Madam Speaker, I would like to insert into the Record a letter from the United Steelworkers in opposition to the Korea free trade agreement. United Steelworkers, June 20, 2011. Re oppose the free trade agreements with Korea, Panama and…
Madam Speaker, I would like to insert into the Record a letter from the United Steelworkers in opposition to the Korea free trade agreement.
United Steelworkers,
June 20, 2011.
Re oppose the free trade agreements with Korea, Panama and
Colombia
U.S. Senate,
House of Representatives,
Washington, DC.
Dear Senator/Representative: On behalf of the 1.2 million
active and retired members of the United Steelworkers (USW) I
write to urge you to vigorously oppose the Free Trade
Agreements with Korea, Panama and Colombia. These three FTA's
will undermine our economic recovery, further decimate
American manufacturing and jobs and deepen the economic
insecurity and devastation faced by workers across the
country.
International trade and the consequences of accelerated
globalization are matters of long-standing and deep concern
to the USW, as an overwhelming portion of our members work in
import-sensitive manufacturing sectors and all too often have
lost their jobs due to bad trade deals and unfair and
predatory trade practices. Promises made by administrations
past and present touting the benefits of free trade have
simply not materialized for America's manufacturing workers.
This is clearly reflected in the nation's massive trade
deficit--a deficit fueled by trade deals that grease the path
for greater and greater out-sourcing and off-shoring of jobs
and capacity--and every bit as dangerous as our federal
deficit.
The results of ``free trade'' deals are all too clear: In
the last decade alone six million manufacturing jobs and
55,000 plants have been lost. Multinational companies easily
set up operations overseas and export back to the U.S.
market. Numbers tell the story. New Department of Commerce
data show that large U.S. multinational companies cut their
workforces in the U.S. by 2.9 million during the 2000s while
increasing employment overseas by 2.4 million. This continues
even as workers and families wrestle with a tepid and
uncertain economic recovery that is generating insufficient
job growth with millions still unemployed or underemployed.
It's no wonder--our trade policies encourage job growth
overseas. Trade deals force working Americans to assume all
the risk and encourage big multinationals to reap all the
rewards.
USW members have sacrificed enough. We oppose these trade
deals because they do not adequately address the changing
nature of trade and accelerating globalization. They are
based on the failed NAFTA model. We need to update and reform
our nation's trade policies, not simply continue on the
present course.
The following comments provide an overview of our
objections to these three agreements. They touch upon only
some of the issues which undermine our nation's interests.
US-Korea Free Trade Agreement.
The Steelworkers have spent considerable time and effort
analyzing the proposed FTA and engaged in a substantive and
extensive dialogue with the Administration and leaders on the
Hill regarding the FTA's provisions. Regrettably, the US-
Korea FTA (KORUS) will undermine America's economic interests
and lead to higher trade deficits and greater job loss.
While the focus of the Obama Administration's activities
relating to KORUS was on improving the provisions relating to
trade in autos, their efforts came up short for the vastly
larger US auto supply chain. The final provisions allow for a
vehicle to be eligible for the preferences of KORUS with only
35% of the content, by value, coming from the signatory
countries. So, a Korean vehicle, to be eligible for duty-free
treatment entry into the U.S., could have almost 2/3rds of
its content, by value, coming from another country--like
China. And, KORUS gives automakers the discretion to choose
among three different methods to calculate content allowing
them to choose whichever method is best for them, not for job
retention or creation.
Americans want the term ``Made in USA'' to mean something.
Indeed, the Federal Trade Commission's standard for Made in
USA is that ``all or virtually all'' of the content should be
of U.S. origin. The KORUS will accelerate the off-shoring and
outsourcing of auto parts production, jeopardizing not only
the jobs of the 350,000 Steelworkers that make products that
can be used in the auto supply chain, but those of other
workers across the country.
These provisions alone make the FTA fundamentally flawed,
but, there are other problems that will cause serious
economic consequences with the KORUS:
It will jeopardize jobs across the economy. The Economic
Policy Institute estimates that KORUS will cause the loss of
159,000 jobs;
It will increase the trade deficit in seven high-paying
sectors, according to the International Trade Commission;
It undermines our trade laws by allowing for the diversion
of dumped or subsidized components to be shipped to the U.S.
from third countries. The agreement lacks sufficient
safeguards to address this serious problem and provides new
procedures that could advantage Korean producers.
It does not include provisions to ensure reciprocal market
access--the Korean market is one of the toughest markets in
the world for foreign products to compete in. Tariffs are
often buttressed by a labyrinth of non-tariff barriers that
will continue to impede our exports.
It fails to address Korea's ongoing currency manipulation.
It fails to include a comprehensive and annual review
mechanism that will allow for comprehensive oversight of the
workings of the FTA to ensure that the provisions that are
adopted, and fully and faithfully enforced. It largely leaves
to the private sector the job of demanding compliance, rather
than an ongoing review mechanism that identifies and
addresses problems before the injury is inflicted on our
workers, farmers and businesses.
U.S.-Panama Free Trade Agreement
The U.S.-Panama FTA is not an economically meaningful
agreement in terms of providing a robust market for U.S.
exports and job creation. But, its flawed provisions continue
to expand the existing trade model that has proven to
undermine our economic and employment interests. Thus, it
further jeopardizes our economic recovery and expands an
unacceptable trading framework.
Among the reasons the U.S. Panama FTA should be rejected
are:
It fails to provide significant economic opportunities to
promote our economic recovery and job creation;
It fails to reform the existing FTA approach to investment
allowing for Panamanian investors to challenge many of our
most important health, safety, environmental and other laws;
It fails to ensure adequate provision of labor rights
despite recent changes adopted by the Panamanian government;
It does not do enough to address Panama's historic role as
a tax haven or center for narco-trafficking.
US-Colombia Free Trade Agreement
The U.S.-Colombia Free Trade Agreement puts in jeopardy
America's moral leadership by sacrificing the lives and
livelihoods; the worker and human rights of the Colombian
people at the altar of free trade. Trade has the power to
lift people up and to advance America's values--it also has
the power to entrench the status quo.
In Colombia, the status quo has made that country the most
dangerous place in the world to be a union member. Indeed, as
the ITUC concluded in its most recent, 2011 world survey of
anti-union violence, Colombia, in the words of the ITUC,
continues ``to maintain the lead in a grim record of murder
and repression of workers involved in trade union
activities.''
Moreover, the Colombian government continues to fail
miserably at effectively prosecuting those responsible for
anti-union violence. Thus, impunity for anti-union killings
remains at 96%, while impunity for other forms of anti-union
violence remains at an incredible 99.8%.
Colombia should not be rewarded with a trade agreement
until it has a proven track record of bringing to justice
those who have perpetrated crimes against union activists and
has adopted and enforced workers' rights throughout the
country. In recent weeks,--since the Action Plan was
announced between our two countries--violence against union
activists and worker repression has continued unabated. And,
while the Action Plan purports to improve Colombia's existing
framework of laws and regulations, there is no reason to
believe that these changes will have any real positive impact
on workers. The US is giving away the one tool it has to
effect change in Colombia, by voting to pass the agreement
before there is time to see if the Santos Administration will
live up to its commitments under the Action Plan. Only time,
and additional improvements in the operation of their laws
and judicial system and the enforcement of their labor laws,
will position Colombia as an appropriate free trade agreement
partner.
Among the reasons that the US-Colombia FTA should be
rejected are:
Violence against union leaders and activists continues;
Colombia has not developed a sufficient investigatory and
judicial infrastructure to bring the perpetrators of this
violence to justice;
Significant opportunities exist for employers to deny
workers their most basic organizing rights. Employers can
continue to use cooperatives, temporary contracts and other
means to thwart union organizing and the ability of workers
to exert their rights;
The Action Plan is not part of the FTA and, as a result,
Colombia's adherence to its terms may be subject to the
discretion of this and future Administrations. The provisions
of the Action Plan need not only to be given time to be fully
and faithfully implemented but must be subject to specific
mechanisms and commitments to ensure that they will be
effective--now and in the future;
The FTA, through its agricultural provisions and its
encouragement of further corporate exploitation of Colombian
land, will only accelerate internal displacement in Colombia
which just overtook the Sudan as the country with the largest
internally displaced population (over 5 million) in the
world.
America's economic recovery is still tenuous. We face a
significant jobs and trade deficit which will only deepen if
these agreements were to pass. And, indeed, passage of the
Colombia agreement will create a moral leadership deficit--
where America's promotion of internationally-recognized
workers' rights is put in jeopardy. At any time, but
certainly at this time, these three agreements should be
rejected.
The American people, in increasing numbers, reject the
approach our policymakers have taken on the trade issue. They
will remember, at the next election, those who stood by their
side and those who put their jobs, their families and their
communities at risk.
Sincerely,
Leo W. Gerard,
International President.
Madam Speaker, I would like to insert into the Record a letter from the International Longshore and Warehouse Union in opposition to the Korea free trade agreement.
International
Longshore & Warehouse Union,
San Francisco, CA, Dec. 13, 2010.
Hon. Nancy Pelosi,
House of Representatives, Cannon House Office Building,
Washington, DC.
Dear Madam Speaker: President Obama has reached a trade
agreement with South Korea. That agreement must now be
submitted for Congressional ratification. We anticipate that
the President will aggressively shepherd this pact through
Congress.
The International Longshore and Warehouse Union (ILWU)
represents approximately 14,000 full time dockworkers and
14,000 part time dockworkers on the West Coast of the United
States and in Hawaii and Alaska. Our members are in the
business of moving cargo. By all accounts, the Korea-United
States Free Trade Agreement (KORUS FTA) will increase trade
between South Korea and the United States, which
will result in an increase in cargo movement between the two
countries. An increase in cargo movement is good for
dockworkers. However, this fact alone is insufficient to
overcome the vast deficiencies of the KORUS FTA.
The KORUS FTA will cost jobs, lower environmental, labor,
food and product quality standards, and empower corporations
from the United States and South Korea to challenge public
interests in both countries. The labor standards provision of
the agreement only provides that each country enforce its own
laws to adhere to the core labor standards identified by the
International Labor Organization. The United States and South
Korea's laws and enforcement in this area are completely
inadequate and must be amended prior to the implementation of
the agreement.
Labor supported President Obama and numerous other
democratic candidates two years ago. In exchange for this
support, we were promised a return to policies and practices
that maintain, restore, and strengthen the middle class and
working people across the United States. For two years, we
have watched campaign promises be broken, one after the
other, on this relentless march down the road of business as
usual. Now, despite his campaign promise that he would only
support trade agreements that ``put workers first,'' the
President is pushing a trade agreement, the largest since the
NAFTA debacle, that undeniably puts workers in South Korea
and the United States in jeopardy.
On December 10, 2010, the International Executive Board of
the ILWU voted unanimously to oppose the KORUS FTA. The ILWU
will not support trade policy that exacerbates inequities,
awards special rights to foreign investors, allows banks to
practice the same disastrous policies that resulted in the
current economic downturn, opens domestic environmental laws
to foreign challenge, increases the trade deficit, and costs
jobs. We urge Congress to support the Trade Reform,
Accountability, Development and Employment (TRADE) Act, which
outlines a way forward to a new trade and globalization
agenda that would be better for labor, the environment, the
economy, consumers, and our trade partners.
If my letter serves but one purpose, let it be to
communicate this basic message: we have had it. Today, we
join the growing chorus of labor unions who oppose the KORUS
FTA. We also ask that our representatives in the Democratic
Party stand up, discard meaningless oration, and remind us,
with action, what the Democratic Party stands for because we
have forgotten.
The Democratic Party needs to reject the KORUS FTA and stop
taking its base for granted.
Sincerely,
Robert McEllrath,
International President.