico had climbed to $97.2 billion.

The introduction to the report reads:

Prominent economists and U.S. government officials predicted that the North American Free Trade Agreement (NAFTA) would lead to growing trade surpluses with Mexico and that hundreds of thousands of jobs would be gained (Hufbauer and Schott 1993; President Clinton 1993). The evidence shows that the predicted surpluses in the wake of NAFTA’s enactment in 1994 did not materialize, for reasons outlined in this briefing paper. However, congressional leaders and administration officials now make nearly identical claims about export growth and job creation under the proposed U.S.-Korea Free Trade Agreement (KORUS FTA).

Wikipedia describes EPI as a liberal, nonpartisan think tank.

The next representative of the NY-26 will likely be asked to vote on three new trade deals with South Korea, Colombia and Panama, which is why we asked the four candidates for their positions on free trade.  

Kathy Hochul, Jack Davis and Ian Murphy all said they oppose NAFTA. Jane Corwin said, "I am a believer in the free markets and free trade but it must also be fair trade."

Asked specifically whether they would vote yes or no on the South Korean pact, Hochul, Davis and Murphy all said, "No." Corwin did not answer the question.

(via Buffalo First)

Rep. Chris Lee issued a statement today expressing support for bi-partisan legislation that supporters say will fix problems with currency exchange with China and help protect WNY jobs.

Lee called Chinese trade practices illegal.

The legislation is aimed at stopping Chinese manipulation of currency exchange, which may be leading to the yuan being undervalued by as much as 40 percent.

Full press release after the jump:

ROCHESTER – Congressman Chris Lee (NY-26) appeared today at Precision Grinding and Manufacturing in Rochester to announce his support for major bipartisan legislation combating illegal Chinese trade practices that have contributed to the loss of good-paying jobs in Western New York.

The Currency Reform for Fair Trade Act (CRFTA) of 2009 specifically takes aim at currency manipulation. A broad range of economists believe, for instance, that the Chinese yuan may be undervalued by as much as 40%. The practical impact of China intentionally lowering its currency's value is to make its goods cheaper. This means that when Chinese manufacturers export a product, they effectively receive a 40% subsidy on their exports, a nearly insurmountable advantage over U.S. producers.

“American workers can compete with anyone in the world, but free trade has to be fair in both directions,” Congressman Lee said. “The Currency Reform for Fair Trade Act is an effective bipartisan solution that levels the playing field for American manufacturers and protects American jobs. It closes loopholes that allow currency manipulation to run afoul of international trade policies and gives our negotiators the tools they need to take a tougher stance on this issue without provoking a trade dispute. With our economy in crisis and our region hemorrhaging manufacturing jobs, we can no longer afford to delay action.” 

The lawmaker noted during the press conference that over the course of this decade, Western New York has lost more than 1 in 4 manufacturing jobs, while our nation’s trade deficit with China has more than tripled. 

Kevin Kelley, executive director of the Rochester Tooling and Machining Association (RTMA), added: “China’s manipulation of its currency continues to represent a significant threat to our region’s manufacturing jobs. We’ve seen plenty of talk on this issue, but not enough action. The legislation Congressman Lee is supporting would ensure a level playing field on which our businesses can compete in the global marketplace.”
The Currency Reform for Fair Trade Act is set to be introduced in Congress this week, according to Congressman Lee, who added, “This is a smart proposal that ensures the United States remains faithful to its own international trade obligations.”