Industry Groups Laud Trump's Address to Congress

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Researched by Industrial Info Resources (Sugar Land, Texas)--Trade groups representing manufacturers, steel makers, mining firms, refiners and chemical processors reacted warmly to President Donald Trump's address to Congress on Tuesday.

"I will not allow the mistakes of recent decades past to define the course of our future," Trump said during the address. "For too long, we have watched our middle-class shrink as we have exported our jobs and wealth to foreign countries. We financed and built one global project after another, but ignored the fates of our children."

Later, Trump said his economic team was developing historic tax reform that will reduce the tax rate on U.S. companies so they can compete globally. He continued: "It will be a big, big cut. At the same time we will provide massive tax relief for the middle class. We must create a level playing field for American companies and our workers."

National Association of Manufacturers President and Chief Executive Officer Jay Timmons said Trump "hit the reset button and offered a message of unity and economic opportunity." Trump demonstrated that he listened to the concerns and policy proposals from manufacturers, Simmons continued, adding: "Manufacturers are energized by the president's proposals for competitive tax and smart regulatory reforms, as well as his call for significant investment in our nation's infrastructure."

On Wednesday, the Dow Jones Industrial Average rocketed above 21,000 for the first time in reaction to Trump's address.

American Fuel & Petrochemical Manufacturers President and Chief Executive Officer Chet Thompson said, "A critical component to fulfilling President Trump's vision is one where increased domestic energy production plays an essential part." Thompson added: "For far too long regulatory restrictions have stifled economic growth, and sought to keep our energy resources in the ground."

Trump also said during the address that "we are going to stop the regulations that threaten the future and livelihood of our great coal miners."

National Mining Association (NMA) President and Chief Executive Officer Hal Quinn applauded Trump "for his steadfast support for policies that stimulate economic opportunity, job creation and robust economic growth. Voters have stated a clear preference for actions that will get the country moving again and the president has heard them."

The NMA also reacted positively this week to Trump's executive order beginning the processes of rolling back of the Obama administration's controversial Waters of the U.S. (WOTUS) rule, which critics said over-expanded the federal Environmental Protection Agency's jurisdiction over waterways.

"Rather than provide meaningful clarity concerning the jurisdiction of our nation's waterways, the WOTUS rule follows a regulatory playbook that became all too familiar over the last eight years: unchecked federal authority that results in unnecessary hurdles for U.S. businesses," Quinn said. According to Reuters, Trump could sign an executive order next week lifting a ban on new federal coal mining leases. For related information, see February 27, 2017, article: Colorado Coal: Down but Not Out, Officials Say.

Trump also reiterated his pledge for trade reform, saying: "Currently, when we ship products out of America, many other countries make us pay very high tariffs and taxes. But when foreign companies ship their products into America, we charge them nothing or almost nothing." He added: "I am not going to let America and its great companies and workers be taken advantage of anymore."

The American Chemistry Council (ACC), Chemical Industry Association of Canada (CIAC), and the Mexican Chemical Industry National Association (ANIQ) released a joint statement outlining the chemical industry's priorities for a potential renegotiation of the North American Free Trade agreement (NAFTA) as called for by Trump. The chemical groups said NAFTA has provided "enormous benefit for the chemical sectors in Canada, Mexico and the United States," and that since its creation, trade in chemicals between the NAFTA countries has more than tripled, from $20 billion in 1994 to $63 billion in 2014.

"The chemical industry's oversized share of economic activity in North America is a direct outcome of NAFTA's effectiveness in reducing barriers to trade," according to the chemical organizations' joint statement. "This includes trade in energy products, particularly natural gas--a critical building block for chemical production. More than 10% of NAFTA trade is in energy products, and there are more than 100 cross-border energy infrastructure projects in place between the three economies."

The chemical groups acknowledged that NAFTA was negotiated before the age of the Internet and a renegotiated trade agreement "should facilitate digital trade, especially by establishing strong protections for cross border data flows, which is an essential element of global value chains. An updated NAFTA should also set key standards, such as on the competitive practices of State Owned Enterprises (SOEs). It should also close inefficiencies on trade disciplines that are already codified in the agreement, including rules of origin and duty drawback. Most importantly, all chemical products are traded duty-free under NAFTA, and a modernized NAFTA should maintain this policy."

Trump reiterated his plan for a $1 trillion investment in U.S. infrastructure through public and private capital.

Thomas Gibson, president and chief executive officer of the American Iron and Steel Institute (AISI), said the group's policy agenda "reflects a number of the goals the president referenced this evening - especially with regard to combatting unfair foreign trade, providing robust infrastructure and ensuring tax reform encourages investment."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.