Mr. Speaker, I'd like to call my colleagues' attention to an important development in our country's approach to trade. For years, businesses have recognized that markets only work when the rules are applied fairly to everyone. Corporations…
Mr. Speaker, I'd like to call my colleagues' attention to an important development in our country's approach to trade. For years, businesses have recognized that markets only work when the rules are applied fairly to everyone. Corporations have pushed our government to enforce international trade law governing intellectual property, state subsidies, and pricing, because violations of these international rules hurt American businesses and American workers.
Now, for the first time, workers themselves have filed a petition, arguing that systematic abuse of workers' rights in China have displaced hundreds of thousands of American jobs. This historic petition filed by the AFL-CIO describes how the Chinese labor system artificially lowers wages and brutally represses its workers, and therefore constitutes an unfair trade practice under Section 301(d) of the Trade Act because it ``burdens or restricts U.S. commerce.''
I commend to my colleagues the following opinion piece from Harold Meyerson, who notes correctly that this petition could result in our trade law finally being applied to the benefit of workers as well as shareholders. In addition, the unabashedly free-trade editorial page of the Washington Post wrote that the ``administration should agree to consider [the AFL-CIO's] petition.'' Simply put: it is not protectionist to argue that free markets and a free economy cannot be based on human-rights abuses.
For too long, American trade policy has failed to promote even minimum labor standards. The International Labor Organization's core labor standards simply articulate basic political freedoms, such as the freedom to associate, the abolition of forced labor, and the elimination of the worst forms of child labor. Unfortunately, the Bush administration has failed to include even these internationally- recognized standards as a framework for trade negotiations. Yet the ILO's report on Central America confirms that none of the CAFTA countries is in compliance with basic standards of health and safety or freedom of association.
If free trade is going to improve the quality of life for Americans without putting downward pressure on labor standards internationally, we must ensure that every country is playing by the same rules. I urge my colleagues to read the attached articles.
[From the Washington Post, Mar. 17, 2004]
China's Workers--and Ours
(By Harold Meyerson)
Until 10 a.m. yesterday, U.S. trade law belonged to big
business. Corporations routinely petitioned our government to
threaten other countries with sanctions if their products
were being knocked off or undersold by foreign manufacturers
with state subsidies, and our government frequently complied.
The solicitude the Bush White House and its predecessors
showed for shareholders, however, was nowhere in evidence for
workers. Profits depressed by unfair trade practices were an
official object of concern; wages and employment levels
depressed by unfair trade practices were none of the
government's business.
This double standard was the heart of modern trade policy.
Yesterday morning, that began to change. For the first time
ever, the AFL-CIO filed the kind of unfair-trade petition
that corporations commonly file, alleging that China's
repression of workers' rights has displaced at minimum
727,000 U.S. jobs, and calling on the President to threaten
China with tariffs until it stops artificially lowering its
workers' wages.
The idea that our trade statutes protect American workers
from competition with repressed workforces overseas will
surprise just about everybody, but in fact, these laws were
enacted by Congress in the 1980s and signed by Ronald Reagan.
For the past 15 years, unions have taken no action under the
laws, because the U.S. job losses were hard to quantify.
Over the past year, however, Mark Barenberg, a Columbia
University law professor, and Mark Levinson, chief economist
for UNITE (the clothing and textile union), concluded that
changes in the global economy were so huge that such a
calculation was now possible--and necessary. In particular,
there was the loss of nearly 3 million U.S. manufacturing
jobs over the past 3 years, the concurrent explosion of
Chinese manufacturing, the ballooning of the U.S. trade
deficit with China and the abundant if largely ignored
documentation of China's semi-Stalinist labor system. All
these things combined to make a trade-law appeal on behalf of
U.S. workers eminently plausible.
The 103-page AFL-CIO petition runs through an array of
statistical analyses to come up with its figure of 727,000
displaced American manufacturing jobs. But its foremost
achievement may be to encapsulate the vast literature that
describes the part-feudal, part-communist labor system in
which Chinese peasants must labor when they go to work in
China's export-sector factories. Under China's hukou system
of household registration, citizens must live and work in the
place where they are permanently registered, normally their
place of birth. Every household is designated as rural or
urban, a distinction on which a caste system has been
erected.
Urban workers are free to apply for and leave jobs; they
are entitled to state housing and pensions. Rural workers,
however, need state permission to seek work in towns and
factories. Once employed, they enter a bonded-labor
arrangement in which they cannot quit unless they can pay
their employer an amount plainly beyond their means. The
hukou system forbids them to compete with urban workers for
higher paying jobs, and migrant workers without jobs are
subject to arrest by the state's public security bureau.
By state design, then, these workers have no power to
affect their conditions of work. Though productivity in China
has skyrocketed, they are routinely paid rural-level
subsistence wages--as little as 15 to 30 cents an hour--when
they are paid at all. Employers tend to recruit childless,
young, single women, whom they pack into cement-block
dormitories to which the women are commonly restricted when
they're not on the factory floor. They cannot leave. They
organize at the peril of imprisonment or torture.
China has 160 million workers in manufacturing and mining,
nearly 12 times the U.S. total. The Organization for Economic
Cooperation and Development estimates that 20 million
peasants will enter the urban workforce every year for the
next 20 years. This is, make no mistake, the planet's
proletariat--and it in no way resembles the kind of free
labor force we take for granted in the United States. Those
U.S.-based corporations that invest in Chinese factories--a
long list headed by Wal-Mart--owe some nice chunk of their
profits to a workforce toiling, to resurrect a line from Mao,
under ``the barrel of a gun.''
Critics will doubtless call the AFL-CIO ``protectionist''
for filing this petition. And if it's protectionist to demand
that millions of Chinese women have the right to leave their
jobs and apply for better ones, or to unionize their
workplace or be allowed at least one day off a year, if it's
protectionist to demand that U.S. workers not lose their jobs
because they cannot work as cheaply as these repressed
Chinese workers, then the AFL-CIO should absolutely plead
guilty. What I'd like to hear from the critics--and from
George W. Bush--is why they're protecting the deal between
U.S. corporations and China's neo-Stalinist state to extract
profits for them both at the expense of tens of millions of
desperate young women.