Protesters Disrupt Senate Fast Track Hearing

US Trade Representative (USTR) Michael Froman testified before the Senate Tuesday. He was there to push Congress to pass Fast Track Trade Promotion Authority (TPA), so new trade agreements can get pushed through. Protesters disrupted the hearing. The people are trying to make their voices heard over the corporate push for Fast Track.

Heating Up

Things are heating up as big new corporate “trade” agreements get closer to coming before Congress. These trade agreements have a terrible track record for American workers, because they have driven inequality, devastated entire regions of the country, and hollowed out the middle class. New corporate-centered trade agreements being negotiated will go far beyond previous NAFTA-style deals, by setting up monopoly protections for giant multinationals, elevating corporate rights above the rights of governments, and setting up corporate-run tribunals, that will have the power to override laws and regulations if they interfere with corporate profits.

Monday, the Trans-Pacific Partnership (TPP) negotiations resumed in New York City. Even though the big blizzard was starting, the negotiators were greeted by protests, as hundreds of people representing trade, labor, environmental, health, communities of color, anti-GMO and food justice, anti-fracking, animal rights, and other groups that will be hit hard by TPP and other upcoming agreements.

Hearing Disrupted

Tuesday, USTR Froman testified before the Senate, and was met with protests. Roll Call reports, in “Protesters Arrested at Fast-Track Trade Hearing”:

Capitol Police arrested three sign-carrying, slogan-shouting demonstrators who disrupted a Tuesday morning Senate Finance Committee hearing on the president’s trade policy agenda.

The protesters wore shirts reading “No Fast Track” and greeted U.S. Trade Representative Michael Froman with signs stating, “Froman lies” — a response to his statement to the committee that trade promotion authority “is Congress’s best tool to ensure that there is ample time for public scrutiny and debate on U.S. trade agreements.”

The Daily Dot reports, in “Internet freedom activists storm congressional TPP hearing”:

Margaret Flowers, a member of Physicians for a National Healthcare plan and a longstanding TPP critic, burst in carrying a sign reading “Trading away our future,” and shouting “we know the Trans-Pacific Partnership is negotiated in secret!”

As she was being escorted away by security, a pair of male protesters entered from another door. “You’re going to super-size NAFTA!” one yelled, as the other simply repeated “No TPP!” The two unfurled a banner behind Froman, who stared straight ahead with an annoyed look on his face.

Then a third wave hit: Three protestors sitting behind Froman held up other signs, like one reading “Fast track constitutional train wreck.”

Fast Track Limits Congress’ – Democracy’s – Ability To Make Changes

Froman was asking Congress to pass “Fast Track” Trade Promotion Authority (TPA), a process that sets aside Congress’ Constitutional duty to define and review (and fix) trade deals. Under Fast Track, Congress agrees not to amend agreements, to limit the amount of time spend discussing the deals, and to vote on approving the treaty within 90 days of Congress and the public first seeing what is in the agreement.

Rep. Alan Grayson (D-FL), appeared on the Thom Hartmann show to discuss Fast Track process:

The Fast Track legislation prohibits subcommittee debates, subcommittee hearings, subcommittee markups, full committee debates, full committee hearings, full committee markups, and it limits us in the House of Representatives to 88 seconds of debate for each one of us. Eighty-eight seconds to extend to 40 other countries (if we count both trade deals the President is working on), the disaster that’s been visited upon the U.S. economy simply by having a dozen existing countries with these deals in effect. They want to put our $30/hour workers directly in full head-to-head competition with the $0.30/hour workers in Vietnam and Brunei and in other places like that, who have no environmental protection, no labor rights, and in many cases are [relying on] slave labor. That’s what these deals are trying to do. It’s the Fast Track to Hell.

In addition to only 88 seconds per Representative to discuss the treaty, 90 days from first seeing a trade agreement does not give the public time to read and analyze the repercussions of these massive trade deals. It does not give the public time to organize opposition if opposition is warranted.

It is no wonder that citizens are trying to overcome the corporate juggernaut pushing Fast Track. It is a rigged process, designed to push these agreements past Congress and democracy, before the public can do anything about it.

Call your member of Congress, and both of your Senators, and tell them you oppose Fast Track. The coming trade agreements will require sufficient time for the public to read and fully comprehend them. They might have flaws that Congress should be able to fix.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Protests As Trans-Pacific Partnership Talks Resume In New York Today

Negotiators working on the Trans-Pacific Partnership (TPP) convened today in New York City. Even the location was kept secret until the last possible minute, but hundreds of trade, labor, environmental, health, communities of color, anti-GMO and food justice, anti-fracking, animal and other activists still showed up in the big blizzard to protest the secret trade agreement and “fast track” trade promotion authority (TPA).

TPP is a huge “trade” agreement, which will set the rules for 40 percent of the world’s economy. It is being negotiated in secret. Corporate representatives are part of the process, stakeholders like environmental, consumer, labor, democracy, health and other groups are excluded from the negotiations. Needless to say the agreement (some of it has leaked) reflects corporate interests at the expense of the rest of us and our governments. Meanwhile President Obama is asking Congress to pass fast-track TPA, which rigs the rules so that Congress essentially pre-approves TPP before Congress and the public even see what is in the agreement, never mind have the time to study it and rally opposition if opposition is warranted.

TPP Grants Monopolies

The Electronic Frontier Foundation (EFF) helped organize the protests because of their objection to extended monopolies being negotiated in TPP’s copyright rules. In their post, Secret TPP Negotiations—And Public Protests—To Be Held in New York City, they explained,

… The countries negotiating TPP with the US are willing to give in and agree to bad copyright rules as long as they get the other gains they were promised—things like market access and lowered tariffs so they can sell their products to US consumers. But those other countries will not budge without a guarantee that the overwhelming public opposition to the agreement won’t prevent its adoption in the United States. Fast Track offers that guarantee; that’s one reason the White House is now desperate to pass it.

Several public interest groups are organizing a protest outside the luxury Sheraton Hotel this Monday, January 26 at noon. Many of those demonstrating will be there to oppose other provisions in the TPP, but we encourage people to be there to represent all the users around the world who will be impacted by this massive agreement’s draconian policies.

A “Death Pact” Not A Trade Agreement

AIDS activists joined the various groups at the protests. They are objecting to the monopolies TPP would grant to certain large pharmaceutical corporations, which they fear would bring the price of AIDS drugs beyond the reach of many in need of them. Health Global Access Project (Health GAP) released a statement that included the following,

Previously leaked proposals revealed that the US seeks easier-to-get, stronger, and longer patent monopolies on medicines and new monopolies on drug regulatory data that would prevent marketing of more affordable generic equivalents. It also seeks restrictions on price control measures and enhanced investor rights that would allow drug companies to sue governments when their expectations of exorbitant profits are undermined by otherwise lawful government policies and decisions. These are among the most severe intellectual property rules ever demanded in international trade.

“The TPP would create a vicious cycle. The provisions currently proposed will allow for fracking and other practices that fuel environmental degradation and make people sick. Strengthened intellectual property rules will then prevent people from accessing life- saving medicines,”, said Michael Tikili of Health GAP, one of the endorsers of the demonstration. “Thirteen million people living with HIV depend on generic AIDS medicines and another 20-plus million are waiting line for treatment. By protecting Pharma’s bloated profits, the Obama administration is undermining its own global AIDS initiative – this isn’t a trade agreement—it’s a death pact.”

Other groups represented at the New York TPP protest included the Teamsters, Fight for the Future, Green party, Popular Resistance and others.

Pictures of cold-looking protesters here, here, here, here and here.

Please visit:

Expose the TPP

Stop Fast Track

No fast Track

Stop TPP

Flush the TPP

Communications Workers of America (CWA)

Global Trade Watch

Progressive Democrats of America TPP Page

People Demanding Action

Trade Justice

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Environmental Groups Denounce Fast Track Trade Process

The Sierra Club, the Natural Resources Defense Council, the League of Conservation Voters and 41 other environmental groups sent a letter to Congress this week, asking them to oppose “fast track” trade promotion authority for upcoming trade agreements like the Trans-Pacific Partnership (TPP). They asked Congress to instead set up an open, transparent trade negotiating system that gives stakeholders, other than just corporate representatives, input in the process.

The letter begins, “As leading U.S. environmental and science organizations, we write to express our strong opposition to ‘fast track’ trade promotion authority, and to urge you to oppose any legislation that would limit the ability of Congress to ensure that trade pacts deliver benefits for communities, workers, public health, and the environment.”

Background On Fast Track, TPP

Currently, trade negotiations are conducted in secret. Corporate representatives are part of the process, and the negotiators come from or expect to go into the corporate world. Stakeholders like environmental, consumer, labor, democracy, human rights, and other groups are excluded from the process.

Once these agreements are finalized, a process known as “fast track” is used to push the agreement through. Fast track asks Congress to forgo the usual process of careful deliberation, and vote within 90 days of Congress and the public first seeing the agreement. Congress also agrees in advance not to amend or filibuster the agreement. This sets up a rushed situation, in which massive corporate PR campaigns can pressure Congress to pass the agreement, and not “kill the whole thing” over problems that they might find. The public does not have time to digest the implications of the agreement and rally opposition, if warranted.

The letter from the environmental groups explains”

“Fast track was originally designed in the 1970s, when trade agreements focused on traditional trade issues such as cutting tariffs and lifting quotas. Today’s trade agreements, however, are about much more than tariffs and quotas and have significant implications for our environment, public health, and global climate.”

TPP is a massive agreement between the U.S. and 11 other countries. It has 29 “chapters” – only five of which cover trade issues at all. Other chapters cover things like rules limiting how countries regulate corporations, limiting how countries make laws that might limit corporation profits, and other rules that grant giant multinational corporations special protections from competition.

Instead of this corporate-dominated process, the environmental groups ask for an open, transparent process that delivers benefits for working people, not just for the owners of the largest corporations. From the letter:

“U.S. involvement in trade negotiations should be guided by democracy, transparency, political accountability and must lead to a ‘race to the top’ that provides real protections for communities, workers, and the environment. A new model of trade that delivers benefits for most Americans, promotes broadly shared prosperity, and safeguards the environment and public health is possible.’

Michael Brune, Executive Director of the Sierra Club said, “Trade should be done right — not just fast — to protect our families and neighbors from pollution and climate disruption. Fast-tracking flawed trade pacts is a deal-breaker. With fast track, we would be trading away clean air, clean water, and safe communities.”

Peter Lehner, Executive Director of the Natural Resources Defense Council: “Congress shouldn’t give a fast lane to trade pacts that don’t protect our public health and climate. These trade bills would give foreign corporations and governments the right to challenge our bedrock protections for clean air, safe drinking water, healthy food and proper chemical safeguards. We shouldn’t trade away our sovereignty. We need trade bills that tackle the 21st-century environmental challenges, not take us backwards.”

Click here to view the letter: sc.org/EnvirosAgainstFastTrack

Signers of this letter include:

  • 350.org
  • Athens County (OH) Fracking Action Network
  • Berks Gas Truth
  • Catskill Mountainkeeper
  • Catskill Citizens for Safe Energy
  • Center for Biological Diversity
  • Center for International Environmental Law
  • Chesapeake Climate Action Network
  • Clean Economy Coalition of the Coastal Bend
  • Clean Water Action
  • The Delaware Riverkeeper
  • Defenders of Wildlife
  • Earthjustice
  • Earthworks
  • Energy Action Coalition
  • Environmental Action
  • Environmental Health Coalition
  • Environmental Investigation Agency
  • Food & Water Watch
  • Friends of the Earth
  • Friends of Merrymeeting Bay
  • Greenpeace USA
  • Institute for Agriculture and Trade Policy
  • Institute for Policy Studies, Climate Policy Program
  • League of Conservation Voters
  • Natural Resources Defense Council
  • Oil Change International
  • Olympic Climate Action
  • Partnership for Policy Integrity
  • People Demanding Action
  • PODER (People Organized in Defense of Earth and Her Resources)
  • Progressive Democrats of America
  • Progressive Democrats of America Maryland
  • Rainforest Action Network
  • Safe Climate Campaign
  • Sierra Club
  • Southern Oregon Climate Action Now
  • Sustain US
  • Sustainable Energy and Economic Development (SEED) Coalition
  • The Texas Drought Project
  • Union of Concerned Scientists, Center for Science and Democracy
  • U.S. Climate Plan
  • Washington Environmental Council
  • Wild Earth Guardians

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

What Obama Got Wrong In His State of the Union Remarks On Trade

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The President briefly spoke about trade in his State of the Union speech. He admitted that “past trade deals haven’t always lived up to the hype” but then he called for doing more of the same. He called for Trade Promotion Authority (TPA) — “Fast Track” — to pass the Trans-Pacific Partnership (TPP).

Here is what President Obama said about trade (from pre-released transcript):

21st century businesses, including small businesses, need to sell more American products overseas. Today, our businesses export more than ever, and exporters tend to pay their workers higher wages. But as we speak, China wants to write the rules for the world’s fastest-growing region. That would put our workers and businesses at a disadvantage. Why would we let that happen? We should write those rules. We should level the playing field. That’s why I’m asking both parties to give me trade promotion authority to protect American workers, with strong new trade deals from Asia to Europe that aren’t just free, but fair.

Look, I’m the first one to admit that past trade deals haven’t always lived up to the hype, and that’s why we’ve gone after countries that break the rules at our expense. But ninety-five percent of the world’s customers live outside our borders, and we can’t close ourselves off from those opportunities. More than half of manufacturing executives have said they’re actively looking at bringing jobs back from China. Let’s give them one more reason to get it done.

But…

1) Exports are good for an economy, but exports and imports must be balanced. While our exports are up, our imports are up even more. This is why we have an enormous, humongous trade deficit. When imports are greater than exports it means jobs, factories and if the imbalance continues eventually the necessary pieces of industry ecosystems are lost. Our trade deficit is enormous and our trade has been out of balance since the 1970s.

Here is Paul Krugman, writing at his blog Monday,

The immediate problem facing much of the world is inadequate demand and the threat of deflation. Would trade liberalization help on that front? No, not at all. True, to the extent that trade becomes easier, world exports would rise, which is a net plus for demand. But world imports would rise by exactly the same amount, which is a net minus. Or to put it a bit differently, trade liberalization would change the composition of world expenditure, with each country spending more on foreign goods and less on its own, but there’s no reason to think it would raise total spending; so this is not a short-term economic boost.

Krugman also points out that current trade tariffs and protections are low, so a “trade” deal doesn’t really remove imposing barriers. He suspects that groups representing the giant multinationals, like the Chamber of Commerce, are really pushing this deal because it rigs the system in their favor and “will yield them a lot of monopoly rents.” Which leads to Obama’s next argument.

2) This idea that “we” should “write the rules” to “level the playing field” is interesting. Yes, China would like to write rules of trade in its favor. But it doesn’t follow from this that we should allow the giant multinational to write the rules in ways that rig the system against everyone but them. And this is exactly what TPP does. TPP is being negotiated in secret with participation of corporate representatives while representatives of labor, consumer, democracy, human rights, women’s, environmental and other “stakeholder” groups are kept away from the table. Only a small part of TPP is about “trade” at all, while parts of it elevate corporate rights above the rights of citizens in democracies to make their own laws. (For example tobacco companies can sue governments for profit-loss from anti-smoking campaigns. Under similar “trade” agreements this is already happening.)

And speaking of rigging the system …

3) Trade Promotion Authority (TPA) hardly “protects American workers.” Also known as “Fast Track,” TPA essentially pre-approves trade agreements before anyone even sees them. TPA pre-rigs the approval process by forcing an up-or-down vote with no amendments allowed within 90 days of anyone even seeing the agreement for the first time. This means the public doesn’t have time to fully comprehend what is in the agreement and rally opposition if opposition is warranted. Fast Track shifts the public and press focus to “will they kill the whole agreement” rather than on what is actually in the agreement. (This is how they were able to push Wall Street deregulation through the last “Citibank Budget” deal.)

4) There is nothing in past or upcoming trade agreements that will incentivize bringing manufacturing and other jobs back to the US, which the President promised. On the contrary, TPP includes Vietnam which boasts a minimum wage of 30 cents per hour and has a terrible record on labor rights. This tells us what we need to know about the incentives for manufacturers to bring jobs back.

5) One of the biggest factors in American job loss is currency manipulation, but TPP does not address currency manipulation. (TPP is being negotiated in secret but leaks and other indications tell us that there is nothing to address currency manipulation.) Jared Bernstein wrote about this in a January 9 NY Times op-ed, How to Stop Currency Manipulation, saying,

“… there’s one thing the administration can do that will both win over some opponents and address one of the biggest issues in global trade: add a chapter on currency manipulation.

… In a compelling argument for including a chapter in the Trans-Pacific Partnership to restrict currency manipulation, C. Fred Bergsten of the Peterson Institute for International Economics estimated that America’s trade deficit “has averaged $200 billion to $500 billion per year higher as a result of the manipulation” by the rest of the world, resulting in the loss of one million to five million jobs.

The loss of 1-5 million jobs to currency manipulation is a lot of jobs, yet this isn’t even in the agreement!

6) The President said that “past trade deals haven’t always lived up to the hype.” Please see last week’s post What You Need To Know When Obama Talks Trade for a breakdown of what has happened with previous trade agreements. Also see the Public Citizen report, Prosperity Undermined: Fast-Tracked Trade Agreements’ 20-Year Record of Massive U.S. Trade Deficits, American Job Loss and Wage Suppression for a more comprehensive look at what these trade agreements have cost US workers, our manufacturing ecosystem and our economy — just so that a few executives and billionaires can get even wealthier.

Boost Wages Or Trade Agreements — But Not Both

The President wants to address income inequality. But these trade agreements have been a major driver of income inequality. American worker wages have been frozen for decades as workers were threatened with their jobs being moved out of the country. A few at the top have pocketed this wage differential for themselves. Trade deals that pit American workers and the “costs” — higher wages, environmental protections, etc — of democracy against non-democracies where people don’t get good wages and the environment is not protected work against the President’s stated goals.

Josh Bivens writes at the Economic Policy Institute blog, Trade Agreements or Boosting Wages? We Can’t Do Both,

To put it plainly, if policymakers—including the President—are really serious about boosting wage growth for low and moderate-wage Americans, then the push to fast-track TPP and TTIP makes no sense.

… the most staid textbook models argue precisely that for a country like the United States, expanded trade should be expected to (yes) lift overall national incomes, but should redistribute so much from labor to capital owners, so that wages actually fall. …

Also see Obama vs. Obama: The State of the Union’s Self-Defeating Trade Pitch at the Eyes on Trade blog for “a side-by-side analysis of how Obama’s push to Fast Track the TPP contradicts his own State of the Union agenda.”

A Few Other Reactions

At a Wednesday press conference with Rep. Louise Slaughter (D-NY) and other House Democrats, Rep. Slaughter said, “The president said last night that previous trade deals had not lived up to the hype. That may be the understatement of the century. We will fight this tooth and nail, and I believe we are going to win.”

Also at the press conference, Rep. Pete DeFazio (D-OR) said, “Fast track is designed to embed into these so-called free trade agreements a bunch of things that are detrimental to the American public.”

Coalition for a Prosperous America (CPA) “The Coalition for a Prosperous America (CPA) advocates a new direction in trade policy focusing upon balanced trade, a comprehensive US competitiveness strategy, and producing more of what we consume here. We oppose Congress ratifying the past, wrongheaded trade strategy which produces trade deficits, job loss, and incentives to offshore manufacturing for re-import into the US.”

Alliance for American Manufacturing (AAM): “By ignoring the concerns of industry, workers, and majorities of the House and Senate, he’s not only putting the TPP at risk, he’s putting a whole lot of auto jobs in the US at risk, too.”

Communications Workers of America (CWA):

“…[W]e cannot stand with the President in his alliance with Republican Majority Leader Mitch McConnell, House Speaker John Boehner, the U.S. Chamber of Commerce and Business Roundtable to send more U.S. jobs offshore, undermine U.S. communities and weaken U.S. sovereignty under the guise of “free trade.” The Trans-Pacific Partnership (TPP) has much more to do with protecting the investment of multinational corporations and maneuvering around China than lowering trade barriers.

Public opposition to “fast track authority” and the TPP is strong, and growing more vocal everyday. Consumer groups, workers, environmentalists, people of faith, students and more have united to stop this attack on U.S. jobs and communities. Conservatives, who do not believe that nations should relinquish their sovereign power to secret tribunals, also are on board.

Over the past 20 years, millions of U.S. jobs have been lost. The jobs U.S. workers had been promised over those years of course never materialized. In fact, just two trade deals – NAFTA and the Korea Free Trade Agreement — have resulted in the loss of nearly 800,000 jobs. The promoters of the TPP are again promising job gains through growth in U.S. exports. But we can do the math. Any new jobs will be dwarfed by the flood of jobs that go offshore.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

What You Need To Know When Obama Talks Trade

President Obama is likely to use the State of the Union to push for passage of the Trans-Pacific Partnership (TPP) and the rigged “fast track” trade promotion authority. Here are some facts to counter the expected public relations campaign.

Of Course “Trade” Is Good

But first, of course “trade” is a good and necessary thing. We all trade with others. This is how people, businesses and even countries “make a living.” Critics of our country’s current trade policies are not “anti-trade”; they are anti-trade-deficit. They are opposed to the use of so-called “trade” agreements to promote the interests of the largest multinational and Wall Street corporations at the expense of America’s working people, its middle class, its domestic “Main Street” companies, our environment and the country’s long-term economic health.

Compare the timeline of a chart of our country’s trade deficits with the increase in the economic tensions of our middle class, our manufacturing regions and other economic troubles:

Trade policies that are rigged to boost the interests of the giant, multinational corporations at the expense of the rest of us are not good at all. “Trade” agreements and “offshoring” of jobs have become synonymous. But “trade” doesn’t at all have to be about moving American jobs and factories out of the country so that executives can pocket the pay difference and the difference in the cost of enforcing environmental protections.

The Recent Korea-U.S. Free Trade Agreement Is An Example

During the State of the Union speech the president is expected to feature the owner of a small business that has increased its exports to South Korea since the Korea-U.S. Free Trade Agreement (KORUS FTA) was signed. This is ironic. Americans believe in and support small business – hence the use of the owner of one – but our country’s trade deals have been negotiated primarily for the benefit of giant, multinational corporations, and their interests often collide with the interests of smaller, “Main Street” businesses.

Some American businesses have indeed added sales and workers as a result of the KORUS FTA. But the fact is that since that trade agreement was signed the U.S. trade deficit with Korea has grown 50 percent – a metric that has resulted in 50,000 American jobs lost. In other words, since the KORUS FTA went into effect, South Korea is selling much more to us than the country is buying from us – and this problem is getting worse and worse. And as the trade deficit chart above shows, this just happens to be the record of our “trade” agreements.

Please take a look at this Census Bureau data page, “Trade in Goods with Korea, South.”

The KORUS FTA went into effect in March 2012. That month we sold $4,224 million in goods to South Korea and we imported $4,788.2 million in goods.

In November 2014 the U.S. had a $2.8 billion monthly trade deficit with Korea – the highest monthly U.S. goods trade deficit with Korea on record. We had $6.3 billion in imports from Korea (a record) and $3.5 billion in exports to Korea that month. In the first two years of the KORUS FTA, the U.S. goods trade deficit with Korea went up by 50 percent (a $7.6 billion increase).

So since March 2012 our exports to South Korea decreased from $4.224 billion to $3.5 billion. Meanwhile, our imports increased from $4.788 billion to $6.3 billion.

The KORUS FTA has hit American small businesses harder than large ones. According to U.S. Census Bureau data, small firms with fewer than 100 employees saw exports to Korea drop 14 percent while firms with more than 500 employees saw exports decline by 3 percent. According to “Report Funded by Big Business Explains to Small Businesses What’s Best for Them” at Public Citizen’s Eyes on Trade blog, “As a result, under the Korea FTA, small businesses are capturing an even smaller share of the value of U.S. exports to Korea (just 16 percent), while big businesses’ share has increased to 72 percent.”

This is the record: The KORUS FTA so far has resulted in a trade deficit of $2.8 billion a month, representing the loss of around 50,000 jobs. It has been harder on smaller businesses than larger ones, allowing the larger businesses to push the smaller businesses aside. But in the State of the Union, the president is going to bring attention to the owner of one small business that increased its exports and hired more workers, and use this to say to make the public think that the KORUS FTA has been good for our country – and that we should enter into more agreements like it.

Other Trade Agreements

The KORUS FTA certainly is not our only “free trade” agreement. NAFTA is the shorthand name many Americans use for our trade agreements generally. How has NAFTA – the North American Free Trade Agreement – worked out for the U.S.?

The Public Citizen Global Trade Watch report titled, “NAFTA at 20: One Million U.S. Jobs Lost, Mass Displacement and Instability in Mexico, Record Income Inequality, Scores of Corporate Attacks on Environmental and Health Laws” compared the promises with which NAFTA was sold to the results measured 20 years later. Some of the effects of NAFTA that are highlighted in the report include:

● a $181 billion U.S. trade deficit with NAFTA partners Mexico and Canada,
● one million net U.S. jobs lost because of NAFTA,
● a doubling of immigration from Mexico,
● larger agricultural trade deficits with Mexico and Canada,
● and more than $360 million paid to corporations after “investor-state” tribunal attacks on, and rollbacks of, domestic public interest policies.

The data also show how post-NAFTA trade and investment trends have contributed to:

● middle-class pay cuts, which in turn contributed to growing income inequality;
● U.S. trade deficit growth with Mexico and Canada 45 percent higher than with countries not party to a U.S. Free Trade Agreement,
● U.S. manufacturing and services exports to Canada and Mexico that have grown at less than half the pre-NAFTA rate.

What about our deal to bring China into the World Trade Organization? Obviously South Korea is small potatoes when compared with China and the data bear this out. In August 2012 the Economic Policy Institute estimated that the U.S. lost 2.7 million jobs as a result of the U.S.-China trade deficit between 2001 and 2011, with 2.1 million of those lost in the manufacturing sector. Along with these job losses, U.S. wages fell due to the competition with cheap Chinese labor, which has cost a typical U.S. household with two wage-earners around $2,500 per year.

The Commerce Department reported earlier this month that our November trade deficit with China was $29.8 billion. That’s $29.8 billion in one month! Our exports to China decreased $200 million to $11.1 billion and our imports from China decreased $100 million to $40.9 billion from the previous month. Think how many jobs would be created here if $29.8 billion of additional orders came in to companies making and doing things inside the U.S., and this continued every month!

Balance Needed

Trade should be balanced or economies are thrown out of whack. “Trade” is supposed to mean we buy from them and they buy from us. It is not supposed to mean we buy from them and later they use the money to buy us. It is not supposed to mean we send jobs and factories out of our country so that a few executives and shareholders can pocket the wage difference and the reduction of environment enforcement costs.

Exports are great, but if a deal to increase exports increases imports even more, we have a trade deficit and are still at a net loss of jobs, factories and wealth. This means that we are still offshoring jobs so that executives can line their pockets with the wage differential. This has been the case with the KORUS FTA. This has been the case with NAFTA. This has so obviously been the case with China. The last thing We the People need is even more of this.

The reason our trade policies are working out this way is because the beneficiaries of this kind of trade deal are the ones controlling and negotiating these trade deals. The giant, multinational corporations and Wall Street make money from offshoring U.S. jobs and production – partly because our tax laws encourage this activity. The rest of us, including our “Main Street” businesses and the country at large, are net losers. This is obvious to anyone who drives through much of the country or who talks to regular, working people. This is obvious to anyone who looks at the timeline of that trade deficit chart and compares that to the economic shifts of our last few decades.

Our trade negotiating process is rigged from the start. Giant, multinational and Wall Street corporate interests are at the negotiating table. Consumer, labor, environmental, human rights, democracy, health and all the other stakeholder representatives are excluded and the results of these negotiations reflect this. A rigged process called “fast track” is used to essentially force Congress to pre-approve the agreements before the public has a chance to analyze and react to them.

Obviously the giant, multinational and Wall Street corporations would want the public to believe that everyday small businesses gain from our trade deals, when in fact they do not. It is less obvious why President Obama would want to present at the State of the Union the story of one small business that does not reflect the reality of the trade deals he is promoting.

Rep. Alan Grayson Explains Trade Deficit Harm

Rep. Alan Grayson (D-FL) is trying to get people talking about the trade deficit and the harm it is doing our wages, our jobs and our potential for mutual prosperity. He’s right to do this.

Last week Grayson spoke at a press conference with several other House Democrats and representatives from a broad coalition of organizations, expressing opposition to “Fast Track” Trade Promotion Authority. Fast Track is a weird process whereby Congress essentially approves of trade deals before even reading them. I wrote about this press conference in “House Members, Activist Leaders Form United Front Against Trade Scheme.”

Now Grayson is emailing his short talk out to his list. This is Grayson’s letter, which repeats what he said at the press conference:

Trade is a simple concept. You sell me yours, and I’ll sell you mine.

That’s not what’s happening.

What’s happening is that day after day, month after month, and year after year, Americans are buying goods and services manufactured by foreigners, and those foreigners are not buying goods and services manufactured by Americans. We are creating millions — no — tens of millions of jobs in other countries with our purchasing power, and we are losing tens of millions of jobs in our country, because foreigners are not buying our goods and services.

What are they doing? They’re buying our assets.

So we lose twice. We lose the jobs, and we are driven deeper and deeper into national debt – and, ultimately, national bankruptcy. That is the end game.

This is not free trade; it’s fake trade. We have fake trade.

That’s why before NAFTA was enacted and went into effect, this country never had a trade deficit as much as $140 billion a year, while every single year since then — for 20 years now — we have had a trade deficit of over $140 billion a year.

We have had a[n average annual] trade deficit of half a billion dollars now, for the past 14 years.

Look back all across history. Look all across Planet Earth. You will see that the 14 largest trade deficits in the history of mankind are – all [of them] — the American trade deficits for the last 14 years.

(I cannot rule out the possibility that somewhere on Alpha Centauri there might be a country that has a larger trade deficit. But here on Planet Earth, no.)

Listen, we are in a deep, deep hole, thanks to fake trade. Thanks to fake trade, right now, 1/7th of all the assets in this country — every business, every plot of land, every car – 1/7th of all the assets in the country are now owned by foreigners. And ultimately, if we keep going the way we’re going, they all will be.

That’s why we have the most unequal distribution of income [among all industrial nations] in our country, [and] the most unequal distribution of wealth in our history.

We’re in a deep, deep hole. And there’s a simple rule about holes: When you’re in a hole, stop digging. Stop digging!

So I’m calling upon our leaders. I’m calling upon the American people. Let’s stop digging.

Let’s not only have a trade policy. For once, let’s also have a trade deficit policy.

Let’s deal with the reality that has robbed the American Middle Class now for decades. Let’s address it, and let’s defeat it. That’s what I’m calling [for], right now.

Let’s stop digging deeper. Let’s raise ourselves up, let’s climb out of this hole, and rebuild the American Middle Class. Thank you very much.

Courage,

Rep. Alan Grayson

Grayson’s email includes this chart showing the history of how our enormous, humongous trade deficit has grown and grown:

This is a big deal, because Grayson reaches a lot of people, and information spreads. So, maybe Grayson’s efforts will help drive awareness of the the trade deficit problem.

What Is The Trade Deficit?

The trade deficit is a direct measure of how much more our country buys from other countries than it sells to other countries. It also directly measures dollars and jobs literally drained from our economy. The trade deficit — contrasted with the budget deficit which we largely owe each other inside the country — really is like a family or business budget and we are spending more than we are taking in. In fact, we have been spending more than we are taking in for a long time.

Last month our trade deficit was $39 billion. That is $39 billion worth of business that went to non-US factories and other providers representing $39 billion worth of jobs and store purchases and the jobs and taxable revenue all of that represents. And that was in just one month.

Meanwhile China reported that their trade surplus has increased by almost 50%. “China 2014 trade surplus rockets to record high”:

China’s trade surplus soared by almost half last year to a record $382 billion, the government announced Tuesday…

Exports increased 6.1 percent to $2.34 trillion in 2014, while imports rose 0.4 percent to $1.96 trillion, the General Administration of Customs said on its website.

That translated into a trade surplus of $382.46 billion, the highest ever and a 47.2 percent increase on 2013.

That trade surplus represents a direct transfer of $382 billion of wealth into China from other countries — largely our own — while our trade deficit represents a direct transfer of wealth out of our own country, mostly to China.

Grayson’s little chart shows how long our trade deficit has been draining jobs, factories, and prosperity from our country. Nothing like this has ever occurred before in human history. If you look at the effect on the country you can trade the years of factories closings and community devastation in much of the country to the lines on this chart. You can trace the “hollowing out’ of America’s middle class by following the lines on this chart.

Budget Deficit Or Trade Deficit — Which Matters More?

You have heard a LOT about the budget deficit over the years. Conservatives and Wall Street have put a lot into making people scared about the budget deficit. This scare machine has been effective and as a result most people don’t even know that the budget deficit is way down from where Bush left it. (“By 73 percent to 21 percent, the public says the federal budget deficit has gotten bigger during the Obama presidency.”)

The reason conservatives and Wall Street are investing so much in budget-deficit propaganda is that if people are fearful about the budget deficit they demand certain policies that are, to say the least, a lot more beneficial to conservatives and Wall Street than to regular, working people. These include allowing cuts to the federal budget (and its oversight of and push-back against the giant corporations) that would be unthinkable without budget deficit fear stampeding the public. (The budget deficit was caused intentionally to force these results.)

However, if people come to understand and worry about the very real trade deficit they will demand policies that are very good for regular, working people as well as for “Main Street” businesses that make or do things in America. Policies that balance trade would increase jobs and wages, general prosperity and tax revenue.

These policies to help balance trade include outlawing currency manipulation which makes foreign-made goods less expensive relative to American-made goods, enforcing existing trade rules and finally renegotiating the trade deals that have caused our massive trade deficits (China, in particular).

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Do Not Get This Flu

I have the flu – since Monday. I got a flu shot a month ago, but they say there is a strain out there that the shot doesn’t protect against.

I called the doctor, and it is too late to get Tamiflu so I just have to ride it out.

This is not a cold, it is much, much worse.

Take it seriously, get a flu shot and start washing your hands all the time.

Intentional Suffering — The Next Phase Of Capitalism?

I’ve said that the next phase for airlines is to put a big spike in the center of each seat. Then they can make passengers pay them $10 for each inch they lower the spike. In Why Airlines Want to Make You Suffer Tim Wu explains at the New Yorker that this is actually the airlines’ current business model,

Here’s the thing: in order for fees to work, there needs be something worth paying to avoid. That necessitates, at some level, a strategy that can be described as “calculated misery.” Basic service, without fees, must be sufficiently degraded in order to make people want to pay to escape it. And that’s where the suffering begins.

This isn’t a joke. There are any number of ways that monopolizeed businesses can make us suffer to squeeze money out of us.

How about armament companies starting wars or keeping them going? (Click the link.)

Here’s one, what about getting kids (and here) hooked on terribly addicting drugs that also happen to cause horrible lung diseases, just so they can profit from selling the drug delivery system? No, that’s just too terrible to imagine.

Right now pharmaceutical companies publicize obscure diseases, or just invent them, to get us to ask doctors for prescriptions. But what happens when one of them spreads a terrible disease for which they sell the only cure?

What about the possibility of some day giant ag companies potentially spreading crop diseases for which they are the only company with a cure or a resistant seed?

How many ways can corporations cause us to suffer, so they can profit from the fix or the cure?

Spikes in seats? Why not! Hey it just makes business sense, doesn’t it? The capitalists will be the first to tell you — capitalism cures suffering!

Bernie Sanders’ Petition To Stop TPP

Petition: Stop Another Trade Deal ‘Disaster’

The Trans-Pacific Partnership is a disastrous trade agreement designed to protect the interests of the largest multi-national corporations at the expense of workers, consumers, the environment and the foundations of American democracy. It will also negatively impact some of the poorest people in the world.

The TPP is a treaty that has been written behind closed doors by the corporate world. Incredibly, while Wall Street, the pharmaceutical industry and major media companies have full knowledge as to what is in this treaty, the American people and members of Congress do not. They have been locked out of the process.

Further, all Americans, regardless of political ideology, should be opposed to the “fast track” process which would deny Congress the right to amend the treaty and represent their constituents’ interests.

The TPP follows in the footsteps of other unfettered free trade agreements like NAFTA, CAFTA and the Permanent Normalized Trade Agreement with China (PNTR). These treaties have forced American workers to compete against desperate and low-wage labor around the world. The result has been massive job losses in the United States and the shutting down of tens of thousands of factories. These corporately backed trade agreements have significantly contributed to the race to the bottom, the collapse of the American middle class and increased wealth and income inequality. The TPP is more of the same, but even worse.

During my 23 years in Congress, I helped lead the fight against NAFTA and PNTR with China. During the coming session of Congress, I will be working with organized labor, environmentalists, religious organizations, Democrats, and Republicans against the secretive TPP trade deal.

Let’s be clear: the TPP is much more than a “free trade” agreement. It is part of a global race to the bottom to boost the profits of large corporations and Wall Street by outsourcing jobs; undercutting worker rights; dismantling labor, environmental, health, food safety and financial laws; and allowing corporations to challenge our laws in international tribunals rather than our own court system. If TPP was such a good deal for America, the administration should have the courage to show the American people exactly what is in this deal, instead of keeping the content of the TPP a secret.

Also see Bernie’s 10 Ways that TPP would hurt Working Families

Watch TPP Outsource A Congressman’s Office

If we let Congress pre-approve the Trans-Pacific Partnership (TPP) with Fast Track we won’t need Congress anymore. Corporations will decide what the rules should be.

PS: This is for real. The next round of “NAFTA-style” trade agreements actually let corporate courts — with corporate attorneys as the judges — stop countries from passing laws that interfere with profits. Treaties like these already let tobacco companies sue countries to block government-sponsored anti-smoking campaigns. This is for real.

So essentially passing Fast Track outsources Congressmembers’ jobs! See for yourself:

Get ready now for the Fast Track Fight. Call your member of Congress and let them know you say NO FAST TRACK.

And visit No Fast Track at nofasttrack.org

Apple F’ed Up iTunes AGAIN

Why does Apple redesign the interface for iTunes every version? Every time I have to hunt around the internet to figure out how to make it look like it looked before. I knew how to use it, now I don’t. The playlists bar to the left if the list of tunes is gone AGAIN, and this time I can’t find a setting to get it back.

Why does Apple keep doing this stuff to its users?