I thank the gentleman for yielding the time. Mr. Speaker, I thank the gentleman from Ohio (Mr. Brown) for his leadership on this effort. It has often been said in the past that all that needs to happen for good government to go bad is for…
I thank the gentleman for yielding the time.
Mr. Speaker, I thank the gentleman from Ohio (Mr. Brown) for his leadership on this effort. It has often been said in the past that all that needs to happen for good government to go bad is for good people to do nothing. And I want to congratulate the gentleman on the goodness that he is doing tonight in organizing this effort to bring to the American people the full blush and the full pain that CAFTA would really offer us.
It has often been said and cheered throughout this world that we live in that the United States is the standard of living to be desired by everyone, to be cherished by everyone, the standard of living that is second to none in the world. And I think the gentleman from Alabama's (Mr. Davis) remarks relative to some of the globalization efforts that are so present in the CAFTA agreement is the one very reason that I am against it, because this globalization effort is a race to the bottom for the United States.
We have nothing to do but lose in this agreement. There is not one thing that we can gain because it is, as many have already said before me, it is a race to the bottom and it is a replay of NAFTA. And all you need to do is take a look at the chart up front, and I hope the cameras can give that some face time, C-SPAN can give that some face time, because it is important to look and see exactly what happened after we adopted NAFTA.
We were told in NAFTA in the early 1990s that we were going to have this tremendous explosion in exports from the United States to Mexico, and that we were going to be able to increase, at that time, what was a positive trade agreement with Mexico. Well, you can see exactly what has happened, starting in 1995. We continued to drop down, until today we are at roughly 40-some billion dollars in deficit trade with Mexico. And that is precisely what we are going to see happen with CAFTA.
Thomas Jefferson once said that he had but one lamp that illuminates his path into the future and that is the lamp of experience. I have no way to judge the future except by the past.
Well, if NAFTA is the judge, the measure that we have to judge ourselves by on our success and what we can expect from CAFTA, I can tell you folks, it is not near as bad. It is not near as bad as it is going to be.
CAFTA has some unique features all of its own. In his introduction, the gentleman from Ohio (Mr. Brown) mentioned that I had a new twist on it relative to sovereignty. I just want every Member of this House, all 435 Members of this House, I want them to be prepared when they have to go home and explain to their folks at home exactly what they have done, for whatever amount of the 435 Members vote for CAFTA, and quite frankly, in selling down the drain the sovereignty of this country.
You see, under our CAFTA agreement, it is interesting that CAFTA is a pretty good size document. I am not going to lie to everybody and tell them that I have read the entire thing. But I tell you I have read the trade part and that was about 20 pages. The next almost thousand pages is international law. And the international law is what is going to prevail in any business agreement that we have with these five ``fledgling democracies'' under the CAFTA trade agreement.
Here is what happens. If I happen to sell something to, say, the Dominican Republic, if I happen to sell something to the Dominican Republic from one of my entrepreneurs in Idaho, and they get into a conflict of what the agreement was or in one way or another this has to be settled by a third party, here is exactly what happens under the CAFTA rules.
The Dominican Republic would submit the name of one arbiter. The United States would submit the name of one arbiter. And then here is the punch line, one of the other non-involved members of the CAFTA trade
agreement gets to submit a third arbiter. So now what we are going to have is two Caribbean Basin members and one United States member serving on a court of arbitration in order to solve this problem.
Now, if that does not happen what happens? If these folks cannot come to an agreement then what happens, if this tribunal cannot solve it? Then we go to the World Bank or we go to the United Nations to solve what is otherwise a business agreement.
Now it is interesting that the best place to be in this agreement is not in the United States. We are told constantly that we are going to be opening all of these countries up if we will just pass this trade agreement. We are not going to be having the duties and the quotas and everything that stops all of our goods from freely being imported into these other countries. Dead wrong.
Number one, there are a lot of duties and quotas that will go away but there are still quite a few that are going to last into the next 20 years, so we are still not going to be on a fair and equal trading level with the other members of CAFTA. But let us take a look at who put all of those duties and quotas in place.
In 1984 this Congress passed what is called the Caribbean Basin Initiative, and we said as long as you add 28 percent of the value to whatever good or whatever value added items that you have in these Caribbean Basin countries, you can come into the United States with those products without quotas and without duty and without fees. However, the United States did not have the same agreement going back, and so we have done this to ourselves; and yet now we are saying that we are going to try to clear all this up with CAFTA.
I agree with the gentleman from Ohio (Mr. Brown). I agree with the gentleman from Alabama (Mr. Davis). I think what we ought to do is go back and repeal the Caribbean Basin Initiative and then start from the get-go. And then we can say something to them about their environmental concerns, our environmental concerns. Then we can say something to them about the unequal labor laws or labor practices in the relative countries. But as it stands now we simply do not have the opportunity to do that.
So there is one area that I would like to pay special emphasis to. I know a lot of people have said to me over the last couple of weeks, you are way over-concerned about the CAFTA agreement and what it is going to do to the sovereignty of the United States.
I say this to you, that I have stood here on this floor and I have watched every Member on this side of the House and many Members on the other side of the House that have voted against any attempt to take one of our warriors that is fighting for freedom in Iraq or Afghanistan or any foreign country, and any attempt to put them before any kind of a tribunal outside the United States we have resisted and correctly so. Yet these are the same people, a majority of which now is willing to offer up our economic warriors to international tribunals.
It seems terribly inconsistent to me that if it is correct to deny the courts, any foreign court to hold judgment over our soldiers, it ought to be the same way with our trade agreements. But anyway, I would direct everybody's attention to Article 10. Just read Article 10. Beyond its plain language we have now got hard evidence how the CAFTA tribunal system would work in real life and how it would create real advantages for foreign companies other than the United States, because a similar system was established in NAFTA and that is the one I would like to draw your attention to.
A case was brought under that system in Loewen v. The United States, and this has set a legal precedent that should scare us all. In that case a Canadian funeral home conglomerate named Loewen challenged the judgment of a Mississippi State court that ruled against it in a private contract dispute with a Biloxi, Mississippi funeral home. The only government action in question was the normal function of a State court in a private business dispute.
The Canadian company under NAFTA rules claimed that having to follow the standard rules of U.S. Civil Procedure in court, such as posting a bond, violated their NAFTA foreign investor rights. And the World Bank tribunal in that case ruled that the State court's normal operation was ``governmental action,'' and therefore regulated by NAFTA and that its conduct violated the Canadian conglomerate special NAFTA granted investor rights. It is just tenfold that bad in CAFTA.
So I would hope that if those who are watching, those who are sitting at home thinking that their folks in Congress are working in their best interest, I would hope that they would take the opportunity in the next week, which we should be voting on CAFTA next week, to call their Congressman and find out why they are voting away the sovereignty of the United States, the Constitution, and especially Article III of the United States Constitution.
Why are they voting to put that into foreigners' hands? Why are they taking away those great precious gifts that our Founding Fathers fought so hard for and worked so hard for? And now we seem to be in a rush to put once again for whatever reason another trade agreement called CAFTA ahead of the Constitution of the United States.
In closing, I would just say to the gentleman from Ohio (Mr. Brown) again that I took a look at that first chart that he had up there that showed we had some $610 billion in trade deficit last year, $610 billion. Let us use the United States Department of Commerce's own figures. The United States Commerce Department constantly touts that for every billion dollars in foreign trade we will create 40,000 jobs. So if you just do simple mathematics and multiply that, you would see that that is 2.5 million jobs that we have lost since the inception of
The comments of the gentleman from Ohio (Mr. Brown) jarred loose one of the comments that I did not make in my informal remarks but I do have written in my formal remarks. But for those people once again that are listening at home I would just like to tell them that under Chapter 10 in CAFTA you can expect any Federal law that we make in the future, that we pass in the future, any State law that is presently in existence or that we pass in the future, any local law that presently is in existence or that we pass in the future, we are going to have to conform with the CAFTA statute at minimum, because without doing so then we are going to be in violation once again of our CAFTA agreement. And once again we are turning our future, our economic future, our trading future over to the World Bank and to the United Nations.
I thank the gentleman for helping me make that point.
Mr. Speaker, if the gentleman will yield, I just want to say that the gentleman makes a great point. This is the first time I have seen that chart and had it explained the way the gentleman has shown it.
In my other life, prior to being elected to the United States Congress at the turn of the century, I was the president of a large international company. In fact, I traveled to, worked in, and in many cases built plants, but sold product in 82 foreign countries. In fact, I supplied McDonald's restaurants with french fries in those countries throughout the world. They wanted a good french fry, and of course Idaho raises a great potato, and so subsequently we would go into these countries.
It is interesting the demographics that McDonald's does, just like any fast food joint or any business goes through. If you take a look at the chart the gentleman has there, if they were making the minimum wage at a 40-hour week, at let us say the Federal minimum wage, they would be making, my quick math here, they would be making about $10,480 a year. That is a 40-hour week, 52 weeks a year, and they would be making about $10,480 a year. The highest income, family income, average in Costa Rica, comes to $9,000, if I can read that from here. Am I right?
I thank the gentleman for that. But more interesting than that, more interesting than that, my colleague, is that the $9,000 that those folks make in Costa Rica is half of what our United States Government says is the poverty level for a family of four, which is $18,000. We say if you make $18,000 or less in this country, you do not have to pay any taxes. You are at the poverty level and so we are not going to put any more burdens on you. Yet they expect these people to suddenly rush in and buy french fries at 50 cents a pound, beef steak at $3 or $4 a pound. And so who are they kidding? Who are they kidding when they say we are going to have these billions of dollars' worth of new exports that are going to be going to these countries?
The other thing I wanted to point out is that it is interesting how we constantly shift the paradigm on why CAFTA is so important. Initially, of course, and when you are talking to an old businessman and an old international grocery salesman like myself, and you tell me that we have some opportunity here to build trade, I am all for it. So I say, well, show me the numbers. Show me the numbers, like McDonald's used to. They would go in and take a look at the net disposable income, and they would say we cannot afford to build a McDonald's down here, in one of these countries, because who could buy our product?
Who can go in there and buy a hamburger, two all-beef patties, special sauce, onions, lettuce, pickles, cheese on a sesame seed bun, plus french fries, and a diet Pepsi or Coke or whatever else they would be selling? Because you see, quite frankly, there is no one in that country at that average wage that would have the net disposable income to do it.
So when the trade agreement did not work, suddenly we shifted the paradigm to political. We have to do this for these five countries down there, because if we do not, they will go down the drain to communism. They will go down the drain to Fidel Castro and to Hugo Chavez from Venezuela, and Ortega is going to take over again, and these other folks are all going to be taking over. So we absolutely have to allow these countries to do this.
Well, now, did we not start this in 1984, and have we not given them every economic benefit? And if this is as far as we have gotten since 1984, in 20, 21 years, I am a little concerned that if this is as far as we have gotten, we are not going anywhere with CAFTA.
So finally, when the political argument did not work, now they have shifted it to immigration. And my good friend, the gentleman from Virginia (Mr. Goode), said it very succinctly, and that is that that is the exact same thing they told us with NAFTA.
They said if we just pass NAFTA, we will stop all of this illegal immigration, all of this desire for these folks to come from Mexico into the United States.
Well, it is estimated before we passed NAFTA we had something like 800,000 illegal aliens in the United States, and now it is estimated we have something like 10 million illegal aliens in the United States. Well, it sure worked for NAFTA, and I have no doubt in my mind NAFTA plus CAFTA equals SHAFTA.
I hope that this House is smart enough to turn back this effort to sell our sovereignty down the drain for some questionable promises of either economic increases for us in trade, political stability in that part of the world, or finally reduced immigration problems that we have at home.
I think that is a very important chart. I hope we get an opportunity to have some real face time with that chart on television as well.
Mr. Speaker, one of the reasons that Idaho is so firm against CAFTA, and I have received phone calls from companies in Idaho that say we need you to support CAFTA. Absolutely I have. I am not going to try to kid anybody and say I have not. I have had some phone calls from folks in the agricultural business that tell me that they bought into some of those arguments.
But for the most part the commodity groups in Idaho are supporting each other. And they have said yes, CAFTA may be good for us, but we remember when we asked the gentleman from Idaho (Mr. Otter) and the gentleman from Idaho (Mr. Simpson) and everybody to vote against the Australian trade agreement because it was bad for the dairy industry and it was not too handsome for the beef industry. And so now the beef folks and the dairy folks are remembering that the sugar beet folks and the other farm commodities in Idaho supported them.
But all I need to do when they call me and say we want you to support CAFTA, I just need to remind them where we were in the early 1990s before NAFTA. Since NAFTA in my congressional district alone, since NAFTA passed, we have lost 32 sawmills, lumber mills in the State of Idaho. You do not just lose a lumber bill. The people of Clearwater County, Idaho, in a little town called Pierce, had a plywood mill that they had to close down as a result of not being able to compete with the Canadian lumber, and not having a softwood agreement with Canada. As a result, they had to shut down the mill.
That went on in many little towns. In the town of Cascade, Idaho; Council, Idaho, it worked its way south in my district, just inside the Continental Divide. We eventually shut down over 30 lumber mills and we laid off 14,000 families. Those 14,000 families no longer had an economic future in their business. Some of them were four and five generations in Idaho. The great Boise Cascade Company no longer has an operating unit in the State of Idaho and with the exception of maybe one or two scattered around in the south of the United States, no longer has an operating mill.
When those 14,000 families lost their jobs, school districts started to die because the property values of their homes went down because the main employer in the town closed up the mill and left. So there were no jobs, and so suddenly the equity that they had been building up in their house, and maybe it was two or three generations, suddenly that equity vanished just like the sawmill did, just like their hope for an economic future in the State of Idaho.
So you do not just lose a job in a State like Idaho and in a town like Pierce, Idaho, in Clearwater County, or Cascade, Idaho, in Valley County, or Council, Idaho, in Adams County, you lose school districts and you lose property tax base and you lose people. Eventually you lose families. That is what it cost the State of Idaho. That is why all four members of Idaho's delegation are opposed to CAFTA.