The TRADE Act of 2008 A Fair Way Forward on Trade

The TRADE Act of 2008The TRADE Act of 2008A Fair Way Forward on TradeA Fair Way Forward on Trade

OR-OR-FTCFTC The Oregon Fair Trade Campaign

What We’ll Cover…What We’ll Cover…

Overview of existing trade policiesOpportunities for changeThe TRADE Act of 2008How to get involved

What Do Trade Pacts Govern?What Do Trade Pacts Govern?

Tariffs/quotas Public procurement Public services

– Education– Water/sewage– Waste/recycling– Postal services– Transportation– Libraries/museums– Parks– Gambling

Agriculture & food safety Intellectual property

– Access to medicine

Investor rights– Zoning– Environmental regulation– Product labeling– Safety inspections

More

Free Trade’s PromiseFree Trade’s Promise

NAFTA, the WTO and similar trade deals were supposed to benefit working people in both the U.S. and developing countries– It would open developing countries to foreign

investment, providing new jobs for the poor– By raise living standards abroad, it would also

create new markets for U.S. exports

““Global Race to the Bottom”Global Race to the Bottom”

The elimination of tariffs makes it easier for large corporations to move jobs around the globe to wherever workers are the most exploited and regulations the weakest

The Offshoring of U.S. JobsThe Offshoring of U.S. Jobs

1 in 6 U.S. manufacturing jobs have already been shipped abroad

68,000 jobs lost in Oregon across all sectors

As many as 42 million additional jobs vulnerable

Increased Poverty AbroadIncreased Poverty Abroad

Real wages for most Mexicans have dropped under NAFTA

By 2000, the poverty rate increased to over half the population.

The extreme poverty rate increased to nearly a third of the population.

Free Trade Deals Have Also…Free Trade Deals Have Also…

Been used to attack environmental, public health and consumer protections

Reduced access to generic medications

Destroyed rainforests Weakened food safety Privatized public services

Opportunity for ChangeOpportunity for Change

Many newer Members of Congress are serious about change

Politicians have promised to renegotiate NAFTA and other trade deals

Fast Track has expiredProgressives in developing countries are

proving that “free trade” is not inevitable

From Today through 2009…From Today through 2009…

Corporate lobbyists are pushing our elected officials to make minor adjustments to the NAFTA trade model, and continue with “business as usual”

How We Fight BackHow We Fight Back

Get elected officials and candidates “on the record” about changes that are necessary

Build broad support for comprehensive change before the other side can divide and conquer

Keep the trade debate front-and-center

The TRADE Act of 2008The TRADE Act of 2008

The Trade Reform, Accountability, Development and Employment Act (HR. 6180 and S.3083)

Sponsored by Sen. Sherrod Brown and Rep. Mike Michaud

Over 50 original cosponsors, including Rep. Peter DeFazio

Who Supports This?Who Supports This?

United Steelworkers Teamsters Boilermakers Machinists Friends of the Earth United Methodists UNITE HERE Painters

National Family Farm Coalition

Communication Workers of America

Public Citizen Americans for

Democratic Action Many others

TRADE Act OverviewTRADE Act Overview

Establishes process for reviewing and renegotiating existing trade agreements

Sets mandatory criteria for what must be and cannot be in any future trade agreement

Reasserts Congressional authority and public oversight in developing trade policy

Section 3: ReviewSection 3: ReviewRequires the Comptroller General to issue a

report on the effect of each trade agreement every two years

Report includes:– Balance of trade, jobs created/lost, consumer

prices, immigration, poverty, privatization, drug prices, human rights, disputes and more

– Much info broken down by sector and state– Requires public comment period, with hearings

Section 4: Inclusion of Section 4: Inclusion of Certain ProvisionsCertain Provisions

Mandatory criteria on what must be and cannot be in future trade agreements, regarding:

– Labor Standards– The Environment– Food Safety– Product Safety– Services– Investment– Procurement

– Intellectual Property– Agriculture– Anti-Dumping– Dispute Resolution– National Security– States’ Rights– More

Section 4.1: Labor StandardsSection 4.1: Labor Standards

Each country must adopt and enforce the core ILO Conventions– These cover collective bargaining; forced labor; child

labor; and discrimination

Penalties for labor violations at least as strong as those for commercial violations; expedited process

Sets up labor commission that, in addition to the USTR, has standing to initiate enforcement actions

TRADE Act in ActionTRADE Act in ActionWithout the TRADE Act

Transnational corporations shift jobs to China to take advantage of cheap labor

Chinese products are imported to the U.S. tariff-free, costing American workers their jobs

This reduces local tax bases, increases demand for public services and puts a downward pressure on wages for all

With the TRADE Act

Workers in the U.S. can complain that Chinese workers’ rights are being violated

The USTR or the new labor commission can initiate an enforcement action

Tariffs can be re-imposed if China is found to be in violation

Section 4.4: ServicesSection 4.4: Services

Trade agreements cannot be used to require privatization or deregulation

Allows countries to ban any service, if the ban also applies to domestic service providers

Requires privacy laws and regulations that apply to U.S. providers to carry over to transnational providers

TRADE Act in ActionTRADE Act in Action

Without the TRADE Act

The WTO prevents the U.S. from blocking foreign service providers

U.S. internet gambling rules are ruled WTO-illegal

U.S. taxpayers pay Antigua millions of dollars to keep our laws

With the TRADE Act

Bans on services are allowed if they’re applied equally to companies from different nations

The U.S. can keep its gambling rules without paying other countries any fines

Section 4.8: AgricultureSection 4.8: Agriculture

Protect the right of countries to prevent the dumping of agricultural commodities

Protect the right of countries to establish policies that require farmers to receive fair remuneration

TRADE Act in ActionTRADE Act in Action

Without the TRADE Act

Subsidized U.S. grains dumped onto Mexico

Millions of Mexicans put out of work

Massive migration to cities, border towns and the United States

With the TRADE Act

U.S. farmers can still receive subsidies

Mexico can protect its farmers from imports

People can choose when and where they migrate

Section 5: RenegotiationSection 5: Renegotiation

The President is required to submit a plan to Congress for bringing existing trade agreements into compliance with Section 4

No pending trade agreement may be submitted to Congress or new trade agreement initiated before this happens

Section 6: Review by CongressSection 6: Review by Congress

Sets up a cross-jurisdictional joint committee to receive the Comptroller General’s report and President’s renegotiation plans

This committee has 60 days in which to review and amend the renegotiation plans, after which they are set into motion

Section 7: Trade GoalsSection 7: Trade Goals

This is a nonbinding section that outlines basic goals for trade agreements, such as:– Improving wage levels– Improving the environment– Preserving family farms– Maintaining product safety– Enabling public participation

Section 8: Replacing Fast TrackSection 8: Replacing Fast Track

This nonbinding section suggests a process by which future trade deals should be considered by Congress, including:– Developing “readiness criteria” for determining

which countries we enter into negotiations with– Ensuring the informed consent of states before

they are bound to various trade obligations– Requiring a vote by Congress before the

President can sign a trade agreement

What can we do?What can we do?

Build awareness– Educate your members– Write letters to the editor– Publish newsletter articles

Contact Congress– Write letters and make calls– Organize official union

delegation visits Make it an election issue

– Put questions on candidate screening

– Talk to candidates about it

We’re at a crossroadsWe’re at a crossroads

What happens in the coming months and years could impact global trade policy for decades.

Arthur StamoulisOregon Fair Trade Campaign

www.oregonfairtrade.org

(503) [email protected]

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