Madam Speaker, I rise in opposition to this job-killing trade bill, and I would like to insert into the Record a letter from the International Federation for Professional and Technical Engineers in opposition to the Korea FTA.…
Madam Speaker, I rise in opposition to this job-killing trade bill, and I would like to insert into the Record a letter from the International Federation for Professional and Technical Engineers in opposition to the Korea FTA.
International Federation of Professional & Technical
Engineers,
Washington, DC, February 7, 2011.
Hon. Hilda L. Solis,
U.S. Department of Labor, Washington, DC.
Hon. Ron Kirk,
Office of the U.S. Trade Representative, Washington, DC.
Dear Secretary Solis and Ambassador Kirk: The International
Federation of Professional and Technical Engineers (IFPTE)
applauds the Obama Administration, most notably the
Department of Labor (DOL) and the office of the United States
Trade Representative (USTR) for your willingness to include
labor in last year's discussions preceding the
Administration's announced agreement on the US-South Korea
(KORUS) Free Trade Agreement. That said, and after a long
review and analysis of this FTA, I am writing to express
IFPTE's concerns with the final proposal. While some
improvements compared to the Bush Administration negotiated
KORUS FTA were achieved, IFPTE continues to believe that the
proposed agreement falls short in several key areas and fails
to put US workers and businesses in a better position to
compete.
First and foremost, KORUS does not include enforceable
labor protections. Granted, the language urges the United
States and South Korea to adhere to the International Labor
Organization (ILO) Declaration on Fundamental Principles and
Rights at Work. However, like the 2007 Bush Administration
negotiated Korea deal, as well as the Panama, Peru and
Colombia FTAs, the practical implication of this provision is
the exclusion of any enforceable ILO labor protections. The
fact is that the ILO Declaration itself has no teeth and is
not enforceable. Instead, it is the eight ILO Conventions
themselves that are enforceable. Yet, and despite the urging
of labor to include the ILO Conventions, they are not
included in KORUS. The resulting compromise allows potential
FTA panels the flexibility to ignore, or even weaken through
misguided interpretations, the true labor protections called
for by the ILO.
It is IFPTE's long-standing position that any trade
framework should be reflective of a broader US industrial
policy whose foundation is enhancing the rights of workers
not only here in the US, but worldwide. Consequently, the
mere fact that the ILO Conventions are absent from this
agreement is reason enough for IFPTE to oppose the KORUS FTA.
We have many other concerns as well, including our
skepticism with claims of a limited negative impact on
American workers. The basis for these claims stems from an
analysis of KORUS by the United States International Trade
Commission (USITC), which attempts to predict the impact that
specific trade agreements will have on the US economy. The
USITC suggests that KORUS will have no negative impact on US
jobs, and will have a limited impact on the US trade deficit
with South Korea over the
first seven years. However, USITC estimates have historically
underestimated the damage that past trade agreements have had
on US workers and the economy. For example, when China sought
membership in the World Trade Organization (WTO), the USITC
predicted that our trade deficit with China would increase by
$1 billion, and it would have a negligible impact on jobs.
Instead, from the time China entered the WTO in 2001, through
2008, our trade deficit with China ballooned to $185 billion
annually and resulted in the loss of 2.4 million American
jobs. In other words, IFPTE warns against relying on the
USITC metric.
We at IFPTE believe that a more reliable, and realistic,
estimate of the impact of KORUS is outlined by the Economic
Policy Institute (EPI). Contrary to the USITC findings, EPI
found that over the first seven years of implementation,
KORUS will result in 159,000 lost American jobs and increase
the US trade deficit with Korea by $16.7 billion. To put this
into practical terms, an analysis by the United Steelworkers
of America (USW), for example, suggests that KORUS will only
enflame our trade deficit with Korea. In expressing their
opposition to KORUS, the USW issued a statement saying,
``auto parts, petroleum products, tires and iron and steel,
for example--have contended with fast growing imports from
Korea this year, and the FTA will only ensure a continuation
of the negative impact of this import flood on domestic
production and employment.''
Equally troubling is that KORUS mirrors NAFTA when it comes
to foreign investor privileges and Buy America policies.
Among the foreign investor problems with this bill are the
following:
Gives foreign investors the right to enforce FTA privileges
by suing the U.S. government in foreign tribunals for
violations of FTA rights;
Opens up U.S. environmental, health, zoning and other
policies to challenge by foreign investors in foreign
tribunals;
Requires that foreign based companies in South Korea, like
those in all FTA nations, have the same access to state and
federal government contracts as that of U.S. based companies;
and,
Forbids the reinvestment of U.S. taxpayer dollars back into
the domestic economy by governments at the state and federal
levels through, ``Buy America'' policies.
It is worth noting that the Korean Confederation of Trade
Unions (KCTU), South Korean Farmers organization, and civil
and human rights groups have also lined up in opposition to
KORUS. Indeed, our national experiment with free trade
agreements has been negative for workers in America, as well
as those around the world. There has been enough suffering
from one sided trade deals that are great for business, but
are disastrous for American and foreign workers alike.
Therefor IFPTE opposes the KORUS FTA and will encourage
Congress to reject it.
I thank you for your consideration. Should you have any
questions please feel free to contact me, or IFPTE
Legislative Director Matt Biggs.
Sincerely,
Gregory J. Junemann,
President.