Michaud to seek trade reform Democrat says U.S. harmed by policies

BANGOR – U.S. Rep. Michael Michaud plans to make foreign trade policy reform a top priority this year in light of the announced closing of Moosehead Manufacturing Co.

Moosehead of Dover-Foxcroft and Monson is one of many businesses nationwide forced to close because its products could not compete with low-priced imported goods, Michaud said in an interview Thursday at the Bangor Daily News.

Moosehead announced earlier this month that it would close and lay off its 126 employees because furniture imported from China, Brazil and Mexico had taken its place in the market.

“Trade is a big concern,” Michaud said.

The 2nd District Democrat said his major concerns regarding foreign trade are value-added taxes on goods and the U.S. trade deficit.

When a foreign business ships certain goods to the United States, its government reimburses the business for the imposed value-added tax, Michaud said. This allows foreign companies to keep their prices competitive within the U.S. market.

However, U.S. companies that export goods remain at a disadvantage because the U.S. government does not reimburse companies for value-added tax, Michaud said.

“There’s been no enforcement, primarily on these trade deals” with other countries, he said.

Michaud said he plans to work with the U.S. Business and Industry Council in Washington, D.C., to find a way to make U.S. companies more competitive with foreign producers.

Michaud also said he will propose a temporary surcharge on imported goods until the U.S. trade deficit drops significantly. He said his plan is modeled after one former President Nixon used to lower the country’s trade deficit in less than six months.

“Our trade deficit [with] China alone is $202 billion. Forty-five percent of our debt is owned by foreigners,” Michaud said. “We can’t sustain this.”

The congressman said one of his other legislative priorities is to provide cost-effective health care to veterans and improve their access to health care in rural areas.

On another topic, Michaud said he hoped the review process for the two liquefied natural gas facilities proposed along Passamaquoddy Bay would not be halted by the Canadian government’s opposition to the plans.

“I hope the local community has a say,” Michaud said. “At the same time, we have to maintain a good relationship with Canada.”