United States-Panama Trade Promotion Agreement Implementation Act
Madam Speaker, I rise in strong opposition to H.R. 3079, the United States-Panama Trade Implementation Act. With our nation's unemployment rate continuing to hover around 9 percent, it is unconscionable that we are considering NAFTA-clone…
Madam Speaker, I rise in strong opposition to H.R. 3079, the United States-Panama Trade Implementation Act.
With our nation's unemployment rate continuing to hover around 9 percent, it is unconscionable that we are considering NAFTA-clone free trade agreements that will further facilitate the outsourcing of American jobs and undermine the rights of American workers. Proponents of free trade agreements like to purport that they are good for the U.S. economy and will create jobs. But history is on the side of those of us who opposed NAFTA, CAFTA and other damaging trade agreements over the last decade.
Free trade agreements play a significant role in exacerbating the negative effects of globalization, including the rapid privatization of vital public resources. They have resulted in the loss of domestic jobs and manufacturing industries and in significant decreases to labor and environmental standards. In addition, FTAs result in significant job loss and privatization of labor-intensive industries for the countries we enter in trade agreements with. Unionizing in countries like Mexico and Colombia has resulted in death or imprisonment of union leaders.
Every state in this country has been affected negatively by our destructive trade policies. The Economic Policy Institute estimates that nearly 700,000 U.S. jobs have been displaced since the passage of NAFTA in the 1990s. The majority of the jobs displaced--60 percent-- were in the manufacturing sector. My home State of Ohio is one of the top ten states with the most jobs displaced by NAFTA, having lost 34,900 jobs. Our rapidly increasing trade deficits with countries like China has resulted in the loss over 5 million jobs over the past decade. Of that 5 million, the State of Ohio has lost 103,000 jobs as a result of the increase in our trade deficit with China.
This is not a debate about being for trade or against trade as some of my colleagues have framed it. This is a debate about learning from the free trade policies we have pursued over the last decade that have proven to be significantly damaging to the American economy and American workers. The numbers speak for themselves.
I urge my colleagues to oppose this agreement.
Panama is a Tax Haven
Panama is one of the world's worst tax havens, allowing rich U.S. individuals and corporations to skirt their responsibility to pay taxes that are vital to the local communities that depend on those revenues. The U.S.-Panama free trade agreement does nothing to address this issue. At a time when potentially damaging austerity measures are being proposed to balance the budget, we should not be considering a free trade agreement that fails to deal with an issue critical to addressing our deficit.
This FTA includes provisions that even undermine our own laws to combat tax haven activity. Public Citizen's Global Trade Watch reports that the ``FTA's Services, Financial Services and Investment Chapters include provisions that forbid limits on transfers of money between the U.S. and Panama. Yet, such limits are the strongest tools that the U.S. has to enforce policies aimed at stopping international tax avoidance.''
Many have cited a tax treaty signed by Panama earlier this year as a reason to support the Panama-FTA and dismiss the concerns of Panama as a tax haven. In reality, the agreement (the ``Tax Information Exchange Agreement'') fails to hold Panama and corporations accountable for tax evasion. The agreement only requires Panama to stop refusing to provide information to U.S. officials in specific cases if U.S. officials know to inquire. It also includes a significant exception which allows Panama to reject requests for information if it is ``contrary to the national interest.''
By passing this free trade agreement, we are rewarding and condoning corporations who offshore jobs and practice international tax avoidance--practices that significantly hurt American workers and the American economy.
Buy American Provisions--and U.S. Workers--Undermined
The U.S.-Panama FTA requires the U.S. to waive Buy America requirements for all Panamanian-incorporated firms, and even many Chinese and other foreign firms incorporated in Panama that are there to exploit the tax system. This means that work that should go to U.S. workers can be offshored because of rules which forbid Buy America preferences requiring U.S. employees to perform contract work by a federal agency in the federal procurement process. According to Global Trade Watch, the U.S. would be waiving Buy America requirements for ``trillions in U.S. government contracts for any corporations established in Panama and in exchange would get almost no new procurement contract opportunities in Panama for U.S. companies.''
If you support the NAFTA tradition of weakening offshore protections, limiting financial service regulations, banning Buy America procurement preferences, limiting environmental, food and product safety safeguards, and the undermining U.S. workers and our economy, than this is your agreement.