Local business community discusses economy

By Gitana Mirochnik / The Citizen

Thursday, October 16, 2008 11:59 PM EDT

AUBURN - A group of local manufacturing business owners and employees gathered with U.S. Rep. Michael Arcuri Thursday morning to discuss key issues affecting the economy in Auburn and upstate New York.
Fair trade, health care, energy, taxes and climate change were among some of the topics discussed.

Many of the people at the meeting agreed that current fair trade policy is something that needs to be re-examined and that fair trade laws need to be enforced.

“We have got to have a smart and tough trade policy,” said Debra Waggoner, director of Global Government Affairs at Corning Incorporated.

Being smart refers to those who address the unfair competition and being tough includes enforcing trade laws that are on the books, Waggoner said.

Eileen Bradner, attorney for Nucor Steel in Auburn, said that one of the most important things is to have a dialogue about solutions to the current fair trade policy, even if there is no agreement about what that solution should be.

“There is a consensus that the current system is unfair to U.S. manufacturers,” Bradner said. “I think we really need to raise the level of discussion on this.”

Fair trade doesn't exist, said Michael Stumo, general counsel for Coalition for a Prosperous America.

“China is not a low-cost provider, they are a 35 percent currency manipulator,” he said.

If China allowed its currency to float in the free market, the renminbi, China's currency, would be 30 percent higher than it is against the U.S. dollar, Stumo said. Instead, they peg their currency to the dollar, so as the dollar gets higher or lower in value, the Chinese currency stays unfairly undervalued at all times.

“The result is that Chinese goods are 35 percent cheaper than they would be in a free market and U.S. goods are 35 percent more expensive to Chinese buyers than they would be in a fair trade market,” he said. “It is equal to China subsidizing all exports by 35 percent and imposing a 35 percent tariff on all U.S. goods.”

Alternative energy and the country's dependence on foreign oil was also discussed at length Thursday morning.

Reaching a self-reliant status with respect to energy is extremely important, said Mark Mette, plant manager of Guardian Industries in Geneva. Energy costs take approximately 20 to 30 percent of total revenue at Guardian Industries, he said. In comparison, labor costs the company 15 percent.

New York is one of the highest states for energy costs and it is extremely important to find alternative energy sources, said Mark Smith, plant manager of Owens-Illinois.

“We need to put all forms of alternative energy on the table,” Arcuri, D-Utica, said. “That technology is not around the corner but it is within our grasp. We can get there and we should be looking at all things.”

This discussion was important because it's good to have a collective conversation about issues that matter to people in business, Arcuri said.

Although he may not always be physically present, he will do his best to help local businesses, he said.

“I see my job as creating a level playing field between labor and business so that we can create an environment that creates the most jobs and makes it most economically feasible for these companies to stay here,” Arcuri said after the discussion.

Dave Arnold, vice president of United Steel Workers Local No. 32, attended the discussion.

When it was his turn to contribute, Arnold said that he and the workers he represents are scared about the current status of manufacturing jobs in America.

“This is a nice conversation but once it's done, it's done,” Arnold said. “It has to go beyond the conversation.”

Staff writer Gitana Mirochnik can be reached at 253-5311 ext. 237 or gitana.mirochnik@lee.net

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