[CTC] Billionaire Investor Wilbur Ross Confirmed as U.S. Commerce Secretary

Tue Feb 28 06:36:47 PST 2017

Two articles below...

http://www.politico.com/story/2017/02/ross-confirmed-to-lead-commerce-235469 <http://www.politico.com/story/2017/02/ross-confirmed-to-lead-commerce-235469>
Ross confirmed to lead Commerce

By Doug Palmer <http://www.politico.com/staff/doug-palmer>
02/27/17 07:36 PM EST

Updated 02/27/17 08:55 PM EST

The Senate voted Monday night to confirm billionaire Wilbur Ross as Commerce secretary, putting in place another key member of President Donald Trump’s trade and economic team.

The 79-year-old businessman is expected to play a leading role in trade policy as Trump looks to renegotiate NAFTA with Canada and Mexico and reduce the $500 billion trade deficit with China.

The nomination — which passed 72-27, with Sen. Johnny Isakson (R-Ga.) absent — drew relatively little fire from Democrats compared to many of Trump’s other nominees.

However, Bill Nelson (D-Fla.), the top Democrat on the Commerce Committee, criticized the White House for refusing to release Ross' written responses to questions <http://go.politicoemail.com/?qs=e0e8dbe8e54efafcbe77f415ef4738bfb76ed1051c666ac0ffc8e2b1b438cb0e1078e465d48487e430656447c76acfc5deeff98fd39f7996f633618d36aa6658> about his role as vice chairman of the board of directors for the Bank of Cyprus, which has done business with Russian investors, including at least one with ties to Russian President Vladimir Putin.

“[Ross] has verbally reiterated to me that he only had one meeting, approximately an hour, with one of the bank’s Russian investors and that it occurred in 2014," Nelson said on the Senate floor. "The timing is important — 2014 — because that was before the presidential campaign."

"He also assured me that he knows of no loans or interaction between the bank or anyone affiliated with the Trump campaign or organization," Nelson continued. "Mr. Ross has been forthcoming to me and I believe him."

But the White House’s decision not to release Ross’ written answers ahead of the vote cost him support among the chamber’s Democrats, Nelson said. In all, 26 Democrats and one independent, Sen. Bernie Sanders (I-Vt.), voted against Ross. Republicans held firm, with all 51 senators present voting to confirm along with 20 Democrats and the upper chamber’s other independent, Sen. Angus King (I-Maine).

"The White House is sitting on Mr. Ross’ written response to Sen. Nelson’s letter," Minority Leader Chuck Schumer complained ahead of the vote. "It is another example of this administration abandoning transparency and trying to jam their nominees through without making all the relevant information public and available."

Ross, who made his fortune turning around companies in distressed industries like textiles and steel, advised Trump on trade issues during last year’s campaign. That sets him apart from many of Trump’s other Cabinet nominees who joined his team after he was elected. 

Reflecting that close relationship, Ross is expected to have more influence over trade policy than previous Commerce secretaries, who usually play second fiddle on that issue to the U.S. trade representative.

Along with Peter Navarro — a former University of California-Irvine economics professor who now leads the White House’s new National Trade Council — Ross helped craft “the Trump Trade Doctrine,” which requires that any new trade deal increase the economic growth rate, decrease the trade deficit and strengthen the U.S. manufacturing base.

Trump, who prides himself on being a great businessman and negotiator, has gushed over Ross, who is well known on Wall Street for his investing skills. “Everybody calls him Wilbur,” Trump crowed at a White House meeting with industry officials, held to discuss plans for creating jobs and boosting the economy.

Ross’ job will be to execute some of the plans most often talked about by his new boss. He told the Commerce Committee at his confirmation hearing last month that renegotiating NAFTA was the administration’s first trade priority, along with leveling the playing field with China to help bring manufacturing jobs back to the United States.

During the campaign, Trump threatened to accomplish the latter goal by imposing a 45 percent tariff on imports from China. But that seems to be off the table, as does a similar Trump threat to impose a 35 percent tariff on goods from Mexico.

That's a relief to many Republicans who have played important roles in passing trade deals over the last 25 years.

NAFTA "is not a dirty word," John Cornyn <https://cd.politicopro.com/member/51170> (R-Texas) said Monday during floor debate, adding that he was grateful Ross was only interested in updating the pact with Canada and Mexico rather than throwing it out.

Although Democrats have delayed action on many of Trump's nominees, Ross is taking office almost a full month earlier than former President Barack Obama’s first Commerce secretary, Gary Locke, did. Locke was Obama’s third choice for the job after two previous nominees backed out. 

Meanwhile, Trump's nomination of veteran trade attorney Robert Lighthizer to be U.S. trade representative is now stalled because his past work on behalf of foreign governments requires Congress to approve a waiver for him to serve in the new role.

A group of Democrats, led by West Virginia's Joe Manchin, is demanding that a bill providing health care and pension benefits for miners be passed along with the waiver, further complicating the approval process for Lighthizer.

The Finance Committee passed the bill last year on a bipartisan vote of 18-8, but the conservative Heritage Foundation has blasted it as an unprecedented federal bailout of a private pension fund on behalf of the United Mine Workers of America.

The proliferation of high-powered trade positions within the Trump administration has caused some confusion about who will ultimately be calling the shots.

Ross acknowledged that uncertainty during his confirmation hearing and said the White House intends to respect the congressionally mandated responsibility of the U.S. trade representative to take the lead in the trade negotiations.

But Ross added: "I think it's important to bring all the intellectual resources and experience that we can, to helping solve the trade issues. I view that there will be a collaborative process among the U.S. trade rep, myself and Peter Navarro, the White House director of the National Trade Council. We will try our best collectively to do what's best for this country. So that's how we visualize the interaction of those parties working."

https://www.thestreet.com/story/14017923/1/billionaire-investor-wilbur-ross-confirmed-as-u-s-commerce-secretary.html <https://www.thestreet.com/story/14017923/1/billionaire-investor-wilbur-ross-confirmed-as-u-s-commerce-secretary.html>
Billionaire Investor Wilbur Ross Confirmed as U.S. Commerce Secretary

The U.S. Senate confirmed Wilbur Ross as Commerce Secretary on Monday. The billionaire investor will now be tasked with overseeing a sprawling department and negotiating President Trump's agenda on trade.

Emily Stewart <https://www.thestreet.com/author/1629408/emily-stewart/all.html>
Follow <https://www.thestreet.com/story/14017923/1/billionaire-investor-wilbur-ross-confirmed-as-u-s-commerce-secretary.html>
Feb 27, 2017 7:43 PM EST 

The U.S. Senate confirmed Wilbur Ross as the 39th Secretary of Commerce on Monday in a 72-27 vote. The billionaire investor will now take on the task of overseeing a sprawling department and negotiating President Trump's agenda on trade.

Ross' confirmation vote comes more than a month after his confirmation hearing before the Senate Commerce Committee. Senate Majority Whip John Cornyn (R-Texas) speaking from the Senate floor on Monday afternoon criticized his colleagues for the sluggish pace of cabinet confirmations.

"It's been a slow walk," he said. "I'm grateful to Mr. Ross for wanting to serve the country this way, and I think President Trump has chosen wisely as Commerce Secretary."

Ross, a 79-year-old billionaire who built his fortune in private equity, will now take the helm of an expansive 12-bureau Commerce Department that includes the International Trade Administration, the Census Bureau and the U.S. Patent and Trademark Office and accounts for more than one-third of public federal data.

He will take a leading role in negotiating trade relations with countries like Mexico and China alongside Peter Navarro, director of the National Trade Council, and Robert Lighthizer, Trump's U.S. Trade Representative nominee.

"He's interested in updating NAFTA...rather than throwing out the baby with the bathwater. I think that's a positive approach," Cornyn said on Monday.

The U.S. and Mexican governments have engaged, at times, in a heated back-and-forth in setting the stage for trade negotiations.

Mexican President Enrique Pena Nieto cancelled a trip to Washington, D.C., in January after Trump continued to insist Mexico pay for his border wall. Despite a phone call between the two presidents, continuing conversations among top advisers and a visit from Secretary of State Rex Tillerson and Homeland Security Secretary John Kelly to Mexico, all does not appear to be conflict-free. Mexican Economy Minister Ildefonso Guajardo toldBloomberg <https://www.bloomberg.com/news/articles/2017-02-27/mexico-warns-u-s-it-ll-cut-off-nafta-talks-if-tariffs-proposed> on Monday that the country will cut off NAFTA talks if the U.S. imposes tariffs.

"The moment that they say, 'We're going to put a 20% tariff on cars,' I get up from the table," he said. "Bye-bye."

Press Secretary Sean Spicer in January floated the idea <https://www.thestreet.com/story/13968639/1/trump-wants-20-tax-on-mexican-imports-to-pay-for-wall.html> of imposing a 20% tariff on Mexican imports in January, though the White House later rolled back the assertion, saying the measure is just one of a "buffet of options" on the table.

Ross will also step into negotiations with China. At his confirmation hearing, he said he would seek to "level the playing field" with the country.

Ross has sought to cast himself as a business-savvy figure focused on fair trade.

"I've made my livelihood for over five decades dealing in international commerce," he said in prepared remarks at his Senate committee hearing. "I am very well aware of the issues many companies face and I'm sensitive to both the issues abroad and the issues here at home."

He assured senators he is "pro-sensible trade" and "not trade that is detrimental to the American worker and to the domestic manufacturing base."

Ross built a name for himself in investing in distressed companies, first at Rothschild and then at his own firm, WL Ross & Co., which he sold toInvesco (INV <https://www.thestreet.com/quote/INV.html>) in 2006 for $375 million. Forbes estimates his net worth to be $2.5 billion.

As Commerce Secretary, he will now be tasked with divesting <https://www.thestreet.com/story/13896267/1/the-high-cost-wilbur-ross-would-have-to-pay-to-join-trump-s-cabinet.html> dozens of business assets and investments funds, but not all. He will retain millions of dollars of interests <https://www.wsj.com/articles/commerce-nominee-wilbur-ross-will-keep-his-stake-in-chinese-government-backed-company-1486990800> in a handful of offshore entities.

Sen. Chris Murphy (D-Conn.) speaking in opposition to Ross' confirmation on the Senate floor on Monday, criticized Trump for appointing a number of ultra-wealthy individuals to his cabinet -- people like Steve Mnuchin, Rex Tillerson and Betsy DeVos.

"Billionaires do not actually have a monopoly on wisdom in the country," he said. "But it doesn't seem that's what our new president thinks."

Sen. Joe Manchin (D-W.V.) was among the Democrats who voted against Ross. Manchin has voted to support a number of Trump cabinet appointments and was the only Democrat to back the president's Treasury Secretary choice. However, Manchin said in a statement he was opposed to Ross, in part because a company Ross previously controlled, International Coal Group, had made an acquisition of a West Virginia mine operation, Sago Mine, which faced safety violations in 2005 while under ICG's control before an explosion ultimately cost the lives of 12 miners. "He was the owner of the Sago Mine when we lost 12 brave men," said Manchin.

In addition, Manchin also raised concerns with a Ross company acquisition of Weirton Steel, which later experienced layoffs. "Following my extensive vetting, meeting with him, watching his nomination and reaching out to West Virginians who have worked with him directly, I cannot in good conscience look the families of the fallen Sago miners or the Weirton Steel workers who lost their jobs in the eye knowing I voted to give Wilbur Ross a promotion," Manchin said.

Nevertheless, as Commerce Secretary Ross will not be responsible for overseeing mining regulations. That will fall under the purview of the Mine Safety and Health Administration.

-- Ronald Orol contributed to this report
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