Mr. President, I believe I had reserved 1 hour of which I had used 30 minutes previously. The vote is at noon, so I intend to speak for the other 30 minutes, if that is appropriate? Mr. President, let me talk about the Oman Free Trade…
Mr. President, I believe I had reserved 1 hour of which I had used 30 minutes previously. The vote is at noon, so I intend to speak for the other 30 minutes, if that is appropriate?
Mr. President, let me talk about the Oman Free Trade Agreement. There are nine additional free-trade agreements being negotiated right now, nine of them. This past week there was an announcement that the monthly trade deficit is now $68 billion a month; a $68 billion monthly trade deficit. If ever there was a definition of failure, this is it.
So here is what we have: We have the good old boys negotiating trade agreements--Republicans and Democrats. They happen to be Republicans now because they are in power, but it has gone on for some long while. Here is what you see: Trade deficits, which are
represented by a mountain of red ink--or a deep valley of red ink in the case of this chart--the highest trade deficit in history, an unbelievable trade deficit. No country has ever had these kinds of deficits. They will have significant consequences for our country.
These deficits must be paid for with a lower standard of living in our country. Every single day, we send $2 billion out to foreign countries because we import $2 billion more than we export. That means every single day we are selling $2 billion of this country. We are selling America piece by piece.
Does this give anybody pause? Is anybody concerned? No. You know what we need to do? Let's do another trade agreement. We have done trade agreements here, at this point on the chart, we have done them here, we have done them here, and every single incompetent trade agreement this country signs up for ends up dramatically increasing our Federal deficits. We are choking on them, pulling the rug out from under American workers, shipping more American jobs overseas. And what is the response of this Congress? You know, let's do more of it. Why? Because we live in a global economy, and this is free trade.
I once knew, in my little home, a three-legged blind dog with fleas that they used to call Lucky. Labels didn't mean much to me--didn't mean much to that dog either, as a matter of fact. ``Free trade,'' that is the label on this nonsense. It is not free and it certainly is not fair.
This country has become Uncle Sucker on trade agreements. We have signed up to almost anything. Most of our trade is foreign policy and soft-headed foreign policy at that. I am in favor of trade. I want to expand trade--the more the better, but I demand it be fair to this country. When it is not fair, I think we ought to insist. It doesn't matter to me whether it is Oman or China or Europe or Japan or Korea or Mexico or Canada, I think we ought to say it is a new day. And the way we are going to trade with you is with circumstances that are fair to our country, to our workers, and to our country's interests.
Trade ought to be mutually beneficial. When we sign up to trade with somebody, it ought to be mutually beneficial.
Let me tell you what is coming next year. Next year everyone in this country will have an opportunity to start buying Chinese cars because China has announced that they intend to start shipping Chinese automobiles to the U.S. marketplace. We have a trade agreement with China about cars. Let me describe what it is.
It says: China, when you ship a car to the United States--it will happen starting next year--we are going to hit you with a 2.5-percent tariff, a tiny little tariff, a 2.5-percent tariff you are going to have to pay on the cars you ship into our marketplace. And, by the way, any American cars that we send to China next year, we agree we will pay a 25-percent tariff.
So a country with whom we have a $2.5 billion trade deficit, we signed up, on bilateral automobile trade, that they should be able to charge a tariff 10 times higher on automobiles when we try to sell a car in their country. That is unbelievably incompetent. That is what our country has agreed to.
That is just one little piece. Most people wouldn't know about dealing with bilateral automobile trade. It affects American jobs. It pulls the rug out from under our workers. That is just one. There are dozens and dozens of similar examples.
Since I am speaking about automobiles, let me describe the situation with Korea. South Korea sent us over 700,000 cars last year. I will show you the chart. South Korea sent 730,000 cars last year into our marketplace. Do you know how many American cars we sold in South Korea? We sold them just 4,251 cars. Is it because they don't want American cars? No. It's because the Koreans largely closed their market to our product even as we opened our markets with theirs. Do we do anything about it? No. We sit around twiddling our thumbs--sucking our thumbs in some cases--and lament that this is going on. It is an unbelievable failure.
Ninety-nine percent of the cars driven on the streets of South Korea are Korean-made cars. Why is that the case? That is exactly the way they want it, and that is the way it will stay because our country doesn't seem to care. We sign up to all of these trade agreements. In fact, we are doing a new agreement with Korea now. That is one of the nine. Does anyone really care about fair trade?
So in this context, let me talk about Oman now.
There are about 400 organizations, ranging from the League of Rural Voters to the National Farmers Union to the Sierra Club to the AFL-CIO, about 400 organizations have come out in opposition to this trade agreement. What is the reason for that? Let me describe it with a letter which many of them signed which says the following:
Like NAFTA and CAFTA, OFTA [the Oman Free Trade
Agreement]--fails to include any meaningful labor and
environmental protections. The lack of effective labor
provisions in OFTA is particularly significant in light of
the recent revelations of massive labor abuses in Jordan--a
Nation with which the United States has a free trade
agreement. These violations involve widespread human
trafficking, 20-hour workdays and widespread failure to pay
back wages. More troubling is the fact the Oman FTA contains
weaker labor provisions than the Jordan FTA.
Let me describe what is going on in Jordan. This is actually a New York Times piece. I have actually spoken to the people who went to Jordan and saw these sweatshops.
Propelled by a free trade agreement with the United States,
apparel manufacturing is booming in Jordan, its exports to
America soaring twenty-fold in the last 5 years.
But some foreign workers in Jordanian factories that
produce garments for Target, Wal-Mart and other American
retailers are complaining of dismal working conditions--20-
hour days, of not being paid for months, and of being hit by
supervisors and jailed when they complained.
Here is what happens in Jordan. They fly in so-called guest workers from Bangladesh, Sri Lanka, put them in a corner of Jordan in sweatshops, in factories with closed doors, and then they fly in Chinese textiles, and in sweatshop conditions, with imported workers from Bangladesh and imported textiles from China, they produce products which they ship to the United States.
Let me describe some of the conditions. Some of these workers imported from Bangladesh were promised $120 a month but in some cases were hardly paid at all. One worker was paid $50 for 5 months of work. Forty-hour shifts were common. Let me say that again. Forty-hour shifts--not weeks--were common. Forty-hour shifts in those sweatshops apparently replaced the 40-hour workweek. There were frequent beatings of any workers who complained.
What is the relevance of all this to an Oman Free Trade Agreement? First of all, the country of Oman has about 3 million people. Of that rather small population, over one-half million are actually foreign guest workers. The majority of Oman workers involved in manufacturing and construction are not from Oman. The majority of the workers in Oman are foreigners brought in from Bangladesh, Sri Lanka, and other very poor Asian countries, under labor contracts to work in construction and in factories.
Here is what our own country's State Department's 2004 Report on Human Rights said about Oman. We are doing a trade agreement now with Oman. Our own State Department reports that:
The law prohibits forced or compulsory labor, including
children; however, there were reports that such practices
occurred. The government did not investigate or enforce the
law effectively. Foreign workers at times were placed in
situations amounting to forced labor.
Our own State Department talks about forced labor in Oman. It doesn't matter to the people who put this agreement together. They could care less. They do not intend to put in strong labor provisions with respect to this trade agreement.
There are no labor unions in Oman that would be protective of workers or negotiate for workers. In 2003, the Sultan of Oman issued a Sultanic decree which categorically denies workers the right to organize and join unions of their choosing. In some circumstances, workers in Oman can join ``representative committees,'' but those committees, just as is the case in China--China is now advertising a lot of unions--those committees are not independent of the employers or of the Government. China now has unions that
are part of the Communist government, and the Sultanic decree that prohibits unions in Oman allows representatives of workers to get together but not independent of employers or the Government.
By the way, the Sultan of Oman has written to our U.S. Trade Ambassador and promised that he will improve Oman's labor laws in October of this year. That would be next month. How do you calculate that? That would be after the U.S. Congress votes, wouldn't it? They are going to improve their labor laws after we have voted. Yes, I guess I have heard that before. Maybe this country ought to be suggesting that some of these things be improved before they negotiate free-trade agreements.
Under fast-track rules, the Congress, in its own lack of wisdom, said: We would like to put ourselves in a straightjacket. We can negotiate agreements and treaties on nuclear arms without fast track, but on trade agreements, we must negotiate in a way that says when we come back to the Congress, we are prohibited from offering amendments. So the Congress actually votes to put itself into a straightjacket and prohibit any amendments. I don't vote for that. I lead the fight against it because I think it is fundamentally undemocratic. But the Congress has already done that. That is why there will be no amendments to the Oman Free Trade Agreement.
Let me describe one other provision in the Oman agreement, and it has been in a couple of other agreements as well.
Earlier this year, there was a big fight in this country about Dubai Ports World, which is a company owned by the United Arab Emirates, taking over major seaports in this country--six major U.S. seaports-- New York, New Jersey, Baltimore, New Orleans, and Miami--taken over to be managed by a company owned by the United Arab Emirates. There was a huge blowup as a result of that, a massive firestorm of protest. The President had already approved it, said: It is fine; don't worry about it; we think American ports can be managed by the United Arab Emirates or the company it owns, Dubai Ports World. I didn't think so, but the President said it is fine.
Brushing aside suggestions from Republicans and Democrats alike, President Bush endorsed the taking over of shipping operations at six major seaports by a state-owned business in the United Arab Emirates. He pledged to veto any bill Congress might approve to block that amendment. But still, in all, there was such a storm of protest by the American people saying: With all of the terrorist threats, maybe we ought to manage our own seaports; there was such a storm of protest that Dubai Ports World announced they had reached an agreement and they decided they would sell or negotiate to sell their interests in managing our ports.
Michael Chertoff, Homeland Security Secretary, said during that period that the proposed takeover of terminal operations at five U.S. ports by a Dubai company would give U.S. law enforcement a better handle on security at U.S. terminal operations. Let me talk about terminally bad judgment here. Here is the guy in charge of Homeland Security who says that allowing foreign interests to take over the management of America's ports will fully actually provide better security for our country. You talk about unbelievably bad judgment. Everybody has a right to be wrong, including the head of Homeland Security. Let's just hope that when he is wrong, it doesn't result in another terrorist attack on this country.
Here is what is in the Oman Free Trade Agreement, a provision that says that the U.S. government cannot block Oman's acquisition of the following activities:
Landside aspects of port activities, including operation
and maintenance of docks, loading and unloading of vessels
directly to or from land, marine, cargo handling operations
and maintenance at piers.
That is the managing of a port. That provision says that we can't block Oman from acquiring or an Oman company from acquiring--that is in the trade agreement. This agreement says we will not be able to block, without abrogating this trade agreement, a company from Oman from operating America's seaports. This alone should defeat this trade agreement. It will not because there are 60 or 65 Members of this body who will vote for any trade agreement, almost. This provision alone should defeat this trade agreement.
Let me finish by talking about the consequences of this senseless trade policy on jobs in this country. I know it is tiresome to some of my colleagues to keep hearing about this, but I believe it is worthy to describe where we are headed in textiles, manufacturing, high tech, and other areas.
You will remember the television commercials advertising Fruit of the Loom underwear. It ran a lot of commercials talking about how wonderful Fruit of the Loom underwear would be for each of us. They paid someone to dress as green grapes and someone to dress as red grapes. I guess that is the little logo on Fruit of the Loom underwear. They danced, the green and red grapes danced and sang and played music and various things. I don't know who would actually accept money to dance as grapes, but they found actors to dance as grapes, and they danced right out of this country. They don't make one pair of Fruit of the Loom underwear in this country anymore, not one.
If you want Mexican food, go to the grocery store and buy Fig Newton cookies. They left this country. They went to Monterrey, Mexico.
Every Member of this Senate, I will bet, once had a Radio Flyer, a little red wagon. It was made in America for 110 years. You can still buy them here, but they are not made here anymore; they left for China--all made in China, the little red wagon, the Radio Flyer.
If you wear Tony Lama cowboy boots, you might be wearing Chinese shoes. I have told this story until everyone is tired of it. Americans used to make them, but they lost their jobs. When they were fired, the last job they had was to take the ``American made'' decals off existing inventory. They had an hourly job plus benefits. The jobs left our country and went to China.
They still sell these Huffy bicycles in this country, but they are made for 33 cents an hour by people working 7 or 8 days a week, 14 hours a day. The last thing those American workers did on their last day of work and leaving the parking lot was to leave a pair of empty shoes in the parking lot. They left a pair of empty shoes in their parking space. It was a way for workers to say to the company: You can ship our jobs to China, but you are not going to fill our shoes.
It goes on and on and on--yes, with product after product, textiles and manufacturing, high tech. One-half of the Fortune 500 are now doing software development offshore, overseas. It is pretty unbelievable.
In all of this, we give a tax cut, tax break. We not only manage bad trade agreements to make it easy to ship jobs overseas, we say: If you do that, we will give you a big fat tax cut. Four times I have tried to eliminate that in the Senate, and four times the Chamber of Commerce and others who support that tax cut rounded up enough votes in the Senate to preserve it. I find that appalling. Nonetheless, that is what is happening with trade.
Ultimately, this country will not long remain a world economic power if it does not retain a world-class manufacturing base. This country will not continue to expand the middle-class workers if it continues to incentivize the shipment of jobs overseas. The construct of many big companies of saying: We want to produce where it is cheap--China, Indonesia, Bangladesh; we want to sell in the established marketplace of Los Angeles, Chicago, Denver, Fargo, Pittsburgh, and run the income through the Cayman Islands to avoid paying taxes--will undermine the economic interests of this country.
This country made great progress by expanding the middle class with good jobs that paid well. We debate a lot of things in this Senate, but there is nothing we debate with respect to a social program that is more important than a good job that pays well. We would do well to remember that as we take a look at bad trade agreements and prepare ourselves, once again, as the majority of this Chamber--but not me-- votes yes in favor of trade agreements which pull the rug out from under workers, pull the rug out from under farmers, and undermine the long-term economic interests of this country.
We have the same chorus of a tired song that is being sung today in the
Senate about the virtues of another bad trade agreement. This one was with a very small country of 3 million people. I have never been to Oman. I don't know much about Oman. I am not opposed to the country of Oman in any way. I am interested in standing up for the economic interests of this country. This is one more chapter in a book of failures on international trade. This country, this Senate, has a responsibility, finally, to start getting it right.
I will vote against the trade agreement with Oman and hope that, even as this trade agreement will likely pass, as other trade agreements have, an agreement that undermines our country's economic interests, in the next nine trade agreements, all of which are being negotiated now, we will finally see some negotiations that stand up for our interests.
It is long past the time, when we have a $68 billion-a-month deficit and nearly $800 billion-a-year trade deficit, it is long past the time to ask the questions: What is wrong? How do we make it right? What is not working? How do we fix it?
This Congress, this administration, seems content, as has been the case now for the last dozen years, in snoring through all of this, saying it will be handled by someone else, sometime later, pretending somehow the consequences do not matter.
The consequences do matter. There are significant consequences.
One can make a case when the Budget is debated here that whatever the budget deficit is, it is money we owe to ourselves. One can make that case. Economists make that case. It is not a case I make, but it is money we owe to ourselves. We cannot make that case with a trade deficit. That is money we owe to others. Over one-half of our trade deficit is now held by the Japanese and the Chinese, which is used to buy American property, American stocks, bonds, to buy part of this country--drip, drip, drip, every day, $2 billion a day.
I will vote against this trade agreement and hope the next trade agreement that comes to the Senate will be an agreement that fixes previous problems rather than negotiates new agreements. The problems in the previous agreements are legend: NAFTA, CAFTA, United States- Canada. It is absolutely legend, the problems that exist, and not one of them has been fixed. All of them continue to exist. We turn a blind eye to all them as we negotiate new agreements. That disserves this country's economic interests.