How Your Trade Association Can Have Greater Political Impact

There are 90,908 trade associations in the country. With philanthropic and charitable organizations, the number rises to over 1.2 million [1]. In any event there are lots. Every trade association has a dual role: 1) to increase membership and 2) to promote the cause of the organization.

Your association relies on its members and other activities for funding. But it has an untapped and overlooked hidden stream of potential advocates that it could use more effectively.

As a leader of a trade association you may poll your members to find out what are their top issues. You summarize a select few and these are the ones you focus on and go forward with. Most organizations are usually single-issue organizations.

Legislatively, you compete with other associations for the time and attention of lobbyists, legislators, congressional staff members and government regulators. You rely upon your membership numbers and your PAC's campaign giving to support your cause and to gain access to Washington lawmakers.

For the largest organizations often this is enough. But for the smaller and midsize groups they might find themselves struggling to push their agendas forward.

Sometimes, you can rally your membership to take on different activities but generally you can't do it that often. Like any group, your members tend to experience what is referred to as "donor fatigue." They don't want to donate more money, they do not want to donate more time, and they can't take time off work to get on the bus to attend a rally to hold a sign in the pouring rain. While association members as a whole may appreciate the opportunity to vote up or down on issues, they often feel they are left out of the full debate creation and argument process.

So can smart leadership still get them involved?

Sure.

The best association leaders allow their members four things:

1) To come forward with topics of their own concern.

2) Provide a forum for the members to discuss issues.

3) Allow their membership to respectfully debate arguments pro and con on various sides of an issue.

4) Provide a place where members can vote anonymously.

Essentially, they give their members a voice.

The best association leaders also know that family members often influence what the member thinks. The chief lobbyist, it turns out, is often the spouse.

Association leaders recognize that their members are not one-dimensional. They do not have only one issue that matters to them. They may be members of many different special interest groups because there are several different issues that concern them. The member joins different groups that support his cause. So in effect he could be a member of a pro-gun group, a pro-choice group, a clean energy group and a business development incubator. He may be a moderate on social issues and conservative or entrepreneur on business issues.

Some political independents that neither lean left nor right fall into this middle category.

But there remains one highly overlooked element.

Imagine the trade association member is a US voter and a constituent of a congressional district. His alternate issues may span into other congressional districts. In the district they span into may reside friends and associates who support the nature of your particular membership group. But the voter in the other district is not and cannot be a member of your trade association because he simply is in a different profession or geographical area.

So how do you cross the line? Can you take advantage of this? I think you can.

If your trade association members were free to openly debate and vote anonymously in a safe, independent, non-partisan environment, the likelihood is great that they would continue to support your efforts. After all, they are in your business. And if their spouse and friends from other states were able to share in a debate, then they too could bring greater weight to your argument and causes.

But more importantly, all these interested parties are constituents in other political districts. If they are able to lobby their congressman or representative who may sit on key Congressional committees that affect your broader issue, then you could bring a greater force to bear by empowering more people to push legislation forward that supports and benefits your organization.

Can this be done? Certainly.

Let's say your association allocates $25,000 per year to lobby or about $2,000 a month.

If an additional 2,000 voters from 10 different districts contributed $20 a month to support your efforts, you would have $40,000 a month extra for lobbying or almost a half million dollars a year. If these voters were aligned with your cause and made their issues known to their congressman, your impact could increase twenty-fold at no real out-of-pocket cost to you or your association.

The greatest impact any independent constituent group can have are:

1) Clarity of message and singular focus on an issue.

2) Mass of voters who can appeal to the Congress.

3) A real budget to continue and persevere.

Remember, these are real voters and Congress loves to hear from its own constituents.

So, the advocate is not a nameless organization supporting a large, broad membership that may or may not support its overall goals. Working together through social networks, you now have real people putting up their own money to support causes, which are aligned with your organization's needs.

Because voters will have self-identified as constituents to congressional members on committees affecting your organization, your impact in Washington with lawmakers will increase.

Encourage your members to pursue their interests and make public their issues and you may find that your best ally could well be, not just your association member, but also her family and network of friends.

[1] The Center for Association Leadership

John Thibault is the founder and CEO of iLobby. iLobby® is a micro-lobbying matching service that connects voters with professional lobbyists to resolve issues with their political leaders. Put simply, this is lobbying for the little guy. Find out more at http://www.ilobby.co/

Musings on the Ugly Beauty of the World Trade Center

Let's face it, the World Trade Center, actually a complex of seven buildings with the centerpieces the towers which once stood majestically in Lower Manhattan, wasn't exactly an architectural beauty.

They were even called ugly.

The two primary towers, one rising to 1,368 feet, the other to 1,362 feet, dominated the landscape and were a source of boundless pride and tributes to the supremacy of American commerce for politicians and builders even as most New Yorkers regarded them as impressive but essentially unattractive oblong boxes reaching into the skies.

My family and I visited the World Trade Center in 1988 along with an aged uncle from Ireland. My uncle, terrified of heights, stood petrified against the back wall of the Top of the World observatory and understatedly remarked that the view was "very nice."

Soaring a full hundred feet above the Empire State Building, the WTC did indeed provide a "very nice" panorama, remarkable, breathtaking views for miles in every direction, in fact, even if the design of the towers was less than pleasing. Those vistas and the pride New Yorkers and all Americans felt for the World Trade Center fully compensated for the towers' stark severity, described by one architect as "glass-and-metal filing cabinets."

Despite all their architectural and aesthetic flaws, I still miss the strange, symmetrical elegance of those "filing cabinets" and, despite the passage of ten years, I freely admit that I still weep over the events of September 11th, 2001.

None of us could have anticipated the devastation wreaked on America on that brilliantly-bright morning.

What happened that day didn't simply involve the destruction of human life and of buildings. It didn't merely represent a shocking, unprovoked attack on our homeland. It involved much more than the resultant phenomenal costs, disruptions, and upheavals.

Obviously, the greatest loss was the 2,753 lives snuffed out but not to be forgotten either was the loss of Americans' illusory senses of invulnerability and indestructibility, the loss of our collective national innocence.

Those attributes were barely shaken by the failed attempt to knock down the towers in 1993 primarily because they failed. Eight years later they succeeded. What could never happen, happened.

The incomprehensibility of 9/11 was perhaps best illustrated in the reaction of a WTC survivor. Amid all the stories that flowed out of the horror of a decade ago, one was especially striking as emblematic of the end of American innocence.

As cited in "3 Retrospectives on the World Trade Center:" "An anonymous woman who had fled the burning but still standing towers had sought refuge in a local retail store a distance away from the infernos.

"Still in shock, seated on a dirty floor, she listened to the distant thunder and watched through the store windows as crazed people continued to race past. She buried her face in her hands until a stranger said to her, 'They're gone.'

"Confused and distraught, she was unable to make sense of the stranger's cryptic words, and asked in a shaky voice, 'What do you mean they're gone?' "

"The towers. They're gone."

"Still unable to fathom, or unwilling to accept the meaning of four simple words, she blinked and grimaced as she asked again, incredulously, 'What do you mean, they're gone?' "

They, the towers, were inexplicably "gone," collapsed in a fiery conflagration of smoke and ash, in the detritus of concrete and steel, in the residue of human remains.

No one knows the ultimate reaction of that survivor and no one knows what will be the ultimate reaction of our government. We have gone to war, suffered tens of thousands of casualties, and killed Osama bin laden. Yet, we are nowhere near eradicating the source of that woman's grief.

Purely by happenstance, I didn't lose any family members on 9/11 and I wasn't in New York to personally witness the horrors although my son was.

In disbelief, he watched the towers crumble from the safety of his office three miles uptown. He described the sight later as, "surreal," nightmarishly irrational. He couldn't see from that distance the worst nightmare of all, hundreds of people electing to leap to their deaths a thousand feet below instead of choosing their only other option of being incinerated.

In the apparent belief Americans are too squeamish to handle the truth, the media to this day refuses to show the pictures of those brave men and women, those "jumpers," as the media referred to them.

I have a message to the media: After September 11th, 2001, Americans can handle virtually anything. What we may not be equipped to deal with is a 9/11 redux, a scenario for which our president and other leaders seem to be preparing us, a repeat cataclysm that could very well dwarf the horrific events of ten years ago and render those bitter memories moot.

View article source

South Korea upbeat on resolving US trade deal soon - Reuters

By Jack Kim

SEOUL | Fri Nov 12, 2010 7:10am EST

SEOUL (Reuters) - South Korean officials struck an upbeat note on Friday that discussions to iron out U.S. concerns about a free trade deal they signed three years ago would conclude soon despite missing a deadline set by their leaders.

But there was also concern that outstanding differences on the autos and beef trade that hampered progress on the deal could take months, if not another several years, to resolve.

"I can tell you ... that the differences have been narrowed through the tireless discussion at various levels, and we are very hopeful of resuming talks and reaching a mutually agreeable resolution within the next few weeks," South Korea's ambassador to the United States, Han Duk-soo, told Reuters.

The two sides failed to revive the stalled deal on Thursday when their leaders met on the sidelines of a G20 summit in Seoul, dealing a setback to a longstanding effort to boost trade.

The deal, if ratified by the two countries' assemblies, would be one of the largest free trade pacts ever and the largest signed by the United States since the North American Free Trade Agreement that went into effect in 1994.

Studies said the deal would boost the $66.7 billion annual two-way trade by as much as a quarter. South Korea's automakers stand to gain with much greater access to the U.S. market.

U.S. farm products and machinery are also expected to be winners.

Trade envoys meeting since last week could not conclude negotiations to resolve U.S. industry and lawmakers' concerns that the deal does not do enough to open South Korea's market to U.S. autos and beef.

At the end of the G20 summit and ahead of his short flight to the fourth leg of his Asia tour, Japan, Obama said he wanted to get the deal right and the two sides were close to it.

"I am not interested in an announcement and then an agreement that doesn't produce results for us. We've had a lot of those in the past," he told reporters.

"Understandably, I think there's a lot of suspicion that some of these trade deals may not be good for Americans. I think this one can be."

The concerns raised by U.S. lawmakers have been the primary reason holding up deliberation by U.S. Congress.

South Korea's parliament has introduced the bill to the floor but discussions had stalled pending movement in the U.S. Congress. There is a broad support for the deal in President Lee Myung-bak's ruling Grand National Party, which controls the unicameral house.

BEEF POTENTIALLY EXPLOSIVE

Assistant U.S. Trade Representative Wendy Cutler met South Korea's chief free trade negotiator on Friday in a three-hour session seen as coordinating discussions in weeks ahead.

Obama says that the world leaders are backing him, they like his polices. The G20 proves that he is wrong, the U.S. is highly debt ridden. About all that Obama proved on his trip is that Muslims like him and he wasted money that we don’t have. His standing as a world leader has greatly fallen. His office is well respected, not him.

pburgdon Report As Abusive

*We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.

View the original article here

No new free trade agreement reached between U.S. and South Korea - Detroit Free Press

WASHINGTON ? President Barack Obama won?t be returning from his Asia trip with a renegotiated free trade agreement between the U.S. and South Korea. Concerns over barriers to American automakers selling more vehicles in that country remain a point of contention.

The Obama administration had hoped to reach a deal on the free trade agreement first settled in 2007. That deal was never formally approved by either nation, and congressional Democrats ? particularly those in the House ? had balked because of concerns that U.S. automakers still couldn?t compete on equal footing in South Korea.

This week, Chrysler Group LLC joined Ford in opposing the deal as written. Last week, Ford took out a full-page ad claiming that for every 52 Korean cars sold in the U.S. only one American car is sold in South Korea.

Obama administration officials said they will continue working in the months to come to reach a deal on the free trade agreement, which U.S. Chamber of Commerce President Thomas Donohue said could cost up to 340,000 jobs unless it is settled.

?We understand that progress was made and differences have been narrowed,? Donohue said. ?We urge both presidents to direct their ministers and staff to resolve remaining details with the greatest possible speed and urgency.?

With Republicans taking majority control of the U.S. House beginning in January, it was believed that a free trade agreement with South Korea would have a much easier chance of passage. But there were some indications Thursday that there could still be hurdles to cross.

In a joint statement, current House Ways and Means Chairman Sander Levin, a Royal Oak Democrat, and his presumptive replacement, Republican Dave Camp of Midland, said ?Further negotiations will succeed only if South Korea adopts concrete steps to open its market to U.S. exports? including autos.

?While there are other unresolved issues, nowhere is this more evident than in the dangerously lopsided trade in automotive vehicles,? the two said. ?In 2009 alone, South Korea exported more than 476,000 autos to the U.S. while fewer than 6,000 U.S. vehicles managed to get through Korean trade barriers.?

The Ways and Means Committee?s sign off will be required for any trade agreement to move ahead in Congress.

View the original article here

Cameron warning over China trade - BBC News

10 November 2010 Last updated at 11:56 GMT David Cameron said that China's economic power gave it economic and political "responsibilities" UK Prime Minister David Cameron has stepped into the row over "currency wars" with a warning that China should act to correct its trade imbalance.

In a speech at Peking University, he said that China's export success was a potential threat to other economies.

China's huge trade surplus is in part attributed to the weakness of the yuan, which helps the country's exporters.

But ahead of the G20 summit, China's President Hu Jintao said countries must "face their own problems".

Latest figures show that China's trade surplus rose to $27bn (£17bn) in October, despite rapid economic growth in the country starting to cool.

Critics blame Beijing for keeping the yuan artificially low, which helps boost exports and has led to China building up massive amounts of foreign reserves.

Mr Cameron, who is leading a trade mission to the country, said he wanted "to make the positive case for the world to see China's rise as an opportunity, not a threat".

'Responsibilities'

He said China can play a leading role in dealing with economic problems as the world emerges from recession.

But China's increasing economic muscle has given it "responsibilities" both economically and politically, said the prime minister.

In an apparent reference to the low valuation of the yuan, Mr Cameron said: "The truth is that some countries with current account surpluses have been saving too much while others like mine with deficits have been saving too little.

"And the result has been a dangerous tidal wave of money going from one side of the globe to another.

"We need a more balanced pattern of global demand and supply, a more balanced pattern of global saving and investment."

Critics, especially in the US, have called for tariffs on Chinese imports unless the yuan is allowed to appreciate.

It is feared that other countries will rush to allow currency devaluation to also make their exports more competitive.

The issue will be a key topic at the G20 summit in South Korea on Thursday and Friday.

Interference

However, in an interview with China's official Xinhua news agency, President Hu Jintao told countries to "face their own problems" rather than casting blame.

Separately, China's vice foreign minister Cui Tiankai rejected foreign interference in what Beijing regards as an internal matter.

"The recent crisis was certainly not caused by China's currency," he said in an interview.

An he warned that the summit should not descend into a row about currencies. If either side "chooses a confrontational approach, I think everybody will come out as losers", he said.

Meanwhile in London, Mervyn King, the governor of the Bank of England, also called for co-operation, not confrontation, at the summit.

"I hope that at the G20... we will get a co-operative message rather than some of those that we have been getting in the last few days and weeks."

But he said that the G20 must agree to let current account imbalances unwind, rather than impose targets and policy instruments.

This, he said, was in the collective interest.

"Unless we recognise that... then we will face a situation where more and more countries will resort to policy instruments that in the end will be damaging to everyone. It is that serious."

View the original article here

APEC Business Leaders Urge Action On Free Trade - Wall Street Journal

APEC Business Leaders Urge Action On Free Trade - WSJ.com MoreBigChartsVirtual Stock ExchangeWSJ AsiaWSJ EuropeWSJ PortugueseWSJ SpanishWSJ Chinese SEARCH #hat_div { width:989px;} | Welcome, Logout My Account My Journal Help Message Center ( new)
U.S. Edition

WSJ.com is available in the following editions and languages:

U.S. Asia India China   Japan   Europe Americas en Español em Português Login/Register to set your edition Set my edition Today's Paper Video Blogs Journal Community

Go ProUpgrade to WSJ Pro: Get 4 Weeks Free Register for FREE Register for FREE Thank you for registering.

We sent an email to:

Please click on the link inside the email to complete your registration

Please register to gain free access to WSJ tools.

An account already exists for the email address entered.

Forgot your username or password?

This service is temporary unavailable due to system maintenance. Please try again later.

The username entered is already associated with
another account. Please enter a different username

The email address you have entered is already in use.
Please re-enter the email address.

First Name Last Name Email (your email address will be your login)Confirm Email Create a Password Confirm Password Company Size (Optional) Please make a selection 1-99 100-499500-9991,000-2,4992,500-4,9995,000-9,99910,000-14,99915,000-24,99925,000+Not Applicable

From time to time, we will send you e-mail announcements on new features and special offers from The Wall Street Journal Online.

Create a profile for me in the Journal Community

Why Register?

Privacy Policy | Terms & Conditions

As a registered user of The Wall Street Journal Online, you will be able to:

Setup and manage your portfolio

Personalize your own news page

Receive and manage newsletters

Log In Log In Login Password Log in Your login is either a username or an email address.

Keep me logged in. Forgot your password?

Close Home World Asia China India Japan Business Markets Tech Life & Style Real Estate Personal Finance Opinion
Asia U.S. Europe Economy Autos Tech Management Media & Marketing Asia 200 Energy Law Health   More Industries   AccountingAdvertisingAirlinesBankingChemicalsComputer HardwareComputer SoftwareConsumer ProductsDefense & AerospaceEntertainmentFinancial Services & InsuranceFood & TobaccoHospitalityIndustrial Goods & ServicesInternetMarketing & StrategyMediaMetals & MiningPaper & Forest ProductsPharmaceutical & BiotechReal EstateRetailSemiconductorsSmall BusinessTransportationTelecommunicationsUtilities  

Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visitwww.djreprints.com

See a sample reprint in PDF format.Order a reprint of this article nowNOVEMBER 10, 2010, 7:25 A.M. ETAPEC Business Leaders Urge Action On Free Trade ArticleCommentsmore in Business »

YOKOHAMA, Japan (Dow Jones)--Business leaders have urged the Asia Pacific Economic Cooperation forum to push harder for a free-trade area and liberalize the region's marketplace.

At a Yokohama, Japan summit, the 22 countries that make up APEC are expected to agree not to erect any new trade barriers until ...

Email Printer Friendly Order Reprints Share:

facebook

Twitter

Digg

StumbleUpon

Viadeo

Orkut

Yahoo! Buzz

Fark

Reddit

LinkedIn

del.icio.us

MySpace

 

Copyright 2010 Dow Jones & Company, Inc. All Rights Reserved

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit

www.djreprints.com

Back To Back ToMSN Money HomepageMSN Money Investing Most Popular In Asia ReadEmailedVideoCommentedSearches1.The Presidential Contenders2.A Decent Fight, If You Like Punching

Subscriber Content Read Preview

3.Rolls Confronted Similar Woes a Decade Ago 4.Chinese Officials Push Xinjiang Water Plan5.Google to Give Employees 10% Raise1.The Miracle Is Over. Now What?2.Sarah Palin Takes Aim at Fed

Subscriber Content Read Preview

3.Danone in Talks Over Water Unit4.Opinion: Mr. Anwar's Trials5.Vote Won't Resolve Myanmar Clash1.TV Makers Slash Flat-Screen Prices2.Springsteen's Tribute to Jimmy Iovine3.Mystery Missile Shot Off The Coast of California4.News Hub: Women Invade the Man Cave5.Personal iPhone Warranty Options1.Opinion: California: The Lindsay Lohan of States698 comments2.Sarah Palin Takes Aim at Fed506 comments3.Battles Loom Over Tax Breaks, Spending Cuts397 comments4.Obama Reaches Out to Muslim Ally315 comments5.Opinion: How Medicare Killed the Family Doctor309 comments 1. Facebook 2. economy 3. Apple 4. Mad Men 5. China Most Read Articles Feed Most Emailed Feed Most Popular Video Feed Most Commented FeedMost Popular Feeds Editors' PicksHow Goldfish Pitch in at the G-20Pop Goes the Art MarketIn This Music, It's All About the StructureSpending Cuts Reach Campus OasisSeaviews in Hong Kong's Deep Water BayMusharraf: Obama Overlooked PakistanCuomo and Paterson Make NiceVideoprevious nextOpinion Journal Opinion Journal: California as Lindsay Lohan2:49Opinion Journal Opinion Journal: The Pelosi Party2:51Opinion Journal Opinion Journal: Palin vs. Bernanke10:39Opinion Journal Opinion Journal: Obama in India4:37Opinion Journal Opinion Journal: ACLU vs. Pro-choice Democrats8:00Opinion Journal Opinion Journal: The Election Is Not Over3:00Opinion Journal Opinion Journal: Will Jobs Report Drive Tax Cuts?8:23Opinion Journal Opinion Journal: ObamaCare's Victims6:28Opinion Journal GOP: Unlock the American Economy2:34Opinion Journal Opinion Journal: How the House Was Won7:10Opinion Opinion Journal: A Four-Year Majority11:00Opinion Journal Opinion Journal: A Wave Election10:46Opinion Journal Opinion Journal: Red to Blue to Red11:02Opinion Journal Opinion Journal: Will Hillary Run in 2012?4:10Opinion Journal Opinion Journal: Tea Party Pragmatists3:04 Most Recommended CommentsComments CommentersCommenters 1. “I continually hear comments like...;” - Eric Nelson 131 Recommendations 2. “Taking the La Lohan analogy...;” - David Pearlman 118 Recommendations 3. “California will be the first...;” - Thomas Bates 98 Recommendations 4. “"Here is an old tradition...;” - David Pearlman 77 Recommendations 5. “Ms. Noonan, at least Governor...;” - Jay Savan 70 Recommendations Peter Venetoklis 883 Recommendations Greg Liautaud 804 Recommendations David Pearlman 710 Recommendations Jack Davidson 666 Recommendations Eric Nelson 659 Recommendations More in BusinessGoogle to Give Employees 10% RaiseBoeing 787 Makes Emergency LandingMortgage Lenders Set Back in CourtsBanks to See Higher FDIC FeesHCA Pays Owners Big Dividend null Email Newsletters and Alerts

The latest news and analysis delivered to your in-box. Check the boxes below to sign up.

WSJ.com Email Features Real Time Economics Newsletter News AlertSubmit The email address null is already associated with another account. Please enter a different email address:

Enter Your Email

Sign UpNew! To sign up for Keyword or Symbol Alerts click here.To view or change all of your email settings, visit the Email Setup Center.

Thank you !
You will receive in your inbox.

To view or change all of your email settings, visit the Email Setup Center. null Email Newsletters and Alerts

The latest news and analysis delivered to your in-box. Check the boxes below to sign up.

WSJ.com Email Features This Week's Most Popular On the Editorial PageSubmit The email address null is already associated with another account. Please enter a different email address:

Enter Your Email

Sign UpManage Email Preferences

Thank you !
You will receive in your inbox.

Manage Email Preferences Editors' PicksHow Goldfish Pitch in at the G-20Pop Goes the Art MarketIn This Music, It's All About the StructureSpending Cuts Reach Campus OasisSeaviews in Hong Kong's Deep Water BayMusharraf: Obama Overlooked PakistanCuomo and Paterson Make Nice WSJ Web Slice CONTENT LINKS TO ACTUAL PAGE CONTAINING WEB SLICE FUNCTIONALITY. 15back to top WSJ.com Account:My AccountSubscriber Billing InfoCreate an Account:Register for FreeSubscribe to WSJ.comSign up for WSJ ProfessionalHelp & Information Center:HelpCustomer ServiceContact UsNew on WSJ.comTour the new JournalAbout:News LicensingAdvertisingConferencesAbout Dow JonesPrivacy Policy - UpdatedSubscriber Agreement & Terms of Use - UpdatedCopyright PolicyJobs at WSJ.comFuture Leadership ProgramAsia 200 AwardsChina Financial Markets ConferenceUpcoming Events in AsiaWSJ.com:Site MapHomeWorldU.S.BusinessMarketsMarket DataTechPersonal FinanceLife & StyleOpinionAutosCareersReal EstateSmall BusinessCorrectionsTools & FormatsToday's PaperVideo CenterGraphicsColumnsBlogsTopicsGuidesAlertsNewslettersMobileiPadPodcastsRSS FeedsJournal Community- Message CenterWSJ on TwitterWSJ on FacebookWSJ on FoursquareMy JournalPortfolioDigital NetworkWSJ.comMarketwatch.comBarrons.comSmartMoney.comAllThingsD.comFINS: Finance, IT jobs, Sales jobsBigCharts.comVirtual Stock ExchangeWSJ U.S. EditionWSJ Asia EditionWSJ Europe EditionWSJ India PageForeign language editions:WSJ ChineseWSJ JapaneseWSJ PortugueseWSJ SpanishACAP EnabledCopyright ©2010 Dow Jones & Company, Inc. All Rights Reserved

View the original article here

Obama, in Mumbai, to announce reforms to boost US trade with India - Washington Post

MUMBAI - Days after reaping the political consequences of a poor economy, President Obama intends to announce a series of reforms Saturday to increase trade between the United States and India, his first stop on a 10-day Asian tour focused largely on promoting economic growth at home.

In an address to several hundred American and Indian chief executives in this seaside commercial hub, Obama will announce changes in the export-control system that guides trade between the two countries, administration officials said. Those include removing several Indian space and defense companies from the so-called entities list, which identifies firms that make products with dual civilian and military purposes and makes it more difficult for them to trade with the United States.

Obama will also tell the U.S.-India Business Council that he will support India's membership to four international alliances responsible for regulating trade in nuclear, chemical and biological materials, including the Nuclear Suppliers Group. Indian leaders have aspired to membership, but U.S. non-proliferation groups immediately criticized the move for weakening the world's ability to monitor nuclear trade.

Obama touched down just before 1 p.m. local time in a country whose leaders and people have high hopes for his visit. His three-day stay follows months of perceived drift in a relationship that administration officials say is central to Obama's ambitions in Asia.

The high U.S. unemployment rate played a central role in midterm elections that went sharply against Obama's party, and he intends to speak more directly throughout his Asian trip about how his foreign policy goals relate to U.S. economic interests.

Administration officials say he will take part in announcing a set of business deals, some of them in the works for months, after a meeting with American chief executives at the business forum. The agreements - including sales of military transport aircraft, diesel engines, jet engines and other U.S. manufacturing products -- total $10 billion and support 54,000 jobs in the United States, according to administration officials.

"A president's visit is an action-forcing event," said Michael Froman, deputy national security adviser for international economic affairs. "It helps concentrate the minds of decision makers."

Although the primary focus of his visit here is improving economic relations, Obama's first stop represented a show of solidarity with the Indian people.

He made his way -- first by helicopter, then motorcade -- to the Taj Mahal Palace and Tower Hotel, a focal point of the November 2008 terrorist attacks by a group of men from Pakistan. Gunmen killed more than 170 people, including Americans, over a days-long siege.

Obama and first lady Michelle Obama each placed a white rose on a memorial to the victims. The president then signed the hotel guest book before telling the roughly 50 people gathered - family members of those killed, survivors and hotel employees present for the Nov. 26 attacks -- what "an extraordinary honor it is to be here in India."

"To those who ask if this is designed to send a message, my answer is simply: Absolutely," Obama said of his first stop. "In our determination to give our people a future of security and prosperity, the United States and India stand united."

Obama did not mention the role of Pakistan, an essential if unpredictable U.S. ally in the Afghanistan war. Indian authorities have accused Pakistan's intelligence service of training the gunmen, an allegation that Pakistan's government has denied.

View the original article here

G-20 Nations Split Over Geithner's Trade Plan - Bloomberg

Timothy Geithner, U.S. treasury secretary takes part in the reception for the G20 Finance Ministers and Central Bank Governors' Meeting in Gyeongju. Photographer: Tomohiro Ohsumi/Bloomberg

Oct. 22 (Bloomberg) -- David Woo, head of global rates and currency research at Bank of America Merrill Lynch, talks with Bloomberg's Lisa Murphy about China's currency policy and the meeting of Group of 20 finance ministers in South Korea. (Source: Bloomberg)

Oct. 22 (Bloomberg) -- Australian Treasurer Wayne Swan talks about the G-20 meeting in Seoul and the outlook for the Australian economy. He speaks with Gary Cook in South Korea on Bloomberg Television's "The Pulse." (Source: Bloomberg)

Oct. 22 (Bloomberg) -- William Cohen, chief executive officer of the Cohen Group and a former U.S. defense secretary, discusses the implications of China’s economic expansion for U.S. foreign and military policy. Cohen speaks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

Oct. 22 (Bloomberg) -- Derek Halpenny, European head of foreign exchange at Bank of Tokyo-Mitsubishi UFJ, talks about the G-20 meeting in Seoul and the outlook for the dollar. He speaks with Maryam Nemazee on Bloomberg Television's "Countdown." (Source: Bloomberg)

Oct. 22 (Bloomberg) -- Kit Juckes, head of foreign-exchange research at Societe Generale SA, talks about the impact of Federal Reserve monetary policy on global currency markets. He speaks with Maryam Nemazee on Bloomberg Television's "Countdown." (Source: Bloomberg)

Oct. 22 (Bloomberg) -- Richard Franulovich, senior currency strategist at Westpac Banking Corp., talks about the outlook for the dollar and the Group of 20 finance chiefs' meeting in South Korea. Franulovich speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)

Oct. 22 (Bloomberg) -- Michael O'Rourke, chief market strategist at BTIG LLC, discusses the meeting of Group of 20 finance chiefs in South Korea, the dollar and Federal Reserve monetary policy. O’Rourke speaks with Betty Liu, Adam Johnson and Sheila Dharmarajan on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

Oct. 22 (Bloomberg) -- Sebastien Galy, a currency strategist at BNP Paribas SA in New York, talks about expectations for this weekend's meeting of the Group of 20 finance chiefs in Gyeongju, South Korea. As G-20 financial leaders begin talks today, China is deflecting foreign pressure to fast-track the yuan’s gains after limiting them to about 2 percent against the dollar since a June vow to embrace more flexibility. Galy speaks from New York with Rishaad Salamat on Bloomberg Television's "First Up." (Source: Bloomberg)

Group of 20 finance chiefs conclude talks today with the U.S. running into resistance as it pushes targets for current account imbalances as a new way of prodding China and other Asian nations to let their currencies rise.

G-20 finance ministers and central bankers are meeting in Gyeongju, South Korea, after weeks of accusations that countries from the U.S. to China risk sparking a trade war by relying on weaker exchange rates to spur economic growth.

Seeking a solution, U.S. Treasury Secretary Timothy F. Geithner proposed in a letter that G-20 members pursue policies to reduce trade surpluses and deficits “below a specified share” of their economies. That suggestion yesterday split the forum of emerging and industrial economies.

“Setting numerical targets would be unrealistic,” said Japanese Finance Minister Yoshihiko Noda, while German Economy Minister Rainer Bruederle rejected a “command economy” approach. Indian Finance Minister Pranab Mukherjee said caps would be hard to quantify. In interviews with Bloomberg Television, Canadian Finance Minister Jim Flaherty said the idea was a “step in the right direction” and Australian Treasurer Wayne Swan called it “constructive.”

By turning the focus to current accounts away from currencies, Geithner is hoping China will be more agreeable to accelerating the yuan’s appreciation after limiting its gain to about 2 percent against the dollar since June. Without naming any country, he said governments should not use exchange rates to seek “competitive advantage” and urged those with “significantly undervalued currencies” to allow an adjustment.

Chinese officials have countered by promising a gradual increase of the yuan, saying that a sudden move upward would cause social and economic disruption.

Broadest Measure

The U.S. recommended deficits or surpluses of no more than 4 percent of gross domestic product, Noda said. The International Monetary Fund this month estimated China’s surplus will swell to 7.8 percent of GDP in 2015 from 4.7 percent this year.

A current account is the broadest measure of trade because it includes investment and transfer income and it would be hard to achieve any correction in one without a currency shifting.

The officials seem unlikely to reach an agreement that changes the “status quo” on exchange rate and monetary policies this weekend, Giulia Comotti, a foreign-exchange strategist at Barclays Capital in London, wrote in a research report today.

“It is hard to see any significant policy changes coming out of the G-20 this weekend given that the differences between the different groupings seem especially wide and their incentives diverse,” Comotti said.

Seoul Summit

The Dollar Index fell 0.02 percent, while the Standard & Poor’s 500 Index futures added 0.3 percent. The Stoxx Europe 600 Index was down 0.2 percent after falling as much as 0.4 percent. The yield on the 10-year Treasury note was little changed at 2.55 percent.

The G-20 officials are trying to end what Brazilian Finance Minister Guido Mantega calls a “currency war” as next month’s Seoul summit of leaders nears. China’s restraining of the yuan even as it runs a trade surplus and builds currency reserves has been attacked for distorting markets as has the recent slide of the dollar as the Federal Reserve shifts toward easier monetary policy.

Nations caught in the middle such as Brazil and South Korea are embracing capital controls or intervening themselves to stay competitive with China and limit inflows of speculative cash from North America and Europe.

This has raised concern from policy makers and investors that the friction will spark a round of devaluations and retaliatory protectionism, derailing an already fragile global economic recovery.

Agreement Now

“If we fail to reach an agreement now and delay it to next time, the global economy will face a serious risk and it will unnerve people,” South Korean President Lee Myung Bak told the meeting.

The G-20 has long sought ways to rebalance the world economy away from its reliance on excess U.S. demand and Chinese savings. Limiting those talks to foreign exchange is too inflexible for nations with trade surpluses, a South Korean official said. Looking at the current account allows countries to decide on which tools to adopt to reduce imbalances, including currency changes, he said.

‘Equal Time’

“It is now clear that exchange rates and monetary policy must be given equal time with fiscal policy in the discussion on balanced growth,” said Daniel Price, a former G-20 adviser to President George W. Bush and now a partner at law firm Sidley Austin LLP in Washington. “The Seoul Summit could usefully agree targets.”

The G-20 policy makers are also debating whether to make their first joint comment on currencies since their leaders began meeting in 2008, having previously resisted remarks for fear of alienating China. A draft statement included a pledge to avoid “competitive undervaluation” of exchange rates. The final text is scheduled for release at about 5 p.m. local time.

Setting current account targets still leaves Asian economies under pressure to allow their currencies to gain, said Win Thin, global head of emerging markets strategy at Brown Brothers Harriman & Co. in New York. His estimates on the basis of purchasing power have the yuan, Thai baht and Philippine peso undervalued by at least 70 percent.

Yuan Rise Limited

China has limited the yuan’s rise since a June pledge to introduce more flexibility, forcing other countries to try and control their exchange rates to keep a trading edge with the world’s largest exporter. South Korea is discussing several measures including a bank tax or levy on financial transactions and Brazil this week raised taxes on foreign inflows for the second time this month.

Geithner’s proposal leaves questions, said Tim Adams, a former U.S. Treasury official. Among them is whether governments will detail how and when they’ll meet the goals and what happens if they’re missed. The risk is a repeat of the euro-area budget deficit targets which were violated in a third of the euro’s first decade, he said.

To contact the reporter on this story: Simon Kennedy in Gyeongju, South Korea at skennedy4@bloomberg.net

Rebecca Christie in Gyeongju, South Korea at rchristie4@bloomberg.net

To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net

View the original article here

Subscribe to RSS headline updates from:
Powered by FeedBurner