Walberg Weekly Wrap-Up: "Trade Prosecutor Needed, Pass Farm Bill Without Tax Hikes"

Press Release

Walberg Weekly Wrap-Up: "Trade Prosecutor Needed, Pass Farm Bill Without Tax Hikes"

Michigan's economic comeback depends largely on our small businesses, entrepreneurs and family farmers being able to innovate, grow and expand in today's competitive global economy. Fair trade deals can help open new markets for Michigan products and keep Michigan's economy efficient and competitive.

However, in any trade deal, there must be appropriate trade enforcement, and right now the United States needs much more enforcement of some of our trade deals. In 2007 alone, America had a $711.6 billion trade deficit. U.S.-China relations continue to be strained by China's lax intellectual property rights, extensive trade barriers and currency policy. The U.S. trade deficit with China is larger than with any other trade partner.

We need to be sure that current trade deals are being enforced fairly. With this goal in mind, I have co-sponsored important legislation, H.R. 1278, that will make sure our Michigan businesses can compete fairly in the global marketplace.

The Trade Prosecutor Act is bi-partisan legislation that would create a new Trade Enforcement Office within the office of the United States Trade Representative (USTR). The Trade Enforcement Officer position would be responsible for pursuing violations of our trade agreements and making sure the trade playing field is truly level.

The officer would also assist the USTR in investigating and prosecuting disputes before the World Trade Organization and regularly report to Congress about impediments facing domestic companies who attempt to sell goods in new markets. The Trade Enforcement Officer would have the rank of Ambassador, be appointed by the President and confirmed by the Senate.

Michigan's economy can benefit from trade if trade laws are properly enforced, but our manufacturers and farmers are harmed by unfair trade practices. Right now, some small businesses and family farmers are at a disadvantage, and this legislation should correct many of these problems.

Pass Farm Bill Without Tax Hikes
Currently, a Farm Bill agreement is being finalized by a bi-partisan Farm Bill conference committee. The conference committee has begun to iron out differences between the House- and Senate-passed farm bills (both passed in 2007) before a final bill comes to the House floor.

In 2007, House leadership brushed aside months of hard work by Republicans and Democrats on the House Agriculture committee and decided to insert a 600% tax increase on subsidiary manufacturers into the Farm Bill.

A recent study revealed Michigan ranks 9th in the United States in the number of employees supported by U.S. subsidiaries, and many significant international job-creators in Michigan would see a 600% tax increase because they have American plants and employ Americans. Overall, this bill would have raised taxes on companies who employ 5.1 million American workers and pay $325 billion in wages to American workers. This is simply unacceptable.

We need to pass a Farm Bill that meets the needs of American farmers without raising taxes. I was pleased to support a bi-partisan motion that passed the House 400-11 instructing conferees not to agree to any provisions that increase taxes in a final Farm Bill agreement. I urge the conference committee to work together in a bi-partisan way, recognize that tax increases destroy jobs and pass a Farm Bill that gives our farmers certainty for the future.

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