Let me begin by concurring with much of what the Senator from Pennsylvania has said. I think he is right-on. Like him, I rise today in strong opposition to the unfettered free-trade agreements with Korea, Colombia, and Panama. Let's be…
Let me begin by concurring with much of what the Senator from Pennsylvania has said. I think he is right-on. Like him, I rise today in strong opposition to the unfettered free-trade agreements with Korea, Colombia, and Panama. Let's be clear. One of the major reasons why the middle class in America is disappearing and why poverty is increasing and why the gap between the very wealthy and everybody else is growing wider is directly related to our disastrous, unfettered free-trade policy. If the United States is to remain a major industrial power, producing real products and creating good-paying jobs, we cannot continue the failed, unfettered free-trade policies that have been in existence for the last 30 years.
We need to develop trade policies--I know this is a radical idea-- that work for working people and not just the CEOs of large corporations. What we must do is rebuild our manufacturing sector and once again create millions of good-paying jobs where workers are producing real products made in the United States of America.
Over the last decade, more than 50,000 manufacturing plants in this country have shut down. Let me repeat that. In the last decade, more than 50,000 factories in this country have shut down. Over 5.5 million factory jobs have disappeared.
Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs, often paying workers a living wage, decent benefits, pensions. Today, that figure is down to just 9 percent.
In July of 2000, there were 17.3 million manufacturing workers in this country. Today, there are only 11.7 million.
According to a recent study conducted by a well-respected economist at the Economic Policy Institute, permanent normal trade relations with China has led to the loss of 2.8 million jobs. In fact, the United States has lost an average of about 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.
I was in the House of Representatives when PNTR with China was passed. I can remember all of the fine speeches from the President on down, Republicans, Democrats: Permanent normal trade relations with China is going to open up that great market, going to create millions of jobs in America. It was not true. Free trade with China ended up costing us 2.8 million jobs. You don't have to be an economist to understand that; all you have to do is walk into any department store in America and buy a product. Do you know where that product is made? It is not made in the United States of America, it is made in China.
We all now understand what that trade agreement was about. It was not to open markets in China for American products, it was to open China so corporations in this country could shut down here, throw American workers out on the street, and move there in order to pay workers pennies an hour. That is what those trade agreements are about. There is no doubt in my mind that--certainly to a much lesser degree because they are smaller trade agreements--trade agreements with Korea, Panama, and Colombia will continue that same process.
The U.S. Department of Commerce has reported that over the last decade, U.S. multinational corporations slashed 2.9 million jobs. Now the biggest advocate of unfettered free trade, of NAFTA with Mexico, of PNTR with China, of these trade agreements, is corporate America. It is the chamber of commerce, it is the National Association of Manufacturing. They spend huge sums of money on lobbying and campaign contributions in order to make Congress vote for these great trade agreements.
Let me repeat. Over the last decade, these very same corporations that want us to pass these disastrous trade agreements slashed 2.9 million American jobs. Furthermore, what we have learned is that during that same period of time--and here is the kicker--these same corporations have created 2.4 million jobs. The only problem is that those jobs were created in China, Mexico, and other low-wage countries.
What we have here is that key advocates for continuing this disastrous trade policy are precisely the people who have been slashing jobs in America, closing down factories, and hiring people abroad. And I would suggest that Members of the Senate might want to think twice about listening to the advice of people who have been laying off millions of American workers.
Oddly enough, again we have one of the leading advocates for these disastrous trade agreements--it is the chamber of commerce. Well, some years ago, the chamber of commerce, to its credit, was pretty up front. They said outsourcing is a good idea. They recommended to American corporations: Shut down in America and move abroad. It is good for your stockholders.
Do you really want to take the advice of people who believe that outsourcing and throwing American workers out on the street is a good idea? I do not think so.
Today we are hearing all of this talk about how these trade agreements are going to create new jobs. We heard it before. It is the same old movie. The American people understand it is a bad movie. It is an unfactual movie.
During the Clinton administration, we were told by Republicans and Democrats and then-President Clinton that NAFTA would create 100,000 American jobs over a 2-year period. That is what we were told about NAFTA. Well, results are in on NAFTA. Instead of creating 100,000 American jobs, the Economic Policy Institute has found that NAFTA destroyed more than 682,000 American jobs, including the loss of 150,000 computer and electronic jobs.
I do not understand why, when you have a policy that has failed and failed, you want to continue that policy. Football teams that have coaches with losing records get rid of those coaches. When you have a trade policy that has
resulted in millions of American workers losing their jobs, you do not continue that same philosophy.
The issue here is not just Mexico and NAFTA, it is not just PNTR with China, it is obviously what is going to happen with the trade agreements that are before us today, Korea, Panama, and Colombia.
The Economic Policy Institute has estimated that the Korea Free Trade Agreement will lead to the loss of 159,000 American jobs and will increase the trade deficit by nearly $14 billion over a 7-year period. Why would you want to go forward with those ideas? Why would you want to go forward with a trade agreement that will increase our trade deficit?
President Obama has estimated that the Korea Free Trade Agreement will support at least 70,000 American jobs. But the headline of a December 7, 2010, article in the New York Times says it all: ``Few New Jobs Expected Soon From Free-Trade Agreement With South Korea.'' According to this article, the Korea Free Trade Agreement ``is likely to result in little if any net job creation in the short run, according to the government's own analysis.''
Let me touch on one particular aspect of the Korea Free Trade Agreement that I find especially troubling and that I think the American people, to the degree they understand this and learn about it, will also find troubling; that is, this particular free-trade agreement will force American workers to compete not just against the low-wage workers in China or Vietnam or Mexico, they are going to be forced to compete against the virtual slave labor that exists in North Korea, the most undemocratic country in the world and a country itself whose government will financially benefit from this, with the dictatorship of Kim Jong Il.
We all know that under current law the United States has an embargo on all North Korean goods--for a very good reason. Workers in North Korea are the most brutalized in the world, have virtually no democratic rights, and are at the mercy of the most vicious dictator in the world. But after the South Korea Free Trade Agreement is signed into law, the United States would have a new obligation to allow South Korean products to come into our country tariff-free that contain major parts made by North Korean workers who make pennies an hour.
According to a January 2011 report from the Congressional Research Service, ``There is nothing to prevent South Korean firms from performing intermediate manufacturing operations in North Korea and then performing final manufacturing processes in South Korea.'' In other words, there is a huge industrial park in North Korea. South Korean companies own that park. Workers there are paid horrendously low wages, and some of those wages go right to the North Korean Government. Products made in that industrial park in North Korea will go to South Korea and then will come back into the United States as part of that so-called free-trade agreement.
Today, over 47,000 North Korean workers currently are employed by more than 120 South Korean firms, including Hyundai, at the Kaesong Industrial Complex in North Korea.
This facility is located just 6 miles north of the demilitarized zone, with direct road and rail access to South Korea and just an hour's drive away from Seoul.
These North Korean workers officially make a minimum wage of 35 cents an hour, but they actually make less than that.
Instead of paying these workers directly, Hyundai and the other South Korean firms pay the North Korean Government. How is that? South Korean companies--major companies--pay the North Korean Government. They take a piece of the action, which is going to the most undemocratic, vicious dictatorship in the world. The products then go to South Korea, and they are part of the free-trade agreement with South Korea.
In 2007, Han Duck-soo, who was then the Prime Minister of South Korea and is the current South Korean Ambassador to the United States, said this:
The planned ratification of the South Korea-U.S. free trade
agreement will pave the way for the export of products built
in Kaesong [North Korea] to the U.S. market.
So what we have now is American workers being forced to compete against desperate people all over the world, who are making a tiny fraction of the wages that are paid in America, and forced to compete against countries where there are no environmental standards, where worker unions are not recognized or respected.
But now it gets even worse. American workers are now being forced to compete against the virtual slave labor in North Korea as part of this trade agreement.
What about the Colombia Free Trade Agreement? It is understandable why the CEOs of multinational corporations would like this free-trade agreement. After all, Colombia is one of the most anti-union countries on the planet.
Since 1986, over 2,800 trade unionists have been assassinated in Colombia--more than the rest of the world combined. Think about it for a moment. If we found out that 50 CEOs had been assassinated in Colombia last year instead of trade leaders, do you think we would be on the verge of approving a free-trade agreement with that country? Frankly, I don't think so.
Lastly, let me say a brief word about Panama and the Panama free- trade agreement. Panama's entire economic output is only $26.7 billion a year or about two-tenths of 1 percent of the U.S. economy. Nobody can legitimately claim that approving this free-trade agreement will significantly increase American jobs.
Then why would we be considering a stand-alone free trade agreement with Panama? It turns out that Panama is a world leader when it comes to allowing wealthy Americans and large corporations to evade U.S. taxes by stashing their cash in offshore tax havens. The Panama Free Trade Agreement will make this bad situation much worse.
Each and every year, the wealthiest people in our country and the largest corporations evade about $100 billion in U.S. taxes through abusive and illegal offshore tax havens in Panama and other countries.
According to Citizens for Tax Justice:
A tax haven . . . has one of three characteristics: it has
no income tax or a very low rate income tax; it has bank
secrecy laws; and it has a history of non-cooperation with
other countries on exchanging information about tax matters.
Panama has all three of those. . . . They're probably the
worst.
Let me conclude--and I will be back on the floor later to amplify on these remarks. I will conclude by saying this: If you go out to any community in America and you ask the people in those communities-- especially working people--do you think our current free-trade agreements, such as NAFTA and permanent normal trade relations with China, have worked, and have they been creating jobs in your community or have you seen factories shut down, I suspect that in almost every instance people will say these free-trade agreements are not working for American workers. They are costing us jobs.
That is what the American people understand to be true because it is true. So it seems to me that when you have a history of failed trade policies--policies that have enabled and encouraged large corporations to shut down in this country and move abroad, it is insane to continue that policy if you are serious about creating jobs in America, rebuilding our manufacturing sector, and trying to address the crises facing the middle class today.
We need new trade policies. Trade unto itself is a good idea. Everybody believes in trade. But you need trade policies that are designed to help ordinary working people and not just wealthy CEOs.
I feel very strongly that the policies we are debating today--trade policies with Korea, Panama, and Colombia--are nothing more than extensions of disastrous trade policies of the past. They should be defeated. We should come together and develop new approaches to trade, which will benefit all our people and not just CEOs or multinational corporations.
With that, I yield the floor and suggest the absence of a quorum.
Mr. President, I always enjoy the Senator's remarks. However, I cannot quite agree with the thrust of his statement.
In my view, the current trade policies in this country are a disaster. The evidence is very clear that they have cost us many millions of jobs and to continue that same unfettered free-trade philosophy, in terms of trade agreements with Korea, Panama and Colombia, makes absolutely no sense at all. When we have a policy that is failing, we change it; we don't continue it.
Let us be very clear. I think most Americans understand that our economy today is in disastrous shape. Our middle class is disappearing. Recent statistics have told us poverty levels are at an alltime high, and the gap between the very rich and everybody else is growing wider.
In my view, one of the reasons--not the only reason--for the collapse of the middle class has to do with the loss of millions of good manufacturing jobs, attributable to these disastrous trade policies. If we are serious as a nation in wanting to rebuild the middle class, lower our poverty rate, what we have to do is move forward in a new direction in trade, based on fair trade principles, and end this unfettered free trade, which has been such a disaster for American workers.
Over the last decade, we as a nation have lost 50,000 manufacturing plants in our country. I will repeat that because that is such a staggering number that it needs to be said over and over. Fifty thousand manufacturing plants in this country have shut down over the last 10 years alone. We have lost, during that same period, 5.5 million factory jobs. Many of those jobs were good-paying jobs. They were jobs that provided people with good wages and good benefits. Those jobs are gone and, in many cases, have been replaced by Walmart and McDonald's- type jobs, with low wages and minimal benefits.
To give us a sense about how significant the decline of manufacturing in this country is, the reality is, in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, that number is just 9 percent. In July of 2000, there were 17.3 million manufacturing workers in this country. Today, there are only 11 million manufacturing workers. In my small State of Vermont--which is not as big as Ohio or Michigan and has never been one of the great manufacturing centers in the country, but even in a small State such as Vermont, what we have seen is a huge decline in good-paying manufacturing jobs, which have certainly impacted our middle class.
Mr. President, 10 years ago, we had approximately 45,000 manufacturing jobs in Vermont. Last year, we had 31,000 manufacturing jobs in Vermont. We have lost about one-third of our manufacturing jobs. I should tell everyone that 7,800 of those jobs were lost as a result of the trade agreement with China and another 1,300 were lost as a result of NAFTA.
The key issue is whether we continue our disastrous trade policy, which includes NAFTA, permanent normal trade relations with China, and CAFTA. Do we add on to trade policies that have failed? For the love of me, I cannot understand why anybody would want to do that.
The facts are very clear: Our current trade policies have failed, have been a disaster for working families. According to a recent study conducted by well-respected economists at the Economic Policy Institute, permanent normal trade relations with China led to the loss of 2.8 million American jobs--2.8 million American jobs. I remember because I was in the House when that debate took place. I heard the same thing then as I hear now--Members of Congress getting up and talking about all the new jobs that were going to be created. It wasn't true then and it is not true now.
How could we defend a trade policy based on the same principles as