Following the completion of the necessary measures to comply with commitments under the United States-Mexico-Canada Agreement (USMCA), the Agreement officially enters into force today, July 1, 2020.
As Secretaries of State who oversee the business filings process in the respective states of Alabama, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Ohio, Texas, and Wyoming, Secretaries John H. Merrill (Alabama), Paul D. Pate (Iowa), Michael G. Adams (Kentucky), Kyle Ardoin (Louisiana), Michael Watson (Mississippi), John R. Ashcroft (Missouri), Bob Evnen (Nebraska), Frank LaRose (Ohio), Ruth Hughs (Texas), and Edward A. Buchanan (Wyoming) recognize and appreciate firsthand the positive impact the USMCA will have on entrepreneurs across the country.
“Alabama’s international engagement fuels job growth and increases exports. The success of Alabama businesses depends on the participation and competitiveness of our global counterparts. Alabama totaled $6.6 billion in exports to Canada and Mexico in 2018, supporting families and businesses across the state” noted Alabama Secretary of State John H. Merrill. “I was delighted to join President Donald J. Trump in January of this year as he signed this mutually beneficial agreement, and I look forward to its future success.”
“The USMCA is a great opportunity for Iowa’s farmers, businesses and families. The launch of this agreement comes at a vital time for our country and will provide a much needed boost to our economy. Canada and Mexico bought $6.5 billion worth of goods from Iowa in 2018 and this deal ensures our partnerships with these neighbors will continue,” stated Iowa Secretary of State Paul Pate.
“The USMCA entering into force is a great deal and a win for American and Louisiana workers. The USMCA will help support and grow our economy, boost small businesses, help our farmers, manufacturers, and workers, and ensure more Louisiana-made products can be sent internationally. Trade is important to Louisiana’s economy and this deal will help boost both,” stated Louisiana Secretary of State Kyle Ardoin.
“During a time when the future of our economy seems nebulous, the USCMA creates a portal for modern opportunities and prosperous partnerships,” said Mississippi Secretary of State Michael Watson. “The enhanced agreement will undoubtedly revive businesses and help boost innovation in our state. I applaud President Trump’s leadership and dedication to ensuring a fair playing field for Mississippi farmers, ranchers, and entrepreneurs.”
“Missouri is grateful for this historic agreement, which will help Missouri agriculture and businesses grow with more jobs and increasing exports. As our economy recovers, getting businesses and people back to work, this will help ensure success for large and small businesses who compete and form partnerships with our neighbors. We stand ready to assist our entrepreneurs and businesses,” replied Missouri Secretary of State John R. Ashcroft.
Nebraska Secretary of State Bob Evnen noted, “The USMCA provides expanded opportunities for Nebraska’s livestock industry, and our ag commodity and specialty crop producers. The USMCA builds on the successes and corrects the problems of NAFTA, and gives us expanded opportunities for Nebraska’s ag trade with our friends in Mexico and Canada. This excellent agreement now serves as a template for other international free trade agreements, so we have cause for optimism on many fronts.”
“Today is a day Ohio’s farmers and entrepreneurs have been waiting for,” said Ohio Secretary of State Frank LaRose. “As our nation’s economy continues to recover, the USMCA is a much needed boost as they compete on the global stage. Thanks to the leadership of President Trump, Senator Portman and bipartisan leaders from across our nation, Ohio is poised for our next giant leap, and my office looks forward to helping make it happen.”
“Last year alone, trade between Texas and its two largest trade partners—Mexico and Canada—totaled more than $200 billion. This exchange supports the more than 950,000 Texas jobs that are tied directly to trade with Mexico and Canada,” said Texas Secretary of State Ruth Hughs. “The implementation of the USMCA provides tremendous benefit to all parties involved in the trade deal and will help to ensure years of mutual economic benefit and prosperity for all. We look forward to further strengthening our relationship with our trade partners as we enter a new era of innovation and success.”
“The USMCA trade deal has high standards and rebalances North American trade to provide a stronger market for Wyoming’s and our Nation’s goods. This is a great day for our country, as businesses will better be able to participate in cross-border trade. USMCA ensures fair business practices by our neighbors and now the advantage will be back in the hands of the American worker,” stated Wyoming Secretary of State Edward Buchanan.
This historic trade agreement will result in freer markets, fairer trade, and strong economic growth across North America, creating new opportunities for American workers, farmers, ranchers, and business owners.
New unemployment claims continue to drop
There were 11,692 unemployment claims filed in Alabama last week, down from 17,439 the previous week, according to the Alabama Department of Labor.
Seventy-six percent of the claims from July 26 to Aug. 1 were related to COVID-19, according to the Alabama Department of Labor. That compares to 89 percent the week before.
New claims increased over the first half of July but declined in the second half.
Alabama Power is returning $100 million to customers
The Alabama Public Service Commission approved a plan Tuesday to credit Alabama Power Company customers on their October bills. The move returns approximately $100 million to Alabama Power Company customers.
“Putting money back into the pockets of hard-working Alabamians is one of the ways we can help on the road to recovery,” Public Service Commission President Twinkle Andress Cavanaugh said on social media. “Alabama Power to refund $100 million to customers.”
The typical Alabama Power customer will receive a $25 credit on their October bill. The newly approved credit is on top of a 3 percent rate reduction that customers are already enjoying in 2020. This previous rate cuts and the October credit amount to about $300 million in savings for Alabama Power customers this year.
“We appreciate the commission voting today to expedite this credit for our customers,” said Richard Hutto, Alabama Power’s vice president of regulatory affairs.
The global economic collapse due to the COVID-19 pandemic has hurt people across Alabama. It has also dramatically lowered fuel costs for Alabama Power Company’s plants.
A typical residential customer using 1,000 kilowatt-hours of electricity per month is expected to receive a credit of $25. Customers who use more energy will receive a larger credit. Customers who use less power receive a smaller credit but had a smaller bill to begin with. Adjustments to fuel costs are typically calculated at the end of the year, with savings passed to customers beginning in January, but due to the economic downturn and pandemic-related job losses, Alabama Power and the PSC are rushing that money to Alabama families and businesses.
“Many of our customers have been hurt by COVID-19. We hope this credit will provide some additional relief at this difficult time,” Hutto explained.
The 3 percent rate reduction, that took effect in January, was based on earlier estimates of lower costs for fuel and other expenses for 2020. The rate reduction alone equates to about a $4.50-per-month reduction for the typical residential customer.
“Our employees are working every day to keep costs low while providing industry-leading reliability for our customers,” Hutto added.
Alabama Power said in a statement that their total retail price is below the national average and has been for decades. When adjusted for inflation, the price customers pay for electricity is lower today than it was 30 years ago.
Alabama Power has been assisting customers in other ways during the COVID-19 outbreak. Since the start of the pandemic, the company has suspended disconnects and late payment fees for customers hurt by the coronavirus.
Cavanaugh is seeking another term as president of the Commission.
“It is crucial that we have strong pro-jobs conservatives supporting President Trump’s agenda at all levels of government,” Cavanaugh said on social media.
Payroll Protection Program deadline has been extended to Saturday
Congresswoman Martha Roby, R-Montgomery, this week reminded business owners that the deadline to apply for the Payroll Protection Program, knowns as the PPP, has been extended to Saturday.
“The Small Business Administration’s Paycheck Protection Program (PPP) application deadline was recently extended to Saturday, August 8,” Roby wrote in an email to constituents. “Do not forget to fill out your application if you are a small business that has been impacted by the Coronavirus pandemic.“
The PPP was a loan program administered by the Small Business Administration. It was part of the bipartisan CARES Act to address the economic collapse caused by the COVID-19 global pandemic and the forced economic shutdowns, which were implemented in the early months of the public health emergency in an attempt to slow the spread of the novel strain of the coronavirus and allow public health agencies and health care systems time to build up testing, contact-tracing and hospital bed capacity.
The PPP loans are 1 percent interest loans available through the SBA. If the business uses the money to make payroll and pay standard operating expenses then the loans will be forgiven. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers.
The PPP has been very popular, so much so that that program ran out of money just weeks after Congress passed it. Congress had to go back and provide more funding for the PPP.
Businesses can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
Senate Democrats are meeting with the Trump Administration, Senate Republicans and House leadership on a compromise plan for a fifth coronavirus relief package. A big point of contention has been the size of the total package. Speaker of the House Nancy Pelosi, D-California, supports a $3.2 trillion coronavirus relief bill while Republicans prefer a more modest $1 trillion relief bill. The two sides are expected to continue to negotiate through Friday in an attempt to reach a compromise before the August recess.
Roby is serving in her fifth term representing Alabama’s 2nd congressional district. She is not seeking re-election.
State’s unemployment claims slowed last week
Last week saw the lowest number of new claims since the week-to-week number first spiked from 1,824 to 10,982 when the lockdown started in mid-March.
The number of unemployment claims in Alabama slipped last week after increasing through the first half of July.
There were 17,439 claims filed from July 19 to 25, according to the Alabama Department of Labor. Of those, 15,461, or 89 percent, were COVID-19 related.
Claims soared at the start of the pandemic in late March, hitting a weekly high of 106,739 in the first week of April. The rate of new claims declined sharply in May, with each week counting under 30,000 claims.
Since then, the number has decreased somewhat steadily. Claims rose several thousand over the course of this month, from 19,058 in the week ending July 4 to 23,678 in the week ending July 18.