AFL-CIO Call for Action as Trade Deficit with China Hits New Record

Says Bush's Failure to React to China Trade Violations Dragging Down U.S Economy

January 11, 2008 -- The AFL-CIO called for action to rein in our nation’s trade deficit with China, as the Census Bureau trade statistics released today showed that the U.S. trade deficit with China hit a new record. In the first 11 months of last year, the United States racked up a staggering $237 billion trade deficit in goods with China – up 11 percent over the same period last year. The AFL-CIO pointed out that the growing trade deficit with China continues to stand out, as bilateral trade deficits with most other regions are declining, thanks largely to the declining value of the dollar.

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AFL-CIO Secretary-Treasurer Richard Trumka, responding to the Census Bureau trade statistics report released today for this past November, said that. “China continues to violate the rules of the global trading system—manipulating currency, violating workers’ human rights, and providing illegal subsidies to businesses, “President Bush refuses to take action, fiddling away while the U.S. economy burns. With a do-nothing President, these figures reiterate the need for strong action by Congress.”

The AFL-CIO said it remains committed to taking forceful action against unfair trade practices. It points out that an effective antidote to unfair trade must include H.R. 2942, the bipartisan Currency Reform for Fair Trade Act of 2007, introduced by Congressmen Tim Ryan (D-OH) and Duncan Hunter (R-CA). “We will also continue our fight to strengthen and enforce trade law remedies and ensure the safety of imported consumer products,” said Trumka.

Overall the U.S. trade deficit in goods and services grew nine percent in November to reach $63.1 billion, putting the country on track once again to top the $700 billion mark in 2007.

China now accounts for 32.5 percent of our total trade deficit in goods – and more than half of our non-petroleum goods deficit through the first 11 months of 2007.

The United States lost over 212,000 manufacturing jobs in 2007, adding to the more than 3 million lost since President Bush took office in 2001. Many of these jobs disappeared when domestic businesses shifted jobs overseas or shut down because our tax, trade, and currency policies put them at a competitive disadvantage.

Meanwhile, China reported that its global trade surplus for 2007 increased almost 50 percent over 2006, reaching a record of $262.2 billion.

Source: AFL-CIO