WEBVTT - Virginia Governor Glenn Youngkin Talks Free Trade

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Gun Younkin is here. I nearly got that out in

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<v Speaker 2>one go.

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<v Speaker 1>Good morning, good morning, Thanks for having me.

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<v Speaker 2>We sit here at the Airshe and I talked to

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<v Speaker 2>you about this over the last few years. This is

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<v Speaker 2>a really integrated industry. Okay, A lot of the companies

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<v Speaker 2>that are here are headquartered in your state, A lot

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<v Speaker 2>of Virginians are here, but it's a really integrate This

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<v Speaker 2>is a global industry. It's not a Virginia industry. It's

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<v Speaker 2>on American industry. It's a global industry, the aerospace industry,

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<v Speaker 2>and a lot of people here are scratching their heads wondering, therefore,

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<v Speaker 2>what happens next in terms of trade. Can I continue

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<v Speaker 2>to manufacture the aircraft will manufacture with US parts in

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<v Speaker 2>them and European parts in them. Do you think there

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<v Speaker 2>should be some exception made for this incredibly complex, different

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<v Speaker 2>industry that we see behind us here.

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<v Speaker 1>Well, there's historically been arrangements around the world time, Yeah,

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<v Speaker 1>big agreements. I think one of the challenges that are

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<v Speaker 1>working through is how much of the content is in

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<v Speaker 1>what countries and who's buying and so I think that

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<v Speaker 1>the next step here is first to understand the mapping

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<v Speaker 1>of all those supply chains, and then second of all,

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<v Speaker 1>to see whether there can be an agreement this reached

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<v Speaker 1>at the end of the day. I've been very supportive

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<v Speaker 1>of the President's position that we need fair trade, and historically,

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<v Speaker 1>across all the industries, the United States has really been

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<v Speaker 1>a disadvantage around the world with trade really being imbalanced,

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<v Speaker 1>and so he's rebalancing these trade agreements. The result of

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<v Speaker 1>that we're seeing in the Commonwealth of Virginia where so

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<v Speaker 1>many companies now are coming to establish US manufacturing and

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<v Speaker 1>the good thing is they're choosing Virginia. To put it down,

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<v Speaker 1>We've had one hundred billion dollars of commitments from companies

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<v Speaker 1>to build and expand in Virginia and we expect to

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<v Speaker 1>continue to see that. So this long term agreement that

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<v Speaker 1>has existed in aerospace for a long time, I think

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<v Speaker 1>will be something that will be addressed. But at the

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<v Speaker 1>heart of it is rebalancing some of these trades.

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<v Speaker 2>But this is this is a reasonably nuanced story. It's

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<v Speaker 2>this is an industry that is quite balanced. Boeing, headquartered

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<v Speaker 2>in your state, exports a lot of aeroplanes around the world.

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<v Speaker 2>You wouldn't want to see that put it at a

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<v Speaker 2>disadvance Is that company put it at a disadvantage? Kelly

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<v Speaker 2>put it a disadvancege when he tries to sell airplanes

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<v Speaker 2>around the.

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<v Speaker 1>World, would you, well, again, it's a meter of a

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<v Speaker 1>matter of balancing around the world. And if we have

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<v Speaker 1>open trade agreements with our partners, much of this is

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<v Speaker 1>done on a bilateral basis with the current administration, then

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<v Speaker 1>it'll settle out. And if we have certain partners that

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<v Speaker 1>aren't willing to do that, then it'll be more difficult.

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<v Speaker 2>You think it's you think it's real. It appears at

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<v Speaker 2>the moment that if you buy lots of Boeing headquartered

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<v Speaker 2>in Virginia, do you get a good trade deal? Yes?

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<v Speaker 2>Is that a reasonable kind of thing to talk about?

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<v Speaker 1>Yeah, if you're if as as an American, Yes, I mean,

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<v Speaker 1>I think one of the real opportunities is for America

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<v Speaker 1>to recognize and this is exactly what President Trump is doing,

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<v Speaker 1>is that access to the US market is really important

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<v Speaker 1>to companies around the world and were therefore we want

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<v Speaker 1>fair trade with all of our counterparties, and to date

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<v Speaker 1>it has not been very fair, and so they're rebouncing

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<v Speaker 1>that and I think this is exactly what all the

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<v Speaker 1>industries are seeing today when we hear the same thing

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<v Speaker 1>in the automotive industry and others that it is complicated

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<v Speaker 1>in supply chains. Well, over time, as things settle down

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<v Speaker 1>and we can see President Trump reaching deals like he's

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<v Speaker 1>reached with the UK, that we will see fair trade,

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<v Speaker 1>and when that fair trade is set, then we'll see

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<v Speaker 1>industries like the aerospace industry settle into it.

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<v Speaker 2>Let's say a little bit more about buy headquartert in

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<v Speaker 2>Virginia makes a lot of aeroplanes in Seattle, though, and

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<v Speaker 2>I'm wondering whether or not increasingly there is an argument

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<v Speaker 2>that says bowe should be headquartered in Seattle, in Washington,

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<v Speaker 2>not in Virginia. Can you kind of see the logic

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<v Speaker 2>of that.

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<v Speaker 1>Well, I also see the logic of their very very

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<v Speaker 1>large company customer being the Pentagon, which happens to be

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<v Speaker 1>in Virginia and where they had a huge win just

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<v Speaker 1>recently as the prime on the new F forty seven,

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<v Speaker 1>which is the next generation fighter for the military. And

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<v Speaker 1>so I think what Boeing has recognized is that one

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<v Speaker 1>they have the best workforce in the world in Virginia,

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<v Speaker 1>and so they tap into that for all of their

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<v Speaker 1>corporate functions, they have great access to their customer and

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<v Speaker 1>I know that the flights from Dulles to Seattle are

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<v Speaker 1>busy as their senior executives move back and forth between

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<v Speaker 1>Washington and Washington.

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<v Speaker 2>Yes, just confusing for the rest of us. Yeah, but

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<v Speaker 2>isn't there an argument that says you need to be

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<v Speaker 2>close to the shop floor. Then yes, the customers at

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<v Speaker 2>the Pentagon, but being the lesson we've learned is be

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<v Speaker 2>close to the shop floor.

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<v Speaker 1>Yeah. So I spoke to Kelly when he came on

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<v Speaker 1>as the new CEO, and we've had this very candid

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<v Speaker 1>discussion and he says, very comfortable with the headquarters being

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<v Speaker 1>in Virginia, but he personally was going to spend an

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<v Speaker 1>enormous amount of time with the commercial airspace business as

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<v Speaker 1>he set that right, And that's exactly what he's done.

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<v Speaker 1>And yet their defense business has been growing. Not to

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<v Speaker 1>mention the fact again that this F forty seven win

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<v Speaker 1>is a big win for them.

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<v Speaker 2>Okay, you may have defense, so let's just kind of

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<v Speaker 2>talk about defense for just a second. Again, it comes

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<v Speaker 2>back to the same argument, should Europe buying more US

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<v Speaker 2>defense in order to balance the books.

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<v Speaker 1>I think the US defense industry would very much like

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<v Speaker 1>for them too.

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<v Speaker 2>But is that a way to get to get over

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<v Speaker 2>the trade agreement disagreement that we have at the moment.

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<v Speaker 1>I think it's one of the tools and the toolkit

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<v Speaker 1>once again to balance the trade and when you have

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<v Speaker 1>large trade and balances where we are in fact buying

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<v Speaker 1>a lot more from in the United States from countries

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<v Speaker 1>than they are buying from US. It's one of the

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<v Speaker 1>tools in the toolkit. And I do think that the

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<v Speaker 1>defense military complex has the most advanced military capabilities in

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<v Speaker 1>the world, and so I think that what we're seeing

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<v Speaker 1>is the collaborations between US companies and particularly European countries.

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<v Speaker 1>I've had a lot of meetings in the last two days.

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<v Speaker 1>Has never been better right now, And in fact, what

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<v Speaker 1>I think has happened is the European and international companies

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<v Speaker 1>are really moving into the United States with break next

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<v Speaker 1>speed because what they're hearing from the Pentagon is we

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<v Speaker 1>want to do more and we want to do it faster,

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<v Speaker 1>and so we need more robust supply chains that can

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<v Speaker 1>deliver what we need faster, and a lot of the

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<v Speaker 1>international companies are starting to come into the United States

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<v Speaker 1>either through a proxy arrangement or with partners, in order

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<v Speaker 1>to try to meet that demand before.

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<v Speaker 2>I throw it back totany your term limited a cabinet job.

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<v Speaker 2>Maybe next year.

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<v Speaker 1>I'm going to finish strong in Virginia and then we'll

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<v Speaker 1>see what happens. I think one of the great things

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<v Speaker 1>that I have realized is I don't need to worry

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<v Speaker 1>about this every day. I'm focused on the commonwealth, and

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<v Speaker 1>Virginia is really roaring. We've just touched through one hundred

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<v Speaker 1>million dollars of capital commandments from companies. We have more

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<v Speaker 1>people working than ever. We're running our fourth straight year

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<v Speaker 1>of another big surplus, which has allow us to reduce

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<v Speaker 1>tax burdens and make big investments. The state's doing extraordinarily well.

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<v Speaker 1>And I've just loved the job I've had, and i

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<v Speaker 1>can't wait to finish strong, and so I've got to

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<v Speaker 1>do that over the next year.

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<v Speaker 2>Pilet's budgets, they're amazing things. Clean bit, Governor, thank you

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<v Speaker 2>very much indeed for joining us. Thank you, Governor Glenn Young,

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<v Speaker 2>King of Virginia,