Details about United States Trade News
Is the U.S. Trade Gap Shrinking?
Based on data from the Bureau of Economic Analysis, the US Trade Gap narrowed in March. Contracting more than expected, the U.S. trade deficit narrowed due to a reduction in imports of mostly business equipment and consumer goods.
The Commerce Department noted an 11 percent narrowing of the U.S. trade gap to 38.8 down from 43.6 billion in February which is the second lowest level the past 3 years.
The gap narrowed for a variety of reason but one being that exports also dropped by 0.9 percent to $184.3 billion as foreign purchases of consumer goods, capital equipment, motor vehicles and foods were all on the decline.
A survey conducted by Bloomberg economists predict a healthy uptick in the economy in the second half of 2013 but for the time being the second quarter is predicted to only grow at 1.5%.
Source: Bloomberg; BEA.gov
In other headlines, President Obama made two cabinet nominations that relate to trade. President Obama nominated Mike Froman for the U.S. Trade Representative (USTR) position and Penny Pritzker as Commerce Secretary.
For several years now, Froman has been one of President Obama’s top national security and economic advisors. The President noted that Froman has “established himself as one of the world’s foremost experts on our global economy.” Also stating he has been a “key negotiator” for the free trade agreements with South Korea, Colombia and Panama.
Obama praised Pritzker’s business experience, saying, “Penny is one of our country’s most distinguished business leaders…She knows that what we can do is to give every business and every worker the best possible chance to succeed by making America a magnet for good jobs.”
The process moves forward for the New International Trade Crossing (NITC), US-Canada Bridge in the form of a U.S. Presidential Permit. While it won’t be completed until 2020, plans for the bridge between Detroit, MI and Windsor, Ontario, Canada received the go ahead to start construction. There is a great deal of procurement of lands, and other major resources causing the 7 year project to stretch out that long – costing a meager $2.1 billion.
the current trade route for the area is services by the Ambassador Bridge and handles around one-third of all the U.S. –Canada ground trade with lots of bottlenecks and frequent delays.
Working aggressively for years to push the project forward, Michigan Gov. Rick Snyder said, “This is more than a bridge to me,” “it’s about jobs and the future of this state.”