Mr. President, I thank my distinguished colleague, the leader of our representation on the Senate Finance Committee, the Senator from Montana, who has been outstanding in his guidance to all of us in our caucus and in standing up for the…
Mr. President, I thank my distinguished colleague, the leader of our representation on the Senate Finance Committee, the Senator from Montana, who has been outstanding in his guidance to all of us in our caucus and in standing up for the interests not only of his own State but for the farmers and the workers and the people of Minnesota and America, as well as Montana. I thank him and I thank my colleagues from North Dakota who also have been in the forefront of this issue because they, like myself, represent people who are seriously at risk with this agreement.
Tribute To The U.S. Capitol Police
Mr. President, before I address DR-CAFTA, I would like to take a moment to pay tribute to the courageous men and women of the U.S. Capitol Police, who risked their lives yesterday, once again, to help evacuate the rest of us safely from the Capitol Complex.
This is, unfortunately, my fifth evacuation from the Capitol Complex, beginning with September 11, 2001. This has been the best of them, if such a word can be applied to that race against time and the possible horror that is involved.
But as my staff and I walked out of the Russell Senate Office Building's nearest door yesterday afternoon, which is directly across the street from the Capitol, and hurried down the street away from the Capitol and the buildings, I saw several Capitol Police officers who stood directly exposed while they were calmly directing everyone else to safety. Other officers, I am told, remained once again at their posts inside or right outside the Capitol Building itself, helping everyone else to exit as quickly and safely as possible.
Had the plane yesterday been a hijacked jetliner, as it was on 9/11, it would--if it had not been shot down--have struck its target within 2 minutes of that evacuation alarm. It is questionable whether the evacuation of everyone in this complex would have been completed by then. But it is almost certain that the Capitol Police officers--who were doing their jobs heroically--would have still been at those posts, or very close to them, at that time. They kept themselves exposed to mortal danger to help their fellow citizens escape it. To all of them and to the other Senate staff who were involved, I say a heartfelt thank you.
It is unfortunate, Mr. President, that exceptional virtue--to place the best interests of other Americans ahead of one's own--does not apply to this trade agreement called DR-CAFTA. It is a wolf in sheep's clothing. It pretends to help American workers and American farmers, to provide net gains to our domestic economic and employment growth, and also to benefit the people in six neighboring countries, when, in fact, its driving motivations are higher corporate profits and capital gains by shifting American jobs and their production to those nearby countries to exploit their low wages, scarce benefits, nonexistent protections for workers, environments, local economies, and lower transportation distances and costs than in China, India, Vietnam, and other places, to increase corporate profits and personal wealth at the expense of other Americans and our national economic health.
This is the era of un-American capitalism, with great riches and no taxes for the richest Americans and lost jobs, lower incomes, and less financial security for the rest of Americans.
Those are the facts from a decade of NAFTA, the unfortunate, unpleasant but actual real-world economic, employment, and trade facts resulting from 10 years of the North American Free Trade Agreement.
As with DR-CAFTA now, NAFTA's proponents prior to its enactment peddled lots of wonderful promises and projections: that NAFTA would create big economic gains for every country and almost everyone in them; there would be increases in U.S. exports to NAFTA countries that would exceed the increased imports from them; and that net gain would increase domestic employment, domestic production, and domestic prosperity.
They turned out to be, unfortunately, domestic dilutions. The real net effects from NAFTA have been exactly the opposite of those promotional fantasies. Over the last 10 years, U.S. imports from Mexico and Canada have increased by 10 times more than our exports to them, resulting in huge net losses, estimated to have cost over 900,000 American jobs.
Many of them have been good-paying jobs, benefit-providing, company- pension-offering and previously secure, reliable, lifetime jobs, the kind of jobs that create stable, secure, healthy, and prosperous communities all across America, throughout all of our 50 States--the jobs that were the economic engines and the social foundations for the hard-working, productive,
and successful people who had those jobs for their families, who were-- and still are--themselves the greatness of America.
But those ingredients of America's greatness--those jobs that support families, provide security, provide health benefits, provide pensions, allow Americans to earn the American dream--they are being dissipated, outsourced, traded away for immediate profits and financial gains for a few, at the expense of many more dislocated workers, destructed families, damaged communities, destitute seniors, and deficit-plagued local, State, and Federal governments, with serious trade imbalances that are increasing private and public debt, and having a weaker national economy with even more serious consequences ahead.
The proponents of these free-trade agreements--and they are on both sides of the aisle, and they come from the preceding administrations as well as this one--remind me of the story of the crew that was blazing a road in the jungle. After quite a bit of work, the foreman sent somebody up to survey their progress. He climbed up to the top of the highest available tree and looked out and said: Stop, stop. We are going in the wrong direction. The foreman called back: But we can't stop now, we are making so much progress.
These trade agreements have made progress but in the wrong direction. The proponents' solution to that predicament is more of the same--yet another trade agreement with the same bad effects for much of America. In fact, DR-CAFTA is the worst of NAFTA. It involves countries that have even lower standards of living than our own. The per capita income, the average citizen's income, in those six countries range from one-tenth of the U.S. per capita income to one one-hundredth of our per capita income.
We are told, by those who want to pass this agreement, that it is going to create these great export opportunities for our own industries. But exports require people in those countries who can afford to buy what Americans produce. There will be a marginal increase, to be sure, if there is increased employment in those countries. That is positive. I hope--and we should hope--that any trade agreement we make will be good for our fellow world citizens.
However, we should make our trade agreements for our own citizens first and foremost, and not for anyone else's, because every other country in the world, every government in the world, whether capitalist, Socialist, or even Communist--if it is rational in its economic policies--makes trade agreements in its own national self- interest. And then they try to maximize the benefits to their country from those agreements. Unfortunately, we have seen other countries' governments far more effective, even within the scope of these previous trade agreements, at maximizing to their advantage, and often to our detriment, what they can gain from the exploitation of those agreements.
Our trade policy should not be based on free trade or fair trade or any other kind of policy ideology or economic idolatry, as it has almost become, but on what is the best policy with the best economic results for the most Americans. By that measure, what is the broad public interest--after you take the winners and the losers, which in an enormous, complex, diverse economy such as our own, almost any trade agreement is going to have gains and losses--you have to look at the net effects, what is in the broad public interest, to decide what is best for America.
The U.S. International Trade Commission--independent of all of us; tasked by law with developing the expertise to carry out these agreements and to analyze them and to analyze each of these proposed agreements in advance of our voting--has already concluded by its independent, expert analysis that under the DR-CAFTA agreement, as proposed, the U.S. trade deficit with those six nations will increase by an estimated $110 million per year.
That is because the increases in their imports into the United States will be greater than the increases of our exports into those countries. That is the net balance. That is the bottom line. That is not, as some people say, one group's interests or another group's interests. That is America's best combined interest, and it is exactly the opposite of what proponents have been saying is going to be one of the benefits. Once again, the facts, based on the International Trade Commission's projections, but also consistent with the facts as we have seen from 10 years' experience with NAFTA, do not support the Bush administration's false assurances and the claims of others who will benefit and are promoting this agreement.
The response, one would hope, from the administration, in light of that projection by the International Trade Commission that came out about 6 months ago, would be to negotiate changes in the agreement so that we would come out as a net winner rather than a loser. But that has not been their response. It is to increase the advertising, increase the paid promotions for this proposed agreement by those who will benefit from it and by, reportedly--and I have heard this directly from some of those involved in the sugar industry who have been in direct negotiations with the administration--to threaten those who oppose the agreement because they perceive, correctly, that it will have serious negative consequences for their own livelihoods, for their own families, their friends, their neighbors, threaten them with reprisals in the future if they persist in their opposition, or to try to, as we are seeing now, buy them off with some special side deal.
I don't hear anybody on either side of the argument, for or against CAFTA-DR, who disputes the projections by the experts and the industry itself that the American sugar industry--sugar beets in northwestern Minnesota and central Minnesota and neighboring States, sugar cane in other States--would be seriously and negatively affected.
The extent is perhaps debatable, but the negative effects are indisputable, if CAFTA-DR is approved. So to tell them that they should sign off on their own economic death warrant, or they are going to suffer future reprisals for not doing so is wrong. It is unfair.
The latest approach has been, well, we are going to offer you this special side deal for a couple years to buy you off. I don't know all the details. It has just been disclosed. I don't fault my colleague in the Senate from Minnesota who is purportedly instrumental in that negotiation. I don't agree. I strongly disagree with the arrangement, as I understand it. But I fault the administration for insisting that he or others try to work out such a deal. It is like being handed a huge lemon and being told to make lemonade. Unfortunately, with this trade agreement, there is not enough sugar in all of America to sweeten what is wrong with CAFTA, even for the sugar industry.
I ask unanimous consent for 5 more minutes to complete my remarks.
I thank the Chair.
The proponents want this agreement so much that they are going to use--one way or another, directly or indirectly--U.S. taxpayer dollars to subsidize domestic sugar production or to buy off some of the otherwise imported sugar from these CAFTA countries at taxpayer expense in order to promote a free-trade agreement. It has the added irony, bitter irony of using tax dollars from working Americans in some cases to subsidize an agreement that is going to cost them their jobs. It underscores how the policy is bad economics, how it is bad trade policy. But the proponents of it want it so badly, because of its benefits for those companies that can outsource their jobs, based now in the United States, and that production to nearby countries, taking advantage of low wages there, costing American jobs, costing American communities their businesses and their employment and their social stability for the benefit of the wealthy few corporate interests who are bankrolling this effort, and now, in the ultimate bitter conclusion, taking taxpayer dollars to pay for the political grease to get this agreement through.
If I really wanted to be Machiavellian in my thinking, I would say also--as a big proponent of the domestic ethanol industry, which is now just reaching, because of the world oil price, competitive parity, even without
the public tax subsidy for ethanol, of price competitiveness, even a price advantage in my State of Minnesota with regular gasoline--that by taking this, as some reports have said, excess sugar production and providing what will be an effective subsidy of an additional dollar for a gallon of the ethanol produced from it, distorting the economics, the competitiveness of ethanol, distorting the supply in the competitively growing, successful domestic ethanol industry and trying to show how-- in this case, with sugar beets or sugar cane in this country--price uncompetitive making ethanol is from those products is poisoning the well, the public support, is going to reinforce those opponents of ethanol who will then say: Look at how uncompetitive it is and how outrageous this additional taxpayer subsidy is for the production of ethanol from it. And in this case they will be right. And they will use that, I believe, unfortunately, to try to poison the political and public well of support for ethanol, which is a very important, promising part of our energy independence and economic future.
This is a bad agreement for America. It is bad for the sugar industry, and I oppose it for that reason. But even taking sugar aside, it is bad for the rest of America. It is bad for American workers, American industry. It is bad, as the International Trade Commission has concluded, on the basis of the bottom line--the trade imbalance increased, trade deficit with those countries increased, imports that will exceed the increase in our exports. That means, net result, it is bad policy, bad trade for America.
I oppose it. I urge my colleagues to do the same.
I yield the floor.