New ETF Book by Larry Connors - Click here to read more
Caterpillar Chairman and Chief Executive Officer Jim Owens testified Thursday before the U.S. Senate finance committee in support of the Trade Promotion Agreement between the United States and Panama.
"Time and time again, we have seen the benefits of expanding our opportunities for trade," Owens said. "In 2008 alone, Caterpillar exported more than $16 billion in products from the U.S., supporting tens of thousands of jobs."
Some senators are unhappy, however. Before there can be trade talk, they insist Panama clean up its bank secrecy laws which have turned it into a tax haven said to be robbing the United States of billions in tax revenues.
But Caterpillar said there is plenty of legitimate business to be done in Panama, only right now, company equipment sold to Panamanian companies carries up to a 10 percent sales tariff. Caterpillar said tacking 10 percent on to the multi-million cost of the world's biggest off-road trucks built in Decatur hurts sales.
"Look at it this way," said Caterpillar spokesman Jim Dugan."If you were going to buy a new car, are choosing between two relatively identical vehicles, but one of them costs 10 percent less right off the bat, well, that is going to get your attention. If this agreement passes, that 10 percent tariff goes away."
Dugan said Panama will definitely be in the market for the monster trucks and road graders built in Decatur. The Panama Canal, the 95-year-old water bridge between the Atlantic and Pacific oceans, is due for a massive upgrade to expand its capacity to handle the giant cargo ships plying the seas today.
"Caterpillar customers who buy and use our machines built in Decatur will be bidding on this work," Dugan added.
And Caterpillar said that history shows every time a trade agreement is concluded, sales shoot up.
After the North American Free Trade Agreement, for example, Caterpillar exports to Canada and Mexico quadrupled. After a free trade agreement was signed with Chile, Caterpillar exports to that country tripled.
"A lot of those exports to Chile are mining trucks built in Decatur," said Dugan. "A lot of those exports to Canada are mining trucks built in Decatur. Those agreements are good for customers, good for Caterpillar and good for our employees."
treid@herald-review.com|421-7977
To see more of Herald & Review, or to subscribe to the newspaper, go to http://www.herald-review.com Copyright (c) 2009, Herald & Review, Decatur, Ill. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
