Blog

Subscribe to RSS

Get our blog feed via e-mail

Posts Tagged ‘NAFTA’

Speaking Out Against Unfair Trade


Congresswoman Chellie Pingree spoke out on the House floor today in opposition to free trade agreements with Panama, South Korea and Columbia that she says will send good paying American manufacturing jobs overseas. Pingree said over 30,000 Maine manufacturing jobs have disappeared since the North American Free Trade Agreement (NAFTA) was ratified. The trade agreements up for a vote today are all patterned after NAFTA.

Mexico’s Mineros Leader Honored with Meany-Kirkland Award

By Mike Hall
AFL-CIO Senior Writer

Exiled Mexican mine workers union leader Napoleón Gómez Urrutia will be honored with the AFL-CIO’s 2011 George Meany-Lane Kirkland Human Rights Award tonight at a ceremony at the AFL-CIO in Washington, D.C.

AFL-CIO President Richard Trumka says Gómez Urrutia is a ”truly courageous man who has shown us how difficult and how important it is to be an independent leader of a democratic union.”

Gómez Urrutia, head of the Mine, Metal and Steel Workers Union (SNTMMSSRM), also known as Los Mineros, was forced to flee Mexico to Vancouver, Canada, in 2006. The Mexican government filed criminal charges against him after he publicly accused the government of “industrial homicide” following a February mine explosion that killed 65 miners.

(more…)

The Week of Walking Backwards

As the Occupy Wall Street movement spread across the nation last week, politicians in D.C. flipped the bird at protesters – including those camping in Washington’s McPherson Square.

Here’s how: While occupiers sought political focus on the unemployment, impoverishment and foreclosures suffered by the nation’s non-rich 99 percent, politicians considered three major pieces of legislation and passed only the one that will help the wealthiest 1 percent and hurt the remaining 99 percent.

Senate Republicans murdered-by-filibuster the American Jobs Act, which would surtax the 1 percent to provide jobs for the 99 percent. The Senate did pass the currency manipulation bill, but House GOP leaders refused to schedule a vote on the measure that would protect jobs for the 99 percent by punishing countries that undervalue their currencies to artificially lower prices on their exports.

By contrast, both houses of Congress adopted the so-called Free Trade Agreements with Panama, Colombia and Korea, which will, just like their predecessor NAFTA, destroy jobs held by the 99 percent.

It’s incredible. Inexplicable. Inexcusable. In a country where joblessness is a painful 9.1 percent. Where one in five children lives in poverty. Where foreclosures rose again last month. Where a whole movement is growing to protest the appeasement of the rich at the cost of the middle class. In that place, Congress chose to walk backwards. It didn’t take two steps forward – which it could have by passing the currency bill and jobs act. No. It just took a giant step backward by embracing job-killing trade agreements.

It all forces the 99 percent to demand even more loudly: Where’s the jobs?

WHERE’S THE JOBS? (more…)

In Senate vote, a win for the middle class and a rebuke to China

By Harold Meyerson
Editor-at-Large, The American Prospect

The news that our trade with China has been bad for the American middle class has finally reached the U.S. Senate. On Monday, the Senate will take up legislation that would impose tariffs on Chinese goods so long as China depresses the value of its currency. Despite the partisan polarization that grinds lawmaking to a halt these days, the bill’s support is thoroughly bipartisan, with sponsors ranging from such conservative Republicans as South Carolina’s Lindsey Graham to liberal Ohio Democrat Sherrod Brown. The legislation is expected to clear the Senate’s 60-vote hurdle for a floor vote and move on to the House.

But the consequences can no longer be denied. Between 2001 and 2010, the U.S. trade deficit with China cost Americans 2.8 million jobs, according to a report by economist Robert Scott, issued last week by the liberal Economic Policy Institute. Most of those jobs — 1.9 million — were in manufacturing, and of those, almost half were in computers and electronics.

This wasn’t simply the consequence of China’s cheaper labor or more generous corporate subsidies. As China’s productivity soared during the past decade, the value of its currency should have risen correspondingly. Instead, China purchased dollars, which had the effect of depressing the yuan and making Chinese exports about 28 percent cheaper than they would be if the yuan had been allowed to appreciate, William Cline and John Williamson found in a study for the centrist Peterson Institute for International Economics.

Data like these have been floating around for years, of course. Until now, however, the Senate has remained largely impervious to the evidence of Chinese cheating and American decay. But elite opinion, which the Senate does heed, is finally catching up with mass opinion on whether losing our manufacturing base is a bad thing. An influential July 2009 article in the Harvard Business Review by economists Gary Pisano and Willy Shih argued that losing manufacturing meant losing our edge in innovation, that the relationship between research and production was reciprocal. This would not have come as news to Thomas Edison, but few on Wall Street or in corporate boardrooms the past two decades believed that America’s prosperity and dynamism required the retention and renewal of manufacturing.

(more…)

Mexican Union Leaders: Gov’t Repression, Company Unions Oppress Nation’s Workers

By Mark Gruenberg
Editor, Press Associates Union News Service

WASHINGTON (PAI) — Government repression, in aid of large companies and Mexican millionaires, and abetted by longtime “company unions,” oppresses the overwhelming majority of Mexican workers, three leaders of independent Mexican unions are telling U.S. lawmakers. And that repression harms U.S. workers, too.

In a Sept. 13 Capitol Hill briefing led by the Steelworkers and the AFL-CIO International Affairs Department, speakers added the state of Mexican workers is important both there and here, as repression of Mexican workers drags down U.S. workers. Mexican wage and worker repression lets firms decamp there and threaten U.S. workers that they will do so unless U.S. workers lower their own living standards.

The briefing, in a packed congressional hearing room, comes as Congress prepares to consider two more trade pacts – without enforceable worker rights written into their texts – with two more Latin American nations, Colombia and Panama. Both pacts are modeled on the 1990s-era U.S.-Canada-Mexico “free trade” treaty, NAFTA. (more…)

The Job-killing Korea Trade Deal: NAFTA with Korea

To learn more and take action, visit http://bit.ly/bbysLq.

When “free” trade trumps U.S. law: The WTO finds American requirements for tuna labels too restrictive. That’s just the beginning.

David Sirota

By David Sirota
Political journalist, best-selling author and syndicated newspaper columnist

When it comes to “free” trade, Ralph Nader (among others) often makes a profound but taboo observation: “True free trade would take only one page for a trade agreement,” he says before typically asking, “How come there are hundreds of pages and thousands of regulations” in these pacts?

The answer is that so-called free trade agreements (i.e., NAFTA, bilateral NAFTA replicas, the WTO regime, etc.) are free only of protections for human beings — that is, free of provisions that preserve, say, labor rights, human rights and the environment. But those deals’ “hundreds of pages” are chock-full of protectionist provisions for multinational companies — provisions that, for example, allow foreign firms to sue governments for lost profits and empower international panels to unilaterally override a nation’s domestic laws if those laws reduce corporate revenues. (more…)

Colombia FTA: Rewarding Promises Instead of Performance

Leo W. Gerard

By Leo W. Gerard
USW International President

Tragically, the government of Colombia exhibits the behavior of an addict. And, just as regrettably, the United States is co-dependent, so addicted to so called free trade that it plans to award Colombia an agreement based solely on promises.

Addicts always promise. They’ll stop, they pledge. Their co-dependents desperately want to believe, so they cooperate with the addicts’ demands.

Colombia, the most dangerous country in the world for trade unionists, has pledged to try to stop the murders to persuade Congress to approve a Free Trade Agreement (FTA). Promises, promises.

And the United States has agreed to accept those promises rather than demand performance before signing an FTA. American’s Wall Street banks and multi-national corporations crave another FTA so badly they will believe anything.

When the Colombia FTA was first proposed, Congress refused to approve it because so many trade unionists are assassinated each year by the Colombian military and paramilitary forces that the murders exceed the number of unionists killed in all other countries of the world combined. In 2007, the year that former President George W. Bush completed the agreement, 39 Colombian unionists were slain.

The Colombian government knew why Congress denied approval. It could have responded four years ago by protecting trade unionists and preserving their lives. It did not.

Instead, the murders increased. In 2008, 52 Colombian trade unionists were assassinated, one a week. In 2009, the number declined by 5 to 47, but it was back up to 52 last year. Six have been slain so far this year, including Hector Orozco and Gilardo Garcia, members of the agricultural union known as Association of Peasant Workers of Tolima, who were threatened by the Colombian military just before they were assassinated. Promises, promises.

In response to the concerns expressed by Congress about the murders, the newly-proposed FTA requires Bogota to improve safeguards for workers by April 22, and to develop a plan by May 20 to enhance the capacity of regional judicial offices because the murders of trade unionists go unpunished by the Colombian government – giving the killers an impunity rate of approximately 95 percent. And by mid-June, the Colombian government promises to increase penalties for threatening workers.

The government of Colombia could have completed all of those steps four years ago. It didn’t bother.

To this point, Congress has taken the moral high ground by refusing to approve the trade deal. It said, basically, as long as Colombia continued to countenance the slaughter of its community and labor leaders, Afro-Colombians and indigenous people, America would not give it special treatment for trade purposes.

In addition, Congress recognized the FTA’s potential to devastate Colombian farmers. The FTA would speed forced displacement of Afro-Colombians and indigenous people by encouraging increased exploitation of their land by business interests, such as palm oil companies, half of which are owned by paramilitary groups. Expelling these farmers from their land would further swell Colombia’s internally-displaced population – the largest in the world at 4.3 million.

Making matters worse for Colombian farmers, the main U.S. beneficiaries of the FTA would be big agricultural companies which would be permitted to dump cheap, subsidized food stuffs into Colombia duty-free. This would result in farmers’ impoverishment and land loss because small growers would not be able to compete with the low-cost American produce.  In Haiti and Mexico, domestic food production was wiped out by similar free trade agreements. It’s likely that Colombia would follow the path of Mexico, where, as the ability to grow legitimate crops became economically impossible, farmers turned more and more to producing illicit drugs. Colombia already produces as much as 80 percent of the world’s cocaine.

Business groups, like the U.S. Chamber of Commerce, protested the refusal by Congress to approve the FTA, contending that increasing American exports and jobs was more important than protecting Colombian lives and human rights.

The Chamber’s position is not only depraved, it’s based on flawed calculations of exports and jobs. Just like the North American Free Trade Agreement (NAFTA) and granting China entrance to the World Trade Organization (WTO), the Colombia FTA will cost America jobs and exacerbate the U.S. trade deficit.

Previous projections by the Chamber and the U.S. International Trade Commission (ITC) that NAFTA and China’s WTO membership would improve the U.S. economy proved catastrophically off base.

When the U.S. signed NAFTA in 1993, it had a $1.7 billion trade surplus with Mexico. After the agreement, that surplus quickly morphed into a deficit, which ballooned to $64.7 billion in 2008. These annual deficits cost the U.S. 560,000 jobs between 1993 and 2004.

Similarly, the ITC predicted that the tariff reductions China offered when it entered the WTO would result in a trade deficit of $1 billion a year. Instead, between the years of 2001 and 2008, the actual result was deficits of $185 billion, and the loss or displacement of 2.3 million American jobs.

The U.S. already runs a trade deficit with Colombia. It was $1.86 billion in 2009. The Economic Policy Institute calculates that the proposed FTA with Colombia would nearly double that trade deficit by 2015, which would cost the United States another 55,000 jobs.

Frankly, the EPI calculation, which factors in effects on trade like currency manipulation, is far more credible than the ITC and Chamber reports, which ignore these issues.

Bogota wants the FTA because it believes the deal will be good for Colombian business interests. One immediate bonus, for example, is that the FTA would eliminate tariffs on 80 percent of Colombia’s exports to the U.S.

To get what it wants, the Colombian government is willing to say anything. Just like an addict. Promises, promises. The Colombian government’s past performance shows its pledges to protect workers from assassination are empty.

America must reject the role of co-dependent. It must demand the proof of performance before rewarding the government of Colombia with an FTA.

Without proof of performance, the government of Colombia will get away with murder.  It will export more of its goods – crude oil, coffee, fruit and flowers — to the U.S.  And unwitting Americans will buy more blood red Colombian roses.

***

Leo W. Gerard also is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama recently appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of the Apollo Alliance, Campaign for America’s Future and the Economic Policy Institute.  He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union.

The Incredible Shrinking FTA Jobs Claim

Travis McArthur

By Travis McArthur
Public Citizen
Trade and Finance Researcher

In Rep. Brady’s announcement of last week’s hearing on the Colombia Free Trade Agreement (FTA), he said, “According to the President’s own statements, [the pending trade agreements with Colombia, Panama, and South Korea] have the ability to create over 250,000 American jobs.” Speaker Boehner’s blog has also been claiming this 250,000 jobs gain figure.

But did the President ever say that the three FTAs will create 250,000 jobs? No. Rep. Brady here makes at least three errors. If you correct for one, the “jobs created” number goes down to 78,000. If you correct for two, the jobs number goes down to 39,333. If you correct for three, the job gain turns into a job loss of 3,200 jobs.

Back in November 2009, Obama gave an interview to Reuters on the eve of his trip to Asia in which he stated, “And right now we have about 9 percent of — a 9 percent share of Asia’s — not just China, but Asia’s trade overall, and it’s estimated that for every 1 percent of increased share that we get, that could mean 250,000, 300,000 jobs.” (more…)

Getting Beyond Sound-Bite Wars? Urge Daley and Sperling to Help Obama Lead – Like Clinton Did

Roger Hickey

By Roger Hickey
Co-Director of the Campaign for America’s Future

The terrible shootings in Arizona should make us all get beyond the sound-bite wars. Will the media let us?

As soon as the story leaked that President Obama was about to appoint former aides to President Clinton, Bill Daley and Gene Sperling, to key positions (Chief of Staff and head of the National Economic Council, respectively), reporters from major media started calling me, seeking quotes to substantiate the story they were already writing: “Progressives Outraged, New Democrats Delighted.”

Now I know enough about Daley and Sperling that my initial instinct was to join other progressive colleagues in criticizing the appointments. Daley joined the Clinton Administration to help pass NAFTA, which has since devastated US manufacturing jobs and pissed off blue collar workers (and voters in the heartland in general) who should be solidly voting Democratic, but aren’t. And I remembered that, just as we began the successful fight against the Bush plan to privatize Social Security, Sperling was actively promoting his plan for private investment accounts which could have led to a Democratic version of privatization. Luckily, the movement ignored him back then, and virtually all Democratic lawmakers joined to stop the dangerous Bush plan for Social Security in its tracks. And, of course, recent news reports made it hard to ignore the strong connections both have with big Wall Street firms that helped engineer the deregulation of banking and the speculative orgy that followed, leading to the massive collapse of the economy. (more…)