Mr. President, will the Senator yield for a unanimous consent request? Mr. President, I ask unanimous consent that I be recognized at such time the Senator completes his statement. Mr. President, I regret I do not agree with my colleague…
Mr. President, will the Senator yield for a unanimous consent request?
Mr. President, I ask unanimous consent that I be recognized at such time the Senator completes his statement.
Mr. President, I regret I do not agree with my colleague on the merits of this issue. But I do not regret coming to the Chamber to speak on behalf of American workers, on behalf of our country's interests. I come, once again, to talk about a trade agreement that I believe is not consistent with what our country should be doing.
Let me talk about priorities. We have so many issues in front of us.
The other day, I read that the price of prescription drugs has risen triple the rate of inflation in the first 3 months of this year with the advent of this new Government prescription drug program for Medicare recipients. Is there any action on that? No. That provokes a very big yawn here in the Senate.
We have the highest budget deficits in history. We are going to add about $1.4 trillion in debt to this country's shoulders this year-- $700-plus billion of trade deficits this year. We are going to borrow, increasing the Federal debt $600-plus billion this year.
We have significant challenges in education and health care.
We have enormous challenges abroad. Obviously we are involved with respect to the war on terrorism. There is a war in Iraq. There is no proposition that anybody should pay for that war. Hundreds of millions of dollars have been brought to the floor of the Senate to pay for it, with the entire cost being added to the Federal debt. We send men and women to risk their lives in Iraq. Some make the ultimate sacrifice on behalf of their country and lose their lives. But there is no discussion here about whether anyone else should probably sacrifice some and be paying for the cost of this. In fact, the administration does not even put money in their budget, when they send their budget to us, for the operations in Iraq and Afghanistan. They do not put the money in because they know then they can ask for emergency funding and just add it to the top of the debt.
We have a lot of challenges. We cannot get action on the floor by this Congress on the subject of stem cell research which will begin, I hope, to unlock the mysteries of dreaded diseases--Parkinson's, Alzheimer's, cancer, heart disease, diabetes, and more. Unlocking the mysteries of those diseases is saving lives. It is pro-life. We can't get a bill on the floor of the Senate to deal with that because we are blocked from considering stem cell research on the floor of the Senate.
We need reimportation of prescription drugs so we can put pressure on the drug companies to lower the price of prescription drugs for the American people. We pay the highest prices in the world for prescription drugs, and it is unfair. The U.S. consumer pays double, triple, in some cases 10 times the price of prescription drugs that is charged to virtually every other consumer in the world, and we can't get a piece of legislation on the floor of this Senate to consider allowing the reimportation of the identical drug, often a drug that was made in this country and then shipped to Canada.
We can't do those things. Those are not priorities for those who schedule the floor of the Senate. But we can bring to the floor of the Senate today a trade agreement, a free-trade agreement with the country of Oman. Here we have another chapter in a book of failures--a free- trade agreement with Oman.
Oman is a country with 3 million people run by a Sultan. I don't come to the floor to in any way cast aspersions or to denigrate the country of Oman. I have not been to Oman. But I do know a lot about trade agreements. I have studied them. And this is what they are ultimately about: the exporting of American jobs to countries where people work for 30 cents an hour and you can work them for 12 to 14 hours a day, 7 days a week. This has caused at least 3 to 4 million jobs to be eliminated from this country.
These free-trade agreements--and this Oman deal is yet another--these free-trade agreements have given the green light to say: Yes, let's ship American jobs overseas; and by the way, even as you ship American jobs overseas, you can bring in low-wage labor from our southern border; and by the way, you can run your income through the Cayman Islands so you don't have to pay taxes.
My colleagues are tired of hearing about the Ugland House, but I am reluctant to mention it again. There is one little house on Church Street in the Cayman islands. It is, I believe, four stories. It is called the Ugland House. It is home to 12,748 corporations. They are not there, of course. That is their official address in order to avoid paying U.S. taxes.
At any rate, these trade agreements, the so-called free-trade agreements, are agreements that in most cases are reached in secret negotiations, are then brought to the Congress under a procedure called fast track. The Congress has actually voted on it. I voted against it. It is absolutely preposterous that Congress decided to say, let's wake up in the morning and put ourselves in a straitjacket and pass legislation that makes sure we can't offer amendments to a trade agreement. That is unbelievable, that Congress has done that, but it has. So we now bring this to the floor under something called fast track.
Fast track means this: Take it or leave it. Here is the agreement. You didn't have any participation in drafting this trade agreement, you have no ability to alter this trade agreement, but take it or leave it, vote up or down, yes or no. That is the process.
With respect to this trade agreement, they actually have begun to do a procedure called a mock markup. In my hometown, you would know what a mock markup is: it is not a markup, it is just a mockery. So they had a mock markup here in the Senate Finance Committee.
My colleague, Senator Conrad, and I believe Senator Bingaman, offered an amendment to the mock markup of a free-trade agreement that is going to be brought to the floor under fast track. That doesn't even sound like English, does it--a mock markup brought to the floor under fast track? So the mock markup is held, and my colleagues offer an amendment that would ban products coming into this country that is produced from sweatshops or slave labor. It passed unanimously in the Finance Committee, in the so-called mock markup.
It turns out that the markup was a mock, or a mockery, because even though that provision passed unanimously, it is not in the trade agreement that emerged on the floor of the Senate. The question is, What has happened to that amendment which was offered in the Senate Finance Committee? Where in the world is Carmen San Diego? Where is this amendment? Maybe we ought to send teams out to look for this amendment. The amendment passed. It was unanimous. But it has just disappeared. Another famous disappearing act.
This trade agreement with Oman is not the largest trade agreement. This is not CAFTA, this is not NAFTA, this is not the free-trade agreement of the Americas. Oman is a relatively small country, and in saying that I do not mean to offend Oman. This is not about whether I think Oman is a wonderful country or not a wonderful country. I want to talk about the ingredients of this trade agreement.
Let me talk a bit about the major concerns I have with this particular trade agreement with Oman. First of all, let me talk about the organizations that oppose this trade agreement. The AFL-CIO, Communications Workers of America, Teamsters, League of Rural Voters, National Farmers Union, Presbyterian Church USA Washington Office, Sierra Club, United Methodist Church, United Steel Workers, Western Organization of Resource Councils, and many more.
Like NAFTA and CAFTA and all the other acronyms that describe recent failures, this agreement fails to put any meaningful protections or any meaningful labor or environmental provisions in the labor agreement. So the lack of any effective provisions dealing with labor or the conditions under which goods will be produced to be sent to America means that it is just ``Katey, bar the door''; whatever happens, happens; we are not going to care much about that.
But particularly recent revelations of massive labor abuses in Jordan should give everyone some pause. The agreement with Jordan was supposed to represent the gold standard with respect to labor standards. Now we have seen recent examples of what has happened in parts of Jordan; that is, human trafficking, 20-hour workdays, widespread failure to pay wages.
Let me talk about last month's New York Times story, which described how a free-trade agreement with the country of Jordan was used to produce sweatshops all over Jordan. It turned out when the agreement was signed in 1999, companies began to fly in so-called guest workers to Jordan from countries such as Bangladesh and China to make products in Jordan to sell at stores in this country--Wal-Mart, Target, and so on. The conditions of these so-called guest workers can only be described as slave-like. Let me read from the New York Times piece:
Propelled by a free trade agreement with the United States,
apparel manufacturing is booming in Jordan, its exports to
America soaring twentyfold in the last five years. But some
foreign workers in Jordanian factories that produce garments
for Target, Wal-Mart, and other retailers are complaining of
dismal conditions--of 20-hour days, of not being paid for
months, and of being hit by supervisors and jailed when they
complain.
Those are the conditions of sweatshop labor that manufacture products in Jordan--by the way, products that used to be produced in this country when we had a textile industry providing jobs to Americans, but that has all migrated.
The question is, Should this sort of thing exist in sweatshops--not only in Jordan but in other parts of the world--to allow products to be produced under these conditions and sold in the United States? The answer to that is clearly no.
Now, consider this: this agreement with Oman provides weaker labor provisions than existed with respect to Jordan.
So with the supposedly good agreement in Jordan, we ended up seeing workers from countries like Bangladesh being flown to Jordan, and forced to work not a 40-hour workweek, but a 40-hour shift, $50 for 5 months of work for one worker, and frequent beatings of workers who complain.
Let me show you some pictures--pretty ugly pictures--from Bangladesh. I will show them for a reason, because it relates to trade agreements that don't have labor protections, and it shows you the face of this global economy. These pictures were taken by a journalist who witnessed firsthand the beating of workers in Bangladesh. Here is an example of a picture taken by a journalist of the beating. This, tragically, is a man shot through the head--a worker subjected to violence and killing. This is another picture of the beatings. Let me show a picture of four young women, if I might, very young girls. You will notice that they are tied together--working in factories, tied together to prevent them from escaping.
Should there be labor standards in trade agreements? Do we give a damn about this? Does this country care about this? I hope it does. But there is no evidence of it because we are going to pass another trade agreement today with no labor standards at all.
So all of the folks in this country who lost their jobs because they wouldn't work for 30 cents an hour, all the folks in this country who saw their jobs moved to Bangladesh, Indonesia, to Sri Lanka, to China, and elsewhere because those who want to produce can find a way to produce it there for 30 cents an hour, not pay health care benefits, work people in unsafe factories, and work them in conditions of sweatshop labor, to all of those people, I ask
this question on their behalf: Is this what competition is about? Is this what this country should allow--allow the import of jobs in these circumstances? The answer is clearly no. Yet this Congress will not put labor standards in a trade agreement. It will not require an administration to put labor standards in a labor agreement. The only one which included labor standards was Jordan.
I just described to you the sweatshops in Jordan by which Bangladeshis and others were flown by the planeload into Jordan to work in sweatshops that produce products to be sent to American shelves. I believe it is an outrage. It ought to be corrected. But it is not going to be corrected with this kind of trade agreement.
I recall the movie ``Casablanca.'' I guess everybody understands the famous words in ``Casablanca'' when the French police chief said he was ``shocked.'' He said: I am just shocked to find gambling in Rick's Cafe. Of course, he wasn't shocked. Everybody knew there was gambling in Rick's Cafe in ``Casablanca.''
These pictures ought to shock the sensibilities of everybody. But on some level, we all understand this is going on. It's just a question of whether we are willing to do something about it. Is this country willing to do something about it? And if so, when? If not now, when? Yet this trade agreement does not do a thing about it.
The country of Oman has 3 million people, and half a million people in Oman are so-called guest workers. In fact, the majority of Oman's workers involved in manufacturing and construction are not from Oman at all. The majority of the workers in Oman are brought in from Bangladesh, Sri Lanka, and other poor countries under labor contracts to work in construction and factories.
The State Department's 2004 Report on Human Rights cited Oman for cases of forced labor. And I quote:
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.
They have changed the report just a little bit in anticipation of having an Oman free-trade agreement brought to the floor, but the fact is that this happens in Oman, and we know it happens in Oman.
There are no labor unions in Oman. In 2003, the Sultan of Oman issued a Sultanic decree which categorically denies workers the right to organize and join unions of their choosing. Under some circumstances, I am told that workers in Oman can join ``representative committees,'' but they are not independent of employers. The Sultan of Oman has written to the USTR, our trade ambassador, and promised that he will improve Oman's labor laws by October of this year; that is, after the Senate has voted to approve a free-trade deal with Oman.
The labor provisions in the Oman Free Trade Agreement are much weaker than the labor provisions in the Jordan trade agreement, as I indicated. They simply ask Oman to follow its own laws and its own self-policing. If the supposedly model agreement on labor with Jordan was such a disaster, think of what it will be with respect to the country of Oman. But under fast-track rules, no one has an opportunity to offer any amendment under any of these provisions.
Now, let me describe another point with respect to Oman. After going through a heated debate some months ago over whether Dubai Ports World should be able to manage a half dozen of America's major seaports, we now find that there is a provision buried in annex II of this trade agreement with Oman, which says that Oman has the right to acquire companies that operate U.S. ports, and there is not a thing we can do about it. This provision in the agreement was added to a list of U.S. infrastructure functions that Oman can't be precluded from acquiring: It is as follows:
[L]andside 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 of piers, ship cleaning . . .
There was a great deal of controversy about whether the United Arab Emirates and a company owned by that government called Dubai Ports World should be able to take over the management of a half dozen of America's seaports. The answer from this Congress was absolutely not; this country ought to have the capability to manage, for national security purposes and other purposes, its own seaports.
Well, guess what. We have a trade agreement that comes to the floor of the Senate which says, it is going to be all right if Oman takes over our ports. Or for that matter, if a company from the United Arab Emirates that has a subsidiary in Oman takes over our ports.
The folks at USTR say: Don't worry, be happy. There is an exception in the Oman trade agreement that allows us to block acquisitions for national security reasons.
Well, sure, that national security provision is in the agreement. But it means nothing if the President is determined to let the deal go through.
Here is what the President said about the managing of U.S. ports by the United Arab Emirates. He said this on February 2, 2006:
Brushing aside objections from Republicans and Democrats
alike, President Bush endorsed the takeover of shipping
operations at six major U.S. seaports by a state-owned
business in the United Arab Emirates. He pledged to veto any
bill Congress might approve to block the agreement.
The President quite clearly has told the American people that he thinks it is fine to have the United Arab Emirates run America's seaports. Do you think he would think it was not fine for a company owned by the Government of Oman to run America's seaports? It doesn't seem to me he would have great objection to that. What do the supporters of this agreement have to say to this point?
So this is where we are. They have a mock markup and then create a mock trade agreement and have a mock disappearance of a provision dealing with sweat labor, sweatshop labor, and then you bring it to the floor, and we have a mock debate. Everybody is very quiet about it. Then we have a vote on the floor of the Senate, and then it passes. It always passes because there are not enough Senators here who care about this question.
We import $2 billion a day from around the world above that which we export. Each and every day, we are going $2 billion more into debt to the rest of the world. Said another way, each and every day, we sell $2 billion worth of America to foreigners. Each and every day. And $700- plus billion a year in trade deficits. We shuffle around here like there is no hurry, no rush, no worry, be happy. It is unbelievable to me. This is a very serious, unsustainable problem. We cannot sustain this. It will cause a collapse of the dollar, and it will cause economic difficulties you can't imagine unless this Congress gets serious and this administration and this President get serious and decide this is a serious issue which must be solved.
I have spoken often on the issue of trade, and I know there are disagreements about these things. Let me describe the other side of it because I can describe it easily.
They say that all who raise these questions are a bunch of xenophobic, isolationist stooges; you do not have the foggiest idea what is going on. You can't see over the horizon. This is a globalized economy. The world is flat. Are you crazy? You want to build walls around our country? What are you thinking about? That is the other side. Therefore, they say, let's have free trade agreement after free trade agreement because it is a global economy and it will all turn out just fine. Of course, after each and every agreement we have reached, we have had bigger and bigger problems.
We had a small trade surplus with the country of Mexico. We have a trade agreement with Mexico, and it turns into a huge deficit. So we are able to turn a small surplus into a huge deficit.
By the way, those hotshot economists who gave us all that advice--I didn't take that advice, but the majority of my colleagues did--all that advice saying this is going to be just fine; you should understand this is a division of labor. What is going to happen in Mexico under NAFTA is the low-skilled jobs are going to migrate to Mexico and then we will get high-skilled, high-wage jobs back here as a
result. Guess what our three largest imports are from Mexico: automobiles, automobile parts, and electronics--all products of high- skilled, high-wage labor. That is what migrated out of this country. We turned a small surplus with Mexico into a huge deficit.
We turned a modest deficit with Canada into a large deficit. We turned almost a balanced trade deficit with China a couple of decades ago into the largest deficit in humankind. It is unbelievable what we have done. Europe, very large deficit; Japan, an $80 billion-a-year deficit; every single year with Japan, we have a large, recurring deficit. This country had better understand the consequences of this.
This chart represents the trade deficit, and one would have to be colorblind to not understand the consequence of this. You would have to be in a situation where you can't see red. This is red, red, red, growing in a dangerous way, giant trade deficits It is not getting better, it is getting worse. This is simply one more chapter of a book of failures.
What we have been doing is sinking this country into a sea of debt. All of this debt reflects, by the way, the shipment of American jobs elsewhere. We have nearly decimated our textile industry. We are taking apart our manufacturing industry. And it doesn't end there.
I have told the story of Natasha Humphreys who was a software engineer, Stanford graduate. Her last job for her company was to train her replacement in India because an Indian engineer worked for about one-fifth of the price of a U.S. engineer. So she lost her job.
This is not just textiles and manufacturing. Half of the Fortune 500 companies have been outsourcing software development.
That is what the lines on the chart mean. It started with textiles. Everyone knows Fruit of the Loom underwear: T-shirts, shorts, underwear. They would advertise with green grapes, red grapes, dancing down the street. Everyone was happy. Underwear was made here. People had jobs here. The grapes got jobs dancing on television.
Now, however, we do not see dancing grapes talking about American jobs because there is no Fruit of the Loom underwear made in America. That is all gone. There is not one pair of Levis made in America. Huffy bicycles. That is all gone.
I could go on forever, and I have gone on forever, as a matter of fact, in previous discussions about all of the brands. You may be wearing Tony Lama boots, but if so you may be wearing boots made in China. The list is endless.
We built in 100 years in this country something very unusual, and we did it through pain and suffering and through agonizing and debate in the Congress. Part of it was to decide: What kind of country are we? How do we improve the standard of living? How do we build something here that is unique? It was encouraging entrepreneurs, helping people who had a vision to start a business, to take risks, to say go for it, absolutely, to create a hospitable environment where people started businesses and created jobs, and to say on behalf of workers: You have a right, too, a right to organize unions, a right to have a safe workplace, child labor laws. You cannot dump chemicals into the air or water as you produce those things.
James Fyler was shot 56 times--56 times this man was shot. Do you know why? Because in 1917 he believed the people ought to be free to form a labor union to protest the conditions of coal miners deep in the coal mines of Colorado. For that he was shot and killed; 56 times that man was shot.
This history of our country is replete with the people who have decided to exercise the bravery to help build this country and create the standards, the work rules, and the opportunities that we enjoy. Men and women who start businesses, men and women of the labor movement, and Members of Congress decided what the rules are.
Now, in one swoop we can decide a company can move those jobs to China, just like that, shut their American plant, move the job to China--and, by the way, this Congress gives them a tax break for doing so--ship the product back to be sold in this country, run the income through the Ugland House on Church Street, and not pay taxes to the United States.
None of that adds up. So today we have a trade agreement from Oman which persuades me to show, once again, a chart with dancing grapes. Does it relate? Yes, it does, because this is one more chapter in a book of failures.
The question is, Will this country stand up for its economic interests?
I say to Japan--we have had robust trade with the country of Japan for decades. Yet every single year we have these large deficits with Japan and the growing deficits with China which even dwarf the Japanese deficits, yet our country does not seem to care.
All these deficits translate to lost jobs, they threaten this country's economic future and whether we progress and improve the standard of living and expand the middle class. Our government says, you know something, this is a global economy. Whatever happens, happens, and we do not want to offend anyone. We do not want to tell China: Look, the way we will trade with you is this: our trade must be fair trade; you open your markets to us, we open our markets to you; but the methods of production must be fair.
We do not do that. We do not do any of that because we do not have the nerve and the backbone or will to stand up for this country's economic interests. Frankly, it baffles me that this will be passed this afternoon. There is no question about it. This Congress will, once again, snore through this discussion, and we will pass a trade agreement with the country of Oman.
At the end of this year, we will see another record, the highest trade deficit in history.
Alan Blinder is the former Vice Chairman of the Federal Reserve Board. He is not some nut way off on the edge of the political debate. This is a guy who is a mainstream economist. He has written in the Foreign Affairs Journal that there are 42 to 56 million American jobs that are subject to outsourcing.
Let me say that again: 42 to 56 million American jobs in manufacturing, and especially the service sector, that are tradeable jobs, subject to outsourcing. Not all of them will be outsourced, for sure, but even those that remain here will be subject to competing with those in other parts of the world who can do the job for less.
Does that matter to anyone? Doesn't that say to all of us what this is really about? This is about reducing the standard of living in this country. It is not about raising other countries up, it is about pushing us down. That is why this trade strategy is wrong. I don't believe in building walls. I don't believe we ought to decide we should withdraw from the global economy. I just believe there ought to be rules with respect to the global economy that stand up for this country's interests.
For the first 25 years after the Second World War, we were the biggest, the strongest, the toughest. We could beat anybody at almost anything, and we knew it. With one hand tied behind our backs we could trade with anybody and give concessional circumstances and win. It was not a problem.
Then we saw the emergence of shrewd international competitors--yes, Europe, Japan, and others--things changed. But our notions did not change. Our trade policy is still a heavy dose of foreign policy that is, in my judgment, soft headed. We still are concessional. We still do not have the willingness to stand up for this country's economic interests. And we now are seeing the results of that with the highest trade deficit in history.
If I might show that chart one more time, the trade deficits on this chart are the result of these trade agreements. Republicans and Democrats, together--administrations run by both political parties-- have failed to do what they should do.
We have a trade deficit with almost every country. And those with whom we do not have a deficit, if we can just get an agreement with them, we will have a deficit. Every single agreement we have made produces a deficit.
We have a huge trade deficit with Korea, which is another country with which we are negotiating a free trade deal.
Here are the cars in Korea: 99 percent of the cars on the road in Korea are Korean-made cars. Why? The Korean government doesn't want other cars in Korea; 99 percent of the cars on the streets in Korea are Korean made.
In Korea, they exported 730,000 Korean cars to the United States last year; 730,000 Korean vehicles were put on ships and sent to America. We were able to export 4,251 into Korea. We almost had a success with the Dodge Durango pickup, but they shut that down. And 95 percent of the cars on the road in Japan are Japanese-made cars in that country. Why? That is the way they want it.
Our country says: That is fine. It does not matter to us. I suppose it is fine because nobody wearing a blue suit and suspenders is losing their jobs. I don't see any CEOs losing their jobs. I don't see any Members of the Senate losing their jobs. The folks making cars are losing their jobs. The textile workers are losing their jobs. Family farmers are having the rug pulled out from under them with bad trade agreements, but folks here are safe. And this administration is, I guess, probably the worst we have had for some while on trade.
But having said that, the Democratic administration that preceded it was not particularly good on trade issues, and no one is very interested in doing anything to address a serious and growing trade problem, which if not addressed will cause havoc with this country's economy and will affect every American worker in a very serious way.
It is probably clear to at least those hearing me that I will vote against the Oman Free Trade Agreement. I think it is a serious mistake. While I think it will pass today, we will await the next bad trade agreement and continue this fight. At some point there will be a tipping point on this issue. The American people will demand the Congress to finally start doing the right thing. No, not building walls, but demanding trade be fair, fair trade on behalf of this country.
I yield the floor and suggest the absence of a quorum.