Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the subject of my special order. Mr. Speaker, I am joined tonight earlier…
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the subject of my special order.
Mr. Speaker, I am joined tonight earlier by the gentlewoman from California (Ms. Solis) and the gentlewoman from Ohio (Ms. Kaptur), who were here to talk in opposition to the Central American Free Trade Agreement. Tonight I am also joined by a freshman, the gentleman from Louisiana (Mr. Melancon), who has already shown himself to be a leader on the Central American Free Trade Agreement and other trade issues, and we will hear from him in a moment.
Twelve years ago, Mr. Speaker, I stood on this floor in opposition to the North American Free Trade Agreement. In those days, we heard promises from supporters of NAFTA, the trade agreement that included Mexico, Canada and the United States, we heard story after story of how this was going to lift up living standards in Mexico, knock down trade barriers between our country and Mexico and our country and Canada and Canada and Mexico, that it would create prosperity for Mexicans and increase jobs in the United States, creating a whole new integrated economy that would be good for all three countries.
I would display a couple of charts that I brought with me tonight to frankly prove that the 12 years of the North American Free Trade Agreement have not served any of our countries well.
I would start, Mr. Speaker, with showing just the overall trade deficit. In 1992, the first year I ran for Congress, we had a trade deficit in this Congress of $38 billion. That means we actually imported $38 billion more than we sold outside the United States; $38 billion.
The last month of 2004, the last month of the year, the trade deficit was almost $60 billion. It was $38 billion for the year in 1992; it was almost twice that for a month in December.
But you can see what has happened to our trade deficit. This is zero. If it were zero we would be buying and selling in equal amounts. We have gone from $38 billion. In 1994, the trade deficit exceeded $100 billion trade deficit; then $200 billion in 1999. Then when President Bush came to the White House, it got to $400 billion. Then it exceeded $425 billion, then $500 billion. In this past year, the trade deficit is $617 billion.
President Bush had told us in those days back when NAFTA was negotiated in the late 1980s and early 1990s that every $1 billion of trade translated into 19,000 jobs. If you had a trade deficit of $1 billion, it would cost your country 19,000 generally good-paying industrial jobs.
Now our trade deficit is $617 billion, and you can see what that means in job loss. If you want to break it down what happened to the trade deficit per country under NAFTA, you can see what happened to the trade deficit with Canada. Back in 1991, the trade deficit was about $7 or $8 billion with Canada. Now the trade deficit with Canada alone is about $62 billion. That is with Canada.
You can look at the trade deficit with Mexico. In fact, we had a trade surplus with Mexico. The numbers above zero mean we actually sold more to Mexico than we bought. Prior to NAFTA, we had a trade surplus with Mexico of a few billion dollars. Then right here is where NAFTA passed. Look at what happened. It is almost $20 billion for several years in a row. Then it went to about $25 billion. Then President Bush came to the White House and it was $30 billion, then almost $40 billion, then over $40 billion, now coming up on $50 billion. So the trade deficit as a result of NAFTA just grew and grew and grew.
I will show you one more, even though if is not part of the debate and discussion tonight, just because it is the most dramatic of all. This is our bilateral trade deficit as a Nation with China. A dozen years ago it was less than $20 billion with China. You can just see what happened, year after year after year after year. President Bush took office here, the trade deficit jumped from about $80 billion to over $100 billion. Then it was over $120 billion. Our trade deficit with China last year was over $160 billion.
Now, would you not think, and I know that the gentleman from Louisiana (Mr. Melancon) understands this and other Members on our side of the aisle at least, would you not think when you have this kind of trade deficit, when it looks like this, when the overall U.S. trade deficit has moved this dramatically from just a few billion just a dozen years ago all the way to $617 billion, would you not think you might want to sort of change ideas and do something different, that you might think this trade policy we have simply is not working?
It is not working for American workers. Whether it is the sugar industry in Louisiana or the steel or auto industry in Ohio or textiles in Georgia and North Carolina, or a whole host of other manufacturers, or whether it is computer programmers in the Silicone Valley, clearly these trade policies are not working. You do not go from a few billion trade deficit to $617 billion in 12 years without something being wrong.
So what is our answer? President Bush's answer is let us pass the Central American Free Trade Agreement. What the Central American Free Trade Agreement does is it adds Central American countries. And then if Congress passes that, President Bush is negotiating something called Free Trade Area of the Americas, and that will add the rest of Latin America.
That will double the population of NAFTA and quadruple the number of low-income workers under NAFTA. So if you think NAFTA has not worked, where we had that trade deficit with Mexico and Canada, where we had almost a zero trade deficit when NAFTA passed, now Canada and Mexico's trade deficit with us is over $100 billion, so if we pass CAFTA, the Central American Free Trade Agreement, then the FTAA, Free Trade Area of the Americas, with four times the number of low-income workers, we are going to see more job loss in our Nation, more problems with our economy, more problems in our communities, hollowed-out industrial towns that simply do not have good paying industrial jobs anymore.
Today marks month number 9 since President Bush signed the Central American Free Trade Agreement. He signed it on May 28, 2004. You wonder why he has not brought the trade agreement to Congress to vote on it. With every other trade agreement President Bush has sent to Congress, the Morocco Trade Agreement, he signed it, 37 days later, Congress passed it. The Singapore Trade Agreement, he signed it, 79 days later it passed. The Chile Free Trade Agreement, he signed it, 48 days later it passed. The Australia Trade Agreement, he signed it, 57 days later it passed.
Well, President Bush signed the Central American Free Trade Agreement on May 28 last year. About 280 days ago have elapsed, because President Bush knows there is so much opposition among the American people and so much opposition in this Congress to these continued, failed trade policies. He would have brought it here if he thought he could pass it, but it is pretty clear that an awful lot of Members, including my freshman colleague from Louisiana that is here and so many others, the gentlewoman from California (Ms. Solis) and the gentlewoman from Ohio (Ms. Kaptur) and the gentleman from New Jersey (Mr. Pallone) who is joining us in a moment, it is pretty clear these trade policies are not working.
So today marks the end of the ninth month since the President signed the Central American Free Trade Agreement. We are hopeful in this body, many of us, that it never comes to a vote because it is clearly bad trade policy. Instead of passing CAFTA as the President wants, we should instead go back and look at NAFTA, go back and look at our trade policy with China, go back and look at our membership and what we are doing in the World Trade Organization. Instead, President Bush, says, let us move ahead with more trade policy. Even though it may be working for a few investors, it is not working for our families, it is not working for our schools, it is not working for our communities, it is not working for our workers, it is not working for our country.
These kinds of trade deficits, these trade deficits represent lost jobs. They represent disappointment in families. They represent oftentimes divorce and alcoholism, in failed schools, in all the factory closings and lay-offs mean to families, to communities, to our country. And I would hope that President Bush would just decide not to submit the CAFTA to Congress, would instead go back and look at these trade policies and go back and look at these trade agreements, and then make a decision to move in a different direction.
I yield to the gentleman from Louisiana (Mr. Melancon), a freshman Member who has already done a terrific job in explaining trade issues to his colleagues. He brings a lot of expertise to the table in trade policy, on creating jobs and making our communities and our schools better.
Mr. Speaker, I yield to the gentlewoman from Illinois (Ms. Schakowsky) who has been on this House floor night after night over the years in fighting not just for economic justice but against bad trade agreements and jobs and all that she cares so much about.
Mr. Speaker, I thank the gentlewoman from Illinois (Ms. Schakowsky). The gentlewoman talks about the moral values behind, or the lack of moral values behind, our trade policy, or the wrong kind of moral values. I think about that we have this trade policy in this country now that it is sort of every man, and I say man, every-man-for- himself trade policy, what can the wealthiest corporations get out of these trade deals, forgetting the workers, forgetting our communities.
Instead of this every-man-for-himself trade policy, we need to understand we are all in this together, and when we have this kind of job loss as those bishops in Central America understand what it means to their communities and where they are the losers, these trade agreements also have obviously caused great hardship in our country. When a factory closes in North Carolina, a textile plant or a steel mill closes in Ohio, or a chemical plant closes in New Jersey, what does that mean to those families and what does that mean to those schools and what does it mean to those children putting pressures on those families because their parents are unemployed and cannot find work and their schools are underfunded and all of that?
When the gentlewoman from Illinois (Ms. Schakowsky) talks about the moral values underpinning our trade policy, what it does to Mexican or Guatemalan workers who have no real labor standards for fair play in the workplace, what it does to our workers, what it does to sugar workers in Louisiana, it is pretty clear this policy really lacks the traditional moral values that I think built our country and still make us the great country that we are.
Mr. Speaker, I yield to the gentleman from New Jersey (Mr. Pallone) and thank him for his outstanding work on job creation and trade.
Mr. Speaker, I thank the gentleman from New Jersey (Mr. Pallone) for joining us tonight.
When we look at the trade deficit, as the gentleman from New Jersey (Mr. Pallone) mentioned, and the gentlewoman from Illinois (Ms. Schakowsky) and the gentleman from Louisiana (Mr. Melancon) mentioned, from $38 billion, at least the first year I ran for Congress a dozen years or so ago, up to $617 billion and growing, it was only $500 in 2003. Last year it was over $600, $617 billion.
When you look at that and you couple it with this profligate spending, tax cuts all that has happened to bring about a $400 billion budget deficit, our trade deficit and our budget deficit, $600-plus billion, $400-plus billion add up to over $1 trillion a year, and most of that money is borrowed from other Nations, whether it is South Korean banks or whether it is the government/Communist Party/interest groups in China or whether it is Japan, banks in Japan or corporations or individuals are borrowing so much, they are buying a piece of the United States every time.
When we run up a trade deficit of $617 billion, we run up a budget deficit of $400 billion, we are selling off our country piece by piece. At the same time, the workers in these other countries are not benefiting, only investors are.
When we come to the House floor and we criticize, if we come criticize CAFTA and NAFTA, we also need to offer something affirmative and positive, and this Congress 5 years ago passed something called the Jordan Free Trade Agreement, not a very large country in terms of distance in miles from here, and not a major economic player in the world, but it was a trade agreement that really lifted up standards. It lifted up workers and environmental standards and was a prototype for what we should be doing.
If the Central American Free Trade Agreement had been written the way the Jordan Free Trade Agreement had, we would be on the floor supporting it, as we all supported the Jordan Free Trade Agreement, but instead, after the Clinton administration negotiated the Jordan Free Trade Agreement, we have gone back to this failed NAFTA model. It is all about investment. It is all about every man for himself trade policy where workers are hurt, communities are hurt, schools are hurt, families are hurt. Investors may make money, but they are the only ones that do, and if any of us who have gone to the border and seen the way that the trade works for families on both sides of the border, how it has worked in a way that environmentally has been a disaster.
The American Medical Association said the most toxic place in the Western hemisphere is along the Mexican-U.S. border on both sides where babies are born with all kinds of defects, where children get sick, where old people cannot breathe well, if they have any kind of bronchial problems. These trade agreements, they are hurting our communities and our jobs and our companies. They are simply the wrong direction and simply no reason we could not pass something like the Jordan trade agreement instead of going in this direction.
Mr. Speaker, I yield to the gentlewoman from Illinois (Ms. Schakowsky).
I thank the gentlewoman for her work on education and health care.
This has become a pattern in the administration where they paid Armstrong Williams, a commentator, I think a couple of hundred thousand dollars to use his position as a media commentator, never disclosed it, but used his position as a media commentator to lobby on the President's behalf on education issues.
They have done the same on health care issues. They set up all kinds of Social Security using taxpayer dollars lobbying for the President's radical privatization of Social Security, and now they actually gave a $700,000 grant, USAID, to business groups in Central America to lobby the government. Imagine that.
If our friends want to come to the House floor to debate this tonight and any other time, we are very willing. We are in front of the American public. There are cameras if people want to watch this at home to have this debate in public, but to use taxpayer dollars to lobby foreign governments or our own government or to convince the American people to do something is just immoral,
I think when we look at sort of the values of all of this and the moral questions involved in trade where the elite, the wealthiest people in the world do very well and nobody else much does, and how that is such a betrayal of our moral values as a Nation and then you use taxpayer dollars to undercut that even further, it is just reprehensible, and I would hope President Bush would speak out and say never again will this happen, anybody that ever does anything like this loses his job or her job, no questions asked. I hope the President would speak his own moral values and say this is the wrong thing to do. He has remained silent and continued to do this.
We caught them again, if you will. Who knows how many more times they are going to try to use tax dollars to push this very unpopular agreement through this Congress.
Mr. Speaker, reclaiming my time, they said do not do this anymore; we will quit doing it. Nobody paid a fine. Nobody was penalized. Nobody lost a job. That is just amazing. It is like you break the law and do something untoward and just do not do it again, please, even though 700,000 American taxpayer dollars were flushed down the toilet. It is pretty amazing. It is not exactly law, and I yield to my friend from Louisiana.
Mr. Speaker, I appreciate the gentleman from Louisiana's (Mr. Melancon) comments, especially what happens when these trade agreements get real close to the date of the vote.
I remember during the China trade agreement that when that came to this Congress, a friend told me there were more corporate jets at National Airport than any other time they would have ever seen. There were corporate leaders that were walking the halls of this Congress telling people they wanted access, telling the Members of Congress they wanted access to 1 billion Chinese customers when, in fact, they really wanted access to 1 billion Chinese workers of all ages, of both genders, of all kinds of people that were going to work at a few cents an hour, in some cases, almost slave labor, too often child laborers, and always underpaid workers, and this is really what these trade agreements are all about. It is pretty clear.
He talks about the immoral value of children in the sugar cane fields, and I have seen the same in coffee fields in Nicaragua, and I have seen the same on the Mexican border where workers are badly treated, underpaid, and as a result, we are not getting what the whole point of trade agreements is which is to lift workers up in other countries so they can then buy American products. We create a middle class in Mexico, we create a middle class in Honduras, and then they buy from our workers and our companies back and forth, and that simply does not happen in these trade agreements because it is all about low income workers.
Mr. Speaker, I thank the gentlewoman for that. I will close with those very appropriate comments. Thank the gentlewoman from Illinois. Thank our new freshman colleague, the gentleman from Louisiana (Mr. Melancon), thank the gentleman from New Jersey (Mr. Pallone), and also the gentlewoman from California (Ms. Solis) and the gentlewoman from Ohio (Ms. Kaptur) for their leadership in opposition to the Central American Free Trade Agreement, and for everyone here in pointing out what has happened to our trade policy and how clearly when you go from a $38 billion trade deficit to $617 billion in a dozen years that this is not working. We need to strike out in a new direction.