ASSEMBLY MEMBER MARC LEVINE I
CALL THIS HEARING THIS JOINT
HEARING OF THE SELECT COMMITTEE
ON INTERNATIONAL AND REGIONAL
AGREEMENTS THE ASSEMBLY
AGRICULTURE COMMITTEE.
AND THE ASSEMBLY JOBS ECONOMIC
DEVELOPMENT AND THE ECONOMY
COMMITTEE. TO ORDER.
MY NAME IS ASSEMBLY MEMBER MARC
LEVINE AS CHAIR OF THE ASSEMBLY
SELECT COMMITTEE ON
INTERNATIONAL REGIONAL
AGREEMENTS I'D LIKE TO WELCOME
YOU TO THIS FIRST INFORMATIONAL
HEARING. TO DISCUSS THE IMPACT
OF UNITED STATES TRADE DISPUTE
WITH CHINA ON CALIFORNIA'S
ECONOMY. FOR A FOR THE THOSE OF
YOU WATCHING AT HOME WE WE ARE
LIVE STREAMING SO THERE IS AN
OPTION FOR YOU. TO BE ABLE TO
FOLLOW -- THAT WAY I WOULD ALSO
LIKE TO WELCOME ASSEMBLY MEMBER
SUSAN TELL MONTEZ EGGMAN CHAIR
OF THE ASSEMBLY AGRICULTURE
COMMITTEE [inaudible]
AND I'D LIKE TO ALSO WHEN SHE
COMES HERE INTRODUCES A MEMBER
SABRINA CERVANTES THE CHAIR OF
THE JOBS ECONOMIC DEVELOPMENT
AND ECONOMY COMMITTEE WE THE
DEMOCRATIC CAUCUS HAVE BEEN TIED
UP IN A A BUDGET DISCUSSION --
WHICH IS WHY WE RAN A LITTLE BIT
LATE -- IN WHICH THE SO MEMBERS
STILL -- DEEP IN THAT
CONVERSATION SINCE MID TWO
THOUSAND EIGHTEEN THE UNITED
STATES AND CHINA HAVE BEEN
ENGAGED IN AN EXTENDED TRADE
DISPUTE.
INVOLVING RETALIATORY TARIFFS
FROM BOTH COUNTRIES AND
AFFECTING VARIOUS SECTORS OF
CALIFORNIA'S ECONOMY.
THE EXTENDED IN VOLATILE NATURE
OF TRADE TALKS BETWEEN PRESIDENT
TRUMP AND PRESIDENT SHE HAVE
AFFECTED THE STATE'S
AGRICULTURAL EXPORTS THE COST OF
IMPORTED CONSUMER GOODS.
AND THE POSSIBILITY OF EXPANDED
TERRACE ON ADDITIONAL CHINESE
GOODS THREATENS OTHER ECONOMIC
SECTORS.
CALIFORNIA.
CALIFORNIANS WILL UNDOUBTEDLY
FEEL AN IMPACT.
ACCORDING TO A RECENT NPR
ARTICLE THE EXPANSION ON TERRACE
ON IMPORTED CHINESE CONSUMER
GOODS IS EXPECTED TO ADD.
ANOTHER FIVE HUNDRED DOLLARS A
YEAR IN COSTS ON THE AVERAGE
AMERICAN HOUSEHOLD THESE ARE
VERY REAL COSTS TO A LOT OF
PEOPLE IN THE UNITED STATES AND
A LOT OF CALIFORNIANS.
INDUSTRY DISPUTE WITH CHINA MAY
ONLY BE THE BEGINNING AS THE
CURRENT ADMINISTRATION THREATENS
TO SIMILARLY.
INCREASED TARIFFS ON IMPORTED
GOODS FROM MEXICO IN A MISGUIDED
EFFORT TO CURB MIGRATION FROM
FAMILIES.
VIOLENCE IN CENTRAL AMERICA.
TODAY TO SHED SOME LIGHT ON THE
UNITED STATES CHINA TRADE
DISPUTE WE ARE HONORED TO HAVE
LIEUTENANT GOVERNOR ALLAIN YOU
CAN A LAKIS. TWO OF THE STATE'S
FOREMOST INTERNATIONAL
ECONOMISTS AND THE PANELISTS
REPRESENTING OUR STATE IMPACTED
ECONOMIC SECTORS.
CALIFORNIA'S ECONOMIC FUTURE
LIES ON FAIR OPEN AND EXPANDED
TRADE WITH CHINA.
MEXICO AND OTHER NATIONS AROUND
THE WORLD AND I THANK YOU IN
ADVANCE FOR SHEDDING LIGHT.
ON THIS IMPORTANT ISSUE FACING
OUR STATE I'D LIKE TO INVITE MY
CO CHAIR FOR TODAY'S HEARING
ASSEMBLY MEMBER EGGMAN TO MAKE
SOME OPENING REMARKS.
THANK YOU MISTER LEEN AND THANK
YOU FOR CALLING US ALL TOGETHER
HERE TODAY TO DISCUSS THIS
IMPORTANT TOPIC IN AS WE SEE
EVERY DAY IT BECOMES MORE MORE
IMPORTANT WE HAVE MORE MORE
DEVELOPMENTS HAPPEN IT SEEMS
LIKE AT A HEARING CAN BARELY
KEEP UP WITH REALITY -- ON SOME
DAYS -- BUT AS A CHAIR OF
AGRICULTURE -- WE WANT TO TALK
ABOUT SOME OF THOSE MORE DIRECT
IMPACTS -- WE KNOW IN TWO
THOUSAND SEVENTEEN CALIFORNIA'S
AGRICULTURE EXPORTS TOTALED OVER
TWENTY BILLION DOLLARS IN VALUE
REPRESENTING AN INCREASE OF TWO
POINT 2% COMPARED TO THE
PREVIOUS YEAR.
SO EVERY YEAR WE WERE CLIMBING
NOW -- THOSE INTO THOSE
INDUSTRIES ARE BEING IMPACTED --
WE KNOW WE'VE GROWN
SUBSTANTIALLY AND OUR EXPORT AND
IMPORT MARKETS ARE INCREDIBLY
IMPORTANT TO US WE HAVE LONG
ENJOYED A PROSPEROUS
RELATIONSHIP WITH OTHER
COUNTRIES AND I'M GONE WITH THAT.
THE SECRETARY TO MEXICO TO TO
TALK ABOUT TRADE WE KNOW WHAT A
VIABLE AND VITAL -- PARTNER
MEXICO HAS BEEN -- AS WELL AS AS
CHINA -- WHEN I THINK ABOUT MY
OWN COMMUNITY AND I THINK ABOUT
ALMONDS AND PISTACHIOS AND
CHERRIES AS WELL AS ROW CROPS --
I I KNOW FARMERS ARE NOW FACING
NOT ONLY FACING WEATHER LIKE IS
IN EVERY DAY A FARMER'S LIFE
FACING WHETHER -- BUT WE ALSO
KNOW THAN WITH THE WITH THE THE
TRADE AND THE ANY.
OOPS THAT HAS BEEN IMPACTED EVEN
MORE -- AND AS WE EVEN TALK
ABOUT FURTHER TALKING WITH MY
PORT COMMISSIONER WITH THE
STOCKTON HAS THE LARGEST INLAND
PORT IN THE WESTERN HEMISPHERE.
A LOT OF THAT PRODUCT IS
AGRICULTURE DID THEY WOULD HAVE
HAD A RECORD YEAR LAST YEAR IF
IT HADN'T BEEN FOR THE HIT OF
THE TERRACE.
SO THIS THESE IS AB TRICKLING
DOWN ALL ACROSS -- AFFECT.
AND WE WANT TO TRY TO GET TO
UNDERSTAND IT AS BEST WE CAN SO
THAT WE CAN THEN TAKE ACTIONS AS
POINTED AS WE POSSIBLY CAN TO BE
ABLE TO GET OURSELVES BACK ON
TRACK.
NUMBER THINK AGAIN MISTER LEVINE --
AND THOSE OF YOU HAVE COME TODAY
TO SHARE YOUR PERSPECTIVES WITH
US AS WE CONSIDER WAYS OF GOING
FORWARD.
THANK YOU VERY MUCH AS A MEMBER
EGGMAN I'M PLEASED TO INTRODUCE
AND RECOGNIZE THE SOME MEMBER
DEVON MATHIS WHO JUST JOINED US
DO YOU WHICH I THINK ANY OPENING
REMARKS.
THANK YOU MISTER LEVINE AND YOU
KNOW I I THINK WE'RE ALL CURIOUS
TO WHAT YOU ALL ARE SEEN AS
REGARDS TO THE EFFECTS OF TRADE
I KNOW WITH MY DISTRICT -- NO
DILLON EVERYTHING FROM DERRY TO
CITRUS TO GRAPES TA ALL LIVES TO
YOU WANT TO NAME IT -- THERE'S A
LOT GOING ON AND THERE'S A LOT
TO BE SAID BUT HEARING FROM YOU
ALL FIRST HAND -- IN LOOKING AT
THESE FACTORS MORE IN DEPTH IS
DEFINITELY SOMETHING THAT NEEDED
TO HAPPEN SO I LOOK FORWARD TO
YOUR COMMENTS THANK YOU.
THANK YOU MISTER MATHESON MISTER
BLOOM WELCOME -- TO THE HEARING
IF YOU LIKE TO MAKE ANY OPENING
REMARKS.
GREAT THANK YOU.
MY PLEASURE.
I WOULD LIKE TO INTRODUCE -- GOT
ANOTHER -- JUST CAME IN THANK
YOU SOMEONE MEMBER CHOPPER
JOINING US LIKE TO INTRODUCE --
SOMEONE -- HE'S GOT AN
INTERESTING PERSPECTIVE ON ON ON
THIS ISSUE WHEN I ASKED SPEAKER
RENDON TO CREATE -- THE SELECT
COMMITTEE ON INTERNATIONAL
REGIONAL AGREEMENTS IT WAS
BECAUSE WE KNEW THAT THERE WERE
A LOT OF ACTIVITIES THAT -- THE
CALIFORNIA CONDUCTED AROUND THE
WORLD BUT THERE WAS NEVER ANY
WAY TO COORDINATE THAT AND
PROVIDE ANY OVERSIGHT FROM THE
LEGISLATIVE PERSPECTIVE.
BUT WHAT ALSO WAS TRUE IS THAT
THERE WASN'T ANY WHERE IN THE
ADMINISTRATION THAT COORDINATED
THESE THINGS AS WELL AND
GOVERNOR NEW SOME TAPPED OUT
FORMER AMBASSADOR NOW LIEUTENANT
GOVERNOR LENNY CAN A LOCK US. TO
DO THAT PLEASE I'D LIKE TO
WELCOME YOU PLEASE COME ON UP --
TO PROVIDE SOME REMARKS AND
COMMENTS ABOUT THIS ISSUE.
THANK YOU IS THAT THàNH THANK
YOU SO MUCH COMMITTEE CHAIRS
EGGMAN IN LEVINE.
AT AND MEMBERS OF THE COMMITTEE
IT IS A GREAT HONOR TO BE HERE
AND I WANT TO THANK YOU FOR THE
OPPORTUNITY TO APPEAR BEFORE YOU
TODAY. TO ADDRESS THE IMPACTS TO
CALIFORNIA FROM RAPIDLY CHANGING
POLICIES SURROUNDING
INTERNATIONAL TRADE.
I'D LIKE TO START BY NOTING THAT
THE FEDERAL GOVERNMENT OF THE
UNITED STATES IN THE US CONGRESS
HAVE THE EXCLUSIVE JURISDICTION
TO SET TRADE POLICY FOR THE
NATION.
UNDER ARTICLE ONE OF THE US
CONSTITUTION.
HOWEVER BECAUSE OF THE SIZE OF
THE CALIFORNIA ECONOMY.
AND OUR INTER DEPENDENCE ON
FOREIGN TRADE FEDERAL TRADE
POLICY IMPACTS CALIFORNIA
DISPROPORTIONATELY FROM OTHER
STATES.
THAT'S WHY THIS HEARING IS SO
IMPORTANT.
BY ENTERING INTO THE PUBLIC
RECORD TESTIMONY FROM EXPERTS
AND STAKEHOLDERS WHO ARE HERE
TODAY.
THE FEDERAL GOVERNMENT WILL HAVE
THE OPPORTUNITY TO HEAR ABOUT
THE IMPACTS OF ITS ACTIONS ON
OUR STATE'S ECONOMY.
AND THE CONCERNS THAT
STAKEHOLDERS ARE EXPRESSING.
RECENT TRADE POLICIES ANNOUNCED
IN CARRIED OUT BY THE TRUMP
ADMINISTRATION HAVE BEEN DEEPLY
DISRUPTIVE ACROSS THE COUNTRY.
J. TIMMONS C. E. O. OF NATIONAL
ASSOCIATION OF MANUFACTURERS
CALLED RECENT THREATS
SURROUNDING TARIFFS ON GOODS TO
MEXICO.
A MOLOTOV COCKTAIL A POLICY.
AS A FORMER US AMBASSADOR I CAN
TELL YOU THAT IT IS HIGHLY
UNUSUAL TO HAVE A PROCESS FOR
TRADE POLICY SHAPE THIS WAY.
IT'S RECKLESS AND A RADIC.
THE PUBLIC IS HEARING ABOUT
PROPOSED POLICY VI TWEETS.
AND THE WHITE HOUSE IS USING
PRESIDENTIAL POWERS TO
CIRCUMVENT CONGRESS OFTEN TO
CIRCUMVENT ITS OWN ADVISERS AND
GOVERNMENT AGENCIES.
I'D ALSO LIKE TO SAY AT THE
START THAT THERE WAS WIDE
RECOGNITION THAT THE TRUMP
TARIFFS ARE PRIMARILY IMPACTING.
AMERICAN COMPANIES AND AMERICAN
CONSUMERS MORE THAT THE
COUNTRIES WHOSE GOODS ARE BEING
TARGETED.
I SUSPECT WE WILL BE HEARING A
LOT OF TESTIMONY ABOUT THIS
TODAY.
I'D ALSO LIKE TO START MY
PRESENTATION BY GOING OVER THE
TIMELINE OF THE IMPOSITION OF
TARIFFS AND RETALIATORY TARIFFS.
OVER THE LAST ELEVEN MONTHS
BECAUSE MOST OF THE RECENT
DISRUPTION HAS COME FROM A BACK
AND FORTH ESCALATION OF TARIFFS
ON US AND FOREIGN GUTS.
THERE ARE THREE BASIC CATEGORIES
BASED ON THE LEGAL AUTHORITY
BEING USED TO LEVY THEM.
THE FIRST SET OF TARIFFS IMPOSED
BY THE ADMINISTRATION ARE
REFERRED TO AS TWO THIRTY TWO
TERRACE.
BACK IN MARCH OF TWENTY EIGHTEEN
THE ADMINISTRATION IMPOSED 25%
TARIFFS ON IMPORTED STEEL AND
10% ON IMPORTED ALUMINUM
CLAIMING AUTHORITY UNDER SECTION
TWO THIRTY TWO OF THE TRADE
EXPANSION ACT OF NINETEEN SIXTY
TWO ON THE GROUNDS.
OF NATIONAL SECURITY.
THESE TWO THIRTY TWO TERRACE
RAISE THE PRICE OF ALUMINUM AND
STEEL IN THE UNITED STATES AND
HAD AN IMMEDIATE IMPACT ON
CALIFORNIA'S CONSTRUCTION
INDUSTRY.
AND ARE AEROSPACE INDUSTRY.
ACCORDING TO THE PETERSON
INSTITUTE THESE TERRORISTS
INCREASE THE PRICE OF STEEL IN
THE U. S. BY ABOUT 10%.
THAT'S ABOUT AN ELEVEN AND A
HALF BILLION DOLLAR PER YEAR
COST TO THE US ECONOMY.
ON MAY NINETEENTH JUST A FEW
WEEKS AGO AND AFTER FOURTEEN
MONTHS IN PLACE THE
ADMINISTRATION GAVE EXEMPTIONS
TO MEXICO AND CANADA.
RELIEVING SOME OF THE PRESSURE
ON THE SUPPLY OF STEEL AND
ALUMINUM TO THE UNITED STATES.
TWO THIRTY TWO TERABYTES HAVE
ALSO BEEN LEVIED AGAINST THE
EUROPEAN UNION AND JAPAN.
ON MAY SEVENTEENTH PRESIDENT
TRUMP TOOK PROCLAIM TO MOTOR
VEHICLES AND RELATED PARTS
IMPORTS FROM THESE COUNTRIES IN
NATIONAL SECURITY THREAT.
HE DIRECTED U. S. T. R. TO
NEGOTIATE A RESOLUTION.
THE NEXT CATEGORY OF TERRORISTS
THAT ARE RELATED ARE RELATED TO
SECTION THREE OH ONE OF THE US
TRADE ACT OF NINETEEN SEVENTY
FOUR SECTION THREE OH ONE
AUTHORIZES THE PRESIDENT. TO
TAKE ALL APPROPRIATE ACTION TO
OBTAIN THE REMOVAL OF ANY ACT
POLICY OR PRACTICE OF A FOREIGN
GOVERNMENT THAT IS UNJUSTIFIED
ON REASONABLE OR DISCRIMINATORY.
AND THAT BURDENS ARE RESTRICTS
US COMMERCE.
IN TWENTY SEVENTEEN AND TWENTY
EIGHTEEN SECTION THREE OH ONE
INVESTIGATIONS DETERMINE THAT
CHINA HAD REPLETE REPEATEDLY
VIOLATED FAIR TRADE PROVISIONS.
INSTANCES OF INTELLECTUAL
PROPERTY THEFT FORCE JOINT
VENTURES AND A FAILURE TO LIVE
UP TO AGREEMENTS AND THEIR
ENFORCEMENT IS WELL DOCUMENTED
AND OF NEGATIVELY IMPACTED
CALIFORNIA COMPANIES.
WELL THERE IS WIDE RECOGNITION
THAT CHINA HAS FALLEN SHORT IN
MEETING ITS OBLIGATIONS ON FAIR
TRADE.
THERE IS A GREAT DEAL OF
DISAGREEMENT ABOUT THE PROCESS
THE ADMINISTRATION HAS CHOSEN TO
ADDRESS IT.
LET ME QUICKLY GO THROUGH THE
TIMELINE OF EVENTS.
IN MAY OF TWENTY EIGHTEEN THE
PRESIDENT ANNOUNCED US PLANTS TO
PROCEED WITH SECTION THREE OH
ONE ACTIONS AGAINST CHINA IN
RESPONSE TO THEIR VIOLATIONS.
IN JULY OF LAST SUMMER THE US
IMPOSE 25% TERRACE ON THIRTY
FOUR BILLION DOLLARS WORTH OF
IMPORTED CHINESE GUTS.
AND CHINA IMMEDIATELY RETALIATED
WITH TARIFFS ON US EXPORTS IN
THE SAME AMOUNT.
IN AUGUST US IMPOSE THE US
IMPOSED 25% TARIFFS ON AN
ADDITIONAL SIXTEEN BILLION
DOLLARS OF IMPORTED CHINESE
GOODS AND CHINA IMMEDIATELY
RETALIATED WITH TARIFFS ON US
EXPORTS AGAIN IN THE SAME AMOUNT.
IN SEPTEMBER IN RESPONSE TO
CHINESE RETALIATORY TARIFFS.
THE U. S. IMPOSE TARIFFS ON
APPROXIMATELY TWO HUNDRED
BILLION DOLLARS WORTH OF CHINESE
CUTS.
INCLUDING MANY EVERY DAY
CONSUMER PRODUCTS LIKE
ELECTRONICS AND HOUSEWARES.
CHINA AGAIN RETALIATED WITH
TERRACE ON ANOTHER SIXTY BILLION
DOLLARS OF AMERICAN MADE
PRODUCTS.
ON DECEMBER FIRST PRESIDENT
TRUMP ANNOUNCED NEW NEGOTIATIONS
WITH CHINA AND DECLARED THE
SEPTEMBER TWENTY FOURTH TERRACE
WILL REMAIN AT 10% CREATING A
PARTIAL FOR PRE.
IN MAY SO JUST ABOUT THREE WEEKS
AGO ON MAY TENTH THE PRESIDENT
TWEETED THAT NEGOTIATIONS ARE
MOVING TOO SLOWLY.
AND THE US INCREASED TARIFFS ON
TWO HUNDRED BILLION DOLLARS OF
CHINESE GOODS FROM 10% 225%.
ALSO ABOUT TWO WEEKS AGO
PRESIDENT TRUMP ANNOUNCED A
SIXTEEN BILLION DOLLAR AID
PACKAGE FOR U. S. FARMERS WHO'VE
BEEN HURT BY THE TERRORISTS
DISPUTE.
IT IS TARGETED TOWARD MISSED
MIDWESTERN FARMERS WHO PRODUCE
CROPS LIKE CORN AND SOYBEANS NOT
CROPS THAT MAKE UP THE MAJORITY
OF CALIFORNIA EXPORTS.
CONGRESSMAN JIM COSTA FROM THE
CENTRAL VALLEY CALLED THE
PACKAGE RUSHED AND POORLY
PLANNED AND SET THE CALIFORNIA
PRODUCTS WILL RECEIVE A
DIFFERENT AND POSSIBLY REDUCED
LEVEL OF AID.
FINALLY ON THE ISSUE OF THREE OH
ONE TERRACE THE ADMINISTRATION
IS NOW PROPOSING TO LEVY TAXES
ON 25%.
OF 25% ON ALL GOODS IMPORTED
FROM CHINA WHICH ARE NOT YET
SUBJECT TO THE THREE OH ONE
TERRACE.
THESE ARE VALUED AND IN
ADDITIONAL THREE HUNDRED AND
TWENTY FIVE BILLION DOLLARS
WORTH OF CUTS. THREE A ONE
TERRACE ON CHINESE GOODS AND THE
RETALIATORY TARIFFS IMPOSED BY
CHINA.
ARE HAVING AN ENORMOUS IMPACT ON
THE CALIFORNIA ECONOMY.
AGAIN I BELIEVE WE'RE GOING TO
HEAR A LOT ABOUT THESE IMPACTS
TODAY.
AS I BEGAN PREPARING THIS
TESTIMONY LAST WEEK I DID NOT
THINK THERE WOULD BE A THIRD
CATEGORY OF TERRACE.
BUT ON THURSDAY IN A TWEET
PRESIDENT TRUMP ANNOUNCED HE
WILL IMPOSE A 5% TARIFF.
ON ALL GOODS COMING FROM MEXICO
AS OF JUNE TENTH HE ADDED THAT
THE RATE WILL ESCALATE BY 5%
EACH MONTH UNTIL OCTOBER WHEN
THEY WOULD REACH 25%.
THIS PROPOSED POLICY HAS BEEN
MET WITH A SWIFT REACTION FROM
PRESIDENT.
LOPEZ OBRADOR WHO'S CALLING FOR
TALKS.
MEXICAN TRADE NEGOTIATOR HAS TO
SAY I DAY WARNS THAT IF TRADE
TALKS FAIL.
QUOTE IT WOULD MEAN A TRADE WAR.
THE LEGAL JUSTIFICATION BEING
USED FOR THE CURRENT ROUND A
PROPOSED TARIFFS FALLS UNDER YET
ANOTHER CATEGORY.
IT IS THE INTERNATIONAL ECONOMIC
EMERGENCY POWERS ACT I EAT BACK.
THE BASIS PARALLELS THE
JUSTIFICATION FOR TWO THIRTY TWO
TERRACE THAT IT IS A MATTER OF
NATIONAL SECURITY.
THIS TIME CONNECTED TO
IMMIGRATION.
GOVERNOR NEWSOME HAS MADE IT
CLEAR THAT THERE IS NO NATIONAL
SECURITY CRISIS ON OUR BORDER.
IT IS A MANUFACTURED
HUMANITARIAN CRISIS THIS IS WHY
THE GOVERNOR PROPOSED
INVESTMENTS IN HUMANITARIAN
ASSISTANCE FOR ASYLUM SEEKING
FAMILIES.
AND REDEPLOYED MEMBERS OF THE
CALIFORNIA NATIONAL GUARD FROM
OUR BORDER TO HELP COMBAT THE
RISK OF WILDFIRES.
ACCORDING TO THE CONGRESSIONAL
RESEARCH SERVICE NO PRESIDENT
HAS USED IT PATH EVER. TO PLACE
TARIFFS ON IMPORTED PRODUCTS
FROM A SPECIFIC COUNTRY OR ON
PRODUCTS IMPORTED TO THE UNITED
STATES IN GENERAL.
AS A FORMER US AMBASSADOR I AM
UNAWARE OF ANY TIME IN RECENT
HISTORY THAT A PRESIDENT HAS
USED THE THREAT OF TERRORISTS.
AGAINST A FRIENDLY NATION. TO
FORCE ACTION ON A SEPARATE
FOREIGN POLICY ISSUE IN THIS
CASE IMMIGRATION.
SENATOR CHUCK GRASSLEY A
REPUBLICAN FROM IOWA SAID IN A
STATEMENT YESTERDAY.
QUOTE TRADE POLICY AND BORDER
SECURITY ARE SEPARATE ISSUES
THIS IS A MISUSE OF PRESIDENTIAL
PTEROPHORIDAE AND COUNTER TO
CONGRESSIONAL INTENT.
THE POTENTIAL IMPACT OF THIS TO
CALIFORNIA IS ENORMOUS. FOR A
SENSE OF SCALE OF THE IMPORTANCE
OF MEXICO AS A TRADING PARTNER
WITH CALIFORNIA.
EXPORTS TO MEXICO TOTAL THIRTY
POINT SEVEN BILLION DOLLARS
ANNUALLY.
THIS IS LARGER THAN THE ENTIRE
BUDGET.
OF FORTY ONE INDIVIDUAL STATES.
IT'S ALSO WORTH MENTIONING THAT
THIS POLICY APPEARS TO BE IN
DIRECT CONFLICT WITH THE TRUMP
ADMINISTRATION'S NEGOTIATIONS
AROUND YOU SMCA THE US MEXICO
AND CANADA AGREEMENT.
WHICH IS AN UPDATE TO NAFTA AND
FOR WHICH THE ADMINISTRATION HAS
BEEN PUSHING TO SCHEDULE A
CONGRESSIONAL VOTE [inaudible]
SO.
WHAT DOES ALL OF THIS MEAN TO US
HERE IN CALIFORNIA?
THERE WAS A LONG LINE OF
DISTINGUISHED EXPERTS ECONOMIST
AND STAKEHOLDERS HERE TODAY TO
GO INTO DETAIL.
YOU WILL HEAR ABOUT THE IMPACT
OF THESE POLICIES ON
CALIFORNIA'S AGRICULTURAL SECTOR
ELECTRONICS AND TEXT TECHNOLOGY
EXPORTS.
AND ON OUR PORTS AND LOGISTICS
SECTOR BUT I'D LIKE TO SAY A FEW
WORDS ABOUT THIS AS WELL.
FIRST CALIFORNIA IS DEEPLY
INTEGRATED INTO THE CALIFORNIA
INTO THE GLOBAL ECONOMY.
AS THE FIFTH LARGEST ECONOMY IN
THE WORLD THIS SHOULD COME AS NO
SURPRISE.
EVERY YEAR WE EXPORT A HUNDRED
AND SEVENTY EIGHT BILLION
DOLLARS WORTH OF GOODS AND
IMPORT.
A TOTAL OF FOUR HUNDRED AND
FORTY BILLION DOLLARS WORTH OF
CUTS.
CALIFORNIA'S TRADE
INFRASTRUCTURE IS SECOND TO NONE
WITH ELEVEN PORTS AND TWELVE
INTERNATIONAL AIRPORTS
THROUGHOUT THE STATE. THIRTEEN
IF WE COUNTY AWANA WHICH IS
CONNECTED TO SAN DIEGO.
THE LOS ANGELES THE LONG BEACH
PORT COMPLEX IS THE NATION'S
LARGEST CONTAINER PORT.
AND ABOUT EVERY ABOUT ONE
BILLION DOLLARS WORTH OF GOODS
COME THROUGH ITS DOORS EVERY DAY.
CALIFORNIA IS NUMBER ONE IN THE
COUNTRY IN EXPORTS IN
AGRICULTURE MACHINERY AND
ELECTRONICS AND NUMBER ONE AND
GOODS AND SERVICES EXPORTS AND
IMPORTS.
LOGISTICS FREIGHT WHERE HOUSING
AND HE COMMERCE INDUSTRIES HAVE
DEVELOPED AROUND CALIFORNIA'S
INTERNATIONAL TRADE.
BUILDING A SCALE THAT IS
UNMATCHED IN THE COUNTRY.
AN ESTIMATED 20% OF ALL THE JOBS
IN OUR STATE ARE DEPENDENT ON
INTERNATIONAL TRADE THAT'S ABOUT
FIVE POINT.
FOUR MILLION CALIFORNIA JOBS SO
THIS IS TRULY AN ISSUE THAT
AFFECTS EVERYONE.
AGAIN TODAY SPEAKERS WILL DO A
DEEP DIVE INTO THE IMPACTS ON
CALIFORNIA.
ON THE CURRENT AT TRADE DISPUTES
AND I'M LOOKING FORWARD TO
HEARING FROM OTHER PRESENTERS
BUT THERE ARE A FEW DATA POINTS
I'D LIKE TO SHARE IN CLOSING.
FIRST WE'VE BEEN TOLD BY
OFFICIALS AT THE PORT OF LOS
ANGELES AND LONG BEACH THAT THE
DOLLARS DOLLAR VOLUME OF
SHIPMENTS TO CHINA.
DECLINED 14% DURING THE FIRST
THREE MONTHS OF TWENTY NINETEEN
COMPARED TO THE SAME PERIOD OF
201814%.
WE ALSO KNOW THAT RURAL AREAS OF
THE STATE ARE SUFFERING
DISPROPORTIONATELY AS RURAL
INDUSTRIES LIKE AGRICULTURE IN
LOGISTICS HAVE SIGNIFICANT
EXPOSURE TO CHANGES IN THE TRADE
REGIME.
IF FACT ON CHANGING TERRACES
ALSO DISPROPORTIONATELY FELL BY
CALIFORNIA SMALL AND MEDIUM
SIZED BUSINESSES.
THEY DO NOT HAVE THE SAME
RESOURCES AS LARGE COMPANIES TO
SHIP THEIR SUPPLY CHAIN OR FIND
NEW INTERNATIONAL CUSTOMERS TO
FINALLY ONE SUPPLY CHAINS CHANGE
IS VERY HARD TO GET THEM BACK.
FOR EXAMPLE LAST YEAR CALIFORNIA
WINE EXPORTS TO CHINA FELL
NEARLY 25% AFTER TAXES AND
TARIFFS ON WINE.
ENTERING INTO CHINA FROM THE
UNITED STATES REACHED NEARLY 80%.
DEMAND HAS QUICKLY BEEN ABSORBED
BY INCREASED EXPORTS FROM CHILE
AND AUSTRALIA THAT HAVE SEEN
THEIR WINE EXPORTS TO CHINA
SEARCH.
IT IS VERY POSSIBLE THAT WE WILL
NOT SEE AN END TO THESE TRADE
DISPUTES ANYTIME SOON.
AND ARCH STATE WILL BE IMPACTED
FOR SOME TIME.
THIS IS PARTICULARLY TRUE WITH A
THREE OH ONE TERRACE ON CHINA.
NOW THAT THE PROCEDURE TO TAKE
ACTION ON THREE OH ONE
VIOLATIONS HAS BEEN GONE.
THERE IS A GREAT DEAL OF
CONSENSUS INCLUDING BIPARTISAN
CONSENSUS THAT THE FEDERAL
GOVERNMENT SHOULD NOT LEAVE THE
NEGOTIATING TABLE AND TELL THERE
IS MEANINGFUL RESOLUTION.
WITH THE LEVEL OF COMPLEXITY
INVOLVED AND CHINA'S RECENT
SIGNALS THAT THEY ARE NOT
WILLING TO BEND ON SOME KEY
PROVISIONS THIS COULD TAKE A
LONG TIME.
AS TO THE CURRENT SITUATION WITH
MEXICO I MUST SAY IT IS
DISMAYING IN MANY WAYS.
MEXICO WAS A FRIEND OF THE
UNITED STATES AND A VALUED
PARTNER.
CALIFORNIA'S COOPERATION WITH
MEXICO HAS SUPPORTED A SAFE
SECURE AND PROSPEROUS BORDER.
OUR TRADE RELATIONSHIP HAS
BROUGHT OPPORTUNITY AND
PROSPERITY TO BOTH SITES.
AT LEAST FOURTEEN MILLION
CALIFORNIANS ARE OF LATINO
HERITAGE.
OUR PARTNERS IN MEXICO CAN BE
ASSURED THE CALIFORNIA STANDS
READY TO SPEAK OUT.
AS TO THE IMPORTANCE OF OUR
RELATIONSHIP AND OUR FRIENDSHIP.
I'M HAPPY TO TAKE ANY QUESTIONS.
THANK YOU VERY MUCH THE TANK
GOVERNOR -- YOU MADE A COUPLE
POINTS THAT I WANTED TO ASK YOU
TO EXPAND ON AND YOU HAVE A
UNIQUE PERSPECTIVE.
HOW DO?
HOW DO -- PRESIDENT TRUMP AND
PRESIDENT XI UNDO WHAT'S BEEN
DONE.
WHAT WHAT WHAT IS IT THE
RESOLUTION -- IN PURSUIT OF WHAT
THE POLICY GOALS MIGHT BE.
WELL I THINK THAT'S WHY IT WAS
SO IMPORTANT TO REALLY LAY OUT
THE SEQUENCE OF EVENTS AND THE
LEGAL REGIME THAT IS GOVERNING
ALL OF THIS.
BECAUSE ONCE -- THE US HAS
CONCLUDED THAT THREE OH ONE
VIOLATIONS HAVE OCCURRED.
AND ONCE THE PRESIDENT -- BEGINS
THE PROCESS TO ADDRESS THOSE
VIOLATIONS.
YOU CAN'T JUST GO BACK TO THE
STATUS QUO YOU HAVE TO SIT DOWN
AT THE NEGOTIATING TABLE.
AND I REALLY ADDRESS THE NATURE
OF THE VIOLATIONS THAT HAVE BEEN
PLAN TAKING PLACE AND THEY HAVE
BEEN.
VERY VERY SERIOUS -- CALIFORNIA
COMPANIES FROM ONE SIDE OF THE
STATE TO THE OTHER WILL TELL YOU
STORIES OF TRYING TO DO BUSINESS
IN CHINA AND BEING REQUIRED. TO
ENTER INTO LIMITED PARTNERSHIPS
WITH.
GROUPS THAT THEY REALLY DON'T
FEEL THEY NEED.
BUT THEY'RE REQUIRED TO DO IN
ORDER TO BE ABLE TO DO BUSINESS
THERE -- THERE ARE MANY STORIES
SURROUNDING -- VISA A CALIFORNIA
COMPANY THAT -- HAD.
GREEN LIGHT AFTER GREEN LIGHT TO
BEGIN -- TO ADVANCE THEIR
BUSINESS MODEL IN CHINA
PARTICULARLY AROUND ELECTRONIC
PAYMENTS.
AND BECAUSE OF HIGH EDUCATIONAL
REQUIREMENTS THAT THEY ARE
ABILITY TO ENSURE IN THE MARKET
WAS STALLED AND I'M FRUSTRATED
AND IN THE MEANTIME.
I'M OTHER CHINESE COMPANIES WE
CHAT FOR INSTANCE CAME IN AND
YOU KNOW CAPTURE THE MARKET
SHARE.
SO THESE KINDS OF STORIES AND
EXAMPLES ARE REPLETE OF COURSE
THE THEFT OF INTELLECTUAL
PROPERTY THE REQUIREMENT TO
WILLINGLY HAND OVER INTELLECTUAL
PROPERTY.
THESE ARE THINGS THAT HAVE BEEN
A PROBLEM FOR QUITE SOME TIME
AND AGAIN I THINK THERE IS A
GREAT DEAL OF AGREEMENT THAT
THESE ARE PROBLEMS THAT NEED TO
BE ADDRESSED.
BUT NOW THAT THE SECTION THREE
OH ONE PROCESSES BATON.
GOING BACK TO THE STATUS QUO I'M
IS JUST NOT ADVISABLE THE
FEDERAL NEGOTIATORS HAVE GOT TO
GO GET MEANINGFUL CHANGE.
AROUND THESE PROBLEMS THAT HAVE
BEEN -- ENDEMIC FOR QUITE SOME
TIME.
THANK YOU ARE THERE OTHER
QUESTIONS -- FROM OTHER
PANELISTS SOME NUMBER CHAU.
THANK YOU VERY MUCH OUT LIKE TO
START OFF BY THANKING YOU FOR
BEING HERE LOOK TO THE GOVERNOR --
FOR SHARING YOUR INSIGHTS WITH
AS IF I COULD FOLLOW UP ON THE
CHAIRS SO REMARKED.
ON WHAT CAN CALIFORNIA DUE TO
HELP RECTIFY SOME OF THE
SITUATION OR TO BACK FILL SOME
OF THE NEEDS THAT.
HAVE BEEN LEFT BEHIND WITH THE
THE TRADE WAR.
WELL -- LOOK IT'S WHY I BEGAN MY
REMARKS BY REMINDING EVERYONE
THAT TRADE IS THE PURVIEW OF THE
FEDERAL GOVERNMENT.
AND IT IS EXTREMELY FRUSTRATING
FOR OUR STATE WHICH IF IT WERE A
COUNTRY WHICH IT IS NOT BUT IF
IT WERE WOULD BE THE FIFTH
LARGEST ECONOMY IN THE WORLD.
THE ACTIONS THAT ARE BEING TAKEN
BY THE FEDERAL GOVERNMENT
RELATED TO TRADE.
AT A HOST OF OTHER THINGS BUT
WE'RE TALKING ABOUT TRADE RIGHT
NOW.
OUR SERIOUSLY IMPACTING ONS
IMPACTING OUR ECONOMY.
AND OF CALIFORNIA'S ECONOMY IS
NEGATIVELY IMPACTED THE
COUNTRY'S ECONOMY WILL BE
NEGATIVELY IMPACTED SO THE FACT
THAT THE FEDERAL GOVERNMENT IS
MOVING FORWARD IN SUCH A
CAVALIER.
CHAOTIC UNPREDICTABLE WAY THAT
IS HAVING CLEAR NEGATIVE EFFECTS
TO CALIFORNIA.
IS -- EIGHT EIGHT EIGHT IT
DOESN'T MAKE ANY KIND OF
RATIONAL SENSE IT IS SELF HARM.
BOB SO WHAT EXACTLY CAN WE DO
ABOUT IT.
FIRST OF ALL SPEAKING UP AND
SPEAKING OUT IS CRITICALLY
IMPORTANT WHICH IS WHY I REALLY --
COMMEND YOU FOR THAT FOR HOLDING
THIS HEARING TODAY I BECAUSE
I'VE I KNOW WHO'S IN THIS ROOM
AND YOU ARE GOING TO HAVE ON THE
RECORD.
SOME VERY SPECIFIC VERY DETAILED --
CLEARLY AUTHENTICATED ARE
RAMIFICATIONS OF AT THIS AT
TRADE AND TARIFFS DISPUTE AND
THAT'S CRITICAL BECAUSE YOU HAVE
TO START WITH HAVING THE FAX.
BOB PUT INTO THE PUBLIC RECORD
AND THEN BEYOND THAT I THINK IT
IS INCUMBENT UPON EVERYONE IN
THE STATE BUT PARTICULARLY OUR
LEADERS AND OUR ELECTED
OFFICIALS. TO BE SPEAKING OUT AT
EVERY OPPORTUNITY OF THE IMPACTS
OF THESE POLICIES ON OUR ECONOMY.
SOME RECKON.
I THINK YOU AND THANK YOU AGAIN
FOR YOUR PRESENTATION.
IT IT WITH FROM YOUR PURVIEW AS
AN AMBASSADOR HAVE YOU EVER SEEN
I MEAN HISTORICALLY -- SEVENTY
MAKING POLICY BY TWEET IN THIS
KIND OF A RADIC WITHOUT ANY
SPECIFIC PLAN BUT IT SEEMS TO BE
INCREDIBLY REACTIVE.
AND FROM YOUR IMPRESSION OF WHAT
HAS THAT PERCEPTION DONE AROUND
THE WORLD AS AS OTHERS ARE
THINKING ABOUT INVESTING OR NOT
INVESTING WITH US.
AND I GUESS THAT THE
RAMIFICATIONS IF IF WE CONTINUE
DOWN THIS PATH OF POLICY BY
TWEETS AND AND SEEMINGLY NO PLAN
BUT JUST REACTIONS.
I CHAIRMAN EGGMAN I THINK THIS
IS REALLY THE GREATEST SHAME
WHICH IS THAT.
THE AND ENVIRONMENT AT THE
CLIMATE AROUND TRADE THAT'S
BEING CREATED BY THIS TYPE OF
PROCESS.
IS HAVING A DEEPLY CHILLING OF
FACT ON TRADE.
AND SO EVEN BEYOND THE TARIFFS
WHICH HAVE A MEASURABLE IMPACT
WHEN THE CLIMATE IS DAMPENED.
YOU UNNECESSARILY I HINDER I THE
D. M. AT WORK HAVE I'VE
COMPANIES THAT ARE TRYING TO
EXPAND INTO BUSINESS -- WHEN YOU
HAVE UNCERTAINTY AND
UNPREDICTABILITY?
COMPANIES GOT MORE CONSERVATIVE
THEY PULL BACK -- IN TERMS OF
SUPPLY CHAIN COUNTRIES THAT ARE
AYE IMPORTING CALIFORNIA
PRODUCTS ARE THINKING WELL MAYBE
IT'S ONLY GOING TO GO ON FOR
ANOTHER.
WEEK OR ANOTHER YEAR MAYBE THIS
IS GOING TO GO ON FOR A LONG
TIME SO WE NEED TO LOOK TO OTHER
SOURCES FOR OUR IMPORTS BECAUSE
CALIFORNIA.
IS NO LONGER AS RELIABLE AS A
RESULT OF THIS AND
PREDICTABILITY AT SO I THINK
AGAIN THAT IS PROBABLY OF
EVERYTHING THE MOST DAMAGING
THING BECAUSE IT'S DAMAGE THAT
HAS.
THERE'S JUST ABSOLUTELY NO
REASON WHATSOEVER OUT FOR US TO
BE DOING THIS TO OURSELVES.
AS A COUNTRY.
I'D LIKE TO INTRODUCE TO OTHER
SELLERS WHO JOINED US
ASSEMBLYMEMBERS AGUIAR-CURRY IN
A SOME MEMBERS RIVAS THANK YOU --
I WANTED TO CONNECT WITH YOU ARE
TO FOLLOW UP ON SOME POINTS THAT
YOU'VE MADE PARTICULARLY NOW IS
YOUR CHAIR.
OF THE CALIFORNIA NATIONAL
AFFAIRS AND TRADE DEVELOPMENT
INTERAGENCY COMMITTEE AND ALSO
THE FACT THAT WE HAVE A
PARTNERSHIP WITH AN OUTSIDE
ORGANIZATION FOR OUR CHINA TRADE.
OFFICE.
WHAT WHAT HAS THE YOU NOTE
CHATTER OR OR FEEDBACK THAT
YOU'VE RECEIVED ABOUT OUR PUSH
TO HAVE FURTHER EXPORTS TO CHINA
BEEN BEEN LIKE FROM THOSE
DIFFERENT AGENCIES AND THAT
TRADE OFFICE HAS THERE BEEN AN
IMMEDIATE?
RESPONSE FROM THEM ABOUT WHAT
WHAT YOU KNOW IF THE RECEPTION
THEY'RE GETTING OF THE MARKET
HA BEEN CHILLED IMMEDIATELY IF
THOSE TERRACE.
INCREASED COSTS IN SUCH A WAY
THAT THERE'S JUST NO REASON.
TO EVER TRY TO GET BACK INTO
THAT MARKET.
SO CALIFORNIA HAS A PARTNERSHIP
WITH THE BAY AREA COUNCIL WERE
ACTUALLY REVIEWING THAT
RELATIONSHIP RIGHT NOW -- I
COULD PICK UP THE PHONE BUT I'M
FAIRLY CERTAIN THAT THEIR
CONCERNS ARE ARE DEEP.
HI AND I DO REGULARLY SPEAK WITH
REPRESENTATIVES FROM THEIR AB.
AS FAR AS OUR INTER AGENCY
COMMITTEE ADAM.
IT'S REALLY ALREADY HAD BEEN A
VERY VALUABLE ADAM TOOL BECAUSE
MANY YEARS AGO TWO THOUSAND AND
FOUR THE CALIFORNIA DEPARTMENT
OF COMMERCE WAS ELIMINATED.
BUT THE ACTIVITY OF CALIFORNIA
AROUND INTERNATIONAL AFFAIRS AND
HAS CONTINUED SO WHICH YOU NOTED
LOOKING FOR WAYS TO COORDINATE
OUR ACTIVITY IS REALLY IMPORTANT
BECAUSE WE FIND EFFICIENCIES.
AND A BETTER WAY TO BE IF YOU
KNOW MORE WAYS TO BE IMPACTFUL
SO WE HAD OUR FIRST COMMITTEE
MEETING AT JUST LAST WEEK.
AND THERE ARE THREE KIND OF
GENERAL AREAS THAT ARE ALREADY
EMERGING WERE CALIFORNIA WILL
CONTINUE TO ENGAGE -- ACTIVELY I
IN THE I'M AT IN THAT
INTERNATIONAL ROUND -- ONE IS ON
CLIMATE I'M YOU KNOW WE TALKED A
LITTLE BIT I MENTIONED THAT
CONSTRAINTS THAT WE HAVE ON
TRADE WE ALSO OF COURSE ARE
CONSTRAINED WHEN IT COMES TO
IMMIGRATION POLICY -- BUT IN IN
I. IN CLIMATE BECAUSE I THE
CALIFORNIA LEGISLATURE AND THE
GOVERNOR I'M ACTUALLY NOW OVER
THE LAST THREE GOVERNORS HAVE
MADE -- REDUCTION OF EMISSIONS
AT SUCH A KEY PRIORITY AND WE
HAVE THESE AGGRESSIVE TWENTY
FORTY FIVE GOALS.
I'M THIS IS REALLY AN IMPORTANT
STORY THAT WE CAN AND SHOULD
TELL ON THE NATIONAL STAGE SO
THAT SOMETHING THAT -- WHEN YOU
LOOK AT THE VARIOUS AGENCIES
FRANKLY WHETHER IT'S
TRANSPORTATION OR EPA WHERE
RESOURCE SAYS THERE'S A LOT OF
AREA FOR COLLABORATION?
AND THEN THE OTHER AREAS OF
COURSE THAT RISEN TO THE TOP --
OUR TRADE I AND KOBE IS ACTUALLY
IS THE STAFF OF OUR COMMITTEE --
AND AGAIN 20% OF THE JOBS IN THE
STATE FIVE POINT FOUR MILLION
JOBS IN THE STATE OF CALIFORNIA
HAVE SOME CONNECTION TO
INTERNATIONAL TRADE.
SO IT'S AN ENORMOUS PRIORITY FOR
COPAYS AND THEY DON'T IT LET ME
MEANT ONSITE WHO'S THE HEAD OF
COPAYS SITS ON THE COMMITTEE
HE'S THAT.
BAD VICE CHAIR OF THE COMMITTEE
BUT THEN THE STAFF OF GOBIZ
STOPS THE COMMITTEE AS A WHOLE.
AND THEN YOU KNOW I THINK THAT
WE ARE SO TRULY IMPACTED BY
IMMIGRATION THAT THIS IS ANOTHER
PART OF THE CONVERSATION THAT WE
HAVE BUT IT DOES RUN INTO SOME
OF THESE.
SIMILAR CONSTRAINTS.
THANK YOU SEWER MATHIS.
THANK YOU MISTER CHAIRMAN.
OF LIEUTENANT GOVERNOR YOU KNOW
WE WE'VE GOT OVER.
YOU'VE GOT OVER A LOT OF THE
NUMBERS QUITE WELL -- MY
QUESTION IS IN YOU KNOW WE ALL
KNOW CALIFORNIA HAS THE MOST
STRINGENT.
REGULATIONS IN THE ENTIRE
COUNTRY.
AND SO IS THERE ANY PLAN
[inaudible] TWO MAYBE GIVE
Sí
REGULATION RELIEF TO OUR
INDUSTRIES DURING THIS PERIOD
THAT THEY'RE GOING THROUGH THIS
TEAR.
FOR INTEL THE FEDERAL GOVERNMENT --
DOES ANYTHING DIFFERENT.
AMERICA'S A AS YOU SAID YOU KNOW
IT'S IT'S A FEDERAL ISSUE AND
WE'VE GOT A LOOK AT WHAT WE'RE
GONNA DO IS A STATE TO HELP OUR
INDUSTRIES OUT SO IS THERE
ANYTHING.
THAT'S BEING LOOKED THAT ARE
BEING DISCUSSED THAT WE ALL
SHOULD BE AWARE OF I THINK MAYBE
THE COMMITTEE MEMBERS MIGHT BE
ABLE TO ANSWER THAT A LITTLE
BETTER THAN THAN ME BUT I WILL
TELL YOU THAT I THINK -- IT'S
REALLY IMPORTANT TO RECOGNIZE
THAT INDUSTRIES ARE SUFFERING
RIGHT NOW.
I SUFFERING UNDER THESE TERRIBLE
POLICIES OF THE TRUMP
ADMINISTRATION AND THE A RADIC --
WAY THAT THEY ARE GOING ABOUT.
PURSUING THESE POLICIES AND
LOOKING AT ANY OPPORTUNITY TO BE
ABLE TO HELP BUSINESSES HERE IN
THIS DIFFICULT CLIMATE I THINK
IS SOMETHING THAT CERTAINLY
SHOULD BE LOOKED AT GREAT THANK
YOU ANY OTHER QUESTIONS FROM
COMMITTEE MEMBERS I'VE BEEN
INTRODUCED SOME NUMBER RAMOS
THANK YOU FOR JOINING US.
LIEUTENANT GOVERNOR CAN A LOCK
IS THANK YOU SO MUCH FOR JOINING
US THANK YOU SO MUCH FOR SHARING
YOUR INSIGHT AND YOUR LEADERSHIP
ON THIS ISSUE.
THANK YOU VERY MUCH THANK YOU
FOR HAVING ME.
NEXT I WOULD LIKE TO INTRODUCE
AND WELCOME TO ECONOMICS
PROFESSORS -- FROM UC DAVIS%
WE'VE GOT A PROFESSOR DANIEL
SUMNER PROFESSOR AND OF THE
DEPARTMENT OF ECONOMICS AND
DIRECTOR OF AGRICULTURAL ISSUES
CENTER AT UNIVERSITY OF
CALIFORNIA DAVIS.
AND DR KATHARINE RUSS ASSOCIATE
PROFESSOR DEPARTMENT ECONOMICS
AT THE UNIVERSITY OF CALIFORNIA
DAVIS.
SOLANA CHURCH YOU JUST PUSH IT
OUT OF THE WAY YEAH.
DOCTORS UNDER PLEASE.
YES.
THANK YOU VERY MUCH IT'S AN AN
HONOR AND A PLEASURE TO BE WITH
YOU THIS AFTERNOON AND I I I
REALLY APPRECIATE LISTENING TO
THE LIEUTENANT GOVERNOR WHO WELL
I THINK PROVIDED LOTS OF
INSIGHTS -- TO WHAT'S BEEN
HAPPENING OVER THE LAST FEW
YEARS WITH RESPECT TO TRADE.
AND SHE HIGHLIGHTED ONE POINT
THAT THAT I WANT TO REINFORCE
AND THAT IS -- HERE WE'RE
TALKING ABOUT ACTIONS THAT ARE
THAT ARE ACTUALLY HAPPENED.
UP.
BUT A BUT EVEN THE THE THREATS
THEMSELVES HAVE CONSEQUENCES AND
AND WE ALL KNOW THAT --
BUSINESSES -- THRIVE ON A
CERTAIN AMOUNT OF STABILITY
UNDERSTANDING WHAT THE RULES ARE
AS THEY GO FORWARD.
AND AND I'LL GIVE YOU ONE
EXAMPLE WELL WHEN I TO BEGINNING
OF THE NEW ADMINISTRATION.
WHEN THE THREAT OF OF
ELIMINATING NAFTA WAS IN THE AIR --
BUYERS OF CALIFORNIA
AGRICULTURAL PRODUCTS IN MEXICO
LONG TERM CUSTOMERS OF
CALIFORNIA COMPANIES.
WHO THEY VALUE TO SUPPLIERS
IMMEDIATELY GOT ON THE PHONE AND
CHECKED WITH ALTERNATIVE SOURCES
SO IN THE CASE OF DAIRY PRODUCTS
A VERY IMPORTANT?
A PRODUCT THAT WE EXPORT TO
MEXICO -- THE MEXICAN BUYER SAID
SORRY GUYS WE LOVE YOU BUT WE'RE
CHECKING WITH.
FUND TERROR IN NEW ZEALAND JUST
TO SEE WHAT THEY'VE GOT FORCE
THE LAST THING YOU WANT YOU WANT
YOUR CUSTOMERS TO DO IS TO CHECK
WITH YOUR COMPETITORS.
AND IT'S THAT SORT OF
INSTABILITY OR OR OR CONCERNED I
THINK PERVADES ALL OF THIS AND
IT'S NOT JUST.
CALCULATE THE AFFECT OF A
SPECIFIC TERRAFORMING PARTICULAR
MARKET -- THAT THAT WE HAVE TO
THINK ABOUT -- HERE AT THE
AGRICULTURAL ISSUES CENTER IT
UNIVERSITY CALIFORNIAN THE
DEPARTMENT OF AGRICULTURAL
ECONOMICS WE WORK.
A TOGETHER WITH THE CALIFORNIA
DEPARTMENT OF FOOD NAG SECRETARY
ROSS AND WE HAVE DONE FOR A
CLOSE TO TWENTY FIVE YEARS
PUTTING TOGETHER TRADE DATA.
RELEVANT FOR CALIFORNIA
AGRICULTURE IN HIS OF THE THE
LEG TENET GOVERNOR EMPHASIZED
CALIFORNIA'S NOT A SEPARATE
COUNTRY WE DON'T HAVE SEPARATE
TRADE DATA FOR CALIFORNIA THAT
COMES FROM.
THE COMMERCE DEPARTMENT OF
FEDERAL COMMERCE DEPARTMENT FOR
EXAMPLE.
SO WHAT WE DO IS TO A ON A
NUMBER OF ESTIMATES
APPROXIMATIONS WE WORK CLOSELY
WITH THE INDUSTRY.
AND I'VE I'VE.
LEFT WITH USE OF THREE TABLES
THAT SORT OF SUMMARIZE THE
PATTERN OF AGRICULTURAL EXPORTS
OUT OF CALIFORNIA.
AND YOU CAN REFER TO THOSE AT
YOUR LEISURE THE POINT IS WE
HAVE A WIDE VARIETY OF PRODUCTS
WE EXPORT STARTING WITH ALMONDS
PISTACHIOS DAIRY PRODUCTS.
OF THE OTHER TREE NUTS WINE IS
ALREADY BEEN MENTIONED THESE ARE
ALL VERY IMPORTANT EXPORT ITEMS.
BUT IT GOES DOWN TO TABLE GRAPES
TOMATOES AND ON AND ON AND ON
IT'S TWENTY BILLION DOLLARS
WHICH WE HEARD AND IN THOSE --
EXPORTED TO A REALLY A NICE
BROAD PORTFOLIO OF OF
DESTINATIONS -- STARTING WITH
CANADA'S NUMBER ONE IN THE U.
YOU IN CANADA -- SORT OF BACK
AND FORTH TOGETHER.
BUT CHINA TOGETHER WITH HONG
KONG WHICH HAVE TO BE THOUGHT OF
REALLY TOGETHER A FOR
AGRICULTURAL TRADE.
I'LL COMING NUMBER THREE AND OF
GONNA AHEAD OF JAPAN OVER THE
LAST SEVERAL YEARS.
SO CHINA.
THE CHINA HONG KONG NEXUS IS A
VERY IMPORTANT PART OF A
DESTINATION FOR A WHOLE RANGE OF
AGRICULTURAL PRODUCTS A TREE
NUTS.
BUT WINE ALSO IN AND ALFALFA HAY
SURPRISINGLY SO WHICH IS IS JUST
A OF ALL AN IMPORTANT PART OF
THE WORLD.
I ALSO WANT TO SAY THAT THE
TRADE TURMOIL THAT WE'RE FACING
IS NOT JUST CHINA AND WE'VE
HEARD MEXICO MENTIONED SEVERAL
TIMES ALREADY THIS AFTERNOON.
BUT TURKEY IN INDIA AND OTHER
MARKETS HAVE ALSO BEEN HIT WITH
OUR STEEL TARIFFS WHICH WE HEARD
SORT OF STARTED THIS CURRENT
MASS.
AND THEN THEY NATURALLY
RETALIATED BECAUSE THEY THOUGHT
THOSE WERE INAPPROPRIATE SORTS
OF TERRACE.
I ALSO WONDER ROUTE REINFORCED
AND I GIVE YOU A CHART THERE FOR
WHICH AGRICULTURAL EXPORTER MOST
CRUCIAL THAT IS WHICH OF OUR OF
PRODUCTS FOR WHICH EXPORTS ARE
MOST CRUCIAL.
AND AND AGAIN IT'S A WIDE RANGE.
FOR EVERYONE OF THOSE ITEMS --
THEY HIRE -- FARMWORKERS AND
THOSE ARE THE MOST VULNERABLE
PEOPLE IN CALIFORNIA ECONOMY
THERE'S JUST NO QUESTION ABOUT
IT.
SO WHILE WE TALK ABOUT THE
BUSINESSES AND WE TALK ABOUT THE
EXPORT LOSSES OF COMPANIES.
I THINK IT'S VERY IMPORTANT TO
GO BACK TO THE WORKERS.
AND I'LL JUST GIVE YOU A QUICK
EXAMPLE WE'VE TALKED ABOUT
CHERRIES OVER THE LAST TWO WEEKS
BECAUSE WE HAD SOME UNUSUAL
RAINS.
WELL WHEN YOU LOSE PART OF A
CHERRY CROP.
EITHER IT'S BECAUSE OF TARIFFS
OR OR OR YOU.
CAN'T MARKETING YOU CAN'T SELL
THEM YOU CAN'T HARVEST ON ALL
THE PEOPLE THE FIRST FACE THAT
VULNERABILITY LE HARD
FARMWORKERS THAT FRANKLY THIS
TIME OF THE YEAR SCRAMBLING
TRYING TO FIND.
SOME WORK.
AND WHEN YOU LOSE A CROP EITHER
DO AN EXPORT RESTRAINT DURING
THIS LAST WEEK IT WAS WHETHER
ALL I I JUST WANT TO ENCOURAGE
TO REMEMBER THOSE PEOPLE BECAUSE
THEY'RE THEY'RE REALLY CRUCIAL
TO THE STORY HERE.
WE WE HEARD ABOUT THE TERRACE
COMING ON LET ME GIVE YOU AN
EXAMPLE OF AND I HAVE A CHART OF
ALL ON ONE PAGE -- FOR THE
DOCUMENT I GAVE YOU ALL WHICH
SHOWS YOU THE CROP YEAR THE
MARKETING YEAR PATTERN FOR
PRICES FOR WALNUTS.
I'M JUST GOING TO GIVE YOU ONE
EXAMPLE BECAUSE THAT'S ALL WE
HAVE TIME FOR ALL.
THIS WOULD HAVE BEEN A GOOD.
YEAR FOR WALNUTS AND YOU SEE
WHAT HAPPENS WALNUTS ARE NOW.
60% BELOW WHERE THEY WERE A
COUPLE YEARS AGO IN TERMS OF
PRICE THE WALL IT'S WILL GET
SOLD YOU CAN'T THE THERE ARE
THERE ARE YOU DON'T THINK OF
THEM AS A PERISHABLE CROPS.
BUT YOU CAN'T STORM FROM ONE
YEAR TO THE NEXT SO THEY'RE
GOING TO BE SOLD THE QUANTITY
WILL MOVE.
BUT AT MUCH LOWER PRICES BECAUSE
THE MARKETS THAT THEY USED TO GO
TO HAVE BEEN CLOSED.
AND IF YOU GAVE US OUR TEN YEARS
IF IF SOMEBODY WOULD ANNOUNCE
TEN YEARS FROM NOW WE'RE GONNA
DO A TERROR FROM MOVE THEN
PEOPLE WOULD REARRANGE MARKETS
AND THIS AND THAT.
BUT BUT THIS DIDN'T HAPPEN THAT
WAY THIS WAS AT HARVEST IN FACT
IS WHEN THIS EASTER OF SAID AND
THEY'VE CONTINUED.
THE FINAL THING I WANT TO
MENTION IS IS THE FORMER THIS IS
PAINFUL I'M OF A WALNUT FARM
WELL I I KNOW YOU'RE FROM WOULD
YOU LIKE TO SEE ALL THE TREES
AND PULLING OUT -- I THINK YOU
MAY BE VERY NEAR MY OF MY HOME A
DAVIS IN FACT THE IN IN WINTERS
YEAH YEAH -- WELL NOW IMAGINE
BUT STATUTES -- I I THINK -- AS
SOON MATHIS MENTIONED EARLIER UP
A STASH OWES OR COMPLICATED CASE.
SO WE WOULD HAVE SEEN THE SAME
THING I PREDICT WITH WALLETS
EXCEPT IT TURNS OUT IRAN HAD THE
WORST PROCESS YOU CROP IN ITS
HISTORY.
IS THE ONLY OTHER PLACE TO
COMPETE WITH CALIFORNIA THE
EXPORT MARKET.
SO YOU MIGHT IF YOU WERE IF YOU
IF YOU DIDN'T PAY ATTENTION
THESE MARKETS YOU MIGHT SAY ALL
WILL THEY WEREN'T HURT.
WELL IT ANYBODY IN AGRICULTURE
KNOWS IF IN THE YEARS WHEN YOU
HAVE AN OPPORTUNITY TO MAKE SOME
MONEY YOU BETTER MAKE THE MONEY.
BECAUSE THE NEXT YEAR YOU'RE
GOING TO BE MAKING UP FOR LOSSES
IN THIS IS A YEAR WHEN WE COULD
HAVE HAD SUBSTANTIAL INCREASES
IN THE SPECIAL PRICES.
INSTEAD THEY'VE SORT OF BEEN
STABLE.
SO MAYBE SOMEBODY AT USDA IS
LOOKING AT THAT AND SAYING HEY
YOU GUYS AND POSSESSIONS YOU
DIDN'T HAVE ANY LOSSES YOU SOLD
THE CROP OF COURSE THEY SOLD
PROP THEY HAD TO IT'S NOT.
THIS ISN'T SOYBEANS AND CORN YOU
CAN'T JUST STORED FOR YEARS.
SO THEY SOLD THE CROP THEY
DIDN'T GET A LOWER PRICE THAN
LAST YEAR BUT WHAT THEY LOST WAS
THE BUT FOR THEY REALLY NEEDED
TO MAKE THE HIGH.
UP PRICES THIS YEAR TO MAKE UP
FOR THE CHALLENGES THAT THEY
WERE FACING EARLIER.
LET ME OF FINISHED IN WITH JUST
A THREE FINAL REMARKS WE'VE
ALREADY HEARD THE ILLUSION THE
USDA HAS ANNOUNCED OF SOME
COMPENSATION FOR GROWERS MOSTLY
ORDERED ORIENTED TOWARDS THE
MIDWEST THE GRAIN -- SOYBEANS AW.
THE GROWERS THAT HAVE
TRADITIONALLY GOTTEN USDA
SUBSIDIES WELL MOST CALIFORNIA
COMMODITIES ON IN THAT CATEGORY
MOST OF OUR COMMODITIES HAVE NOT
TRADITIONALLY GOTTEN THE
SUBSIDIES.
U. S. DOT D. A. DOESN'T KNOW THE
NAME AND ADDRESS OF EVERY A
GROWER IN CALIFORNIA LIKE THEY
WOULD FOR A CORN GROWER OR
SOYBEAN GROWER.
THAT MAKES IT HARDER AND IT MADE
MEN'S OUR GROWERS HAVE GOTTEN
MUCH LESS RELATIVE TO THE SIZE
OF THEIR LOSSES.
UP THERE.
TO YOU KNOW OBVIOUSLY CALIFORNIA
AGRICULTURE IS BEEN WORKING IN
WASHINGTON TRYING TO FIX THAT.
AND WE'RE HOPEFUL THAT THE NEXT
ROUND WILL FIX SOME OF THAT --
IN TERMS OF COMPENSATION AND
THAT'S SOMETHING THAT THE YOU
FOLKS CAN ALL DO SUPPORT OF OUR
INDUSTRIES IN THEIR EFFORTS IN
WASHINGTON EITHER THROUGH OUR OF
FEDERAL DELEGATIONS OR OR
SOMEHOW.
OF THE OTHER THING -- I I WANT
TO SAY IS IS.
THAT ARM.
THE BASIC PRINCIPLE ABOUT
PROSPERITY FOR INTERNATIONAL
TRADE IS STABILITY AND SO
ANYTHING WE CAN DO TO RE
ESTABLISH THAT STABILITY I THINK
IS A CRUCIAL THING AND AND I
GAVE THE ILLUSTRATION OF OF
INSTABILITY CREATING BY JUST.
THREATENING TO DO THINGS AND THE
MORE WE CAN -- GET AWAY FROM
THAT OF THE BETTER.
AND THE FINAL THING I'LL SAY IS
NONE OF THIS -- SHOULD BE
UNDERSTOOD AS SAYING -- THE
CHINA HAS BEEN BLAMELESS FOR
EXAMPLE A NO I I'VE NEVER HEARD
ANYONE SAY NO NOBODY IN BUSINESS
NOT NOT.
NOT THE MEMBERS OF THE OF THE
ELECTED COMMUNITY SAYING ALL
WHILE TRYING TO SHOULD GET A
FREE RIDE THERE OKAY.
BUT WHAT I WILL SAY IS WE HAVE
WELL ESTABLISHED IN FACT
AFFECTED INSTITUTIONS FOR
DEALING WITH A PEOPLE THAT
VIOLATE TRADE AGREEMENTS.
IN THE W. T. O. IS INEFFECTIVE.
INSTITUTION OF THE UNITED STATES
JUST ONE TWO MAJOR TRADE CASES
AGAINST CHINA THEY'LL APPEAL
WILL WIN THE APPEALS.
AND WE WILL BE THEN HAVE THE
WHOLE WORLD BEHIND US IN
BRINGING SANCTIONS AGAINST CHINA
ON THOSE TWO AGRICULTURAL CASES.
AND I WOULD HOPE THAT IS NOT TOO
LATE. TO TAKE A STEP BACK IN USE
THE OF THE INSTITUTIONS THAT
WE'VE ESTABLISHED OVER THE YEARS
FOR SETTLING DISPUTES NO LEGAL
WAY AND THAT WAY WE WOULD HAVE
NOT.
THE U. S. GOING ALONE AND
EVERYBODY ELSE AGAINST US BUT
THE U. S. TOGETHER WITH LOTS OF
OTHER COUNTRIES THAT ACTUALLY DO
AGREE WITH THIS.
ANA ON CONCERNS ABOUT CHINESE
TRADE BETTER.
LET ME STOP THERE SORRY THANK
YOU SO MUCH DOCTOR SUMNER AND
WILL GO TO A DOCTOR RUSS BEFORE
WE THEN CRY ABOUT OUR ONE THAT'S
A LITTLE BIT MORE -- AND AND TO
GET GO -- A LITTLE BIT MORE ON
THOSE ISSUES DOCTOR US THANK YOU.
SO THANKS VERY MUCH TO THE
SELECT COMMITTEE IN THE STATE
STANDING COMMITTEES FOR GIVING
ME THE OPPORTUNITY TO SPEAK WITH
YOU TODAY ON THE U. S. CHINA
TERROR -- FOR I'D LIKE SO I HOPE
YOU CAN HEAR ME I HAVE A LITTLE
BIT OF US OKAY GREAT -- TO THERE
ARE THREE AREAS WHERE -- I WAS
ASKED TO COMMENT TODAY ON THE
IMPACT OF THE TERRACE.
BOB FIRST ON CONSUMERS SO AS THE
TEN GOVERNOR **** **** AKIS
EXPLAINS AND REALLY HELPFUL
DETAIL THERE IS CURRENTLY A 25%
TAX ON ABOUT TWO HUNDRED AND
FIFTY BILLION DOLLARS WORTH OF
GOODS FROM CHINA.
AS THEY CROSS THE BORDER INTO
THE UNITED STATES.
OF FEASIBLE RANGE OF COSTS FOR
THE AVERAGE HOUSEHOLD JUST FOR
THE COST OF THESE TAXES NOT THE
DISTORTIONS THAT THEY GENERATE.
IS BETWEEN THREE HUNDRED AND
EIGHT HUNDRED DOLLARS WITH
EITHER -- FIVE HUNDRED BEING A
FOCAL POINT -- THAT ACTUALLY
FELL INTO THE ESTIMATES OF
SEVERAL STUDIES.
AND THE COST OF THESE TARIFFS
YOU CAN THINK OF IS SIMILAR TO A
SORT OF HIDDEN SALES TAX.
BETWEEN ONE HALF AND 1% -- BUT
IT'S NOTSPREAD EVENLY ACROSS
GOODS LIKE A SALES TAX WOULD BE
SO IT TENDS TO BE MORE
DISTORTION. FOR THAT REASON.
NGUYEN ECONOMIST FACTOR IN THE
HANG UPS INVOLVED IN CONSUMERS
HAVING TO SUBSTITUTE AWAY FROM
GOODS THAT THEY LIKE TOWARD
GOODS THAT THEY LIKE LESS AND
SOURCE FROM LESS EFFICIENT
PRODUCERS WE GET THESE.
DEAD WEIGHT LOSSES -- THAT
THAT'S WHAT WE CALL THESE
EFFICIENCY LOSSES IN PUBLIC
FINANCE THOSE COULD BE TWO TO
THREE TIMES JUST THE COST OF THE
TAXES THEMSELVES.
SO THE COST FOR THE AVERAGE
HOUSEHOLD IF YOU FACTOR THOSE IN
COULD BE QUITE ENORMOUS -- IN
TERMS OF JOBS SO CHINA IS THE
DESTINATION FOR NEARLY 10% OF
CALIFORNIA'S EXPORTS -- THERE
ARE MORE THAN FIFTY THREE
THOUSAND JOBS AND TWENTY FIVE
HUNDRED BUSINESSES LOCATED IN
CALIFORNIA.
THAT MAY BE PARTICULARLY
VULNERABLE TO RETALIATORY
TARIFFS BY CHINA DUE TO THE FACT
THAT CHINA IS THE DESTINATION
FOR MORE THAN 20% OF THEIR
INDUSTRIES EXPORTS TO THE WORLD
SO CHINA'S A MAJOR EXPORT MARKET
FOR THEIR INDUSTRIES -- TO IT
SOON SO THAT'S ONE REASON WHY
SOME INDUSTRIES MAYBE VULNERABLE
BECAUSE CHINA'S A MAJOR MARKET.
ANOTHER REASON WHY SOME
INDUSTRIES MAY BE MORE
VULNERABLE THAN OTHERS IS
BECAUSE CHINA'S RETALIATORY
TERRAFORMED THEIR GOODS IS
TWENTY OR 25% INSTEAD OF 0025%.
SO -- IF WE LOOK AT INDUSTRIES
THAT MIGHT BE PARTICULARLY
VULNERABLE FOR ONE OF THESE
REASONS -- THEY INCLUDE -- WOOD
PRODUCTS A LOGGING AND TIMBER --
AGRICULTURE AS PROFESSOR SUMNER --
EXPLAINED IN X. JUST BEAUTIFUL
DETAIL -- FISH AND MARINE
PRODUCTS OIL AND GAS MINING AND
QUARYING INDUSTRIAL MACHINERY
AND MOTOR VEHICLE RELATED
MANUFACTURING COSMETICS AND SKIN
CARE AND WINE AND SPIRITS AS IS
IN YOUR BACKGROUND REPORT -- THE
BALANCE OF JOBS CREATED IN
INDUSTRIES THAT ARE PROTECTED BY
THE TERRACE BECAUSE SOME
INDUSTRIES ACTUALLY ARE
PROTECTED BY THE TERRACE AND
BECAUSE THEY'RE ABLE TO RAISE
THEIR PRICES UNDER THIS
PROTECTION FROM.
COMPETITORS IN CHINA OR
ELSEWHERE DEPENDING ON THE
TARIFF IN PLACE THEY CAN
SOMETIMES EXPAND -- EMPLOYMENT
BUT THE BALANCE OF JOBS CREATED
IN THESE PROTECTED INDUSTRIES
VERSES JOBS LOST IN CONTRACTING
INDUSTRIES TENDS TO BE --
NEGATIVE IN THE ESTIMATES THAT
I'VE SEEN SO FAR I HAVEN'T SEEN
ESTIMATES IN PARTICULAR FOR
CALIFORNIA YET BUT FOR THE
COUNTRY AS A WHOLE NATIONALLY --
I'VE SEEN ANYWHERE FROM A
HUNDRED AND FIFTY FIVE THOUSAND
TO NINE HUNDRED THOUSAND JOBS AS
A NET LOSS SO BILL NET LOSS OF
UNDER 552-900-1000 -- JOBS JUST
FOR THE CURRENT TERRACE SO NOT
FOR THE TERRACE OF THEIR
EXPANDED -- TO MORE PRODUCTS.
TERMS OF GDP THE TERRORISTS ARE
LIKELY TO SHRINK THE SIZE OF THE
US ECONOMY AND BE A HEAD WIND
FOR U. S. GDP GROWTH.
THE NONPARTISAN TAX FOUNDATION
ESTIMATES THE CURRENT TERRACE
WILL SHRINK THE OVERALL SIZE OF
THE US ECONOMY OF WHICH AS YOU
KNOW CALIFORNIA IS A HUGE PART.
BY FIFTY BILLION DOLLARS.
THE FEDERAL RESERVE BANK OF NEW
YORK LIBERTY STREET BLOG
PUBLISHED ESTIMATES BASED ON ONE
OF THE BEST THEY JUST TOP
QUALITY ACADEMIC STUDIES ON THE
TOPIC -- SUGGESTING THAT
TERRORISTS COULD SHRINK THE SIZE
OF THE US ECONOMY BY NINETY FIVE
BILLION DOLLARS THESE ARE ONLY
THE TERRACE IN PLACE RIGHT NOW.
AND THE VAST MAJORITY OF THAT
NINETY FIVE BILLION DOLLARS
ACTUALLY CAME FROM EFFICIENCY
DISTORTIONS JUST FROM THIS LAST
ROUND OF THE INCREASED TARIFFS
ON THE CHINESE GOODS.
THAT -- THE TANK GOVERNOR COULD
NOT GUESS MENTIONED ON THE TWO
HUNDRED BILLION DOLLARS WORTH OF
CHINESE IMPORTS FOR RAISING THE
TERROR FROM 10225% JUST THAT.
KNOCKED ON KNOCKED UP THIS
ESTIMATE OF THE HIT TO THE US
ECONOMY BY -- ALMOST EIGHTY
BILLION DOLLARS.
AT CHINA ACCOUNTS FOR ONE THIRD
OF GLOBAL GROWTH.
AND THIS IS -- AND CHINA IS ALSO
AN IMPORTANT SOURCE OF DEMANDS
FOR A LOT OF DEVELOPING
COUTRIES COMMODITY EXPORTING
COUNTRIES.
SO ANY SLOWING IN CHINA'S
ECONOMY COULD GENERATE HAD WINS
FOR U. S. G. D. P. GROWTH
THROUGH ITS AFFECT ON GLOBAL
GROWTH AND OUR EXPORT MARKETS
ELSEWHERE [inaudible]
THANK YOU.
DOCTOR US THANK YOU I WANT TO
INTRODUCE A CELL NUMBER BOERNER
HORVATH YOU JUST JOINEDUS THANK
YOU FOR COMING AND IN YOU JUST
TOUCHED UPON SOMETHING THAT A
LOT OF PEOPLE ARE CONCERNED
ABOUT THERE'S BEEN A LOT OF DATA.
COMING OUT -- DATA IS INDICATIVE
OF A OF A NEAR TERM RECESSION SO
THAT'S NOT TOO FAR AWAY AND
YOU'RE TALKING ABOUT NUMBERS
THAT SHRINK JOBS AND SHRINK OUR
OVERALL ECONOMY.
ALL OF THAT SEEMS TO HASTEN A AT
ANY ECONOMIC DOWNTURN THAT WOULD
BE RECESSIONARY CAN YOU TALK A
LITTLE BIT MORE ABOUT KIND OF
HOW QUICKLY THOSE NUMBERS COULD
BECOME REALITY.
OR ARE THEY PROJECTED HOW HOW
SOON WOULD WILL WE FEEL THAT.
IT'S HARD TO ESTIMATE EXACTLY
WHAT THE TIMING OF THESE
CONTRACTIONS WOULD BE IN PART
BECAUSE OF THE TIMING ISSUE THAT
LIEUTENANT GOVERNOR CARACAS AND
PROFESSOR SUMNER MENTIONED.
BECAUSE OF THE UNCERTAINTY SOME
OF THE CONTRACTION IS ALREADY
HAPPENING IN TERMS OF DAMPENING
INVESTMENT -- I I CAN TELL YOU
THAT -- EVEN YESTERDAY MAJOR
FORECASTERS IN THE PRIVATE
SECTOR WERE COMING OUT KNOCKING
HALF PERCENT OFF OF THEIR
PREDICTIONS FOR U. S. GROWTH
SHOULD THAT TERROR FOR CONTINUE
OR WORSEN.
OUT WE'VE ALSO SEEN DOWNWARD
REVISIONS IN FORECASTED GROWTH
FOR THE GLOBAL ECONOMY BY THE I
AM MATH.
SO.
I I BELIEVE THAT WE'RE ALREADY
SEEING SOME DRAG IT'S HARD TO
SEE IT BECAUSE PROFESSOR SUMNER
WAS TALKING ABOUT THE COUNTER
FACTUAL WITH -- PISTACHIO PRICES
RIGHT SO WE'VE BEEN IN A
RECOVERY FOR I MEAN WE'VE BEEN
IN RECOVERY -- FOR BASICALLY TEN
YEARS NOW AND SO WE'VE BEEN ON
THIS UPSWING AND SO IT'S IT'S
HARD FOR PEOPLE TO SEE THE HEAD
WINDS THAT ARE KIND OF DAMPENING.
BUT THE GROWTH THAT WE MIGHT SEE
WITHOUT THE UNCERTAINTY AND THE
DISTORTIONS OF TARIFFS.
ARE HAVING THEIR IMPACT ON THE
ECONOMY.
I DO AT OTHER MEMBERS HAVE ANY
QUESTIONS AT THIS POINT BACK TO
THE ISSUE AROUND -- FARMWORKERS
BOTH AS WORKERS BUT THEN ALSO ON
THE IMPACT ON THE ECONOMY IT
SEEMS LIKE THERE'S A THE DOUBLE
WHAMMY RIGHT NOW YOU HAVE TO
TERRACE IN ADDITION.
TO THE CHAOS AT THE BORDER WHERE.
AND AND EVERYTHING I'VE HEARD IS
THAT YOUR BAG COMMITTEE IS ABOUT
THE PROBLEM OF BEING ABLE TO
FIND ENOUGH LABOR RIGHT NOW --
TO CAN YOU COMMENT ON THE THOSE
TWO THINGS COMING TOGETHER AT
THE SAME TIME.
THERE'S CERTAINLY NO QUESTION
THAT DOG GROWERS HAVE A HARD
TIME FINDING WORKERS -- BUT
DURING CERTAIN TIMES OF THE YEAR
WHEN THEY'RE CERTAIN TASKS AND
END.
UP WHAT I WANT TO EMPHASIZE IS --
A FARMWORKERS A TYPICALLY HAVE A
HARD TIME PUTTING TOGETHER MORE
THAN A HUNDRED AND FORTY HUNDRED
FIFTY DAYS A YEAR OF WORK EVEN
IF THEY'RE WORKING FULL TIME
FIFTEEN HUNDRED HOURS IS.
IS IT BECAUSE OF WINS ONE
FARMERS HIRING AN AREA
EVERYBODY'S HIRING IN THAT AREA
AND THEN YOU FEEL THE SHORTAGE
OF WORKERS IN AT THAT TIME.
EVERYBODY CAN WORK.
AND IT BUT IT'S IT'S ON THE
EDGES OF THAT WHEN THE
FARMWORKERS ARE SCRAMBLING
TRYING TRYING TO GET JOBS.
AND SO THESE THINGS CAN EXIST AT
THE SAME TIME IT CAN BE
CERTAINLY THE CASE THAT -- HERE
HERE AND WINTERS CALIFORNIA
THERE CERTAIN TIMES WHEN THE THE
GROWERS ARE SAYING GEE I WISH I
COULD FIND MORE WORKERS.
A MONTH LATER THE WORKERS ARE
SAYING I WISH I COULD FIND A JOB
AND THAT'S THE SEASONAL NATURE
OF AGRICULTURE SO -- I THINK OF
BOTH OF THOSE THINGS ARE GOING
ON WE DON'T KNOW THAT HIRED FARM
WORKER WAGES HAVE BEEN GOING UP
GRADUALLY IN CALIFORNIA FOR A
WHILE.
AND THAT SOMETHING THAT'S
POSITIVE AND AND I THINK FOR
WORKERS IN GROWERS FRANKLY EVERY
DRAWER I'VE EVER TALKED TO SAID
I WISH I COULD PAY HIGHER WAGES
I WOULD LIKE TO PAY HIGHER WAGES.
BUT THE MARKET REALITIES MAKE
THAT HARD.
IN HAVING THESE KIND OF TERROR
OF SIN PLACE THE DAMPEN PRICES
MAKE IT THAT MUCH HARDER ON THE
GROWERS.
AND UP SO SO I THINK IT'S IT'S
IT'S TROUBLESOME THAT THESE ALL
THESE ISSUES ARE THERE AT THE
SAME TIME BUT I THINK WHAT I
LIKE TO DO IS ALWAYS HIGHLIGHT
YOU KNOW BECAUSE PEOPLE.
CAN SAY ALL.
SEE WE CAN TALK ABOUT BILLIONS
OF DOLLARS OF HERE AND I DON'T
KNOW WHAT A BILLION TIMES CLOSE
IS FRANKLY I I CAN'T PICTURE IT.
BUT IF SOMEBODY TELLS ME HERE'S
A FAMILY THAT LOST HER JOB.
A EVEN I CAN FIGURE OUT WHAT
THAT MEANS IT IT AND WHEN I WAS
I FOUND IT COMPELLING A FEW
MONTHS AGO WHEN ONE OF THE WINE
GROWERS DOWN IN THE LODI AREA
WAS SAYING.
THEY WERE PLANNING A NEW VENUE
THEY WERE REPLACING A VINEYARD
AND THEY THEY YOU STILL POST
WHEN THEY PLANT VINEYARDS.
IN THIS PARTICULAR VINEYARD --
UP BETWEEN THE TIME THEY PLANTED
TO WHEN THEY WERE GETTING READY
TO DO IT THE TERRACE CAME ON FOR
STEEL ALUMINUM.
THE BILL THEY WERE GOING TO GET
FROM THE STEEL GUY WAS FIFTY
THOUSAND DOLLARS HIGHER WHERE I
KNOW WHAT FIFTY THOUSAND DOLLARS
LOOKS LIKE I MEAN I KNOW WHAT A
BILLION LOOKS LIKE YOU KNOW WHAT.
FIFTY SO HERE'S JUST A GUY IN A
JUST A FAMILY AND THEY CHOSE NOT
TO DO IT THEY SAID WELL MAYBE
NEXT YEAR.
WELL THERE WERE SOME WORKERS THE
RATE TO GO.
UP AND THEY COULDN'T DO IT
BECAUSE OF THAT CASE IT WAS THE
COST OF IMPORTS AND I REALLY
LIKE THE FACT THAT THE WE WE
THINK ABOUT THIS POST AS THE
IMPORTS.
TAXES THAT'S WHAT TERRACE ARE
THE TAXES ON IMPORTS.
ARE HURTING OUR ECONOMY.
AND THE LACK OF EXPORT ACCESS
HURTING OUR ECONOMY IT'S BOTH
WAYS TRADE IS ACTUALLY.
GOOD FOR THE ECONOMY AND
PROFESSOR RUSS -- DID A VERY
GOOD JOB OF HIGHLIGHTING THESE
LOSSES AND WE COLUMN DEAD WEIGHT
BECAUSE THEY'RE LIKE DRAGGING A
DEAD WEIGHT FOR THE ECONOMY.
AND I THINK THAT'S SOMETHING TO
KEEP IN MIND.
SO WE'VE GOT -- SUBSIDIES THAT
REALLY BOOST MIDWEST GROWERS.
REALLY MISSES OUT ON CALIFORNIA
GROWERS BUT NOTHING ON THE HIT
TO CONSUMERS MORE BROADLY.
THE LOWER INCOME.
CONSUMERS OF COURSE THE WORST
FIVE HUNDRED DOLLARS ON A FIFTY
THOUSAND DOLLAR THIRTY THOUSAND
DOLLAR INCOME IS A WHOLE LOT OF
MONEY FOR PEOPLE -- ON A TWO
HUNDRED FIFTY THOUSAND DOLLAR
INCOME PERHAPS A LITTLE BIT LESS
PAINFUL -- WHAT WHAT WHAT WILL
THOSE IMPACTS BE LIKE WILL
PEOPLE BE ABLE?
TO ON ON THOSE KIND OF LARGER.
ACCURATE DATA.
SAMPLES BE ABLE TO ABSORB FIVE
HUNDRED DOLLARS OR WILL THIS
DRAG PEOPLE FURTHER DOWN --
ECONOMICALLY PEOPLE WHO PROBABLY
HAVE LESS THAN FIVE HUNDRED
DOLLARS IN SAVINGS IN THEIR BANK
ACCOUNT CAN'T HAVE ANY ECONOMIC
EMERGENCY.
IN IN THEIR LIVES WITHOUT --
PERHAPS LOSING A CAR -- BECAUSE
THEY CAN MAKE A CAR PAYMENT OR
NOT BEING ABLE TO MAKE RENT --
OR SOME OTHER VERY HARD CHOICE
WHAT ON CAN YOU SPEAK TO THAT AT
ALL.
THERE'S AN INTERESTING STATISTIC
PUT OUT -- IT JUST CAME IT JUST
CAME OUT TWO WEEKS AGO I THINK
IT'S A FAD STATISTIC A SURVEY OF
HOW MANY HOUSEHOLDS WOULD HAVE
DIFFICULTY ABSORBING A SURPRISE
FOUR HUNDRED DOLLAR COST.
AND IT'S NOT A SMALL FRACTION OF
THE POPULATION ON THE EXACT
NUMBERS ESCAPING ME RIGHT NOW
BUT I THINK IT WAS ABOUT A THIRD
OF HOUSEHOLDS WOULD HAVE
DIFFICULTY -- COVERING A
SURPRISE FOUR HUNDRED DOLLAR
COST.
THE FIVE HUNDRED DOLLARS IT
APPLIES TO A HOUSEHOLD MAKING
ABOUT SIXTY THOUSAND DOLLARS A
YEAR SO IT'S GRADUATED ACROSS SO
IF YOU SPEND MORE -- INCOME THEN
YOU'RE GONNA HAVE HIGHER COSTS
ASSOCIATED WITH THIS OF THE
RICHEST HOUSEHOLDS MAY HAVE YOUR
FIFTEEN HUNDRED TO TWO THOUSAND
DOLLARS -- IN THESE EXTRA HIDDEN
TAXES THAT THEY'LL BE PAYING THE
REASON WHY WE SAY IT'S
REGRESSIVE NONE THE LESS IT
FALLS MORE HEAVILY ON LOWER
INCOME HOUSEHOLDS NONETHELESS.
IS BECAUSE AS A FRACTION OF
INCOME THESE HOUSEHOLDS SPEND
MORE SO THEY SPEND MORE ON
CONSUMPTION THEY HAVE LESS TO
PUT AWAY IN SAVINGS.
AND BECAUSE OF THAT JUST LIKE
ANY SALES TAX IT'S REGRESSIVE.
SO THAT'S WHY IT FALLS MORE
HEAVILY ON PEOPLE THAT HAVE TO
SPEND A HIGHER FRACTION OF THEIR
INCOME.
ANY FURTHER QUESTIONS COLLEAGUES
MISTER SHOP I COULD FOLLOW UP ON
THAT POINT A FIVE HUNDRED
DOLLARS -- PER HOUSEHOLD.
CONSUMER I PRESUME MOST OF THE
ITEMS BEING CONSIDER OUR
CONSISTED OF A CONSUMER ITEMS --
INSTEAD OF LET'S SAY ELECTRONIC
PARTS OR OTHERWISE WILL IS THAT
NOT CORREC.
SUE -- ACTUALLY THESE ARE BASED
ON STUDY SO. TO THE BOTTOM THE
BOTTOM -- OF THE RANGE THAT I
GAVE YOU THREE HUNDRED EIGHT
HUNDRED THAT'S JUST A SIMPLE
OKAY OUR GOODS FROM CHINA ARE
ABOUT 2% OF CONSUMPTION AND
INCREASE THE COST OF THOSE BY
25% AND YOU END UP WITH THREE
HUNDRED DOLLARS RIGHT SO THAT'S
REALLY BACK OF THE ENVELOPE IF
YOU.
ONLY LOOK STRICTLY AT FINAL
GOODS.
THESE OTHER STUDIES -- THE MORE
IN DEPTH ONES NOT BACK OF THE
ENVELOPE HAVE ACTUALLY TRACED
ALSO THE TAXES ON IMPORTED
IMPORTS FROM CHINA SO FACTORS
THAT FIRMS IN THE U. S. USING
PRODUCTION OF FINAL GOODS THAT
EVENTUALLY ARE PURCHASED BY U.
S. CONSUMERS.
AND THEN WHEN YOU DO THAT YOU
SEE THAT ACTUALLY THE COSTS OF
TERROR OF SIR ARE PROBABLY QUITE
A BIT HIGHER THAN THREE HUNDRED
DOLLARS -- FOR THE AVERAGE
HOUSEHOLD.
ALRIGHT SO WITHOUT ANY FURTHER
QUESTIONS I WANT TO SAY THANK
YOU TO BOTH OF YOU FOR PROVIDING
SOME INSIGHT ON HOW THESE
TERRACE FOR AFFECTING CALIFORNIA
ECONOMICALLY.
RIGHT NEXT I WOULD LIKE TO
WELCOME TO THE NEXT PANEL MATT
DAVIS A DIRECTOR OF GOVERNMENTAL
AFFAIRS FOR THE PORT OF OAKLAND.
RACHEL MICHELIN THE PRESIDENT OF
CALIFORNIA RETAILERS.
COURTNEY JENSEN THE EXECUTIVE
DIRECTOR OF TECH NOW.
I DON'T THINK WE HAVE ENOUGH
CHAIRS FOR EVERYBODY SO JUST
TAKE THESE FOR AND THEN WILL
SAVE -- I DON'T KNOW IF THAT'S
WHAT YOU KNOW WHAT CORDY WOULD
YOU MIND MISTER ANSWERED IF WE
SAVE YOU FOR THE NEXT ONE TO
HAVE A THREE AND THREE THAT
MAKES SENSE I THINK ANIMAL.
WE'LL FIGURE OUT HOW TO DO THE
Q. AND A ON ALL OF THOSE THE
LOAD I DIDN'T YOU ST CENTURY
SOMEONE ELSE YOU JUMPED IN THERE
EARLIER BUT WILL TAKE YOU -- WE
GOT DAVE WHO WE HAD EXECUTIVE
VICE PRESIDENT OF WESTERN
GROWERS ASSOCIATION SO WILL SAVE
THE PAST -- FOR AFTER YOU DAVE.
THE OTHER TWO WERE ARE FANTASTIC
NO YOU'RE ALL GREAT REALLY WANT
TO SAY THANK YOU. FOR JOINING US
ON THIS THESE ARE REALLY
DIFFICULT ISSUES THERE AFFECTING
YOUR MEMBERS IN VERY SERIOUS
WAYS AND YOU ARE LEADERS OF
EXTRAORDINARILY IMPORTANT --
TRADE ASSOCIATION OUR MEMBER
ASSOCIATIONS THAT REPRESENT
GROUPS IMPACTED BY THIS TRADE SO
I WANT TO SAY THANK YOU FOR THAT
IT WILL GO AS I BEGAN TO DO THE
INSTRUCTIONS WITH THAT MISTER
MISTER DAVIS FROM THE PORT OF
OAKLAND THANK YOU.
THANK YOU TO THE CHAIRS AND THE
MEMBERS OF THE COMMITTEE MY NAME
IS MATT DAVIS AND AS YOU SAID
I'M THE DIRECTOR OF GOVERNMENT
AFFAIRS THE PORT OF OAKLAND --
I'M HERE ON BEHALF ACTUALLY ON
THE ON BEHALF OF THE CALIFORNIA
SITUATION FOR THE FORTIES WHICH
COMPRISES THE ELEVEN PUBLIC PORT
COMMERCIALS -- COMMERCIAL PORTS
HERE IN THE STATE IF YOU'VE
HEARD INTERNATIONAL TRADE IS A
CRITICAL COMPONENT OF OUR
STATE'S ECONOMY.
AND OUR PORTS ARE VITAL PARTNERS
IN FACILITATING GROWTH IN THE
SECTOR.
CALIFORNIA'S HOME TO THE MOST
PRODUCTIVE SYSTEM OF PORTS THE
NATION INCLUDING THREE OF
AMERICA'S LARGEST CONTAINER
PORTS AND A VERSUS SOME OF
SPECIALTY PORTS THAT TOGETHER
HANDLE NEARLY 40%.
OF ALL THE CONTAINERIZED CARGO
THAT ENTERS THE US AND ALMOST A
THIRD OF THE NATION'S EXPORTS.
FOR ANYONE INVOLVED IN THE
BUSINESS OF INTERNATIONAL TRADE
AND INVOLVED IN MAKING PLANS FOR
LONG TERM CAPITAL INVESTMENTS.
THESE LAST TWO YEARS HAVE BEEN
VERY CHALLENGING TO SAY THE
LEAST INCLUDING ALL OF OUR
PARTNERS THAT SHIP GOODS TO OUR
PORTS.
THE TERRACE INITIATED BY -- THE
U. S. IN THE RETALIATORY ACTIONS
BY CHINA AND OTHER TRADING
PARTNERS HAVE EXPOSED A
SIGNIFICANT AMOUNT OF CARGO TO
HIGHER COSTS AND THREATEN THEIR
COMPETITIVENESS.
THE PORT OF LOS ANGELES FOR
EXAMPLE RELIES ON CHINA FOR
ABOUT 60% OF ITS TOTAL TRADE
VOLUMES IN OAKLAND.
IN WHERE WE WE HAVE A RELATIVE
FIFTY FIFTY BALANCE OF IMPORT
AND EXPORT TRADE CHINA STILL
REPRESENTS OVER A THIRD OF THE
GOOD TO MOVE THERE ARE PORTS
INCLUDING MANY ACT GOODS.
THE CURRENT TERRACE THAT HAVE
BEEN INITIATED BY THE U. S.
ALONE OF EXPOSED APPROXIMATELY
20%.
OF CONTAINERIZED CARGO IMPORTED
THROUGH OUR PORTS WHICH HAS OVER
SIXTY THREE BILLION DOLLARS IN
TRADE VALUE.
THE NEXT ROUND OF TARIFFS
THREATEN NEARLY IN THAT THE
ENTIRE TRADE LANDSCAPE WITH
CHINA.
IN TERMS OF DIRECT IMPACTS TO
CARGO FLOWS THE SHORT TERM
IMPACT OF THE TRADE WARS.
IRONICALLY BEEN A GROWTH IN
CONTAINERIZED IMPORTS FROM CHINA.
IN THE FOURTH QUARTER OF TWENTY
EIGHTEEN IN THE FIRST QUARTER OF
THIS YEAR CARGO VOLUMES
CONTAINERIZED CARGO VOLUMES
ACTUALLY GREW.
AS SHIPPERS HAVE ATTEMPTED TO
FRONT LOAD THEIR INVENTORIES TO
AVOID THE THEN PENDING
IMPOSITION OF TARIFFS.
THIS IS NOT A TREND THAT IS LONG
TERM AND SHORT TERM IN NATURE
AND IT'S NOT THIS IS A NOBLE
TYPE OF GROWTH THE VIEW THAT WE
ACTUALLY WELCOME.
WHERE HOUSING CENTERS ARE
STARTING TO TO FILL TO THE MAX
AND WE'VE HEARD THAT THERE'S
LESS THAN A 1% -- VACANCY RATES
IN MANY OF THE WAREHOUSING
CENTERS AND THE ST PETER AREA.
IN SOME CASES -- THE SURGEON
IMPORT TRADE IS ALSO BECAUSE
CONGESTION AT PORT FACILITIES
AMONG THE SUPPLY CHAIN.
AND ITS RIPPLE THROUGH AND HAD
IMPACTS WORSHIPPERS AND GROWERS
ARE NOT ABLE TO GET THEIR GOODS
TO OR FROM THE PORTS IN TIME.
ON THE OUTBOUND SIDE -- WE'VE
SEEN EXPORT TOTALS CONTINUE TO
SUFFER DUE TO THE COUNTERVAILING
DUTIES IN THE TERRACE --
COLLECTIVELY CALIFORNIA PORT
SIDE DECREASE OF BETWEEN 2230%
IN OUR TOTALS THAT WE'VE SENT TO
CHINA A GROWTH AN EMPTY BOXES
WHICH WE'VE ACTUALLY SEEN A
SPIKE IS NOT A WAY TO HELP OUR
ECONOMY.
YOU'LL HEAR FROM THE PARTNERS
ARE SUPPLY CHAIN ABOUT SPECIFIC
IMPACTS OF THE SECTORS BUT THE
NEGATIVE LONG TERM IMPACTS THESE
TERRACE ON AG PRODUCTS
MANUFACTURED GOODS HOUSEHOLD
ITEMS AND RETAIL IS REAL.
AND TO THE EXTENT AS YOU ALSO
HEARD FROM FROM OUR FIND --
ECONOMIST SPOKE EARLIER TO THE
EXTENT THE OTHER COUNTRIES ARE
STEPPING IN TO PROVIDE THESE
GOODS TO CHINA INSTEAD OF OUR
GROWERS IN OUR MANUFACTURES --
MEANS THAT WE'RE LOSING OUT ON
IN A LONG TERM ACCESS TO THE
LARGEST CONSUMER MARKET SURELY
ONE OF THE LARGE CONSUMER
MARKETS IN THE WORLD.
SO THE LONG TERM POTENTIAL
REDUCTION TRADE VOLUME HAS A
CORRESPONDING A DIRECT IMPACT ON
THE HEALTH OF THE ENTIRE GOODS
MOVING TO CONNIE.
INCLUDING OUR ABILITY TO
CAPITALIZE ON OUR FUTURE
SUSTAINABLE GROWTH INNOVATIONS
IN LEADERSHIP WHICH WITH WHICH
WE CERTAINLY DEMONSTRATED FOR
MANY YEARS.
THAT WE CAN THAT WE CAN BE -- AN
EXAMPLE OF A GREAT THINGS
HAPPENING HERE IN THE STATE.
AND SO WHILE THE STATE MAY NOT
BE ABLE TO DIRECTLY AND DO THESE
FEDERAL LEVEL WE WOULD CERTAINLY
ASK THE CONTINUED
COMPETITIVENESS OF THE
INTERNATIONAL GOODS MMHM SECTOR
BE CONSIDERED EVEN MORE STRONGLY.
AND WHAT OF THE HEAD WINDS I
APPRECIATE THE OPPORTUNITY AND
HAPPY ANSWERING QUESTIONS.
MISTER DAVIS THANK YOU VERY MUCH
MS MICHELIN PLEASE THANK YOU
GOOD AFTERNOON MEMBERS I'M
RACHEL MICHELIN.
AND THE PRESIDENT OF THE
CALIFORNIA RETAILERS ASSOCIATION
I'M OUR MISSION IS TO PRESERVE
AND ENHANCE THE RETAIL INDUSTRY
IN CALIFORNIA WE PROTECT THE
INDUSTRY BY TAKING A SIGNIFICANT
LEADERSHIP POSITION.
AND THE DEVELOPMENT OF PUBLIC
POLICY AND REGULATORY MEASURES
THAT IMPACT OUR MEMBERS IN THE
BUSINESS CLIMATE IN THE STATE.
THE CALIFORNIA RETAIL INDUSTRY
CURRENTLY OPERATES IN OVER FOUR
HUNDRED THOUSAND RETAIL
ESTABLISHMENTS WITH THE GROSS
DOMESTIC PRODUCT OF THREE
HUNDRED AND THIRTY BILLION
ANNUALLY.
AND EMPLOYS MORE THAN THREE
POINT TWO MILLION PEOPLE IN
CALIFORNIA ONE FOURTH OF
CALIFORNIA'S TOTAL AND
EMPLOYMENT WE ARE THE ONLY
STATEWIDE ASSOCIATION
REPRESENTING ALL SEGMENTS OF THE
RETAIL INDUSTRY INCLUDING
GENERAL MERCHANDISE DEPARTMENT
STORES MASS MERCHANDISERS
RESTAURANTS CONVENIENCE STORES.
SUPERMARKETS AND GROCERY STORES
CHAIN DRAG AND SPECIALLY RETAIL
SUCH AS AUTO VISION JURY
HARDWARE AND HOME STORES.
YOU CAN IMAGINE THIS ATTACK THIS
GREATLY.
AND THE STATE VISITORS A DAY
SITE REGARDING THE TIME
CALIFORNIA SHOWS THAT THE RETAIL
INDUSTRY AS THE DRIVING FORCE OF
OUR ECONOMY.
WHETHER A NATIONAL BRAND OR
LOCAL STORE FRANK RETAILERS
ACROSS CALIFORNIA SUPPORT A
ROBUST ECONOMY WITH A STRONG
WORK FORCE IN THE FIFTH LARGEST
ECONOMY IN THE WORLD.
JERRY IS COMMITTED TO
STABILIZING AND STRENGTHENING
THE ECONOMIC ENVIRONMENT TO
BOLSTER EXISTING EMPLOYERS
ATTRACT NEW ONES AND MOST
IMPORTANTLY TO PROTECT OUR
CUSTOMERS.
I'M HONORED TO BE INCLUDED TODAY
ABOUT THIS THE IMPACT OF THE
TRADE DISPUTE.
AND ESPECIALLY HOW IT'S GOING TO
PERTAIN TO OUR RETAIL INDUSTRY.
FIRST OF ALL LET'S REMEMBER
TARIFFS OR TAXES RIGHT THEY'RE
PAID BY CALIFORNIA'S FAMILIES
BUSINESSES WORKERS AND
COMMUNITIES.
TODAY CALIFORNIA TAXPAYERS HAVE
PAID THREE POINT SIX BILLION
DOLLARS IN ADDITIONAL TERRACE
THAT INCLUDES THREE HUNDRED AND
THIRTY NINE MILLION IN MARCH
ALONE.
SINCE THE TRADE WORDS BEGAN%
CALIFORNIA EXPORTS FACED ONE
POINT ONE BILLION DOLLARS IN NEW
RETALIATORY TERRACE FROM OUR
TRADING PARTNERS.
INCLUDING A HUNDRED AND SEVENTY
MILLION IN JANUARY.
THESE TERRACE MAKE CALIFORNIA
LESS COMPETITIVE.
ABOUT SOME LARGE RETAIL BRANDS
HAVE BEEN ABLE TO ABSORB
INCREASED COST AND NOT PASS THEM
ON TO CONSUMERS.
THAT IS NOT THE CASE WITH THIS
ROUND OF TERROR OF NEGOTIATIONS
WELL WE AGREE WITH THE NEED TO
ADDRESS LONG STANDING ISSUES
WITH CHINA'S UNFAIR TRADE
PRACTICES.
AND WANT TO SEE A MEANINGFUL
TRADE DEAL THAT LEVELS THE
PLAYING FIELD FOR CALIFORNIA
BUSINESSES AND WORKERS.
DOUBLING DOWN ON A STRATEGY
BASED SOLELY ON TERRACE IS TOO
GREAT A GAMBLE FOR THE US
ECONOMY CALIFORNIA.
AND CONSUMERS ACROSS THE STATE.
WE NEED TO REMEMBER WHAT IS AT
STAKE WHEN TERRACE ARE PUT INTO
PLACE.
CALIFORNIA'S BUSINESSES AND
CONSUMERS.
WITH LIMITED RESOURCES SMALLER
RETAILERS BASED A DIS
APPROPRIATE CARE OF BURDEN WE
KNOW SMALL BUSINESSES ARE
ALREADY HURTING FROM THIS TRADE
WAR AND CAN AFFORD MORE
TERRORISTS.
IN THESE SMALL BIZ THESE SMALL
BUSINESS OWNERS CAN NO LONGER BE
COMPETITIVE IN CALIFORNIA'S
ECONOMY WE COULD SEE THEM
SHUTTING THEIR DOORS AND LAYING
OFF EMPLOYEES.
THIS COULD NEVER NEGATIVELY
IMPACT THE COMMUNITIES THEY
SERVE AND COULD HAVE A MAJOR
IMPACT IN OUR WORLD AND
UNDERSERVED COMMUNITIES.
AND HAVE A DETRIMENTAL EFFECT ON
CALIFORNIA'S ECONOMY.
WHEN THE TERRACE WHERE THE 10%
LEVEL SOME RETAILERS ADOPTED
STRATEGIES TO LESSEN THE BURDEN
ON CONSUMERS WHILE HOPING THE
INCREASED COSTS WOULD ONLY BE
SHORT TERM SHORT SHORT TERM?
HOWEVER MANY SMALL RETAILERS
WITH LIMITED RESOURCES COULD NOT
ABSORB THOSE TERRORISTS CAM ARE
FORCED TO INCREASE THE COST.
THOSE COSTS ARE NOW PAID BY THE
CALIFORNIA CONSUMER.
MY TERRACE ABOUT25% WE TAYLOR'S
WILL HAVE A HARDER TIME
MITIGATING THE IMPACT AND
CONSUMERS WILL START TO SEE MORE
NOTICEABLE PRICE INCREASES.
ESPECIALLY IN LIGHT OF THE
ADMINISTRATION'S THREAT TO
TARGET ALL CHINESE IMPORTS.
IF THOSE THREATS BECOME REALITY
CONSUMERS WILL SEE PRICES RISE
FURTHER IN A RANGE OF PRODUCTS
INCLUDING FURNITURE LUGGAGE.
BICYCLES AUTO PARTS APPLIANCES
SPORTING GOODS AND MORE.
WE TELL OFFER WITH WE OPERATE IN
A VERY COMPETITIVE MARKET.
AND SOME COMPANIES MAY DEAL WITH
THE ADDED COSTS IN OTHER WAYS IN
ORDER TO STAY COMPETITIVE ON
PRICING. FOR EXAMPLE.
THE TERRORISTS COULD DISCOURAGE
CALIFORNIA INVESTMENTS RELATING
TO STORES DISTRIBUTION CENTERS
EMPLOYMENT DECISIONS TECHNOLOGY
AND E. COMMERCE.
ALL OF THESE WILL IMPACT WORKERS
CONSUMERS AND CALIFORNIA'S
ECONOMY IN A NEGATIVE WAY.
NOT ONLY COULD CALIFORNIA C.
INCREASE PRICES ARE GOODS WE
NEED A CALIFORNIANS ARE AT RISK
OF LOSING RETAIL JOBS.
AND THAT'S REMEMBER.
RETAIL ACCOUNTS FOR ONE FOURTH
OF CALIFORNIA'S JOB FORCE.
SELECT MY LET ME BE CLEAR BY
MORE THAN DOUBLING THE TERRACE
THIS WILL DISCOURAGE INVESTMENT
IN CALIFORNIA RESULTING IN LOST
JOBS IN HIGHER PRICES.
HIGHER PRICES THE CALIFORNIA
CONSUMERS WILL HAVE TO PAY.
RETAILERS LIVING FREE B THE
INVENTORY CYCLES WHETHER IT'S A
LARGE NATIONAL CHAIN OR YOUR
SMALL MAKE YOUR YOUR SMALL
MAINSTREET RETAILER PRICE
INCREASES ULTIMATELY DEPENDS ON
WHAT THEY HAVE IN STOCK NOW.
AND WHAT STOCK WILL BE SUBJECT
TO THESE TARIFFS.
RETAILERS MAKE PRODUCTION.
N. SOURCING DECISION MONTHS AND
YEARS IN ADVANCE AND REPLY I'M
VERY COMPLEX SUPPLY CHAINS.
THEY CANNOT EASILY OR QUICKLY
SHIFTED TO DOMESTIC SOURCES
BECAUSE THOSE SOURCES TO NOT
EXIST ON A SCALE THAT THEY NEED.
EVEN IF THERE IS AN EVENTUAL
SWITCH TO ONLY SOURCES FROM US
SUPPLIERS IT WOULD TAKE YEARS TO
BUILD UP THAT BASE OF SUPPORT.
THE INCREASE TERRACE WELL HIGH
PRICES FOR ITEMS CALIFORNIA
CONSUMERS NEED.
I LATEST ROUND OF TERRACE COULD
BRING THE ANNUAL COST OF THE
TYPICAL HOUSEHOLD TO EIGHT
HUNDRED AND THIRTY ONE DOLLARS.
PRODUCTS LIKE SO MANICURE ITEMS
AND YOUR TO READ ARE ON THE LIST
OF GOODS AFFECTED BY THE TERRACE
AND WILL COST MORE.
MILLIONS OF CALIFORNIANS WILL
STICK WITH THEIR OLD WASHING
MACHINE TELEVISION COMPUTER
MONITOR THEY WILL REFRAIN FROM
BUYING NEW CLOTHES AND FURNITURE.
CALIFORNIA FAMILIES RUN FIXED
INCOMES COULD BE GREATLY
IMPACTED AS WE SEEK ROB LET
PROJECT BROUGHT THAT TO HAVE
GROWTH DECLINE.
LAYOFFS TAKE PLACE AND PRICES
INCREASE FOR NEEDED GOODS ACROSS
THE STATE.
AS RETAILERS ARE HIT WITH HIGHER
TARIFFS THAT THEY CAN NO LONGER
ABSORB.
AS THERE IS UNCERTAINTY IN THE
MARKET PLACE MAKING IT HARDER
FOR RETAILERS TO MAKE LONG RANGE
SUPPLY PLANS PRICES WILL
INCREASE AND THE FINAL PURCHASES
OF GOODS OR PURCHASE LESS.
BECAUSE THE GOODS COST MORE.
SALES DECLINES EVENTUALLY LEAD
TO UNEMPLOYMENT CUTS AND
EMPLOYMENT CUTS RESULT IN LOWER
CONSUMER SPENDING.
ON A RANGE OF GOODS AND SERVICES.
SO CONSUMERS INSTEAD OF BUYING
THAT NEW CAR THE FAMILY'S GOING
TO BUY A USED CAR.
FAMILIES WILL GO OUT TO DINNER
LESS UNEMPLOYED WORKERS WILL CUT
EVEN MORE DISCRETIONARY
PURCHASES.
HEALTHCARE EXPENSES WILL BE
POSTPONED.
EACH OF THESE DECISIONS WILL
HAVE EMPLOYMENT IMPACTS ON THE
CALIFORNIA WORKER THE RETAIL
INDUSTRY AND OUR ECONOMY.
SERIES SUPPORTS THE EFFORT TO
ACHIEVE A MEANINGFUL TRADE
AGREEMENT WITH CHINA AND WE'RE
HOPEFUL THESE NEGOTIATIONS GET
BACK ON TRACK.
BOTH SIDES HAVE MADE IMPORTANT
PROGRESS TO ADDRESS THE
LONGSTANDING ISSUES REGARDING
TRADE BUT WHAT CONCERNS US IS
THAT **** FOR TAT TERRACE WILL
UNDERMINE ANY PROGRESS AND LEAD
TO A PROLONGED TRADE WAR THAT
WILL DAMAGE CALIFORNIA'S ECONOMY.
WE KNOW FROM HISTORY THAT ONCE
TERRACE ARE IMPOSED THEY DON'T
USUALLY COME OFF.
AMERICAN CONSUMERS ARE STILL
PAYING TERRACE THAT WERE PUT IN
PLACE DURING THE GREAT
DEPRESSION.
THE THREAT OF TERROR OF SOME
CHINESE IMPORTS IS TOO GREAT A
GAMBLE FOR ABOUT THE US ECONOMY
AND FOR CALIFORNIA.
THIS LEVEL OF ESCALATION WILL
WHILE OUR FINANCIAL MARKETS
DESTROY JOBS RAISE PRICES FOR
CALIFORNIA FAMILIES AND
ULTIMATELY UNDERMINE THE
ECONOMIC GAMES WE HAVE SEEN IN
RECENT YEARS.
SO WHAT DO RETAILERS WANT TO SEE.
WE WOULD LIKE THE FULL IMMEDIATE
REMOVAL OF TERRORISTS ANY DEAL
MUST RESULT IN A COMPLETE WILL
BACK OF IS IT A BIT SIXTEEN AND
RETALIATORY TARIFFS WE WENT
MEANING FOR FORMS TO LEVEL THE
PLAYING FIELD FOR CALIFORNIA
WORKERS IN BUSINESS AND ADDRESS
LONG STANDING UNFAIR TRADE
PRACTICES THAT.
INNOVATION AT RISK.
WE WANT TO AVOID ANY ENFORCEMENT
MECHANISM THAT WOULD TRIGGER
MORE TERRACE AND RESULT IN LONG
TERM UNCERTAINTY.
WELL WHAT CAN YEARS CALIFORNIA
LAWMAKERS DO.
CALIFORNIA'S ECONOMY COULD SEE
VERY NEGATIVE IMPACTS OF THE
TERROR OF WORK CONTINUES.
WE ASK STATE LAWMAKERS. TO LOOK
AT THE REGULATIONS PLACED ON
RETAILERS AND UNDERSTAND THAT
WHILE SOME REGULATION BY WELL
INTENDED.
BURDENS RETAILERS WITH MORE
COSTS THAT ARE COMPOUNDED BY THE
PROPOSED TARIFFS BY LOOKING FOR
WAYS TO LASSEN REGULATION ON
CALIFORNIA'S RETAIL INDUSTRY.
RETAILERS CAN LOOK AT WAYS TO
NOT PASS ADDITIONAL COSTS ON TO
CONSUMERS DUE TO THESE TERRACE.
AND THEY CAN PROTECT
CALIFORNIA'S JOBS CALIFORNIA'S
ECONOMY AND MOST IMPORTANTLY
CALIFORNIA'S CONSUMERS.
THE RETAIL ASSOCIATION AND
WELCOMES THE OPPORTUNITY TO WORK
WITH THE SELECT COMMITTEE AND
ANY OTHER INTERESTED PARTIES ON
STRATEGIES TO ADDRESS THE TERROR
OF SITUATION.
AND WAYS THAT WILL PROTECT
CALIFORNIA'S CONSUMERS WORKERS
AND THE RETAIL INDUSTRY WHICH
AGAIN ACCOUNTS FOR THREE HUNDRED
AND THIRTY BILLION DOLLARS
ANNUALLY AND EMPLOYS ONE FOURTH
OF CALIFORNIA'S TOTAL EMPLOYMENT.
THANK YOU.
THANK YOU VERY MUCH MS MICHELIN
AND WE DID -- ADD MS JENSEN --
TO TO THIS PANEL FOR SUBJECT
MATTER HARMONY -- WHICH I'M
GRATEFUL FOR PLEASE MISS JOHNSON
THANK YOU THANK YOU MISTER CHAIR
MADAM CHAIR AND MEMBERS -- THANK
YOU FOR THIS OPPORTUNITY TO
TESTIFY ON BEHALF OF TECHNICIAN
OR EIGHTY MEMBER COMPANIES
REGARDING THE IMPACT OF THE U.
S. TRYING TO TRADE WERE ON
CALIFORNIA'S ECONOMY. FOR THE
PAST YEAR THE US AND CHINA HAVE
BEEN ENGAGED IN A COSTLY TRADE
WAR FROM THE BEGINNING TECH NET
HAS STRONGLY OPPOSE THE TRUMP
ADMINISTRATION'S POLICY OF
SWEEPING TERRACE TO ACHIEVE ITS
GOAL OF COMPELLING CHINA TO
CHANGE ITS UNFAIR TRADE
PRACTICES.
CALIFORNIA IS THE WORLD'S FIFTH
LARGEST ECONOMY A MAJOR REASON
FOR THAT SUCCESS IS THAT WE ARE
HOME TO THE WORLD'S PREEMINENT
TECHNOLOGY INDUSTRY.
WHICH HELPS DEVELOP LIFE
ENHANCING INNOVATIONS THAT THE
REST OF THE WORLD WANTS TO BY.
SELLING TO MORE MARKETS AND
CONCERTS CUSTOMERS ABROAD DRIVES
ECONOMIC GROWTH AND JOB CREATION
IN THE U. S. TECH SECTOR IN FACT
US TECH EXPORTS SUPPORTED AN
ESTIMATED EIGHT HUNDRED FIFTY
EIGHT THOUSAND AMERICAN JOBS AND
SEVENTEEN CALIFORNIA BENEFITS
THE MOST FROM THIS.
TECH IS THE NUMBER ONE GOOD OUR
STATE EXPORTS LAST YEAR ALONE WE
EXPORTED TO TWO HUNDRED AND
THIRTY FOREIGN MARKETS MEXICO
WAS FIRST CAñADA WAS SECOND AND
CHINA WAS THIRD.
HOWEVER THE TERRACE INCREASE THE
COST OF MAKING OUR PRODUCTS OFF
INCREASING THE PRICE TAG HIGHER
PRICES MAKE THEM MORE EXPENSIVE
AND HARDER TO SELL ABROAD.
COMPETITION ABROAD IS FIERCE BUT
WE ARE CONFIDENT THAT THE US
TECH SECTOR LED BY CALIFORNIA'S
MOST INNOVATIVE COMPANIES CAN
COMPETE WITH ANYONE ON A FAIR
AND LEVEL PLAYING FIELD.
HOWEVER FAIR AND LEVEL IS NOT
WHAT WE HAVE WHEN OUR FOREIGN
COMPETITORS DO NOT HAVE TO DEAL
WITH THESE TARIFFS AND CAN OFFER
CAN SEE CAN CUSTOMERS PRODUCTS
SIMILAR TO OURS AT A LOWER PRICE.
TERRACE OUR TAXES THAT HEARD
AMERICANS CONSUMERS WORKERS AND
BUSINESSES OF ALL SIZES.
THEY SLOW THE GROWTH OF THE US
ECONOMIC OUTPUT AND WE CAN
DEMAND FOR AMERICAN PRODUCTS AT
HOME AND ABROAD.
IN FACT ONE STUDY SHOWS THAT
TERRACE WILL SLOW US ECONOMIC
OUTPUT BY THREE HUNDRED AND
TWENTY TWO BILLION DOLLARS OVER
THE NEXT DECADE.
OVER THE PAST YEAR CHINA TERRACE
HAVE LEAD TO HIGHER PRICES FOR
CONSUMERS ON A WIDE RANGE OF
PRODUCTS THAT THEY HAVE COME TO
RELY ON THEY HAVE DISRUPTED.
DISRUPTED SUPPLY CHAIN AND
THREATENS LONG TERM PROJECTS
SUCH AS DATA CENTERS AND THEY
HAVE SHIFTED CAPITAL AWAY FROM
LONG TERM INVESTMENTS IN THE
NEXT WAVE OF INNOVATION THROUGH
OUR INDIE EFFORTS.
WE WANT TO STATE CLEARLY FOR THE
RECORD THAT WE BELIEVE CHINA
MUST BE HELD ACCOUNTABLE FOR ITS
UNFAIR TRADE PRACTICES INCLUDING
INTELLECTUAL PROPERTY THEFT
FORCED TO TECHNOLOGY TRANSFERS
CYBERATTACKS AND CYBER ESPIONAGE.
WE SHARE THE ADMINISTRATION'S
GOAL SECURING LASTING AND
ENFORCEABLE CHANGES FROM THE
CHINESE GOVERNMENT THAT WILL
PROTECT AMERICAN INNOVATORS AND
THEIR IDEAS.
ALLOW US COMPANIES A CHANCE TO
COMPETE ON A MORE LEVEL PLAYING
FIELD AND IMPROVE MARKET ACCESS.
TERRACE HOWEVER ARE NOT THE
SOLUTION INSTEAD OF PURSUING
TERRORISTS ON OUR ALLIES AND
TRADING PARTNERS AROUND THE
WORLD THE US SHOULD BE WORKING
WITH OUR ALLIES TO PRESSURE
CHINA TO CHANGE ITS TRADE
PRACTICES.
VIRTUALLY NO PRODUCT IN US CHINA
COMMERCE HAS BEEN LEFT UNTOUCHED
BY THE TERRORISTS THIS INCLUDES
POPULAR CONSUMER PRODUCTS THAT
AMERICANS HAVE COME TO RELY ON
EACH DAY.
LIKE SMARTPHONES CONNECTED
DEVICES AND COMPUTERS CALIFORNIA
BASED COMPANIES LEAD THE WORLD
IN THE MOBILE PHONE A PHONE AND
CONNECTED DEVICE INDUSTRY IS ONE
COMPANIES IN THIS SPACE COMPETE
IT DRIVES DOWN PRICES FOR U. S.
CONSUMERS INCLUDING LOWER INCOME
AMERICANS WHO CAN.
WHO CAN INCREASINGLY GAIN ACCESS
TO CUTTING EDGE MOBILE DEVICES
JUST AS IMPORTANT THESE PRODUCTS
HAVE BECOME FOUNDATIONAL
TECHNOLOGIES AND CRITICAL
PRODUCT PRODUCTIVITY TOOLS FOR A
WIDE RANGE OF TRADITIONAL
INDUSTRIES INCLUDING AGRICULTURE?
MANUFACTURING HEALTHCARE AND
OTHER KEY PARTS OF OUR ECONOMY.
BUT PUTTING TERRACE ON U. S.
MOBILE PHONES AND OTHER
CONNECTED DEVICES GIVES OUR
COMPETITIVE COMPETITORS INTO
KOREA CHINA AND ELSEWHERE A LAKE
UP RAISING PRICES FOR U. S..
DEVICES WHILE MAKING IT HARDER
FOR COMPANIES ACROSS ALL SECTORS
OF OUR ECONOMY TO LEVERAGE THESE
INNOVATIVE TECHNOLOGIES.
THIS HURT SOMEONE LIVING ON A
FIXED INCOME AS MUCH AS IT HURTS
HARMS THE FARMER IN CENTRAL
VALLEY LOOKING FOR A NEW MOBILE
TOOLS TO PREVENT CROP DAMAGE AND
IMPROVE YIELDS.
NETWORKING PRODUCTS THAT
COMPRISE THE MODERN DAY
INFRASTRUCTURE CONNECTING US ALL
OF BEEN HIT HARD INCLUDING
MODEMS ROUTERS AND SWITCHES
OPTICAL AND FIBER OPTIC
TRANSCEIVERS NETWORK INTERFACE
CARDS ADAPTERS AND MODULES
ACCESS POINTS REMOTE ACCESS
POINTS AND ANTENNAS AND BEGINS.
AT A MOMENT WE ARE WHEN WE ARE
ENGAGED IN A GLOBAL FIVE G. RACE
THE TERRORISTS ARE HITTING THE
NETWORKING PRODUCTS THAT ARE
NEEDED FOR FIVE JEEZ
INFRASTRUCTURE.
TERRACE ALSO HAVE A NEGATIVE
IMPACT ON SMALL BUSINESSES THAT
USE ONLINE PLATFORMS TO SELL
AROUND THE WORLD.
TERRACE INCREASE THE COST OF
THEIR INVENTORY AND RETALIATORY
TERRACE HURT THEIR ABILITY TO
SELL GLOBALLY.
TERRACE ON THESE AND MANY OTHER
TRIBES OF PRODUCTS DO NOT JUST
HER AT THE TECH SECTOR BECAUSE
THESE ITEMS ARE ESSENTIAL AND
ARE INCREASINGLY CONNECTED WORLD.
THESE TERRACE HURT ALL SECTORS
AND BUSINESSES OF ALL SIZES.
I AM PROUD TO BE HERE TODAY WITH
MEMBERS OF CALIFORNIA'S
AGRICULTURAL COMMUNITY.
IN RECENT YEARS TECH THAT HAS
WORKED WITH ELECTED OFFICIALS
AND STAKEHOLDERS AND CENTRAL
VALLEY TO IDENTIFY WAYS THE
TECHNIQUE TECH SECTOR CAN BE A
MORE EFFECTIVE PARTNER.
IT IS CLEAR THAT AMERICA'S
FARMERS ARE AMONG THE MOST
NEGATIVELY IMPACTED BY THE
TERROR FOR BETWEEN THE US AND
CHINA.
THEIR PRESENCE HERE TODAY
REMINDS US THAT THE TERRACE ON
TECHNOLOGY ALSO HARM OTHER
SECTORS OF THE US ECONOMY THAT
RELY ON INNOVATIVE TECHNOLOGY IS
TO RUN THEIR BUSINESSESMORE
FACT EFFICIENTLY.
THE TRUMP ADMINISTRATION SHOULD
UNDERSTAND THAT IN ADDITION TO
THE CROPS BEING TARGETED HIGHER
TARIFFS ON TECHNOLOGY PRODUCTS
THAT FARMERS INCREASINGLY USED
TO MANAGE WATER DETECTIVES EASES
AND MAKE BETTER DECISIONS ARE
HURTING THEM AS WELL.
THIS INCLUDES ROBOTS SENSORS
CAMERAS FUEL CELLS AND
SPECIALIZED BATTERIES AS WELL AS
CLOUD COMPUTING AN ARTIFICIAL
INTELLIGENCE APPLICATIONS.
IN ADDITION TO FARMS OUR
PRODUCTS ARE BEING USED EACH AND
EVERY DAY TO ENHANCE
COMMUNICATION EFFICIENCY HE AND
PRODUCTIVITY AND OFFICES
FACTORIES SCHOOLS HOSPITALS
AIRPORTS AND ACROSS ALL STATE
GOVERNMENT ENTITIES.
THESE TERRORISTS ARE TAXES ON
ALL OF THEM.
AND SO LAST YEAR TECH MEN --
SPECIFICALLY ON DATA CENTER
TERRACE LAST YEAR TECH THAT
HIGHLIGHTED THE SPECIFIC HARM
CAUSED BY TERRACE ON SERVERS
TRANSMISSION DEVICES AND OTHER
KEY COMPUTING.
COMPONENTS THAT MAKE UP THE
DIGITAL INFRASTRUCTURE NEEDED TO
BUILD AND OPERATE DATA CENTERS
DATA CENTERS ARE THE LIFE BLOOD
OF AN INCREASINGLY DATA DRIVEN
ECONOMY AND CAN BE FOUND IN
EVERY STATE. ONE STUDY SHOWS
THAT ONCE OPERATIONAL THE
AVERAGE DATACENTER ACTUALLY
GENERATES THIRTY TWO POINT FIVE
MILLION DOLLARS WORTH OF LOCAL
ECONOMIC ACTIVITY EACH YEAR AND
DURING THE CONSTRUCTION PHASE
EACH DATACENTER GENERATES NEARLY
TEN MILLION DOLLARS IN REVENUE
FOR STATE AND LOCAL GOVERNMENTS
WHILE EMPLOYING AN AVERAGE OF
ONE THOUSAND SIX HUNDRED EIGHTY
EIGHT WORKERS.
TERRACE ON ESSENTIAL DATACENTER
COMPONENTS SUCH AS TRIPS SERVERS
AND TRANSMISSION DEVICES
THREATENED TO STALL THIS ENGINE
OF ECONOMIC GROWTH THEY DISRUPT
SUPPLY CHAINS INCREASE COSTS
THROUGH TO FACTOR TAXES AND
INJECT UNCERTAINTY INTO BUSINESS
OPERATIONS AND LOCAL ECONOMIES.
THAT HOST DATA CENTERS DATA
CENTERS ARE COMPLICATED SUPPLY
CHAIN PROJECTS THAT RELY ON
ABSOLUTE CERTAINTY OF RECEIVING
KEY COMPONENTS AND A TIMELY AND
COST EFFECTIVE WAY.
IF CRITICAL PIECES CONTINUE TO
BE HELD UP FOR DELIVERY AT A
LATER DATE WITH HIGHER MORE
UNPREDICTABLE COSTS COMPANIES
WOULD BE INCENTIVIZE TO MAKE
INVESTMENTS AND CREATE JOBS IN
OTHER COUNTRIES WHERE SUCH
NEEDLESS AND CERTAINTY DOES NOT
EXIST.
IN ESSENCE THESE TERRORISTS NOT
ONLY HURT THE AMERICAN TAX
SECTOR THE ADMINISTRATION IS
WORKING TO PROTECT.
BUT THEY ALSO HEARD MANY MORE
WORKERS AT CROSS VARIOUS SECTORS
WHO OPERATIONS RELY ON CLOUD
COMPUTING AND DATA MANAGEMENT
TOOLS.
AND THEN JUST BRIEFLY ON R. AND
D. AS SO RESEARCH AND
DEVELOPMENT IS THE LIFEBLOOD OF
INNOVATION SOME OF TECH MATS
MEMBER COMPANIES SPEND BILLIONS
OF DOLLARS EACH YEAR AND ARE
INDEED DEVELOPING NEW PRODUCTS
AND ENHANCE EXISTING ONES.
OVERALL THE U. S. CURRENTLY AS
THE GLOBAL LEADING LEADER AND
ARE IN DE SPENDING INVESTING
MORE THAN FIVE DOLLARS AN R. AND
D. FOR EVERY ONE DOLLAR SPENT BY
CHINESE COMPANIES.
HOWEVER THESE TERRORISTS ARE
TAXES AND ONE TAXES ON THE
PRIVATE SECTOR GO UP IT MEANS
OPERATING COSTS GO UP AND TOUGH
DECISIONS HAVE TO BE MADE ABOUT
COMPETING PRIORITIES. ONE OF THE
CONSEQUENCES OF THIS IS STAINED
TRADE WAR AS HAVING LESS MONEY
TO INVEST IN OUR ANDY.
SALAS AND DONE THE IMPACT OF
TERRORISTS ON OUR INDIE
INVESTMENTS MAYBE MAY MAYBE THE
MOST DAMAGING CONSEQUENCE OF ALL.
WE DO NOT KNOW WHAT KINDS OF
TECHNOLOGICAL OUT BREAK THROUGHS
WELL SEED ARE WE WILL SEE TO OUR
INTERNATIONAL COMPETITORS BY
FORFEITING INVESTMENTS IN THE
NEXT WAVE OF INNOVATION --
MEMBERS ALTHOUGH THE FOCUS OF
TODAY'S HEARING IS ON THE
TERRACE POLICIES IN CHINA WE
WOULD BE REMISS IF WE DID NOT
ALSO HIGHLIGHT THE DEEP CONCERNS
AND STRONG OPPOSITION WE HAVE TO
THE TRUMP ADMINISTRATION'S NEWLY
PROPOSED TARIFFS ON MEXICO WHICH
WERE ANNOUNCED LAST THURSDAY.
MEXICO IS OUR NEIGHBOR OUR
TRADING PARTNER AND OUR ALLY THE
CALIFORNIA MEXICAN ECONOMIES
HAVE BEEN LINKED FOR CENTURIES
AND GENERATED ENORMOUS ECONOMIC
OPPORTUNITY FOR BOTH SIDES OF
THE BORDER FOR BOTH OF OUR
POPULATIONS.
IN FACT MEXICO'S CALIFORNIA'S
NUMBER ONE TRADING PARTNER THE
VALUE OF CALIFORNIA'S EXPORTS TO
MEXICO HAS RISEN MORE THAN 20%
OVER FOUR YEARS TO THIRTY POINT
SEVEN BILLION DOLLARS IN.
TWENTY EIGHTEEN TECHNET OPPOSES
THESE TERRACE ON MEXICO AND WE
URGE THE TRUMP ADMINISTRATION TO
ABANDON THIS PLAN.
IN CONCLUSION THIS PROLONG TRADE
WAR IS HURTING AMERICAN
CONSUMERS WORKERS AND JOB
CREATORS ACROSS ALL SECTORS
CHINA MUST BE CONFRONTED ABOUT
IT'S UNFAIR TRADE PRACTICES BUT
HI TERRACE ON A 100% OF CHINESE
EXPORS IMPORTS WILL HAVE A
DEVASTATING IMPACT ON THE LONG
TERM HEALTH OF THE US ECONOMY.
AT THE END OF THIS MONTH
PRESIDENT TRUMP IS EXPECTED TO
MEET WITH THE CHINESE PRESIDENT
THE G. TWENTY SUMMIT WE ARE
HOPEFUL THAT THIS FACE TO FACE
MEETING BETWEEN THE LEADERS WILL.
LEAD TO A BREAKTHROUGH WE URGE
THEM TO LISTEN TO THE CONCERNS
FROM CALIFORNIA WHICH ARE BEING
SO WELL ARTICULATED HERE TODAY --
AND IN THE MEANTIME TECH MATT
AND OUR PARTNERS WILL CONTINUE
TO URGE BOTH CHINA AND THE U. S.
GOVERNMENT'S TO WORK STRENUOUSLY
TO RESOLVE THE SITUATION AND AND
THE TERRORISTS THANK YOU.
THANK YOU VERY MUCH -- THERE'S A
LOT TO DIVE INTO WITH A WITH.
THE FIRST THREE MEMBERS OF OF
THE PANEL AND AND SO I WANT TO
JUST JUMP RIGHT IN PARTICULARLY
WITH THE IMPACT ON RETAILERS --
WHICH EVERYONE SEES THOSE
IMPACTS EVERYONE UP HERE -- BUT
WE'VE SEEN JUST BE INCREDIBLE
SHRINKING BRICK AND MORTAR
RETAILER -- WHETHER IT'S
STRICTLY APPAREL OR EVEN A
DEPARTMENT STORES THAT CARRY
MUCH MORE LIKE SEARS AND
PARTICULARLY IN DIFFERENT
QUALITY SEGMENTS.
AND AND SO WITH CHINA -- AND AND
IT'S IT'S ONE HAS A GROWING
MIDDLE CLASS.
COSTS OF PRODUCING IN CHINA HAVE
GONE UP BUT AT THE SAME TIME
QUALITY HAS GONE UP WITH
PRODUCTS FROM CHINA AS WELL.
WILL WE SEE A THOSE RETAILERS
THAT BY LESSER QUALITY LOWER
COST GOODS FROM REGIONS THE
WORLD THAT PAY LESS -- WE SEE
MORE OF THOSE PRODUCTS IN THE
UNITED STATES.
OR WILL OR OR WILL WE JUST SEE A
LOT OF THESE COMPANIES YOU KNOW
CONTINUE TO STRUGGLE ALONG
WITHOUT SHIFTING WHERE
MANUFACTURING TAKES PLACE.
I THINK IT DEPENDS ON THE ON WHO
THE RETAILER IS I THINK SOME OF
THAT MAY BE THE LARGER NATIONAL
BRANDS WILL BE ABLE TO GO A
LITTLE BIT LONGER AND ABSORB
SOME OF THAT THE INCREASED COSTS.
ARE CONCERNED -- PARTICULARLY
SMALLER RETAILERS I MEAN THERE'S
A LOT OF THEM IN CALIFORNIA I
MEAN THERE'S A LET ME GO DOWN
THE OLD SAT THOSE ARE ALL SMALL
RETAILERS THAT ARE GONNA BE
NEGATIVELY IMPACTED BY THIS.
AND THEY'RE GONNA HAVE TO MAKE A
CHOICE EITHER THEY CAN STAY IN
BUSINESS BY MAYBE HAVING TO FIND
OTHER SOURCES THEY'RE CHEAPER
MAYBE NOT THE SAME QUALITY THAT
THEY WERE GETTING BEFORE OR
THEY'RE GOING TO HAVE TO CLOSE
DOWN AND NOT BE ABLE TO TO HAVE
THE BUSINESS ANYMORE.
SO I THINK AND IT DEPENDING ON
HOW LONG THESE TERRORISTS
CONTINUE.
YOU KNOW IT'S GOING TO HAPPEN TO
TO SOME OF THE LARGER AND LARGER
RETAILER CHAINS AS WELL I MEAN
THEY THEY RUN ON A VERY SMALL
PROFIT MARGIN.
THEY'RE VERY COMPETITIVE THEIR
COMPETITIVE AGAINST EACH OTHER
SO THEY'RE ALWAYS LOOKING FOR
WAYS TO BE COMPETITIVE WHEN IT
COMES TO PRICING.
AND THOSE ARE SOME OF THE
DECISIONS THAT THEY'RE GOING TO
BE FORCED TO MAKE.
THANK YOU SON RACHMAN.
YEAH GONNA ALONG THAT SEAM LINES
I CAN SEE A SCENARIO WHERE
LARGER RETAILERS MIGHT HAVE
THINGS OFF IN A WAREHOUSE
SOMEWHERE AND CAN WORK ON THEIR
SUPPLIERS A SMALLER.
RETAILER DOESN'T HAVE THAT THAT
FLEXIBILITY RIGHT SO THEY'RE BY
MORE -- AND SO AS WE'VE SEEN IN
THE AGRICULTURE COMMUNITY AS
SMALLER FARMS HAVE GONE AWAY AND
LARGE CORPORATE FARMS ABOUT THEM
UP WE CONTINUE TO SEE I THINK
THE THE LOSS OF THE SMALL AND
MID LEVEL FARMS -- UP RETAILERS
GOING MORE TOWARDS LARGE ONES OR
EVEN IN TWO TO ONLINE SHOPPING.
I THINK THAT'S THAT COULD
ABSOLUTELY HAPPEN AND THAT'S
THAT'S WHAT'S CONCERNING BECAUSE
WHEN YOU GO INTO THE SMALL TOWNS
IN CALIFORNIA HERE YOU GO DOWN
THE MAIN STREETS AND ON SOME OF
THESE OLD TOWNS IT'S THOSE
RETAILERS THAT ARE KIND OF WHERE
PEOPLE GO THEY GET THEIR GOSSIP
AND THE COMMUNITY.
THEY THAT THAT CONNECTS THE
COMMUNITY MEMBERS AND IF THOSE
RETAILERS CANNOT STAY
COMPETITIVE THEY'RE GOING TO GO
OUT OF BUSINESS I THINK YOU'RE
ABSOLUTELY RIGHT IN YOUR
COMMENTS SOME OF THE LARGER
RETAILERS DO YOU HAVE.
THE ABILITY TO HAVE IN TORY THAT
THEY CAN TAP INTO BUT ONLY FOR
SO LONG BUT PRETTY SOON EIGHTIES
COSTUME TO BE CONTINUED ON TO
THE CONSUMERS.
AND BE YES WE COULD ABSOLUTELY
SEE THAT AND I AND I THINK IT
WILL EVENTUALLY COULD AFFECT THE
LARGER RETAILERS WHEN YOU SEE
MORE YOU KNOW ONLINE ECOMMERCE.
WHICH YEAH WELL THAT'S GREAT
BENEFITS THEY'RE ALSO THEY'RE
ALSO THINGS THAT WE HAVE TO LOOK
OUT FOR WITHOUT IS CONCERNED SO
I THINK YOU'RE ABSOLUTELY
CORRECT IS THE FAX.
EACH TYPE OF RETAIL IN A
DIFFERENT WAY BUT I THINK EVEN
THOUGH A LOT OF OUR MEMBERS ARE
SUCH AS THE LARGER BRANDS.
THEY ARE VERY CONCERNED ABOUT
THIS PARTICULAR THE SMALL
BUSINESSES IN THE SMALL BUSINESS
OWNERS THAT MAYBE OF HOW THIS
RETAIL ESTABLISHMENT FOR YEARS
THAT WON'T BE ABLE TO COMPETE
ANYMORE.
WE JUST HAD A SMALL LITTLE
DRUGSTORE IN MY IN MY
NEIGHBORHOOD WHEN THE LAST OLD
NEIGHBORHOOD DRUGSTORES HUNDRED
YEARS IN BUSINESS JUST CLOSE
THEIR DOORS AND IT'S SAD I MEAN
IT'S ANY MORE IN THAT LOSS IN
YOUR COMMUNITY.
AND WE WANT TO MAKE SURE THAT
DOESN'T HAPPEN.
FURTHER ON THE RETAIL.
SEGMENT TONIGHT.
APPAREL IN PARTICULAR WHICH I'M
CONCERNED ABOUT BECAUSE THERE
ARE SEASONAL CHANGES YOU CAN'T
KEEP THE SAME GOODS.
AND YOU KNOW PEOPLE ARE GOING TO
WEAR THE SAME CLOTHES FROM
SEASON TO SEASON THEY HAVE TO
CHANGE -- AND OF COURSE STYLES
TO CHANGE AS WELL SO -- YOU KNOW
HOW.
HOW DO YOU THINK YOU FEEL THAT
THAT'S GOING TO REALLY IMPACT --
CONSUMER CHOICE -- IN WHAT WHAT
OPTIONS THAT THEY HAVE AND
WHETHER OR NOT RETAILERS ARE
GOING TO BE ABLE TO DEAL WITH
THAT TYPE OF CHANGE WHETHER OR
NOT THEY HAVE GARMENTS THAT CAN
GO FROM SEASON TO SEASON HAVE
YOU SEEN ANYONE.
ANY OF YOUR MEMBERS DEALING WITH
THAT NOW.
I'M NOT YET BY YOU KNOW THAT
GOES TO THE SUPPLY CHAIN THAT
GOES CAN THEY GET THEIR GOODS
INTO THE US HOW MUCH IS IT GOING
TO COST.
AND THAT ALSO IS GOING TO BE
IMPACTED BY WHAT CONSUMERS ARE
GOING TO BUY I MEAN IF THEY'RE
HAVING TO PAY MORE MONEY.
FOR THEIR FOOD OR FOR THE
ESSENTIAL ITEMS THAT THEY NEED
AND THOSE COSTS HAVE GONE AT
THEY'RE GOING TO HAVE LESS MONEY
TO SPEND ON SOME OF THOSE TYPES
OF THINGS THAT YOU'RE TALKING
ABOUT.
SO I THINK YOU HAVE TO LOOK AT
IT FROM THAT PERSPECTIVE AND BUT
I DO THINK THEY I MEAN RETAILERS
WILL LOOK AT HOW THEY CAN STAY
IN BUSINESS HOW CAN THEY WEATHER
THIS STORM.
AND PART OF IT MAY BE A REDUCED
INVENTORY BUT THEY WILL WANT TO
DO WHATEVER THEY CAN IN ORDER TO
STAY COMPETITIVE.
BUT YOU'RE RIGHT I MEAN IN PARTS
OF THE COUNTRY I MEAN WELL EVEN
HERE IN IN SACRAMENTO WE HAD IT
SEEMED LIKE A LONG WINTER AND
NOW WE'RE BACK.
TWO HUNDRED INCREASING COSTS ON
DEODORANT AND YOU KNOW I MEAN AN
EXIT MY HUSBAND AND I WERE
LOOKING AT A NEW REFRIGERATOR
AND I KIND OF WHAT WE SHOULD BUY
IT NOW BECAUSE IT'S GOING TO BE
CHEAPER NOW THAN IF WE WAIT A
COUPLE OF MONTHS AND I THINK.
THOSE ARE SOME DECISIONS THAT
CONSUMERS ARE GONNA HAVE TO MAKE
BUT THEN THE OTHER PIECE OF THIS
IS THAT AS RETAILERS ARE LOOKING
TO CUT COSTS THAT ALSO MEANS
CUTTING JOBS.
YOU KNOW ONCE YOU COULD HAVE
CALIFORNIANS WHO WHO WORK IN THE
RETAIL INDUSTRY.
NOT HAVING A JOB ANYMORE AND
THEN WHAT DOES THAT DO THAT ADDS
TO THE PROBLEM AND IT HAS A
BIGGER IMPACT IN SO WE REALLY
THINK THAT SEEING.
WE HOPE SOME POSITIVE IN ROADS
WITH THESE TARIFFS CALM BECAUSE
I DON'T THINK WE'VE REALLY
UNDERSTAND WHAT IMPACT IS TRULY
GOING TO HAVE.
UNLESS THEY CAN YOU KNOW
PROLONGS THE HIPS AND WINTER
COATS COMING WELL I DEFINITELY
WANT TO PASS OVER -- TO IT TO
YOU MISTER DAVIS BECAUSE MS
MICHELIN MENTIONED.
APPLIANCES REFRIGERATORS TALK
ABOUT STORAGE -- YOU KNOW WHAT'S
COMING OVER AND CARGO SHIPS IS
THERE A A SECTOR THAT YOUR SCENE --
OR DID SEE MORE OF THAT TYPE OF
SHIPMENT COMING IN TO GET IN
AHEAD OF THOSE TERRORISTS FOR
THAT TYPE OF BEHAVIOR NOT OCCUR.
I THINK THAT'S A GREAT QUESTION
UNFORTUNATELY I DON'T HAVE I
DON'T THINK WE HAVE ENOUGH
DISABILITY AT LEAST AT THE PORT
LEVEL THERE'S A LOT OF DIFFERENT
DIFFERENT METRICS THAT ARE USED --
YOU CAN MEASURE AND BE OF VALUE
VOLUME TONNAGE CONTAINERS SO I
THINK I'D REALLY SORT OF WANTED
TO FOR TO SOME OF THE INDIVIDUAL
SORT OF SECTORS DISORDER REALLY
DID YOU KNOW.
TELL US WHERE THEY'RE SAYING AND
I THINK FROM A AN OVERALL LEVEL
WE SAW JUST A MARKET SURGE AND
WE WERE HEARING AT LEAST FROM.
ON EVERY CONCEIVABLE TYPE OF
SECTOR WEATHER WAS BASIC
MANUFACTURING THE RETAIL
ENVIRONMENT FROM TACK JUST
PEOPLE TRYING TO FIGURE OUT
BECAUSE AGAIN AT THE PORT LEVEL
IT WAS.
STARTING TO MANIFEST ITSELF
THROUGH -- BOXES THAT WE WEREN'T
EXPECTING IN THE REGULAR CYCLE
THAT WERE COMING IN OFF SEASON --
SURE IN THE COMING IN SIX MONTHS
EARLY THAN WHAT WE WOULD HAVE
THOUGHT THAT NORMAL SO MICHAEL
WOULD LOOK LIKE AND SO THEY WERE
GETTING FOR IT BURIED IN A STACK
AND IT LED TO YOU KNOW.
LITERALLY HAVING TO TRIAGE EVERY
SENSE SINGLE CAR.
WHICH IS NOT HOW WE ONE
INTRODUCE OURSELVES TO THE
SHIPPING LINES IN ON THAT KIND
OF BIGGER PICTURE TRAFFIC ISSUE
ARE YOU SEEN CONTAINER SHIPS
COMING IN FROM DIFFERENT PORTS
ARE GOING OUT TO DIFFERENT PORTS
THEN THE CROSS SPECIFIC CHINA --
CALIFORNIA A TRADE I DON'T THINK
WE'VE SEEN ANY MAJOR DISRUPTIONS
IN THE ACTUAL STRINGS FOR THE
SHIPPING ROUTES I THINK WE'RE
OBVIOUSLY JUST SEEING --
DIFFERENT VOLUMES IN VARYING
LEVELS AGAIN LIKE WE'RE SEEING A
SURGEON IN EMPTY BOXES THAT ARE
NOW YOU KNOW.
MAKING A WAY BACK ACROSS THE
PACIFIC SO ON TAXES NOT ADDING A
LOT OF VALUE TO THE WORK THAT WE
DO WERE CERTAINLY TO OUR ECONOMY --
WE LIKE TO EE THOSE BOXES GO
BACK FULL OF GOODS BE EITHER
FROM A MANUFACTURED STANDPOINT
AG STANDPOINT.
SO -- NO STRINGS HAVE BEEN
IMPACTED THIS POINT WE DID
ACTUALLY SEE LAST YEAR THOUGH
AND BECAUSE OF THAT BACK UP -- A
COUPLE OF THE LINES THAT WOULD
NORMALLY SAY GO TO LIKE LOS
ANGELES AND THEN OAKLAND AND
THEN BACK TO ASIA THEY WOULD
JUST SKIP AROUND ENTIRELY
BECAUSE THEY WERE NEEDING TO
MAKE SURE THAT THEY WERE -- ON
SCHEDULE FOR THEIR NEXT FOR THE
NEXT APPOINTMENT.
WE DO A LABOR REPRESENTATIVE IN
THE NEXT PANEL DO YOU HAVE A
SENSE OF HOW THIS IS IMPACTING
JOBS WITH RELATED -- TO INCREASE
OR DECREASE OF TRAFFIC YEAH WILL
CERTAINLY FROM A PORT
PERSPECTIVE I THINK THAT THERE'S
ENOUGH BUSINESS TO GO AROUND SO
WE HAVEN'T SEEN TURN OF ANY.
YOU KNOW BACKUPS OF FOLKS NOT
BEING CALLED OUT TO THE
TERMINALS -- CERTAINLY AS IT
AFFECTS THE ECOSYSTEM --
THROUGHOUT THE ENTIRE SUPPLY
CHAIN I MEAN IN THE SHORT TERM
IT MAY BE HARD TO MEASURE IT
THIS WAY TO CONTINUE OVER THE
LONG TERM THAT'S AND OUT OF ALL
THAT.
THAT THIS IS GOING TO HAVE LONG
TERM IMPACTS TO OUR ECONOMY AND
CERTAINLY TO OUR WORK FORCE.
THE SERVER MISS JENSEN.
I THINK FROM A CONSUMER
PERSPECTIVE WE SEE UNDERSTAND
LIKE WAVES OF OF TRADE IF WE
THINK ABOUT IT THIS DEEPLY WHEN
THE NEW A CELLPHONE COMES OUT.
AND OKAY THERE'S A NEW GALAXY OR
THERE'S A NEW IPHONE -- THIS IS
GONNA BE CERTAIN SEASONS FOR
THIS IS GOING TO OCCUR AROUND
YOU KNOW CHRISTMAS TIME TYPE OF
SALES AS WELL FOR FOR BIG ITEMS --
AND SO YOU KNOW WE'RE WE'RE DOES
THAT PRESSURE POINT HIT SOME OF
YOUR MEMBERS THAT ARE DEALING
WITH THAT TYPE OF A TECHNOLOGY
YOU'RE LOOKING TO PUSH THEIR
TECHNOLOGY OUT.
ON THOSE NEW MODELS.
YEAH I THINK YOU KNOW WE'RE
STILL TRYING TO FIGURE OUT THE
SHORT TERM AND LONG TERM IMPACTS
I MEAN I THINK WE'RE ALL HOPING
THIS GETS DEALT WITH QUICK.
SO THAT WE DON'T HAVE THOSE
IMPACTS RIGHT -- THOSE YOU KNOW
VERY EXPENSIVE IMPACTS I THINK
THERE'S IMPACTS FROM A
INDIVIDUAL CONSUMER HOUSEHOLD
STANDPOINT AND THEN ALSO ON OUR
BUSINESSES RIGHT BECAUSE
TECHNOLOGY IS USED.
AS YOU KNOW I STATE MY COMMENTS
BUT IT TECHNOLOGIES USE FROM A
PERSONAL STANDPOINT YOUR
PERSONAL USE OF YOURSELF ON ALL
THOSE OTHER THINGS BUT
TECHNOLOGIES ALSO USED BY OUR
BUSINESSES IN ORDER TO CREATE
MORE JOBS IN CALIFORNIA TO DO
MORE EFFICIENCY.
AND SO I THINK THAT'S WHERE
WE'RE SEEING A LOT OF THE IMPACT
AND WE'VE BEEN SEEING THE
IMPACTS FROM TERRACE AND FROM
SORT OF THE UNFAIR TRADE
PRACTICES AND TO THOSE TYPES OF
DATA CENTERS TO THE LARGER
TECHNOLOGY -- PROJECTS THAT HAVE
BEEN GOING ON THAT BUSINESS TO
BUSINESS USAGE -- AND THEN WHEN
WE DRILL DOWN OF THIS TERROR FOR
CONTINUES LONG TERM WE'RE GONNA
SEE IMPACTS AND WE'RE GONNA SEE
COSTS GO UP FOR THE INDIVIDUAL
CONSUMER DO YOU SEE A SHIFT IN
WERE COMPONENTS ARE MANUFACTURED.
SORRY SAID DO YOU SEE A SHIFT
WORK COMPONENTS ARE MANUFACTURED.
IT'S ALWAYS AN OPTION RIGHT OF
WHERE IT'S MANUFACTURED IF IT
GETS TOO EXPENSIVE TO
MANUFACTURE THEM IN CALIFORNIA
YEAH I COULD SEE YOU KNOW
MANUFACTURING -- HAPPENED FOR
USING PARTS ARE MANUFACTURED IN
OTHER COUNTRIES OR MOVING DATA
CENTER MANUFACTURING TO OTHER
COUNTRIES I'M YOU KNOW PRODUCING
THOSE IN DIFFERENT COUNTRIES I
MEAN IT IF THOSE THIS LONG TERM
TRADE WORK GOES ON I THINK
BUSINESSES ARE REALLY GOING TO
HAVE TO FIGURE OUT.
SORT OF WHAT THEIR BREAKING
POINT IS I AM AND WHAT CONSUMERS
BREAKING POINT AS TO I MEAN IF
WE IF WE CONTINUE TO MANUFACTURE
HERE BUT WE PUT IT OUT ON THE
MARKET AND IT'S NOT AFFORDABLE
FOR THE AVERAGE CONSUMER.
AND THEN THAT'S NOT GOOD FOR
ANYBODY AND SO THERE'S GONNA BE
A BREAKING POINT AT SOME POINT.
MEMBERS ANY ANY OTHER QUESTIONS.
I WOULD SAY THANK YOU SO MUCH --
TO THE THREE OF YOU -- WE'VE GOT
ONE MISTER BLOOM THANK YOU
ACTUALLY WANT TO ADD ADD A
COMMENT -- WE WE TEND TO LOOK AT
THESE ISSUES ARE OUR OWN EYES
ITS THE YOU KNOW THE MOBILE
PHONE THAT -- WE MIGHT NOT BY OR
TO BE MORE EXPENSIVE FOR THE
REFRIGERATOR THE CLOTHING -- AT
AT THE STORE -- THE THESE ISSUES --
WILL HAVE A DRAMATIC IMPACT ON
THOSE WHO ARE LIVING IN DEEP
POVERTY -- AS WELL WE LEARNED
TODAY -- THAT THE A LEVEL OF
HOMELESSNESS AND LOSS AT THE
CITY OF LOS ANGELES IN LOS
ANGELES COUNTY OF INCREASED
FAIRLY DRAMATICALLY OVER THE
PAST YEAR -- FOR THOSE FOLKS WHO
ARE PAYING.
MORE THAN A 50%.
OF THEIR NET SPENDABLE INCOME ON
THEIR HOUSING COSTS THEY HAVE
THAT MUCH LESS TO PAY FOR THE
STAPLES THAT THEY MIGHT BY AT
THE LOCAL BODEGA OR RETAIL SHOP.
THOSE BRICK AND MORTAR SHOPS
THAT MIGHT NOW -- CLOSED DOWN
AND BE FURTHER AWAY SO IT'S A
LONGER DRIVE IT TAKES MORE GAS
IT TAKES TIME AWAY.
FROM WORK AND FAMILIES -- AND
AND THESE FOLKS ARE ALREADY
PAYING HIGHER PRICES BECAUSE THE
PLACES WHERE THEY SHOP TYPICALLY
ARE MORE EXPENSIE -- SO WHAT
MIGHT SEEM -- A DEFERRAL OF A
YOU KNOW A SOMETHING THAT I HAVE
A CHOICE OVER -- HAS A RIPPLE
EFFECT FOR THOSE WHO ARE LIVING
IN AND DEEP POVERTY THAT IS FAR
GREATER THAN WILL EVER IMPACT
ANY OF US.
IN OUR ONGOING LIVES AND I THINK
WE SHOULDN'T LOSE SIGHT OF THE
SAYS WERE HAVING THAT
CONVERSATION [inaudible]
THANK YOU.
THANK YOU MISTER BERMAN THINK
VERY MUCH PANELISTS.
NEXT I WOULD LIKE TO INTRODUCE
AND WELCOME UP ON OUR COMFORT
THE VICE PRESIDENT OF
INTERNATIONAL MARKETING OF THE
WINE INSTITUTE.
DAVE YEAH THE EXECUTIVE VICE
PRESIDENT OF WESTERN GROWERS
ASSOCIATION AND MICHAEL YOUNG
THE LEGISLATIVE ADVOCATE FOR THE
CALIFORNIA.
LABOR FEDERATION WELCOME TO THE
THREE OF YOU THANK YOU SO MUCH
FOR YOUR PATIENCE SO GLAD THAT
YOU'RE ALL HERE.
MS COMFORT IF YOU'D LIKE TO
BEGIN YES THANK YOU I'M ON OUR
COMFORT BUT THE ONE INSTITUTE ON
THE VICE PRESIDENT OF
INTERNATIONAL MARKETING.
THANK YOU SO MUCH FOR GIVING US
THE OPPORTUNITY TO JOIN YOU
TODAY AND TALK WITH YOU ABOUT
SOMETHING THAT IS HAVING A
DIRECT IMPACT ON OUR MEMBERS SO
FIRST A FEW WORDS ABOUT THE ONE
IS TO TO WE REPRESENTS -- OVER A
THOUSAND WINERIES WITHIN THE
STATE OF CALIFORNIA -- WHICH
REPRESENTS 80% OF CALIFORNIA'S
WINE PRODUCTION.
THE EXPORT ARM OF OUR BUSINESSES
SIGNIFICANTLY IMPORTANT PART --
OF THE WINE INDUSTRY AND U. S.
WINE EXPORT REACH JUST OVER ONE
POINT FIVE BILLION DOLLARS.
IN.
TWO THOUSAND EIGHTEEN AND WHEN
WE TALK ABOUT US WINE MORE THAN
95% OF THAT IS CALIFORNIA.
WE'RE REALLY TALKING ABOUT
CALIFORNIA.
THE TERROR OF SUN CHINA HAVE
BEEN A SIGNIFICANT DETERRENT. TO
GROWTH AND ONE OF OUR MOST
IMPORTANT MARKETS WELL CHINA
RANKS FIFTH IN TERMS OF OUR
TOTAL EXPORTS HAILS IT HAS BEEN
THE FASTEST GROWING MARKET FOR
CALIFORNIA WINE.
WE'VE BEEN EXPORTING INTO CHINA
FOR OVER TWENTY YEARS.
AND WE RECOGNIZE THAT DEVELOPING
EMERGING MARKETS DEVELOPING NEW
ROUTES TO MARKET FOR OUR WINDS
TAKES TIME.
WE RECOGNIZE THAT THERE ARE
FREQUENTLY BUMPS IN THE ROAD AND
HEAD WINDS AS WE DO THAT.
HOWEVER THAT INVESTMENT OF TIME
AND MONEY BY OUR MEMBERS TO
DEVELOP THE RELATIONSHIPS THAT
LEAD TO EFFECTIVE SALES OF
CALIFORNIA WINE IN THESE MARKETS.
IS HAS BEEN GREATLY HAMPERED.
BY WHAT WE'RE SEEING GOING ON IN
TRADE POLICY CURRENTLY.
CHINA -- IN TWO THOUSAND
EIGHTEEN REPRESENTED JUST OVER
SIXTY JUST.
UNDER SIXTY EIGHT MILLION
DOLLARS IN EXPORTS AND COMBINED
WITH HONG KONG ANOTHER A HUNDRED
AND THIRTY MILLION TO ALMOST TWO
HUNDRED MILLION DOLLARS IN
EXPORT.
AT THE END OF TWENTY EIGHTEEN WE
SAW THAT SALES GROWTH DECLINED
BY 25%.
WHEN WE LOOK AT THE FIRST
QUARTER OF TWO THOUSAND NINETEEN
OR SAYING THAT TRENDS CONTINUE
AT ALMOST DOUBLE? SEVEN DECLINE
ALMOST DOUBLE [inaudible]
SOBERING -- AND WHAT'S
SIGNIFICANT IN TERMS OF THAT
DECLINE IS THE PRIOR TO THAT WE
WERE SEEING CHINA AND HONG KONG
TOGETHER.
BEING ONE OF THE FASTEST GROWING
MARKETS THAT -- IN THE TIME THAT
WE'VE BEEN EXPORTING HAD GROWN
OVER FOUR HUNDRED AND 50%.
IN GROWTH OVER THE PAST DECADE
SO.
A COMPLETE REVERSAL -- AS WE'RE
GOING FORWARD AND I I JUST
TOUCHED ON THE VALUE OF THE
REVENUES OF EXPORT WINDS TO
CHINA AND HONG KONG.
AND THAT THAT GROWTH REPRESENTED
OVERALL -- THE LIEUTENANT
GOVERNOR DID AN EXCELLENT JOB OF
WALKING THROUGH THE EVOLUTION OF
TERRORISTS THAT WE'VE SEEN OVER
THE RECENT. TWO YEARS AND WHAT'S
INTERESTING IS COMPARING THAT IS
SHE TALKED ABOUT THE
ACCUMULATION OF TERROR FROM TAX
AGAINST GOODS WITHIN THE WINE
INDUSTRY ONE OF THE CHALLENGES
THAT WE OF COURSE ARE GOING HEAD
TO HEAD.
WITH COMPETITIVE WINE REGIONS.
OF COURSE OUR FRIENDS OVER IN
THE E. U. AUSTRALIA AND NEW
ZEALAND AT CETERA.
SOUTH AFRICA ABSOLUTELY AND SO
IN THIS ENVIRONMENT -- WE ARE WE
FIND OURSELVES PLAYING AND NOT
ON AN EVEN A LEVEL PLAYING FIELD --
THE COMBINATION OF TERROR OF SIN
TAXES -- THAT WE WERE DEALING
WITH -- HAS NOW IT WOULD
INCREASED UP TO A 93% ON TOP OF
THE THE PRICE OF GOODS ALMOST
DOUBLING THE COST OF CALIFORNIA
WINE.
INTO CHINA AND FOR OUR
COMPETITIVE REGION'S THOSE
REGIONS MANY OF THEM SO
AUSTRALIA CHILE AND NEW ZEALAND
IN PARTICULAR.
THEY HAVE ZERO TARIFF THERE
REALLY ONLY FACING -- TAX THAT
LEADS 223%.
WHEREAS FOR THE EUROPEAN UNION
THERE ARE A TOTAL OF FORTY EIGHT
POINT 6% SO WE ARE MORE THAN
DOUBLE EVEN OUR CLOSEST
COMPETITORS.
SIMULTANEOUSLY WE'RE DEALING
WITH AN ENVIRONMENT WHICH MANY
OF OUR COMPETITIVE REGIONS HAVE
SIGNIFICANT GOVERNMENT SUBSIDIES
SUPPORTING THEIR MARKETING
EFFORTS INTO THOSE MARKETS. FOR
EXAMPLE US WINE OPERATES AT JUST
3% OF WHAT THE E. U. RECEIVES
PARTICULARLY ITALY AND FRANCE
FOR SUPPORTING THEIR MARKETING
EFFORTS WHAT THAT MEANS IS THAT
RECEIVING TWO HUNDRED AND THIRTY
EIGHT MILLION DOLLARS ANNUALLY.
TO SUPPORT WINE EXPORT SALES
COMPARED TO THE SIX MILLION
DOLLARS THAT CALIFORNIA RECEIVES
FROM THE FEDERAL AGRICULTURE
SERVICE TO SUPPORT OUR SALES.
SO IN LIGHT OF THAT.
THE ADDITION OF THE TAX ENTIRE
SITUATION IS PARTICULARLY
CHALLENGING FOR US.
AND WHEN WE TALK ABOUT THE
IMPACTS OF HOW THIS AFFECTS THE
INDUSTRY IT DOESN'T CHEST FLOW.
TO THE WINERY OWNERS OR THE
WINERIES THEMSELVES AS IT WAS SO
INTERESTING TO SIT AND LISTEN TO
OUR COLLEAGUES -- IN THE FIRST
PANEL I'M LOOKING AT MY
COLLEAGUES ON THIS PANEL AND
THAT THE WINE INDUSTRY IS UNIQUE
IN THAT I SIT AND LINK ARMS AND
PARTNER WITH EACH OF THEIR
PARTNERS.
THE PORTS COURSE THE RETAILERS
TECHNOLOGY THE INVOLVEMENT OF
TECHNOLOGY IN THE WINE INDUSTRY
OF COURSE THE GROWERS AND LABOR.
ARE KEY FACTORS WITHIN THE WINE
INDUSTRY AND SO THE IMPACT OF
THESE TEARS FLOW ALL THE WAY
THROUGH THE WINE INDUSTRY
IMPACTING.
THE THE VINEYARD OWNERS AND THE
GROWERS -- AT THE WINERY WORKERS
THE SUPPLIERS THAT WE WORK WITH
IN TERMS OF GLASS CORK SHIPPING
LABEL PRODUCTION OF COURSE LABOR.
THE ECONOMIC IMPACT OF WINE AS A
VALUE ADDED PRODUCT FAR EXCEEDS.
JUST THE GROSS PRODUCTION OF
WHAT WE DO.
SO THESE IMPACTS ARE -- HAVE A
HAVE A BIGGER FOOT PRINT.
IT WITHIN THE MARKET AND HERE
WITH IN CALIFORNIA.
SIGNIFICANTLY THAT ALSO AS I
MENTIONED IT TAKES TIME TO
DEVELOP THESE MARKETS AS I
MENTIONED WE'VE BEEN WORKING FOR
OVER TWENTY YEARS TO CULTIVATE
OUR SALES INTO CHINA IT ALSO
TAKES TIME TO THEN REVERSE THE
IMPACTS OF THESE TERRORISTS.
IF THESE TERRORISTS WERE TO BE
REMOVED TOMORROW.
WHICH WOULD BE A BLESSING BUT WE
KNOW A LONG SHOT.
IT WOULD TAKE ANOTHER TEN PLUS
YEARS TO REGAIN THE PLACEMENT IN
THE SALES BACK INTO CHINA THE
REASON FOR THAT IS BECAUSE FIRST
AND FOREMOST.
IT'S BUILT ON RELATIONSHIPS
CULTIVATING RELATIONSHIPS WITH
THE IMPORTERS THE AGENTS AND THE
ACCOUNTS WHERE WE SELL OUR WINDS
ONCE THOSE RELATIONSHIPS ARE
DAMAGE THEY NEED TO BE REBUILT
ALSO.
THE PURCHASE OF WINE IS A CHOICE
AND THERE'S A LOT OF CHOICE OUT
THERE IN THE MARKET PLACE IT'S A
CHOICE BY THE RETAILER OR THE
IMPORTER WHO BRINGS AS WINDS IN
IT'S A CHOICE BY THE CONSUMER.
SO OF CALIFORNIA WINE IS NO
LONGER AVAILABLE IS NO LONGER IN
THAT SHELF SPACE THERE IS
ANOTHER WINE THAT REPLACES THAT
FACE THAT WINDS COMING FROM
AUSTRALIA.
NEW ZEALAND CHILE ITALY OR
FRANCE.
SO TO REGAIN THOSE POSITIONS
THAT'S WHAT TAKES TIME.
AND WE WOULD -- DURING THIS TIME
OF THE TERRACE NOT ONLY ARE WE
LOSING OUT ON THE OPPORTUNITY OF
THE CURRENT SALES WERE LOSING
OUT ON THE DEVELOPMENTAL
OPPORTUNITY OF THAT MARKET OVER
THE NEXT FIVE TEN FIFTEEN YEARS
SO IN FACT AS AN INDUSTRY WERE
LOSING TWICE.
WE'RE LOOKING TO REPLACE THESE
SALES BY DEVELOPING OTHER
MARKETS WITHIN ASIA HOWEVER IT'S
DIFFICULT TO REPLACE THE FASTEST
GROWING MARKET. FOR OUR INDUSTRY.
TODAY WE'RE FACING WITHIN THE
WINE INDUSTRY OUR CHALLENGES AND
HEAD WINDS ACROSS ALL OF OUR
MAJOR MARKETS.
ARE SINGLE LARGEST EXPORT MARKET
IS THAT -- THAT YOU YOU AND YOU
CAN.
WITH THE THREAT OF TERRACE
WITHIN THE AIRLINE INDUSTRY
RETALIATORY TARIFFS THERE ALONG
WITH BREXIT.
THAT'S AN ADDITIONAL HAD ONE OUR
SECOND AND SINGLE LARGEST SINGLE
MARKET IS CANADA.
AND THE IMPACT AND THREAT OF
TEARS THAT WE'VE BEEN DEALING
WITH THEIR HONG KONG IS OUR
THIRD LARGEST AND THE CHINA AS
OUR FIFTH LARGEST AS I SAID.
SO THIS IS -- A SITUATION WHERE
THE IMPACTS ARE EXTENSIVE AND
AND LASTING.
AND ONE OF THE OTHER SIGNIFICANT
CHALLENGES THAT WE HAVE IS THAT
AS THE PRICE OF OUR GOODS
INCREASES IN THE MARKET PLACE WE
DO NOT HAVE THE OPTION TO PICK
UP AND FIND SOURCING IN A MORE
AFFORDABLE PLACE.
WE CAN'T PICK UP OUR VINEYARDS
AND OUR WINERIES AND MOVE THEM
SOMEPLACE ELSE.
UNFORTUNATELY WE HAVE TO EITHER
RAISE OUR PRICES OR CUT
PRODUCTION WE HAVE TO CUT THE
PRICES THAT WERE WILLING TO PAY
TO OUR GROWERS.
WE HAVE TO REDUCE THE THE
PRODUCTION THAT WE HAVE OVERALL
AND THERE FOR WE HIRE FEWER
BOTTLING LINES WE REDUCE OUR
CELLAR STAFF WE PURCHASED FEWER
GOODS SO IT REALLY IS A TRICKLE
DOWN THROUGH THE ENTIRE SYSTEM.
THAT'S THE IMPACT THAT WE HAVE
[inaudible]
SO.
WELL WE ARE TAKING THE LONG TERM
VIEW.
AND I'M BY NO MEANS ARE WE
TURNING OUR BACK ON THIS MARKET
WE'RE CONTINUING TO INVEST IN
DEVELOPING THE PRESENTS FOR
CALIFORNIA WINES BY PURSUING
EDUCATIONAL PROGRAMS.
EDUCATING CONSUMERS AND TRADE
HOSTING MASTER CLASSES INVITING
TRADE DELEGATIONS HERE TO
CALIFORNIA TO MEET OUR GROWERS
TO MEET OUR WINE MAKERS TO
CONTINUE TO CONVEY THE VALUE AND
THE QUALITY IN THE CHARACTER OF
CALIFORNIA WINES.
WE ARE.
ABSOLUTELY HOPEFUL THAT WE'LL BE
ABLE TO RESOLVE THIS QUICKLY SO
THAT WE CAN MOVE FORWARD AND
MOVE PAST THE SITUATION.
THANK YOU VERY MUCH AS COMFORT.
THANK CHAIRMAN CHAIRWOMAN AND
MEMBERS -- FOR ALLOWING US TO BE
PART OF THIS HEARING TODAY IT'S
VERY.
GRATIFYING TO KNOW THERE'S SO
MUCH ATTENTION BEING PAID TO
THIS.
I BECAUSE YOU'VE HEARD A LOT
ABOUT THE IMPACTS THEY ARE VERY
SERIOUS I WILL GO TOO MUCH
FURTHER INTO THAT BECAUSE YOU'VE
HAD SO MUCH GOOD DATA GIVEN YOU
TODAY -- BUT I WILL TOUCH ON A
FEW THINGS -- QUICKLY WESTERN
GROWERS IS ORGANIZATION
REPRESENTS FRESH PRODUCE
INDUSTRY OUR GROWERS AND
SHIPPERS IN FOUR STATES -- MOST
OF THEM IN CALIFORNIA ALSO
ARIZONA NEW MEXICO COLORADO.
PRETTY ABOUT HALF THE NATION'S
FRESH PRODUCE BOTH ORGANIC AND
CONVENTIONAL OF THAT INCLUDES
FRESH FRUITS VEGETABLES TREE
NUTS -- SO YOU ALL HAVE TO SOME
DEGREE OUR MEMBERS ARE DISTRICTS
THANK YOU MISTER BLOOM AS A
LITTLE BIT.
I'M NOT MISTAKEN -- AND I I WILL
SAY THIS YOU KNOW CALIFORNIA'S
BLESSED AND CURSED IN SOME WAYS
WITH THIS DIVERSITY OF
AGRICULTURE WE HAVE OVER THREE
HUNDRED CROPS -- A LOT OF SOME
FARMERS OF DIFFERENT SIZE AND
SCALE -- AND AS A RESULT YOU
HAVE A LOT OF AG TRADE
ASSOCIATIONS THAT YOU ALL HAVE
TO DEAL WITH MANAGER ON THE
SPECIALLY FOR YOU.
AND ANY NUMBER OF MY COLLEAGUES
COULD BEEN YOUR TODAY AND AND
WOULD HAVE BEEN EQUALLY CAPABLE
IN PROVIDING SOME INFORMATION SO --
THANK YOU FOR THE OPPORTUNITY TO
TO SIT IN THIS CHAIR ON ALL OF
THEIR BEHALF. FOR THE MOMENT.
DR SUMNER -- OUTLINED THE
IMPACTS THAT WE'RE SEEING PRETTY
CLEARLY -- THE HIS COLLEAGUES
PRODUCED REPORT IN THE FALL THAT
ESTIMATED THAT TO DATE THE
DAMAGE FROM THE CHINESE --
RETALIATORY TARIFFS IS ABOUT
THREE POINT THREE BILLION
DOLLARS TO THE AG SECTOR.
WHEN YOU PUT THAT UP AGAINST THE
TWENTY POINT FIVE BILLION IN AG
EXPORTS FROM CALIFORNIA TO CHINA
EVERY YEAR YOU TALK ABOUT A
PRETTY WHOPPING PERCENTAGE IN A
VERY SHORT PERIOD OF TIME SO --
THIS IS A SEVERE HIT TO THE
INDUSTRY AND AND WHAT IT AS
EVERYBODY'S ATTENTION -- I WANT
TO TAKE OFF A COUPLE MORE
NUMBERS THAN I WANT TO GET A
LITTLE BIT INTO THE FEDERAL
MITIGATION PROGRAM BECAUSE I
THINK -- IT'S IMPORTANT
UNDERSTAND WHERE IT CAN WORKING
RIGHT IT PROBABLY CAN'T WORK AND
THEN THAT GETS US INTO --
DESIRED OUTCOMES.
SOME OF THE THE DATE I'M GONNA
PRESENT COME FOR OUR FRIENDS IN
THE ALMOND SECTOR THE ALLMAN
LIGHTS CALIFORNIA AMERICA
STATURE GROWERS.
SOME OF MY OTHER COLLEAGUES SO
WANT TO GIVE THE PROPER CREDIT --
I THINK WAS MENTIONED EARLIER
ALMONDS EXPORT 67% OF THE CROP
OUT OF CALIFORNIA.
TERRACE OF ALREADY CAUSED A ONE
THIRD REDUCTION.
IN THOSE -- TONNAGE NUMBERS --
IN AUSTRALIA BY THE WAY WHICH
DIDN'T HAVE A HUGE ALMOND.
CAPABILITY PRODUCTION CAPABILITY
IS INCREASING IT QUICKLY THEY
HAVE NOW INCREASED THEIR EXPORTS
OF ALMONDS TO CHINA BY NEARLY
2000%.
NOW THAT'S COMING FROM SMALL
BASE BUT IT TELLS YOU -- WHERE
THEIR EYES AND WHERE THEIR HEADS
ARE POINTED AND THEY'RE NOT THE
ONLY ONES -- ALMOND TERRACE ARE
NOW 50% ON BALK -- PRODUCT 20%
ON PROCESSED OR CANNED PRODUCT.
OPPOSITE THAT SHOWS BY THE WAY
WAS MENTIONED EARLIER -- BY
DOCTOR SUNDAR THAT BECAUSE IRAN
HAD A FAILED CROP LAST YEAR OUR
PISTACIA REYES LARGELY DODGED --
THE IMPACTS FROM THE TERRACE I
AND I THINK HE WAS VERY --
APPROPRIATE IN IN NOTING THAT
THAT IS NOT SOMETHING WE CAN
COUNT ON THE TERRACE OF STASHES
ARE NOW 45%.
AND THAT WAS AT 5% PRIOR.
SO THEY'RE IN HARM'S WAY -- I
MENTION PECANS ALSO WE DO HAVE A
LOT OF A CONTRADICTION IN
CALIFORNIA BUT WE DO IN THE WEST
IT STARTED IT'S A GROWTH
INDUSTRY AND IN THAT SECTOR IN
THE WEST A WESTERN PART OF THE
U. S. -- THERE THE TERRACE AND
GOT UP 2403% FROM I BELIEVE IT
WAS A 47% I BELIEVE FROM SEVEN
THEY'VE SEEN YEAR OVER YEAR.
PRICES DROP BY 43% -- SO WE JUST
SEE THIS THIS ACCUMULATION OF
PRODUCT NOW WITH NO WHERE TO
PARK IT -- AND THAT GOES.
TO WITHIN THE DIVERSE ARRAY OF
CALIFORNIA FARM PRODUCTS.
I IT IS THE PERMANENT CROP
PRODUCERS WHO ARE REALLY IN
TROUBLE HERE IF THIS CONTINUES.
ARE THEY CAN'T TURN THE TREES
OFF THE CAN'T TURN THE VINES OFF
THEY'RE GOING TO PRODUCE THAT.
CROP AND YOU GOT TO FIND SOME
PLACE TO PUT IT -- I WILL SAY
THIS.
THIS IS RESOLVING THE
SATISFACTORILY IT IS OF COURSE
CRITICAL FOR PERMANENT CROP
FARMERS.
BUT IT'S JUST AS CRITICAL FOR
EVERY OTHER FARMING CALIFORNIA
BECAUSE EVERYBODY WANTS TO BE
LIKE ALMONDS EVERYBODY WANTS TO
FIND THAT -- MARKET IN CHINA AND
ELSEWHERE IN ASIA TO BE ABLE TO
EXPORT AND ARE GET THE RETURNS
THAT THE ALLMAN SECTOR AND
STASHES SECTOR OF GOTTEN.
IN CHINA SO THAT GETS ME INTO A
QUICK DISCUSSION ABOUT THE USDA
MITIGATION PROGRAMS THAT HAVE
BEEN INITIATED THE FIRST WAS
ANNOUNCED LAST YEAR AT TWELVE
BILLION DOLLARS WAS LATER SCALED
BACK TO ABOUT. TEN BILLION
DOLLARS AND WAS NOTED EARLIER.
BY OTHERS -- THAT PRIMARILY WENT
TO MIDWESTERN SOYBEAN CORN WHEAT
PRODUCERS PORK -- PRODUCERS A
LITTLE BIT CAME TO OUR ALMOND --
IN THAT PRISON CALIFORNIA BUT
NOT VERY MUCH.
THE SECOND TRYING TO THE SECOND
PROGRAM JUST ANNOUNCED.
A BY THE ADMINISTRATION IS
SIXTEEN BILLION DOLLARS -- WITH
FOURTEEN POINT FIVE BILLION
GOING TO MARKET FACILITATION
WHICH IS ANOTHER WAY OF SAY THE
SAME PURCHASING SURPLUS PRODUCT --
THERE AGAIN WE EXPECT THAT'S
GOING TO LARGELY GO TO THE
MIDWEST BUT THERE IS A BIT OF A
RECOGNITION IN THIS PROGRAM THAT
WE HAVE ADDITIONAL CROPS IN
CALIFORNIA AND PRODUCERS IN
CALIFORNIA WATER OF ACCESS TO
THOSE FUNDS.
AS THEY EXPANDED IT BEYOND --
ALMOST TO INCLUDE PISTACHIOS
CHERRIES ARE INVOLVED.
I AND SOME OTHER SOME OTHER --
BERMAN CROPS AS WELL SUCH AS
TABLE GRAPES. ONE OF THE
CHALLENGES THERE IS OF COURSE --
THAT.
IN THE FRESH PRODUCE SECTOR IN
THE UNITED STATES WE'VE NEVER
HAD DIRECT PAYMENTS SUBSIDIES
FROM THE FEDERAL GOVERNMENT HAVE
NEVER WANTED THEM. FOR VARIOUS
REASONS WILL SEE HAVING TO DO
WITH THE STIFLING EFFECT THAT
SUBSIDIES HAVE ON INNOVATION ON
COMPETITION MARKET SIGNALS THAT --
MY MEMBERS APPRECIATE MORE THAN
THEY DO SUBSIDIES.
AND AS DOCTOR SUMMER NOTED THE
FEDERAL GOVERNMENT JUST ISN'T --
CONSTRUCTED ISN'T BUILT TO MOVE
DIRECT PAYMENTS TO FRESH PRODUCE
GROWERS.
IN AN EFFICIENT WAY SO WE DON'T
KNOW HOW WELL THIS IS GOING TO
ROLL OUT WE DO KNOW THAT --
FARMERS IN THE MIDWEST TO ARE
USED -- TO AND HAVE THAT
RELATIONSHIP WITH THE USDA.
ARE GOING TO BE ACCESSING THE
PROGRAM QUICKLY SO WE'RE TRYING
TO HUSTLE -- THROUGH THE PROCESS
TO MAKE SURE MEMBERS ARE IN
POSITION TO BE ABLE.
TO PUT IN A CLAIM FOR AS MUCH AS
THEY CAN OFFSET.
SOME OF THEIR LOST THEIR LOST
MARKET [inaudible]
BUT WHAT WAS -- REALLY
CRITICALLY STATED EARLIER IS
THAT WE DON'T WANT.
THOSE DIRECT PAYMENTS WE NEED
THIS TO END WE NEED TO GET BACK
TO WHAT WE DO BEST WHICH IS
PRODUCING THE BEST PRODUCTS IN
THE WORLD.
AND MARKETING THEM ACROSS THE
WORLD TO PEOPLE WHO WHO WANT THE
MEN OF SHOWN THAT.
IN THEIR IN THEIR PURCHASING
DECISIONS -- REALLY CRITICAL
POINT FOR THE OUTCOME HERE YET
AND WE CAN TALK ABOUT -- HOW WE
GET TO AN OUTCOME WHETHER IT'S
IT'S ONE SIDED THERE BLINKING IN
THIS TERRIBLE GAME OF CHICKEN OR
WE GO BACK TO A WTO TYPE PROCESS?
ABOVE MY PAY GRADE BUT ONE VERY
IMPORTANT POINT WE ONE OF HIS
EYES IS THAT WHEN THIS IS
RESOLVED. FOR THE PRODUCE SECTOR.
IN CALIFORNIA IN THE WEST
PARTICULARLY WE CAN'T JUST
RETURN THE STATUS QUO ANTE.
WE HAD SUFFERED HAVE SUFFERED
FOR YEARS DESPITE SOME SUCCESS
WITH.
ALMONDS AND PISTACHIOS OTHER
PRODUCTS WINE CERTAINLY MOVING
INTO CHINA FRESH PRODUCE
COMMODITIES HAVE BEEN HIT WITH
NON TARIFF BARRIERS.
AROUND THE WORLD IN CHINA HAS
BEEN NO EXCEPTION --
PARTICULARLY -- ALLEGED --
THREATS THAT OUR PRODUCTS COMING
IN OUR FRESH PRODUCTS COMING TO
CHINA CONTAIN A BUG OR A DISEASE.
THAT THEN GIVE THEM
JUSTIFICATION UNDER WTO RULES
RULES TO THROW UP THE WALLS AND
KEEP OUR PRODUCT OUT AND PROTECT
THEIR DOMESTIC PRODUCERS -- IN
AN UNFAIR MANNER WE CHALLENGES
ALL THE TIME IS AN INDUSTRY BUT
CHINA HAS NOT BEEN RESPONSIVE TO
THE NORMAL.
A GIVE AND TAKE IN IN IN THE WTO
PROCESS OF RESOLVING THIS
LAUNCHER CARE OF TRADE BARRIERS
AND SO WE NEED STRONGER
PROTECTIONS.
AROUND SANITARY AND
PHYTOSANITARY NON TARIFF TRADE
BARRIERS THAT HAVE BEEN -- USED
TO KEEP AMERICAN PRODUCT OUT OF
A CHINA IN THE PAST AND BY THE
WAY THAT IS SOMETHING THAT HAS
WE CALLED FOR IN THE IN THE
NAFTA TWO POINT OVER THE U. S.
M. C. A. AGREEMENT WE SEE SOME
IMPROVEMENTS IN THE SANITARY AND
PHYTOSANITARY.
PROTOCOLS THERE SO -- REALLY
REALLY IMPORTANT THAT WE DON'T
JUST GO BACK TO STATUS QUO ANTE.
ONE OTHER POINT TO MAKE AND THEN
AND AND THEN ALL ALL STOP IS
THAT -- AS OTHERS HAVE SAID
EARLIER.
THE DANGER HERE IS THAT OTHERS
ARE SEEKING TO REPLACE OUR
MARKETS.
I MENTION AUSTRALIAN ALMOND
PRODUCERS WHO ARE NOW.
UPPING THEIR THEIR EXPORTS TO
CHINA IT'S NOT LIMITED TO THEM.
IT'S EVERY COMMODITY THAT WE
CURRENTLY -- ARE ABLE TO PUT
INTO THE CHINESE MARKET PLACE
AND IT'S COMING FROM AROUND THE
WORLD.
IN THIS DEBATE IT WITHIN THE AG
INDUSTRY AND IT'S PROJECTION OF
OF OF PRIORITIES TO THE
ADMINISTRATION IT'S REALLY THE
MIDWESTERN FARMERS ARE DRIVING
THAT BECAUSE THEY'RE MORE EASILY
REPLACEABLE IF YOU THINK ABOUT
IT SOYBEANS CORN WHEAT CAN BE
PRODUCED A LOT OF PLACES IN THE
WORLD.
ALMONDS PISTACHIOS FAR FEWER
PLACES IN THE WORLD.
BUT THE POINT I MADE EARLIER
APPLIES EVEN MORE.
EVERY GROWING CALIFORNIA --
STRAWBERRIES SALARY -- FIND RAM
TOMATOES BROCCOLI GO DOWN A LIST --
BERRIES THEY ALL WANT TO BE ABLE
TO EXPORT AND THEY ALL THINK
THEY CAN AND THEY PROBABLY CAN'T
GIVEN A FAIR SHOT.
AND SO WE CAN'T ALLOW.
AS THIS IS RESOLVED THE
MIDWESTERN CROP PRODUCERS TO
DOMINATE THE OUTCOME TO SET THE
PROTOCOLS GOING FORWARD FOR WHAT
THIS NEW TRADE RELATIONSHIP
LOOKS LIKE HOWEVER WE GET OVER
THAT FINISH LINE THERE HAS TO BE.
A PRODUCE SECTOR AND A WEST
COAST.
IMPRINT ON THE RESOLUTION OF
THIS DISPUTE OR THIS WAR --
FINALLY I CAN'T EMPHASIZE THIS
ENOUGH.
OTHERS HAVE SAID IT QUITE WELL A
WE CAN'T.
WE CAN'T TOLERATE THIS THAT MUCH
LONGER -- OUR PRESIDENT WESTERN
GROWERS AMBASSADOR TOM MASSIVE
WROTE -- QUITE PLAINLY SOMETIME
AGO.
THAT WHILE WE UNDERSTAND THE
GOAL TO FORGE NEW AND FAIR TRADE
AGREEMENTS PARTICULARLY WITH
CHINA.
THOSE AGREEMENTS WILL ONLY
BENEFIT AMERICAN FARMERS IF THEY
HAVEN'T PERMALINK LOST THEIR
RELATIONSHIPS WITH FOREIGN
BUYERS AND THAT IS HAPPENING NOW
IN ANY ROAD IN OTHER WORDS WE
NEED THIS ADMINISTRATION DRIVE
THIS PROCESS TO CONCLUSION
QUICKLY.
GRAB QUICKLY UNDERLINED SIX
TIMES WERE WERE WERE RUNNING OUT
OF TIME FOR FOR MANY OF OUR
PRODUCERS I'M AFRAID.
BOB WANNA MAKE MISTER CHAIRMAN --
CHAIRMAN EGGMAN MADE THIS POINT
ANOTHER WAY CALIFORNIA'S BEEN
BLESSED TO HAVE AS I SAID
EARLIER THIS DIVERSITY OF
FARMERS OF ALL SIZES PRODUCING
OVER THREE HUNDRED DIFFERENT
PRODUCTS.
BUT WE'VE SEEN A MOVEMENT TO
CONSOLIDATION WE'VE SEEN THE
LARGER PLAYERS WHO CAN WITHSTAND
HIGHER COSTS OF PRODUCTION THAT
ARE UNIQUE TO CALIFORNIA.
ABSORB THOSE SMALLER FARMS --
CALIFORNIA ALREADY REQUIRES
HIGHER PRODUCTION COSTS TO KEEP
A CAL POLY SANDERS OBISPO STAY
RECENTLY SHOWED THAT FOR A
LETTUCE PRODUCER IN SALINAS --
IN TWO THOUSAND SIX REGULATORY
COSTS WERE A HUNDRED NINE
DOLLARS PER ACRE TWO THOUSAND
SEVENTEEN NOW 900-77 DOLLARS PER
ACRE.
YOU LOAD THAT ON TOP OF THE
IMPACTS WE NOW HAVE A FROM THE
TERROR FOR AND YOUR I'M AFRAID
WE'RE GONNA SEE MORE
CONSOLIDATION.
MORE LOSS OF SMALL FARMERS WHO
CAN'T -- STRETCH THEIR THEIR
THEIR FINANCING CAPABILITIES
THROUGH THIS THROUGH THIS WAR.
SO IF THERE IS A AN ABILITY OF
THE OF THIS BODY TO LOOK AT THAT
REGULATORY DISPARITIES THAT IS
UNIQUE TO CALIFORNIA FARMERS.
A RELATIVE TO THOSE WE COMPETE
AGAINST OTHER STATES AND OTHER
COUNTRIES NOW IS THE TIME
BECAUSE THE THE COSTS THAT ARE
NOW FLOATING ON TOP OF THOSE
REGULATORY COSTS.
ARE BRIAN BE UNBEARABLE FOR THE
SMALLER FARMERS WERE TRYING TO
TRY TO PROTECT.
THANK YOU THANK YOU VERY MUCH AS
A MISTER YOUNG.
THANK YOU MISTER CHAIR AND THAT
MADAM CHAIR MEMBERS -- MICHAEL
YOUNG WITH CALIFORNIA LABOR
FEDERATION REPRESENT -- ABOUT
TWELVE HUNDRED UNIONS ACROSS THE
STATE AND THAT INCLUDES ABOUT
TWO POINT ONE MILLION -- UNION
MEMBERS -- AS YOU CAN IMAGINE WE
COME AT THIS ISSUE A LITTLE BIT
DIFFERENTLY -- WITH OUR PRIMARY --
FOCUS EING THAT OF LABOR
WORKERS AND THEIR FAMILY AND
ALSO CONSIDERING THE FACT THAT
UNDERSTAND THE LAST PANELIST ON
A LONG DAY OUT -- KEEP MY
COMMENTS -- A BRIEF -- THE THE
THE AFL IS MAINTAINED FOR MANY
YEARS AND FOR MANY
ADMINISTRATIONS THAT --
TERRORISTS ARE IMPORTANT TERRACE
ARE AN IMPORTANT PART OF
ENFORCEMENT -- IF YOU VIOLATE
THE RULES YOU SHOULD FACE
CONSEQUENCES ONE OF CONSEQUENCES
CAN BE TERRACE HOWEVER -- TEARS
NEED TO BE TARGETED AND NOT
WIDELY CASTS WITHOUT ANY PLAN OR
STRATEGY AROUND THEM -- RIGHT
NOW -- IT OUR TRADE RELATIONSHIP
WITH CHINA IS BEING USED BY A
HANDFUL OF BANKS CORPORATIONS TO
WHOLE WAGES DOWN -- IN BOTH
COUNTRIES AND CREATE AN
UNTENABLE A TRADE DEFICIT IN THE
UNITED STATES AND I THINK WE'RE
GONNA AT THE CONVERSATION ABOUT
THE IMPACT OF OF OF THE CHINESE
HERE THE TERRACE ON CHINA -- HAS
TO BE LOOK MORE BROADLY AT IN
CONSIDERING THE THE THE THE
GROWING GET CHINA THAT ARE
GROWING TRADE DEFICIT.
WITH CHINA AS WILL -- THE GROWTH
OF THE US TRADE DEFICIT WITH
CHINA -- HAS INCREASED BY WELL
OVER A HUNDRED BILLION DOLLARS --
SINCE THE GREAT RECESSION --
PLAYING A LARGE ROLE IN MY
MANUFACTURING EMPLOYMENT HASN'T
FULLY RETURN DESPITE THE GROWTH
OF THE ECONOMY OVER THAT TIME
FRAME -- THE GROWING TRADE
DEFICIT HAS -- RESULT IN JOB
LOSSES IN EVERY STATE IN THE
COUNTRY AND EVERYTHING GRUSHOW
DISTRICT -- OF THE TOP TEN THE
HARDEST HIT STATES -- WHEN
LOOKING AT JOB LOSSES THE SHARE
OF TOTAL STATE EMPLOYMENT
CALIFORNIA'S THIRD -- AND OF THE
FIVE PARTIES TO STATES BASED ON
JOB ALL OF THE TOTAL JOB LOSS
CALIFORNIA IS THE FIRST TO WITH
ABOUT -- FIVE HUNDRED AND SIXTY
TWO THOUSAND JOBS LOST SINCE --
TWO THOUSAND ONE IN ORDER TO
START FIXING -- THE STATE WAGE
GROWTH AND JOB LOSSES CREATED OR
THAT'S BEEN THE CALLS BY THIS --
GROWING DEFICIT ANY TRADE TALKS
IN CHINA -- SHOULD INCLUDE TWO
PRINCIPLES AND ONE OF THOSE IS
THAT IT IS CONCLUDE A
MULTILATERAL APPROACH -- THEIR
STRENGTH IS OUR ALLIES TO
MAXIMIZE OUR LEVERAGE -- AT THE
NEGOTIATING TABLE -- AND SICK IN.
WHAT THE US CAN RECOGNIZE
CHINA'S RIGHT TO DEVELOP ITS
ECONOMY IS A BUT?
WE HAVE TO BE CLEAR THAT CHINA
CAN'T BE ALLOWED TO DO SO IN A
WAY THAT UNDERMINES LABOR RIGHTS
AND DESABILIZE OTHER ECONOMIES
THAT MEANS DRESSING LABOR AND
HUMAN RIGHTS VIOLATIONS --
TARIFFS ARE.
ARTS EXCUSE ME ARTS AN ANGLE --
BUT THEY CAN BE AN IMPORTANT
TOOL TO ENTRY PRACTICES THAT
KILL AMERICAN JOBS AND DRIVE
AMERICAN WAGES DOWN -- HOWEVER
OVERALL THE TRUMP ADMINISTRATION
ST PRACTICES HAVE YOU ADDED.
AN IMBALANCE -- THIS HERE FOR
CHINA IT JUST IT JUST ISN'T
WORKING AND IT WON'T -- SO LONG
AS THE KEY GOAL TO PROTECT
PROFITS IN STORY INSTEAD OF JOBS
AND THE RIGHTS OF WORKING PEOPLE --
THE US IS FAILURE TO ADEQUATELY
ENFORCE A EXISTING RULES IS WHY
THEY'RE SO MUCH PENT UP
FRUSTRATION AMONG MANY WORKERS
AND DOMESTIC PRODUCERS OVER
TRADE WITH CHINA -- OUR TRADE
ENFORCEMENT MEASURES SHOULD
PRIORITIZE THINGS LIKE LIKE GOOD
JOBS WORKERS RIGHTS DEMOCRACY
ENVIRONMENTAL COMPLIANCE
CONSUMER SAFETY PROTECTIONS.
OVER OUTSOURCING OR EVEN SHORT
TERM PROFITS -- WE NEED LONG
TERM ECONOMIC DEVELOPMENT
STRATEGIES THEY USE DOMESTIC TAX
INFRASTRUCTURE WORKPLACE
WORKFORCE DEVELOPMENT POLICIES
TO ENSURE THAT AMERICAN WORKERS
AND BUSINESSES HAVE THE TOOLS
AND SKILLS THEY NEED TO COMPETE
SUCCESSFULLY IN -- BUT THE
GOVERNMENT ALSO NEEDS TO
STRENGTH ARCHERY COMPLIANCE --
ENFORCEMENT MEASURES ENFORCER
MEASURES AND BE WILLING TO USE
THEM AGGRESSIVELY CONSISTENTLY
BUT MOST IMPORTANT STRATEGICALLY --
TO ENSURE THAT OUR TRADE
RELATIONSHIP WITH CHINA IS
RECIPROCAL AND THEIR AND
AMERICAN WORKERS AND FAMILIES
CONCEDE PROTECTED SO THANK YOU.
MISTER YOUNG THANK YOU VERY MUCH
I'M NOT TRYING TO TAKE A POLL
FROM THE THREE OF YOU AND YOU
KNOW MS MITCHELL IF YOU WANT TO
JOIN SINCE YOU'RE FROM THE LAST
COUNT THE WANT LAST PERSON
STANDING FROM THERE.
WITH SOME OF THE QUESTIONS THAT
WE MIGHT HAVE BECAUSE I THINK
THAT WE'VE GOT SOME THINGS THAT
MIGHT BE TRAMAINE FOR YOU AS
WELL.
YES YOU READ THERE FOR YOU -- I
I'M NOT TRYING TO TAKE A POLL
YOU DON'T NEED TO SAY WHERE
YOU'RE INDUSTRY GROUPS STOOD ON
THE TRANSPACIFIC PARTNERSHIP BUT
T. P. P..
COULD HAVE SET SOME GROUND RULES
AND A FRAMEWORK FOR HOW TRADE
WORKED BETWEEN THE UNITED STATES
AND A GREAT DEAL OF ASIA
INCLUDING CHINA.
THE UNITED STATES RETREATED FROM
T. P. P. ALLOWING CHINA TO
DICTATE TRADE MORE AGGRESSIVELY
THAN UNITED STATES DID BY
CREATING A FRAMEWORK WITH OTHER
COUNTRIES.
LEAVING UNITED STATES OUT.
AND THIS IS A NEGOTIATING TACTIC
THAT IS FAVORED BY -- PRESIDENT
TRUMP TO NEGOTIATE ONE ON ONE
RATHER THAN -- IN PARTNERSHIP
WITH OTHER COUNTRIES.
DO YOU THINK TPP WOULD HAVE --
HELP CALIFORNIA AND OF COURSE
UNITED STATES AVOID THE CURRENT --
QUAGMIRE.
ANYONE WANNA GO FIRST ON THAT.
ONE I'LL BE HAPPY TO SAY HERE.
TPP AT THE NO LONGER BEING PUT
IN T. B. PAY HAS HAD A
SIGNIFICANT IMPACT FOR
CALIFORNIA WINE EXPORTS SO THAT
JAPAN IS THE FOURTH.
LARGEST EXPORT MARKET FOR US
IT'S VERY STABLE MATURE MARKET
IT'S ALSO VERY HIGH VALUE.
IN THAT I'M WHERE ABLE TO EXPORT
WIND ALL UP AND DOWN THE PRICE
SCALE SO IT'S IT'S SIGNIFICANT
IMPORTANT TO US -- OF COURSE OUR
LARGEST COMPETITIVE WINE REGIONS
ARE TRADING ARE ERIN A FREE
TRADE -- OR AS A ZERO IMPACT --
RELATIONSHIP WITH JAPAN WHERE AS
WE OF COURSE ARE NOT IN THAT
POSITION SO -- WE'RE HOPEFUL
THAT WE CAN GET BACK TO FREE
TRADE AGREEMENT WITH JAPAN BUT
IT ABSOLUTELY HAS HAD AN IMPACT
FOR THE WINE INDUSTRY.
AND I'M THAT COUPLED WITH THE
CURRENT SITUATION IN CHINA HAS
JUST TAKEN THAT ENTIRE REGION
AND CREATED HEADWINDS THAT HAVE.
SLOWED OUR DEVELOPMENT.
IN THE PROCESS OF TV MISTER WHO
IS CHAIRMAN I WE SUPPORT THE TPP --
PREFER THAT IT WOULD HAVE HELD
TOGETHER.
I'M HAVING SAID THAT RELATIVE TO
AGRICULTURE AT LEAST A FRESH
PRODUCE SECTOR -- WE HAVE SEEN
SOME POSITIVE BILATERAL
AGREEMENTS EITHER THE KERR OR
TAKE SHAPE THE KOREAN BILATERAL
BY FOR SURE WAS HELPFUL -- WE'RE
GETTING A GOOD VIBES ON THE
NEGOTIATIONS WITH JAPAN WE'LL
SEE -- BUT CLEARLY MORE
EFFICIENT WAY TO DO THIS WOULD
HAVE BEEN THIRTY BEEPING FOR
THAT [inaudible]
THIS YOUNG.
YES THE AT FILL IT UP POSTED CPP
AND I THINK IT FEELS INCLUDE --
SIGNIFICANT WORK PROTECTIONS
THAT THAT WE BELIEVE TO BE
IMPORTANT -- PARTICULARLY WHEN
YOU LOOK AT THE IMPACT OF
FAILING TO DO SO AND PREVIOUS
TRADE DEALS INCLUDING NAFTA AND
ITS IMPACT IN THE MIDWEST -- I
THINK THEY WERE STRONG
HESITATION FROM -- WORKERS AND
UNIONS -- TO SUPPORT ON THE
MOVING FORWARD AGAIN DIDN'T HAVE
A STRONG FORCE A MECHANISM FOR
THE LACK OF LABOR.
IN OUR ABILITY TO COMPETE
GLOBALLY -- MISS MITCHELL JONAH
SO MISTER YOUNG ON PERHAPS MAYBE
WITH ANOTHER PRESIDENT SOME OF
THE PROTECTIONS THAT YOU'RE
LOOKING FOR WOULD HAVE BEEN IN
PLACE THE TPP DID NOT INCLUDE AT
THE TIME -- DO YOU SEE THAT
PLAYING OUT IN THE THE UNIT DODD.
BILATERAL NEGOTIATIONS THAT ARE
TAKING PLACE WITH COUNTRIES.
ORDER NOW THEY'RE NOT PART OF
THAT BECAUSE WE HAVE IT
PRESIDENT IS NOT.
AS FOCUSED OR OR PERHAPS HE IS.
DO YOU MEAN THE BILATERAL
CONVERSATIONS WITH WHAT'S RIGHT.
ALL THE OTHER COUNTRIES YOU KNOW
THE ONE ON ONE CONVERSATIONS.
OUR OUR LABOR CONCERNS THAT WERE
WERE VALID ON ON TPP CRITICISM
YOU KNOW BEING PRESENT IN THOSE
NEGOTIATIONS.
I MEAN WE HOPEFULLY IN THE NEXT
ADMINISTRATION THAT THAT WOULD
BE THE CASE I I I DON'T THINK.
OUR CONCERNS WHO ARE BEING
CARRIED OUT IN THOSE
CONVERSATIONS.
AGAIN I I THINK WE HAVE A VERY --
DEMOCRATIC PRICES MOVING FORWARD
AND I THINK -- WORKERS MORE AND
MORE ARE UNDERSTANDING THE
IMPACT OF THESE TRADE AGREEMENTS
ON THEIR ABILITY TO WORK RIGHT
SO -- YEAH I I WANNA STREET TO
FAR AWAY FROM THAT A BILLS
POSITION ON THIS BUT I I I THINK --
AGAIN I THINK THE THE THE FOCUS
BEING ON SOME OF FORCE A
MECHANISM -- TO WORKER
PROTECTIONS AND A BEER APPROACH
TO HOW -- TRADE IS GOING TO BE
APPROACH INSTEAD OF JUST LOOKING
AT IT AS A FREE AND COST
APPROACH IT IS PROBABLY BEST IT
WHEN YOU LOOK AT THE TERRORISTS
THAT HAVE BEEN IMPOSED BY THE
TRUMP ADMINISTRATION AND THEN OF
COURSE THE THE RETALIATORY
TERRORIST DO YOU BELIEVE THAT.
SOME OF THIS ACTIVITY ON THE
UNITED STATES PART WILL LEAD TO
MORE JOB GROWTH IN CREATION IN
THE UNITED STATES -- THAT WOULD
BE YOU KNOW PERHAPS -- DESPITE
THE RETALIATORY -- NATURE
BECAUSE MANY SECTION MAY LEAVE
CHINA MAY CREATE JOBS HERE IN
UNITED STATES.
I DON'T KNOW I DON'T KNOW AND I
DON'T I THINK IT'S PROBABLY TOO
EARLY TO SAY I THINK -- I THINK
THE TRUMPS -- APPROACH TO THE
THE TEARS CHINA JUST DOESN'T
AGAIN SEEM TO HAVE ANY SORT OF
STRATEGY -- GOAL WHICH CAN BE
HARMFUL TO WORKERS HERE -- SO I
THINK THE I THINK THERE IS A
UNIVERSAL GOAL OF HAVING THESE
ISSUES RESOLVED -- QUICKLY BUT I
THINK MORE BROADLY -- OUTSIDE OF
THE CAN GET THE SPECIFIC TERRACE
AGAINST CHINA I THINK LABOR
MOVEMENT HAS SUPPORTED
TERRORISTS THAT OUR STRATEGIC IN
YOUR OWN SCOPE.
AT THAT ARE CONNECTED TO A
STRATEGIC GOAL AND LACKING THAT
HERE -- CREATE SOME HARMFUL
TRICKLE DOWN EFFECT STAY AT THE
BUSINESSES BUT ALSO IN FACT --
WORKERS -- WAGES BUT ALSO THEIR
ABILITY -- TO BY SOME PRODUCTS
YEAH I THINK YOU MISTER YOUNG.
MISTER COULD YOU TALKABOUT THE
SIXTEEN BILLION DOLLARS IN
SUBSIDIES.
WE WE'VE HEARD THAT PICKED A
CRITICISM FROM CALIFORNIA'S
PERSPECTIVE A LOT OF THAT WILL
GO TO THE MIDWEST HOW MUCH DO
YOU THINK WILL MAKE IT TO THE
CALIFORNIA MARKET.
IT'S A GREAT QUESTION -- I DON'T
KNOW A LOT OF THIS DEPENDS ON
HOW MANY OF OUR FARMERS GO
THROUGH THE PROCESS OF
APPLICATION AND GET TIMELY
RESPONSE FROM USDA AGAIN THE
MECHANISMS AREN'T REALLY THERE
WERE CREATING THEM ON THE FLY.
I WILL SAY THE SECOND PROGRAM
SIXTEEN BILLION DOLLAR PROGRAM
MADE ONE CRITICAL PROVEN THAT
OVER THE FIRST.
ONE THE FIRST ONE HAD AN
ADJUSTED GROSS INCOME THRESHOLD
OF I BELIEVE IT'S NINE OR
THOUSAND DOLLARS ABOVE WHICH YOU
COULD NOT APPLY FOR CALIFORNIA
WE HAVE -- PHARMACISTS AGI TENDS
TO BE THERE OR MAYBE A LITTLE
HIGHER BECAUSE WE HAVE LARGER
OPERATIONS IN MULTIPLE PARTS OF
THE STATE.
SO THEY DID AWAY WITH THAT AGI
THRESHOLD THAT SHOULD HELP US
BUT I CAN'T GIVE YOU A GOOD
ESTIMATE.
THEY BY THE WAY ON THAT SIXTEEN
BILLION THE ADMINISTRATION TENDS
TO ROLL THAT OUT IN THREE
TRANCHES.
I WOULD LIKE TO SEE IT COME
MAYBE INTO TRASHES OR OR -- ONE
NOT STRETCH IT OUT.
MEMBERS HAVE ANY OTHER QUESTIONS
AT THIS POINT -- ANY CLOSING 
DON'T USUALLY DO CLOSING CONCERT
ANY ANY DID NOT GET A CHANCE TO
SAY SOMETHING THAT YOU WANTED TO
SAY I'M JUST GRATEFUL THAT YOU
GUYS LASTED THAT YOU HAVE WE'RE
WE CARE A LOT ABOUT.
YOUR YOUR MEMBERS AND THE
IMPACTS ON ALIFORNIA AND IN SO
WE'RE GRATEFUL THAT YOU
PARTICIPATED AS WITH THE OTHER
PANELISTS AS WELL -- SO THANK
YOU FOR THAT -- MADAM CULTURED
ANY MARKS THE LET'S SAY.
IT ALSO JUST SAY THANK YOU VERY
MUCH AT THAT YOU KNOW OF COURSE
AND WE'RE ALL SITTING HERE
REFLECTING AND NOBODY'S GOT THE
COURSE OF OUR LIKE HOW LONG CAN
YOU LAST.
RIGHT AND EVEN IF RATE WE
WEATHER THE STORM FOR AWHILE HOW
HOW DO WE TRUST AND THAT ANOTHER
CORPORATE WON'T GET.
TUGGED -- WHICH I THINK AGAIN
JUST ADDS TO THE UNCERTAINTY
THAT DATA THAT IS THE THE BANE
OF BUSINESS.
WE'RE GOING TO GO TO WAY OUT
PUBLIC COMMENT PERIOD -- AS WE
MOVE THE PUCK THANK YOU AGAIN --
PALACE AS BEAUTIFUL A COMMENT
AYE AYE SHOULD STATED AT AT THE
BEGINNING OF THE HEARING -- THAT
WE DID INVITE -- THE REPUBLIC OF
CHINA TO PARTICIPATE AND THAT WE
DID NOT GET A RESPONSE.
DAY OUT WE DID INVITE THE US
TRADE REPRESENTATIVE -- TO
PARTICIPATE AS WELL SO THANK YOU
FOR THAT CLARIFICATION AS WELL --
THIS AT A DOCTOR EGGMAN -- THIS
IS IMPORTANT TO HEAR FROM THEM
BUT WE DIDN'T GET A RESPONSE IN
ADDITION -- ART WILL GO TO THE
MICROPHONE PLEASE.
THANK YOU VERY MUCH MY NAME IS
HEALING TREVINO I'M THE
PRESIDENT OF THE ALMOND ALLIANCE
THANK YOU. FOR EXPORT.
THE LARGEST EXPERIENCE I HAD A
CAT I HAD TO SAY SOMETHING RIGHT
AND BE REMISS NOT TO AND MR
PROBABLY AT STILL MUST MOST OF
THE THUNDER SO THANK YOU DAY
THANK YOU.
FOR HELPING ME OUT BUT THERE ARE
SOME THINGS I JUST WANT TO TOUCH
ON ESPECIALLY PERTAINING TO YOU
KNOW THE QUESTION WHAT CAN THE
LEGISLATURE DO IT COME THE
MINISTRATION DO -- AND SOME OF
THE THINGS THAT I JUST WANT TO
HIGHLIGHT SO TRY TO BE QUICK --
AND I JUST WANNA DO SOME
HIGHLIGHTS HERE YOU KNOW WE WE
GENERATE ABOUT A HUNDRED FOUR
THOUSAND JOBS STATEWIDE 97%
NINETY SEVEN THOUSAND OF THOSE
IN THE CENTRAL VALLEY ESPECIALLY
IN.
HIGH A CHRONIC UNEMPLOYMENT
AREAS SO THAT SIGNIFICANT WOULD
GENERATE ABOUT TWENTY ONE
BILLION IN THE ECONOMIC REVENUE
DIRECTLY ELEVEN BILLION TO THE
STATE'S TOTAL ECONOMY -- THIS
LAST YEAR AUCTION TWENTY
SEVENTEEN OUR EXPORTS WERE
VALUED AT ABOUT FOUR POINT FIVE
BILLION -- WHICH SUBSTANTIALLY
CONTRIBUTES THE AGRICULTURAL
TRADE SURPLUS -- OBVIOUSLY WERE
THE TOP THREE ONE OF THE TOP
THREE VALUED COMMODITIES -- IT
WE WORST TARGETED IN -- TWENTY
EIGHTEEN APRIL SECOND -- WITH
THE TWO THIRTY TWOS AND SO IT'S
JUST NOT TRYING TO FOR US BUT
TURKEY BUT 25% IS NOT CHANGED
AND TARGETS A SIGNIFICANT MARKET
IT'S NOT OUR LARGEST BUT IT'S A
SIGNIFICANT -- SO THIS PROLONGED
TRADE DISPUTE IS HURT -- THE
INDUSTRY.
DAVID MENTIONED SOME NUMBERS I
WON'T REPEAT THEM -- I DO WANT
TO SAY THAT IF YOU LOOK
SPECIFICALLY AT DIRECT CHINA
SHIPMENTS -- WHICH WE HAVE
ARGUED WITH THE U. S. T.
ECONOMIST IN TERMS OF HONG KONG
CHINA BUT THAT'S A WHOLE
DIFFERENT DISCUSSION -- WE'RE
LOOKING AT THE FIRST QUARTER OF
TWENTY NINETEEN WERE ABOUT 60%
OF WHAT WE SHIPPED IN THE FIRST
QUARTER OF TWENTY EIGHTEEN SO
THAT'S A SUBSTANTIAL CHANGE --
AS AS I'M WAS INDICATED TO
MEANWHILE AUSTRALIA AS STRONG AS
LOOKING OVER THAT ELEVEN MONTH.
SAME TERM ABOUT INCREASE OF
2000% NOW THIS IS SIGNIFICANT
BECAUSE AUSTRALIA IS ACTUALLY
MOVING ITS EXPORTS INTO OTHER
COUNTRIES INTO CHINA.
BECAUSE WHEN THEY KNOW THAT
THERE IS A RESOLUTION THEY WANT
TO SATURATE THAT MARKET AND WHEN
THEY KNOW THAT -- OVER THE LAST
TEN YEARS WE'VE INVESTED SEVENTY
FOUR MILLION IN THAT MARKET IN
CHINA TO OPEN AND EXPAND THAT
MARKET AND THEY ARE TAKING THEM
VERY GOOD ADVANTAGE OF THAT WAS
0% -- TERRA FOR AS A RESULT OF
THE WTO AGREEMENT -- SO IN
CLOSING I WANT TO SAY THAT YOU
KNOW WE'RE INTERESTED IN TRADING
MARKET GROWTH WE'VE SPENT A LOT
OF TIME IN DC.
I THINK THAT'S ONE OF THE AREAS
I WANT TO FOCUS ON YOU KNOW I GO
TO THESE TRADE EVENTS THESE
DISCUSSIONS -- WITH THE
SECRETARY WITH ADMINISTRATION
AND WITH OMB AND YOU JUST SEE
THE MIDWEST PRESENCE.
YOU SEE CALIFORNIA'S PRESENCE IT
GOES BACK TO YOU IN THE DAY WHEN
I WORKED IN THE ADMINISTRATION
YOU KNOW YOU HAVE THREE OR FOUR
LOBBYIST. FOR STATE THIS BIG.
AND IT JUST INFURIATES YOU ASIDE
FROM THE DAY IN THE GOOD OLD
DAYS AND WE HAD TRADING COMMERCE
REPS IN KEY MARKETS.
AND I I WOULD HOPE THAT AS SOME
DAY SOMEDAY SOON THAT WE RE
EXAMINE NOT ESPECIALLY NOT JUST
AN AGRICULTURE FROM SELFISH
PERSPECTIVE.
BUT JUST HOW MUCH THE
INTERNATIONAL ECONOMY IS
IMPORTANT TO CALIFORNIA SO
LOOKING THAT LOOKING AT THAT --
OPTION IS I THINK IMPORTANT AND
SOMETHING THAT THAT WE WOULD
ENCOURAGE -- AT THE PRESENCE IN
DC IS IS JUST MY MY NUMBER --
ONE ASK REQUEST AND JUST A
UNIFIED VOICE AND AGRICULTURE WE
WORK TOWARDS THAT WITH THAT YOU
SEE.
ON DAVIS IN TERMS OF THE NUMBERS --
EDUCATED ECONOMIST YOU PUT THE
TWO ECONOMISTS TOGETHER YOU CAN
BE FARTHER APART.
SO -- THAT'S ALWAYS HELPFUL TO
HAVE THE INTERMEDIARIES AS
TRANSLATORS -- COMING FROM THE
AGRICULTURE INDUSTRY.
I WOULD SAY I'M TRILINGUAL I
SPEAK I GREW CULTURE ECONOMICS
RATE AS AGREE OUR CHRISSY SPEAK
SPANISH AND ENGLISH -- TO BUT
ANYWAYS -- SO JUST WANNA AB PUT
INTO THIS -- WERE WAITING AS
EVERYONE ELSE'S STABILITY IS
CRITICAL -- TO OUR BUYERS AND WE
WANT TO BE PART OF THE SOLUTION
BUT ALSO WANT TO EXPRESS THE
PAIN THAT HAS BECAUSE INDUSTRY
BECAUSE IT SIGNIFICANT.
AND THAT IS WHY WE HAVE BEEN
VOCAL IN THE MEDICATION SO THANK
YOU FOR THE TIME.
THANK YOU VERY MUCH REALLY
GRATEFUL THAT YOU'RE ABLE TO BE
HERE ON BEHALF OF ALMOND GROWERS
THANK YOU THANK YOU FOR THE TIME.
WILL COME -- WITHOUT SEEN ANY
OTHER PEOPLE FOR PUBLIC COMMENT --
YES MISTER BLOOM I JUST WANT TO
THANK -- THE TWO OF YOU FOR
PUTTING THIS TOGETHER IT'S BEEN
EXTREMELY INFORMATIVE AND
HELPFUL.
THANK YOU AND AND THIS IS GOING
TO BE AN ISSUE THAT WE WILL
CONTINUE TO TRACK AS A AS WE
LOOK AT THE IMPACTS OF DECISION
MAKING ON CALIFORNIA -- FROM
BEYOND OUR BORDERS THANK YOU
THIS TURN IS ENDED.
REPORTER SHE DOES NOT HAVE BEEN
USING A LOT OF THE STUFF AND
THEY HAVE.
REMINDED.
WHEN DIFFERENT KINDS YEAH?
OF COURSE YOU GOT IT YEAH