Hatch: Trump needs convincing on global trade market positives

U.S. Sen. Orrin Hatch recently heaped praise on President-elect Donald Trump during an event in Salt Lake City, but acknowledged that “we have some work to do” to convince Trump about the positives of international trade and the opening of global trade markets.

The longtime Utah Republican senator expressed optimism that Trump — whom he called “very, very bright” — will “soften” on his stance about international trade.

“While many of us may be pleased with the overall results of this year’s election, often the tone of the campaign was not very favorable toward international trade,” Hatch said at a global impact conference presented by the U.S. Global Leadership Coalition and several state and local partners.

“Neither candidate in the presidential race spoke very positively about U.S. trade with foreign countries, and while I understand the president-elect’s desire to hold our trading partners accountable, there are definitely better ways of doing that than some of the ideas that have been put forward so far. So we will need to work closely with the new administration to ensure that the United States not only remains committed to trade, but also continues to be a global leader in trade.”

Hatch said he understands the belief some people may have that international trade promotion efforts may have been dealt a setback with Trump’s victory because of both campaigns’ rhetoric about international trade agreements.

“However, as always, I’m very optimistic,” the senator said. “I see this election as an opportunity to demonstrate the importance of trade and to convince the critics that our nation’s economic and security interests are closely tied to our ability to open markets and expand opportunities for our exporters and importers here at home.”

Hatch said he has chatted with Trump.

“I think he’s softening a little bit on some of the things that he did say during the election,” Hatch said to giggles from the audience as well as his own. “And I’m going to see that he softens a lot more. He’s a very bright guy. Don’t ever sell him short. He’s bright, he understands economics, he understands trade. And I think he understands how helping the rest of the world to understand us a little bit better is a very good thing.”

The opening of markets and expanding international trade is good for the U.S. and for Utah companies that export and import, he said.

“Now, we have some work to do to make that case, of course, including, it seems, with this incoming administration, but I’m certain that we can do it,” Hatch said. “We’ve done it before and I intend to see that we do it again, and I’m committed to doing it again.”

At various times, Hatch described Trump as “an extraordinary man,” “very, very bright” and “there’s not much doubt that he’s a leader.” “He didn’t become a billionaire by luck,” he said. However, he also said that the U.S. “can survive anything.”

“And it will survive whoever is president of the United States. Had Hillary [Clinton] been fortunate enough to be president, I would be saying that about Hillary as well. And we’ll see if we can bring about some element of peace in what has happened.”

If Trump does expand U.S. trade abroad, it would enhance Utah’s export figures, which in 2015 stood at $13 billion, supporting nearly 60,000 jobs and more than 3,000 Utah companies. Imports into Utah allow the state’s companies to get necessary inputs and other materials, and all Utah consumers get enhanced variety and availability of imported goods, he said.

“In other words, trade and free trade agreements are essential to Utah’s economy and the same is true nationwide, and I’ve found that to be so,” Hatch said.

The senator called for “high-standard trade agreements” and said a top priority will be better educating Americans about the importance of trade.

“We in Utah understand it. This is a great trading state. We have billions of dollars in trade,” Hatch said. “Now, it’s essential to train people to understand that, because if the United States is going to compete in the 21st century — and especially in the global economy, where we want to compete — we must be fully engaged in the international marketplace.”

U.S. leadership and engagement in international trade is “crucial” and “essential” to both the U.S. and the world, he said.

“We need to keep in mind that if the United States does not take a leadership role in setting standards and writing the rules of international trade, other countries are going to, and those countries are not likely to have American interests at heart or in mind,” he said.

Some of the conference discussion delved into international politics and humanitarian efforts, but economics was a main focus. Nigel Steward, managing director of Rio Tinto’s diamonds and mines operations, including its Kennecott operations, stressed the importance of international trade to his company, the U.S. and the world.’

“Our operations in the Unites States keep the national economy strong, with the raw materials needed to help technology grow and to sustain the goods that we use daily in every facet in our lives,” Steward said. “These products are not only used throughout the U.S. but exported to countries around the world.”

Ninety-five percent of the world’s consumers live outside the U.S., with the fastest-growing markets being in developing countries, he said.

“These are our current and our future markets. Rio Tinto’s ability to meet the expectations of our stakeholders is clearly linked to the open markets and global economic growth,” he said. “Similarly, Utah’s interests in open markets and global growth is also clear.”

Bill Lane, a 40-year veteran at Caterpillar and chair emeritus of the U.S. Global Leadership Coalition, said opportunities abound in nations beyond the 20 that have free trade agreements with the U.S. Half of U.S. exports go to those 20 nations, which have a total of 400 million people, but the world has a population of 7.4 billion.

“That means we’re over-performing or we’re performing adequately where trade is truly free and fair — or as free and fair as we see anywhere in the world — and we’re underperforming everywhere else,” Lane said. “To put all this focus on the countries that are buying most of our stuff is sort of counter-productive. The key is to focus on the places that aren’t.”