Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent to speak as in morning business for up to 10 minutes. I thank the Presiding Officer and the Parliamentarian.…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I ask unanimous consent to speak as in morning business for up to 10 minutes.
I thank the Presiding Officer and the Parliamentarian.
Trade
Mr. President, for the last year, 15 months, 16 months, or so, as I have traveled throughout my home State of Ohio, I have held 95 or so roundtables with small business owners, entrepreneurs, workers, community leaders, family farmers, educators, and everywhere I go I hear variations of the same story--about plants that have closed and left for Mexico or China, and workers, often in their fifties and sixties, who have few alternatives.
Manufacturing has been devastated over the past 5 years. Ohio has lost upwards of 200,000 manufacturing jobs since 2001, and this administration has been largely indifferent.
One of these roundtables was held in Tiffin, OH, a small manufacturing city of about 20,000 people, an hour or so from Toledo. A company well known, American Standard, a company that makes plumbing equipment, was bought out by an investment banking firm from Boston in November. In December, they notified the workers they were going to shut down the plant and move its production elsewhere.
A couple hundred workers lost their jobs, many of them lost big chunks of their pension, and some of them lost their health care. Yet the investors who came in and bought American Standard did, of course, very well.
Today, Ohio and its neighbors feel this problem of plant shutdowns, what it means not just to the workers and their families, but what it means to the communities as it relates to police protection and fire protection and teachers, as these communities are badly hurt, particularly smaller cities, and they simply cannot afford to hire as many police and firemen and teachers.
Ohio and its neighbors feel this problem most acutely, but it is the Nation's problem. Our economy cannot prosper unless we make and sell goods as well as services. Yet for the past several years, much of our Nation's greatest engineering prowess has not gone to Toledo or Dayton or Youngstown but, instead, to Wall Street.
Unfortunately, traditional manufacturing has declined as a share of our economy, while the manufacture of financial products has become increasingly important.
When I was elected to Congress in 1992, our trade deficit was $38 billion--$38 billion a decade and a half ago. Today, it exceeds $800 billion. With oil reaching $121 per barrel, and perhaps higher soon, the trade deficit will likely only increase in the years ahead.
Leading up to the Ohio Presidential primary in March, the media focused on NAFTA, the North American Free Trade Agreement. In Ohio, when we talk about NAFTA, we mean our overall trade policy, be it with Mexico and Canada, or China, or Central America. But the media, of course, hears only the word ``protectionism.'' When you think about it, that is a pretty interesting choice of words. On the one side you have proponents of free trade, while on the other side you have what many papers label as ``protectionists.''
Those of us in favor of fair trade are, indeed, trying to protect what we believe is important. We would like to protect the labor standards our country has fought so hard to establish over many decades. We would like to help our trading partners, the developing world, to improve their labor standards. We would like to protect consumers in this country from defective and even dangerous products. We would like to protect our children from toys covered with lead paint and our hospital patients from tainted blood products. We would like to protect the ability of our manufacturers to compete against foreign companies without having to overcome trade barriers such as currency manipulation.
So, yes, there are things I would like to protect. But so-called free traders are interested in protecting their interests, as well. They would like to protect their beef from imports. They would like to protect pharmaceutical companies, as they do. They would like to protect financial services. In fact, trade agreements of recent years basically are chock full of protections--protections for the financial service industries, protections for the pharmaceutical industry, protections for big oil.
In fact, NAFTA--what I hold in my hand is not the actual NAFTA trade agreement but NAFTA was about this size. NAFTA contained hundreds of pages of protections--protections in areas that go way beyond tariffs on goods. It is similar with the Colombia trade agreement; it is also about this size. If they were free-trade agreements, you could have written them on about this many pages: five, six pages. All you would need is a tariff schedule--a schedule of tariffs we were going to reduce or eliminate. But, instead, NAFTA and the Colombia Free Trade Agreement and these others are this big. Do you know why?
It is not just the tariff schedules. They also have protections for the drug industries, protections for the banks, protections for the oil industry, protections for all kinds of corporate interests in every one of these trade agreements. That is why when we talk about protections, let's be fair. Yes, to be sure, I want to protect workers. I want to protect communities such as Tiffin, OH. I want to protect Sandusky and protect Lorain and protect Springfield and protect Zanesville. I want to make sure those communities are not devastated by these trade agreements that have all kinds of protections for the largest corporate interests but very little for the environment, even less for workers, and even less still to protect our food supply and our toy supply for our children.
We need to recast this debate. Those of us who want to change the rules are not protectionists, in spite of what every elitist newspaper from the New York Times to the Los Angeles Times and everything in between likes to say. Those of us who want to enforce trade laws and defend against bumping Chinese steel products are not protectionists. Those who want safe ingredients in pharmaceuticals we import are not protectionists. Those who want to make sure our children's toys coming from China--after our toy companies outsource jobs, push the Chinese subcontractors to cut costs. They cut costs by putting lead-based paint on toys because it is cheaper, it is easier to apply, it is shinier, it dries faster. Yet then these products, these toys come into the United States, and the Bush administration has weakened consumer protection laws and cut the number of inspectors so, because of this trade policy, this protectionist, protect-industry-at-all-costs trade policy, we have these tainted toys entering the bedrooms of too many of our children.
Trade is not just about exchanging goods between countries. Trade, when done right, is about lifting workers in the United States and lifting workers abroad out of poverty. It is about creating new industry. It is about creating new business. It is about creating new jobs. It is about ensuring strong and thriving economies for all parties involved.
Fair trade products--for example, coffee, tea, bananas, flowers-- products once relegated to specialty shelves in health food stores have now found their way into mainstream America.
Costco and McDonalds have begun to promote fair trade. That is fair trade
where workers share in some of the profits they produce for their employers. They know it means quality products and good business sense at home. In the coffee fields of Nicaragua, fair trade products mean a bright future for tens of thousands of young girls--girls who often would not have been able to go to school, but they are able to because their parents--coffee farmers in the case of Nicaragua--are making an income that gives them enough, sometimes more than $1 a pound, as opposed to coffee that is not fair trade where maybe they get only half that. The kids of those workers do not get to go to school.
Fair trade products mean that farmers in developing nations earn two to three times more for their products, and those children, as I said, can get an education.
Fair trade products mean workers on flower farms across Latin America will be free from poisonous pesticides that cause death and birth defects.
Fair trade products mean that workers in developing nations will earn more and be able to buy more from us--the whole point of trade. That means, obviously, increased exports for U.S. businesses.
Fair trade means trade--and more of it--but with a very different set of rules, not this kind of protectionism to protect the drug companies and the oil industry and the insurance industry and the financial services, but trade agreements with a different set of rules that help lift up people, both in the developing world and in this country.
Proponents of the same failed trade policies of the last 15 years need to stop selling the trade deal with Colombia, for example, as a path to a stronger economy.
NAFTA sent 19 million more Mexicans below the poverty line. Today, there are 19 million more Mexicans living below the poverty line than in 1993, since NAFTA. CAFTA has failed--the Central American Free Trade Agreement--to create the thriving middle class in Central America that proponents promised.
The Colombia Free Trade Agreement, as written, will produce the same results: more poverty abroad, more lost U.S. jobs, more small businesses in this country closing up shop.
The first President Bush said each billion dollars--listen to this-- each billion dollars of our trade surplus or deficit translates into 13,000 jobs. A billion-dollar trade surplus creates 13,000 jobs. A billion-dollar trade deficit costs 13,000 jobs. That is what the first President Bush said. That was back when the trade deficit was $20 billion, $30 billion, $40 billion. Again, think about that: 13,000 jobs for a billion-dollar trade deficit or surplus.
Today, the trade deficit exceeds $800 billion. Just do the math. The cost in jobs of this enormous increase in our trade deficit is staggering.
It is not surprising that voters in my State see bad trade deals as a major factor in the destruction of our manufacturing base. They know our economy and they know their interests are undermined by that exploding trade deficit. They know Ohio's problems are Colorado's problems and Montana's problems and Massachusetts' problems. They know for the past three decades the historical link between rising productivity and rising wages has been severed.
For most of my life--well, half of my life; the first 25 or 30 years of my life--in this country, when workers were more productive, their wages went up. If I had a chart, you could see that. We could map productivity, and we could map wages. In this country, for decades and decades and decades, this created the middle class. This is what made us a successful economy and a successful democratic capitalist country--that productivity and wages would almost be parallel.
Today, particularly in the last decade, that connection has absolutely been severed. That has been the problem in many ways with our economy. Wages have been flat, profits have been up, executive salaries have exploded, and the middle class has struggled mightily.
Our country has entered a period where income inequality is at the highest level in 70 years. Now is the time to be asking the right questions. It is time to end the name calling and have a real debate about trade. We are at a critical juncture in our Nation's history. It serves both sides of the trade debate to remember that U.S. trade policy is a tool. It is not a fairy godmother. It should not be used to temporarily pump up well-connected industries--as trade policy often is; hence, all the protections--nor should it be used to tamp down competitive forces.
Our trade policy must promote competition, build on the progress our Nation has made, and promote our Nation's economic and strategic objectives rather than flouting them.
Ultimately, it will be ingenuity and sweat equity--we know that--that enables our country to thrive in the global marketplace. Like every country, we will have to work harder and smarter to win every contract and every sale. But it is the role of governments to ensure the rules for that contest are fair and that the interests of everyone--not just those we protect in our trade agreements--to ensure that everyone has a stake and everyone is served by our trade policy.
Our Government has not done that. Our trade deficit has ballooned, our manufacturing sector is faltering, and real wages are falling. The last thing we need is more business as usual. No more NAFTAs, no more CAFTAs, no more Colombia trade agreements. Business as usual has not worked. The status quo is not working. Again, 15\1/2\ years ago, the trade deficit was $38 billion; today, it is $800 billion.
We need to decide what our economic goals will be and how we achieve them. If we do not, we will wake up to find we have left a sorry legacy to our Nation, to our communities, and to our children.
Mr. President, I yield the floor and suggest the absence of a quorum.