KENDALLVILLE, Ind. -- U.S. Sen. Evan Bayh made his case Thursday for the importance of being earnest about ending unfair foreign trade practices by conducting a roundtable discussion with Indiana
business leaders who made it clear his case is their case, as well.
Bayh also suggested that Americans have an obligation to each other when it comes to buying imported products that are cheaper because of unfair trade practices.
The Hoosier Democrat has been in the forefront of congressional efforts to require the Chinese and other so-called "nonmarket" economies to adhere to international trade rules and, in the case of China, to end currency manipulation practices that give its manufacturers a decided competitive edge over American companies.
"Nonmarket" is a term that applies to communist countries such as China, Vietnam and some former Soviet republics.
Bayh brushed aside a question about the possibility that he might run for president, saying that while political speculation is inevitable, he tries not to get distracted.
"If I stick to my job," he said, "I think the politics will take care of itself."
Reminded of a recent newsmagazine report that Wal-Mart imports billions of dollars of goods from China, Bayh said Americans have a right to seek low prices but shouldn't do so at the expense of others.
Bayh said consumers have to buy products on a level playing field as well, but "it's not right for us to sell our fellow citizens down the river when it's (low prices) the result of illegal behavior or cheating, just for our own self-interest. That's not right."
University of Notre Dame economics professor Teresa Ghilarducci concurred, saying that Wal-Mart creates its own customer base for low-cost, low-quality goods by paying low wages.
According to Ghilarducci, Americans "need to recognize the high cost of low prices."
Bayh has introduced legislation that would allow the United States to impose countervailing duties on products made by manufacturers who are subsidized by their governments, thus leveling the playing field for American companies.
The senator discussed his trade legislation during a news conference and at the roundtable discussion, which was at the Dalton Corp., a local foundry.
The Stopping Overseas Subsidies Act, now slated to get a hearing by July 15, would require the Chinese to stop illegal subsidies. If they didn't, Bayh said, the measure would allow the United States to enact an offsetting tariff.
Sen. Evan Bayh discusses unfair trade practices Thursday with workers from Dalton Corp., a foundry in Kendallville, Ind.
Bayh said after the discussion that America's challenge is to define its place in the global economy and determine what it can produce more efficiently and of higher quality than anybody else.
"If we allow the fruits of that labor to be taken away as the result of cheating, our economy is going to suffer and the global trading system just won't work," he said.
Asked to rate the importance of his push for trade reform, Bayh put it second only to national security.
"The two go hand in hand," he said. "You can't be a great military power with a weak economy. It just doesn't work over an extended period of time, so it's right up there at the very top."
South Bend
business leaders Mike Lerman, of Steel Warehouse Co., and Mike Lanciotti, of sister company Lock Joint Tube, took part in the roundtable discussion.
Many of the
business men and women present talked of losing millions of dollars in
business, primarily to China, because of unfair practices that make it difficult to compete.
Joe DeRita, Dalton president, said his company has had to lay off about 200 employees during the past four or five years and has lost $25 million in
business, primarily because his customers started buying Chinese-made products that were 30 percent to 40 percent cheaper than his own.
"That's a tough fight," said DeRita, adding that Bayh "really understands the issues."
DeRita said he believes Dalton and other such companies in Indiana have a strong chance for survival if the playing field is leveled.
"We're not asking for a handout," he said.
Joseph "Mickey" Garrity, of the Richmond (Indiana) Casting Co., praised Bayh's efforts. "I think you're going in the right direction," said Garrity, adding he thinks Bayh is "the only guy in Washington" who understands the problem.
In addition to introducing legislation aimed at ending subsidies and curbing currency manipulation, Bayh has also pushed for creation of a special trade prosecutor to identify trade violators.
"Some economists live in a world of theory, not practicality," said Bayh. "We don't live in a theoretical world."
"We'll find a way to succeed, we think," Lerman said following the discussion.
The South Bend
businessman said his company will be able to replace lost
business, but worried that unfair trade practices will continue to erode the manufacturing base in the United States unless something is done about currency manipulation and unfair subsidies.
Asked if he thought the future of American
business is at stake, Lerman said:
"It's not going to die overnight, it's not going to be the most dramatic thing that people see, and that's maybe one of the reasons why people aren't jumping on this, but we can see it and we have seen it," Lerman said.
He added: "We will not be the same country, with the same type of jobs, unless something is done."
Staff writer James Wensits:
jwensits@sbtinfo.com(574) 235-6353
