OTMP Reports: Analyzing Trade, Manufacturing, and National Security Policies

OTMP Reports: Analyzing Trade, Manufacturing, and National Security Policies

The Office of Trade and Manufacturing Policy (OTMP) has produced a series of reports aimed at shaping the economic landscape of the United States. These documents cover a broad spectrum of issues, from the intricacies of international trade tariffs to the resiliency of the national defense industrial base. By examining these reports, we can gain insight into the administration's approach to domestic production and global economic competition.

Key Facts

  • Trade Policy: Analyzed the potential impact of the United States Reciprocal Trade Act in May 2019.
  • Manufacturing: Tracked the use of the Defense Production Act (DPA) and the "Buy American, Hire American" initiative.
  • National Security: Conducted a whole-of-government assessment of the defense industrial base and analyzed threats from Chinese policies.
  • Job Creation: Released state-specific reports focusing on seven key states in late 2020.

Trade and International Relations

In May 2019, the OTMP published an analysis regarding the United States Reciprocal Trade Act. Proposed in January 2019, this bill sought to grant the president the authority to impose reciprocal tariffs on trade partners that maintained high tariffs or non-tariff barriers (restrictions such as quotas or licenses) against U.S. goods. Despite the analysis, the bill did not advance beyond the Committee stage.

Beyond specific legislation, the OTMP also focused on global threats. In June 2018, the office released a report detailing how the policies of China posed a direct threat to the economic and national security of the United States.

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Manufacturing and Industrial Capacity

The OTMP has heavily focused on the Defense Production Act (DPA)—a law that allows the government to prioritize the production of essential materials during emergencies. In August 2020, the OTMP reported 78 instances where the Trump administration used the DPA to combat equipment shortages. However, this report faced significant criticism; analysts and Senator Sherrod Brown argued that some cited instances were unrelated to medical equipment or were older expenditures from 2017, leading to claims that the report was a political tool.

Further efforts to bolster domestic industry were detailed in October 2020 through a report on the "Buy American, Hire American" policies, as mandated by Executive Order 13788. This report evaluated progress across five specific pillars:

  • American procurement practices.
  • The hiring of American labor.
  • Trade policy and the application of tariffs.
  • Defense budget and related policies.
  • The utilization of the Jones Act (a law regulating maritime commerce in U.S. waters).
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National Security and Supply Chain Resiliency

Ensuring that the U.S. can produce its own defense materials is a cornerstone of national security. In July 2017, Executive Order 13806 was signed, initiating a comprehensive assessment of the manufacturing and defense industrial base and supply chain resiliency. This effort, led by the OTMP, directed the Department of Defense to conduct a government-wide review, the results of which were published in October 2018.

Regional Job Creation Initiatives

In late October 2020, the OTMP launched a series of seven reports titled "All Job Creation Is Local." These reports focused on specific states: Maine, Michigan, Minnesota, Pennsylvania, Wisconsin, North Carolina, and Florida. Each document highlighted federal actions intended to stimulate job growth in key sectors within those state economies.

These reports were met with scrutiny from media outlets like The Daily Beast, which noted that the selected states were all considered "swing states" in the 2020 presidential election, suggesting the reports were intended to support the president's reelection campaign.

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Summary of OTMP Policy Reports

Overview of Major OTMP Reports and Initiatives
Focus Area Key Report/Action Date Primary Objective
Trade Reciprocal Trade Act Analysis May 2019 Analyze reciprocal tariff impacts
Manufacturing DPA Usage Update August 2020 Track equipment shortage responses
Manufacturing Buy American, Hire American October 2020 Evaluate domestic procurement and labor
National Security Industrial Base Assessment October 2018 Strengthen defense supply chains
Job Creation "All Job Creation Is Local" October 2020 Highlight state-specific federal actions

Frequently Asked Questions

What was the purpose of the United States Reciprocal Trade Act?

The proposed act aimed to allow the U.S. president to impose tariffs on trade partners that did not lower their own tariffs or non-tariff barriers to a level corresponding with those of the United States.

Why was the August 2020 DPA report criticized?

Critics, including Senator Sherrod Brown, argued the report was propaganda because it included executive orders unrelated to medical equipment and Defense Department spending from as early as 2017 that did not directly address supply shortages.

What did the "Buy American, Hire American" report cover?

The report focused on five areas: American procurement, American labor hiring, trade policy/tariffs, the defense budget, and the application of the Jones Act.

Which states were featured in the "All Job Creation Is Local" reports?

The reports focused on Maine, Michigan, Minnesota, Pennsylvania, Wisconsin, North Carolina, and Florida.

What was the goal of Executive Order 13806?

It directed the Department of Defense to lead a whole-of-government assessment to strengthen the manufacturing and defense industrial base and improve the resiliency of U.S. supply chains.

References

  1. Navarro, Peter (May 2, 2017). "Trump trade chief: Our trade policy is already working". CNN. Atlanta: Turner Broadcasting System (Time Warner). Retrieved May 10, 2017.- Horsley, Scott (May 3, 2017). "Peter Navarro: A 'Bricklayer' Of Trump's Protectionist Wall". NPR. Washington, D.C.: National Public Radio, Inc. Retrieved May 10, 2017.
  2. Korte, Gregory (April 29, 2017). "On his 100th day in office, Trump orders review of free trade agreements". USA Today. McLean, Virginia: Gannett Company. Retrieved May 10, 2017.- Office of the Press Secretary (April 29, 2017). "Presidential Executive Order on the Establishment of Office of Trade and Manufacturing Policy". whitehouse.gov. Washington, D.C.: White House. Retrieved May 10, 2017. This article incorporates text from this source, which is in the public domain.- "Establishment of Office of Trade and Manufacturing Policy". Federal Register. Washington, D.C.: National Archives and Records Administration. April 29, 2017. Archived from the original on May 4, 2017. Retrieved May 10, 2017. Alt URL This article incorporates text from this source, which is in the public domain.
  3. "Delegating Additional Authority Under the Defense Production Act Concerning Health and Medical Resources To Respond to the Spread of COVID-19". Federal Register. April 1, 2020. Retrieved November 17, 2020.
  4. Leary, Alex (March 28, 2020). "'This is War': President's Equipment Czar to Use Full Powers to Fight Coronavirus". The Wall Street Journal. Archived from the original on March 29, 2020. Retrieved November 17, 2020.
  5. "The United States Reciprocal Trade Act: Estimated Job & Trade Deficit Effects" (PDF). The Wall Street Journal. Retrieved November 17, 2020.