01-30-06 Special Called City Council Retreat Meeting of La Porte City Council

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• • Overseas sales of airplanes and parts will surge next year, helping to lift total U.S. aircraft sales to a nine-year high... • topping $200 billion. Commercial and military aircraft will be sold to many nations, including China and India, benefiting Boeing, Raytheon, General Dynamics, Honeywell and hundreds of their subcontractors. Look for U.S. direct investment in China to pick up again -in 2006 after a lull this year. Electronics, autos and auto parts, and chemicals will attract the most dollars, though other sectors will gain, too. Meanwhile, U.S. investment in India will continue to soar, after hitting a record $1.5 billion this year. Investment will focus on telecommunications and software industries as well as automaking. India offers U.S. investors two big advantages over China: English language and lower salaries. Roughly 250 million Indians speak English fluently. Less well known is that in all but one category, midlevel customer service, salaries are lower in India than in China. The U.S. is making trade deals with Oman, Panama and Thailand plus zeroing -in on a free -trade pact with Colombia, Ecuador and Peru. The Oman deal may be the only one to get an OR from Congress next year, even though it would actually do the least for U.S. exports. It would help the U.S. keep another friend in the Middle East, though. The others face big hurdles: They all involve sugar exporters with poor records on workers' rights. That will galvanize opposition* among Democrats in general and Republicans from sugar -producing states. New European Union rules covering chemicals will be modified to make the regs less onerous to business. The number of chemicals subject to safety testing and licensing will be slashed nearly in half. More pro -business changes are likely before the regs take effect in 2007. But they'll -still be expensive for U.S. exporters to comply with. Bush's lust -announced Iraq plan will give him temporary relief from criticism, at least from those within his own party, at whom the public relations offensive is primarily directed. But it isn't likely to alter the security situation in Iraq. And unless that improves appreciably, which we don't expect anytime soon, Bush won't be able to stem discontent with the war and his conduct of it. There are a few encouraging signs: Some infrastructure work is making headway. And there have been hints of greater Sunni willingness to participate in the political process, raising hopes for relative calm. But without more Droeress. the Dolitical heat will intensify. A domestic public relations campaign won't do much to ease the pressure that Bush is likely to feel to bring more U.S. soldiers home next year. Yours very t y, Dec.-2, 2005 THE R INGER /ASVHGTON C ITORS P.S. How.can your business raise capital? Find out Dec. 16 by joining in on an interactive audio conference with leading authorities on raising capital to grow small and midsize businesses. To register, • go to www.krm.com/kiplinger or call 800-775-7654. Provide savings code 37. Copyright 2005. The Kiplinger Washington Editors, Inc. Quotation for political or commercial use is not permitted. Duplicating an entire Issue for sharing with others, by any means, is illegal. Photocopying of individual items for internal use is permitted for registrants wfth the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923. For details, call 978-750-8400 or visit www.copyright.com.