Madam Speaker, I yield myself 15 seconds. In response to the two previous speakers, I just want to highlight at this time the lunch bucket that I carried with me for over 29 years at Great Northern Paper Company in the mill. The Korea free…
Madam Speaker, I yield myself 15 seconds.
In response to the two previous speakers, I just want to highlight at this time the lunch bucket that I carried with me for over 29 years at Great Northern Paper Company in the mill. The Korea free trade agreement is bad for the workers who carry a lunch bucket similar to this.
At this time I would like to yield 1 minute to the gentlewoman from California (Ms. Sanchez).
Madam Speaker, the Korea trade agreement is bad for workers who carry a lunch bucket like this one.
At this time I would like to yield 1\1/2\ minutes to the gentleman from North Carolina (Mr. Kissell).
I yield 2 minutes to the gentleman from Oregon (Mr. DeFazio).
I yield 2 minutes to the gentlewoman from Connecticut (Ms. DeLauro).
Madam Speaker, I yield 1 minute to the gentleman from Ohio (Mr. Ryan).
I yield 1\1/2\ minutes to the gentlewoman from Illinois (Ms. Schakowsky).
Madam Speaker, may I inquire how much time remains.
Thank you.
At this time I would like to yield 2 minutes to the gentleman from North Carolina (Mr. Jones).
Madam Speaker, at this time I would like to yield 1\1/2\ minutes to the gentlewoman from Ohio (Ms. Kaptur), who has fought harder and longer for fair trade than any Member I have served with.
Madam Speaker, I yield myself such time as I may consume.
I rise today as a former mill worker who punched a time clock for over 29 years at the Great Northern Paper Company in East Millinocket, Maine. What I've seen firsthand is the devastation that these free trade agreements can do to our communities.
This agreement is the most economically significant since NAFTA, and its consequences for America's middle class will be enormous. Since NAFTA, we have lost more than 5 million manufacturing jobs. We've seen more than 50,000 factories close in the last 10 years alone. The Korea FTA will bring more of the same. It will cost us more manufacturing jobs, it will shut down more factories, and it will ship more jobs overseas, all at a time of 9 percent unemployment when the American middle class can least afford it.
My colleagues have already highlighted the many reasons to oppose the Korea FTA, but I want to highlight two of those issues again. First, it does nothing to protect the U.S. in the face of Korea's currency manipulation. Second, this agreement isn't just a giveaway to Korea; it's also a giveaway to China.
Korea has a history of manipulating its currency to boost its exports. Once in 1988 and twice in 1989, the U.S.
Treasury Department officially labeled Korea a currency manipulator. Even though the Treasury stopped officially identifying currency manipulators, in their February and May report of 2011 they stated explicitly, ``Korea should adopt a greater degree of exchange rate flexibility and less intervention.''
The International Monetary Fund agrees. In August of this year, the IMF stated that the won was undervalued by 5 to 20 percent. The fact is, Korea manipulates its currency. Our own Treasury Department recognizes it. But the FTA does nothing to protect American businesses and workers from it.
You only have to look at Mexico's 1994 devaluation of the peso to see how effectively an undervalued currency can wipe out an FTA's benefits. Our trade balance with Mexico has never been positive since.
Without a provision to protect us from the won undervaluation, Korea's exports will continue to be cheaper than our own exports. This Korean advantage will wipe out the FTA's tariff benefits for American companies and cost American workers their jobs.
Candidate Barack Obama recognized this threat, claiming that as President he would ``insist that our trade deals include prohibition against illegal subsidies and currency manipulation.'' But this FTA includes no such prohibition at all.
And, second, this agreement is not just good for Korea; it's great for China too. Today, we're actually voting on an FTA that will be an outright boon for China's auto parts sector. The agreement's rules of origin require that only 35 percent of the car's content value come from Korea or the U.S.
We have two FTAs with car-producing countries: NAFTA and the Australia FTA. In the Australia FTA, the content requirements are 50 percent. And in the NAFTA, the content requirements are 62.5 percent. Korea's car production in 2010 was almost equal to that of Canada's and Mexico's combined; yet the Korea FTA content requirements are much lower than NAFTA's. By allowing 65 percent of a car's content value to come from a third country, we're opening the door for that 65 percent to come from--guess who--China. As a result, these rules of origin will be devastating to the American auto parts industry.
The U.S. auto supply chain is already facing challenges from China. According to the Commerce Department 2010 report titled, ``On the Road,'' China auto parts exports to the U.S. have increased 43 percent from 2004 to 2009, and they're expected to account for an increased share of U.S. automotive parts in the future. In fact, Commerce predicts that many auto parts companies will continue to move production to China in an effort to reduce costs and remain competitive. If this FTA passes, that's not a prediction; that's a guarantee.
I've already mentioned the fact that we have lost more than 50,000 factories since 2001. Before voting today, I urge you to imagine how many more factories will close if we are to pass this agreement, and to think about the devastation that will be brought to those towns when that happens.
I oppose it because it will devastate our manufacturing sector at a time when we need to rebuild it. I oppose it because this President promised hope and change, not more of the same. I oppose it because in my home town, unemployment is more than 28 percent. I oppose it because I want to create jobs in the United States, not South Korea, and definitely not in China.
As a former mill worker from East Millinocket and on behalf of America's middle class, I urge my colleagues to oppose the Korea FTA agreement.
I would like to insert into the Record a letter from the AFL-CIO in opposition to all three free trade agreements.
American Federation of Labor and Congress of Industrial
Organizations,
Washington, DC, July 7, 2011.
Dear Representative: On behalf of the AFL-CIO, I write to
urge you to oppose the proposed trade agreements with
Colombia, Korea and Panama. Working people, in the U.S. and
around the world, are bearing the brunt of decades of flawed
trade policy. We need Congress and the White House to focus
on creating the millions of good jobs at home that we so
desperately need--not passing more flawed trade deals. These
trade agreements, negotiated by the Bush Administration,
incorporate too many of the disastrous policies of the past,
rather than laying out a new and progressive vision for the
future.
Instead of using valuable time and effort advancing these
flawed agreements, Congress should instead focus on effective
job creation measures, including currency rebalancing and
enforcing existing trade laws. We need to invest in a modern,
functional infrastructure; in a high-tech, high-skilled
workforce; and in clean renewable energy. It is time to
update our trade model for the 21st century so that it
strengthens labor rights protections for all workers,
safeguards domestic laws and regulations, and promotes the
export of U.S. goods rather than jobs.
I yield to the Congresswoman from Ohio (Ms. Sutton) for the purpose of making a unanimous consent request.
(Ms. SUTTON asked and was given permission to revise and extend her remarks.)
I yield to the Congresswoman from California (Ms. Linda T. Sanchez) for the purpose of making a unanimous consent request.
(Ms. LINDA T. SANCHEZ of California asked and was given permission to revise and extend her remarks.)
I yield to the Congressman from Pennsylvania (Mr. Critz) for the purpose of making a unanimous consent request.
(Mr. CRITZ asked and was given permission to revise and extend his remarks.)
I yield to the Congresswoman from Maine (Ms. Pingree) for the purpose of making a unanimous consent request.
(Ms. PINGREE of Maine asked and was given permission to revise and extend her remarks.)
I yield to the Representative from North Carolina (Mr. Jones) for the purpose of making a unanimous consent request.
(Mr. JONES asked and was given permission to revise and extend his remarks.)
I yield to the gentleman from Illinois (Mr. Lipinski) for the purpose of making a unanimous consent request.
(Mr. LIPINSKI asked and was given permission to revise and extend his remarks.)
I yield to the gentlewoman from North Carolina (Ms. Foxx) for the purpose of making a unanimous consent request.
(Ms. FOXX asked and was given permission to revise and extend her remarks.)
I yield to the Congresswoman from California (Ms. Woolsey) for the purpose of making a unanimous consent request.
(Ms. WOOLSEY asked and was given permission to revise and extend her remarks.)
I yield to the gentlewoman from Ohio (Ms. Kaptur) for the purpose of making a unanimous consent request.
(Ms. KAPTUR asked and was given permission to revise and extend her remarks.)
I yield to the Congresswoman from Ohio (Ms. Sutton) for the purpose of making a unanimous consent request.
(Ms. SUTTON asked and was given permission to revise and extend her remarks.)
I yield to the gentleman from Pennsylvania (Mr. Critz) for the purpose of making a unanimous consent request.
(Mr. CRITZ asked and was given permission to revise and extend his remarks.)
Madam Speaker, I yield back the balance of my time.