Issue 21| May 18, 2012
Export-Import Bank receives Congressional reauthorization
On May 15, the charter for the Ex-Im Bank was approved by the Senate and sent to the president for signature. The bill renewed the bank’s charter for three more years, which was set to expire at the end of the month. The bill also approved a $40 Billion increase in funding for the bank, capping it out at $140 Billion in total loans. The deal also comes with stipulations that subject the bank to new reporting requirements, designed to provide more oversight into the bank’s loans.
Exports help California reverse long term manufacturing decline
After a decade of steady declines in manufacturing jobs, the past year has shown a steady increase in manufacturing exports adding 9,900 new jobs to the economy. Exports by California businesses have increased 9.2 percent since February 2011. While these gains are modest in comparison to 2000 levels, they point toward an avenue of growth for California companies.
President supports tax incentives to move jobs to US
In a speech in Albany, NY this week, President Barack Obama laid out a tax plan that would incentivize companies to increase the hiring of American workers. The two part plan includes a 20 percent tax credit for companies who move jobs back from overseas, and a 10 percent credit for small businesses that hire workers and increase wages.
Chinese trade becoming more balanced
In the weeks following a Chinese announcement to incentivize balanced trade, the country seems to be on track to achieve that. Chinese exports have been slowing due to decreased global demand while imports have been increasing. China posted a $31.5 Billion deficit in February, the first in a year, and the largest since 1989. Chinese exports to the United States dropped 10 percent in April.
Ocean carriers set peak season surcharge
Global shipping costs will increase slightly on major carriers starting June 1, as they implement peak-season surcharges. Carriers include Mediterranean Shipping Company (MSC), Orient Overseas Container Line and Zim Integrated Shipping Services. MSC rates to the U.S. from Asia will increase June 10.
Trusted shipper pact reached between the United States and European Union
Starting July 1, the nearly 10,000 importers, brokers and shippers involved in trans-Atlantic trade may notice quicker customs authorization as a trade pact between the U.S. and EU takes effect.
U.S. – Columbia free trade agreement finalized
The long awaited free trade agreement was finally signed into action on Tuesday, May 15. The deal was originally brokered by the Bush administration four years ago. The current two way trade between the two countries, equaling $37.5 billion has the potential to double in three years.