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Did The Administration Offer New Balance A Big Contract For TPP Silence?

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Dave JohnsonLast year President Obama went to Nike headquarters to promote the Trans-Pacific Partnership (TPP). But Nike doesn’t make shoes in the US,  and TPP would force companies like New Balance to stop making shoes here. New Balance kept quiet about this, but now says the administration offered the company a big contract in exchange for its silence. New Balance is talking now, because the contract never came through.

A Contract In Exchange For Silence?

The Bangor Daily News has a big story this week, “New Balance claims Defense Department strung it along on military sneaker contract”:

New Balance officials say they’ve broken their silence over the Trans-Pacific Partnership because the Obama administration has failed to offer the company a chance for a contract to sell sneakers to the military.

… New Balance held its tongue about the TPP for nearly a year, he says, because federal officials told the company that if it did so, New Balance would get a shot at a military contract.

This is a very big deal. Last May’s post, “Obama To Visit Nike To Promote the TPP. Wait, NIKE? Really?”, explained what TPP means for the domestic shoe industry:

While the President visits Nike, New Balance is struggling to be able to keep some of its manufacturing in the U.S. Currently New Balance makes shoes in five factories in the U.S. Their executives say if TPP passes, lower tariffs on shoes made in places like Vietnam will force them to close their U.S. factories.

… If the President gets his way and TPP passes, the tariff on non-U.S.-made (Vietnam) shoes will end and New Balance – like so many other companies struggling to manufacture inside the U.S. – will have no choice but to end its U.S. manufacturing operations. Meanwhile Nike, already manufacturing in Vietnam and Malaysia and currently selling shoes that cost $10 to make for over $100, will gain even more of an advantage, which obviously will not be passed on to consumers. If you are able to get a certain price for a product, why reduce it?

This is just one example of how even more American workers would lose their jobs if TPP passes.

TPP would lower tariffs on shoes (and everything else) coming into the country from low-wage TPP countries. Companies like Nike would be rewarded for closing factories here in the past. Companies like New Balance would be forced to close factories here in the future.

New Balance says the government offered the company this contract if it would keep quiet about what TPP would do to domestic manufacturers. The military buys a lot of sneakers — as many as 200,000 pairs each year. It currently buys non-US-made sneakers, in spite of rules saying they should buy US-sourced when possible. So New Balance should have this contract anyway. (TPP would prohibit us from requiring the purchase of US-made goods with our own tax dollars.) But the government apparently used the promise of the contract to buy the company’s silence about the job-killing effect if TPP passes.

The Boston Globe has more on this, in “New Balance accuses Pentagon of reneging on sneaker deal”:

New Balance is renewing its opposition to the far-reaching Pacific Rim trade deal, saying the Obama administration reneged on a promise to give the sneaker maker a fair shot at military business if it stopped bad-mouthing the agreement.

After several years of resistance to the Trans-Pacific Partnership, a pact aimed at making it easier to conduct trade among the United States and 11 other countries, the Boston company had gone quiet last year. New Balance officials say one big reason is that they were told the Department of Defense would give them serious consideration for a contract to outfit recruits with athletic shoes.

… “We swallowed the poison pill that is TPP so we could have a chance to bid on these contracts,” said Matt LeBretton, New Balance’s vice president of public affairs. “We were assured this would be a top-down approach at the Department of Defense if we agreed to either support or remain neutral on TPP.

The government offered a lucrative contract to a company, to keep quiet and not alert the public to the potential job-losses from TPP. Just, wow.

What Else?

This story raises the question of what else the administration is doing to get TPP through, and why. For example, last year the “Fast Track” Trade Promotion Authority bill prohibited the administration from entering into “trade” agreements like TPP with countries that violate human rights, in particular human trafficking. Malaysia violates human rights by enabling human trafficking. Malaysia is a TPP country.

So the administration solved the problem by declaring that Malaysia doesn’t do that after all, even though they do.

Last year’s post “Obama Administration Makes Malaysia Slavery Problem For TPP Disappear”explains:

[T]he trade promotion authority law … prohibits the U.S. from entering into “trade” agreements with “tier 3” human-trafficking countries.

According to news reports, the Obama administration found an easy – and extremely cynical – fix: just change Malaysia’s rating to a “tier 2.” Problem solved. But human rights groups, labor and members of Congress are “outraged,” “shocked” and “deeply disturbed.”

… Human trafficking? Slavery? Sex slaves? People kept in cages? Mass graves? Abuse of workers? No problem. Just tell the State Department to ignore it.

Another post, “Did Obama Administration Downplay Malaysia Slavery To Grease Trade Deal?”, elaborates,

Cheap labor is the whole point of our corporate-rigged, NAFTA-style trade agreements. Companies get to move jobs, factories, even entire industries out of the U.S. to countries where people are exploited, the environment is not protected and “costs” like human safety are kept low.

But even so … tolerating slavery? Flat-out slavery? Really? Unfortunately, it looks like that’s what is happening with fast-track trade promotion authority, The Trans-Pacific Partnership (TPP) and the Obama administration.

… Malaysia was a Tier 3 country in the 2014 TIP report. The 2015 TIP report was supposed to be released in June but was delayed coincident with the passage of fast-track legislation with the slavery clause. The report was released Monday, and changes Malaysia’s TIP rating from the worst “Tier 3” to a “Tier 2,? even though there is little or no change in Malaysia’s actual performance.

Promising a company a big military contract if they would keep quiet about the job-killing effects of TPP? Letting a country off the hook for actual slavery?

The TPP is all about pushing jobs out of the country in search of lower wages so executives and shareholders can pocket that wage differential. But slavery? Really? Contracts for silence about how it will close US factories? Really?

What else is going on to push this corporate-favoring “trade” agreement?

This blog originally appeared at ourfuture.org on April 15, 2016.  Reprinted with permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.


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New Study Confirms: Private “Trade” Courts Serve the Ultra-Wealthy

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A new study confirms what many activists have suspected for a long time: The private courts set up by international “trade” deals heavily favor billionaires and giant corporations, and they do so at the expense of governments and people.

Smaller companies and less-wealthy individuals don’t benefit nearly as much from these private courts as the extremely rich and powerful do. Other interested parties – whether they’re governments, children, working people, or the planet itself – are unable to benefit from these private courts at all.

The “investor-state dispute settlement” process, or ISDS, is built into treaties like NAFTA and the upcoming Trans-Pacific Partnership (TPP). It allows foreign investors to sue participating governments if they do anything that harms their investment in that nation. Corporations can sue governments through this process, but governments can’t sue corporations.

As Todd Tucker pointed out in The Washington Post, a “wide range of policies can be challenged” under ISDS: “Argentina has had its macroeconomic policies challenged, Australia its anti-smoking efforts, [and] Costa Rica its environmental preservation laws.”

Suits are not brought through a normal, public court process. Instead, they are heard before private panels of arbitrators, often made up of attorneys who represent corporations as part of their practice. These hearings are conducted under rules set up by independent arbitration bodies that include the International Chamber of Commerce.

Activists have been arguing for a long time that this process is unfairly skewed toward powerful corporations and ultra-wealthy individuals. Now there is data to back up that opinion. A new study published by York University’s Osgoode Hall Law School in Toronto has concluded that “the beneficiaries of ISDS … have overwhelmingly been companies with more than $1 billion per year in annual revenue – especially extra-large companies with more than $10 billion – and individuals with more than $100 million in net wealth.”

Report authors Gus Van Harten and Pavel Malysheuski point out that the “legitimacy” of the ISDS concept “appears to depend in part on an expectation that it benefits smaller businesses, not just large multinationals and the super wealthy.”

But that doesn’t appear to be the case. Virtually all of the financial benefits of the ISDS have gone to the rich and powerful. Nearly 95 percent of all award money went to giant corporations or extremely wealthy individuals.

The ISDS industry scored big, too. The authors found that ISDS “lawyers, arbitrators, experts and other actors” had earned an estimated $1.7 billion from these hearings by the spring of 2015.

The statistics in the Osgoode study are startling at times. Those “extra-large” corporations of $10 billion or more in revenue won 70.8 percent of the time, while others were only successful 42.2 percent of the time. They won in the “merits” stage of their hearings 82.9 percent of the time, versus a 57.9 percent success rate for everyone else.

The ISDS process has received relatively little attention in this country, perhaps because the United States has fared better than many other countries in ISDS hearings.

Reading this report, it’s not hard to understand why. Most of the countries that signed deals like NAFTA don’t have as many billion-dollar corporations and highly wealthy individuals as the United States does. As this report shows, that means their oligarchs and companies are less likely to win big through ISDS.

The Office of the U.S. Trade Representative even boasts that “foreign investors rarely pursue arbitration against the United States and have never been successful when they have done so.”

Unfortunately, that’s probably about to change. The TPP includes Japan, Australia, and other countries with their own powerful corporations and individuals. They’re much more likely to successfully challenge the U.S. under this deal, on everything from consumer safety to environmental protection. What’s more, there are signs that the U.S. could begin to lose under past agreements as well.

As a trade campaigner for Greenpeace said of a similar “trade” deal:

“This trade deal is not about trade. It’s about the transfer of power from people to big business.”

Thanks to this new report, we now have objective evidence that she’s right. These agreements have given great power to the wealthy and powerful few, at the expense of the many. It’s time to reject the TPP and renegotiate the bad deals of the past.

This blog originally appeared in ourfuture.org on March 1, 2016.  Reprinted with permission.

Richard Eskow is a Senior Fellow with the Campaign for America’s Future and the host of The Zero Hour, a weekly program of news, interviews, and commentary on We Act Radio The Zero Hour is syndicated nationally and is available as a podcast on iTunes. Richard has been a consultant, public policy advisor, and health executive in health financing and social insurance. He was cited as one of “fifty of the world’s leading futurologists” in “The Rough Guide to the Future,” which highlighted his long-range forecasts on health care, evolution, technology, and economic equality. Richard’s writing has been published in print and online. He has also been anthologized three times in book form for “Best Buddhist Writing of the Year.”


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Trade Deals Like the TPP Are Murdering American Manufacturing

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Leo Gerard

In the week before Valentine’s Day, United Technologies expressed its love for its devoted Indiana employees, workers whose labor had kept the corporation profitable, by informing 2,100 of them at two facilities that it was shipping their factories, their jobs, their communities’ resources to Mexico.

A few workers shouted obscenities at the corporate official. Some walked out. Others openly wept as United Technologies shattered their hopes, their dreams, their means to pay middle-class mortgages.

Three days later, 1,336 workers at Philadelphia’s largest remaining manufacturer, Cardone, learned that company planned to throw them out too and build brake calipers in Mexico instead. Two weeks earlier, a Grand Rapids, Mich., company called Dematic did the same thing to its 300 workers.

No surprise. In the first decade of this century, America lost 56,190 factories, 15 a day.

Republican presidential candidates talk incessantly of building a physical wall to keep impoverished Mexican immigrants out of America. What they fail to offer is an economic barrier to prevent the likes of United Technologies and Cardone and Dematic from impoverishing American workers by exporting their jobs to Mexico.

The president of Carrier, owned by United Technologies, gathered the Indianapolis factory employees, skilled workers who earn an average of $20 an hour, and informed them that the corporation planned to kick them to the curb but expected them to perform to the highest standards until Carrier opened a new plant in Monterrey, Mexico, where workers will be paid $3 an hour.

Carrier President Chris Nelson told the group, “This was an extremely difficult decision.”

Such difficulties for poor, poor United Technologies! It was making a nice profit at its Indianapolis and Huntington factories. But it was not the big fat profit it could pocket by paying Mexican workers a mere $3 an hour, providing $3 an hour in health and pension benefits, and doing it all in the nation with the longest work weeks among the 36 countries in the Organization for Economic Co-operation and Development.

It would be “extremely difficult” for United Technologies to abandon Indiana after the corporation grabbed $530,000 from the pockets of hard-working Hoosiers over the past nine years as the state’s economic development agency forked over taxpayer cash to the corporation.

It would be even more “difficult” to turn its back on America considering that United Technologies grabbed $121 million from a federal tax credit program established specifically to ensure that green manufacturing jobs remained in the United States. Carrier took $5.1 million of those tax credits in 2013.

“This is strictly a business decision,” Nelson told the jeering workers. It wasn’t because of anything they had done. It was just that Mexico allows corporations to exploit its people in ways that America does not. Its minimum wage is 58 cents an hour, while the United States requires at least $7.25. For now, at least. Some GOP president candidates (Donald Trump) have said they think that’s too high.

The North American Free Trade Agreement (NAFTA) ensnared Mexican and American workers in a race to the bottom. And the proposed Trans-Pacific Partnership (TPP), a free trade deal among 12 countries instead of just three, would place American and Mexican workers in an even worse competition. They’d vie for jobs with forced and child labor in places like Brunei, Malaysia and Vietnam.

Under NAFTA, cheap American grain shipped to Mexico without tariffs destroyed peasant farming. And that prompted migration north. Meanwhile, American factories saw desperate Mexicans willing to work for a pittance, a government unwilling to pass or enforce environmental laws, and because of NAFTA, no tariffs when the goods were shipped back to the United States. That propelled factory migration south.

Before NAFTA, the United States had a small trade surplus with Mexico. That disappeared within a year, and now the annual trade deficit is approximately $50 billion.

Though it has been 22 years since NAFTA took effect, a report issued last week by the AFL-CIO says, “Labor abuses in many cases are worse now than before NAFTA … In short, NAFTA has contributed to labor abuses, not improvements.”

The report says the Mexican government fails to enforce labor laws and refuses to ensure that workers can form independent labor unions to try to protect their own rights. In fact, the report says, “The human and labor rights situation in Mexico is rapidly deteriorating.”

As a result, workers are powerless and completely at the mercy of corporations. So corporations like United Technologies can pay them $3 an hour and get away with it. This is not good for Mexican workers. And it’s not good for American workers.

The AFL-CIO report makes it clear that the TPP would worsen the situation because it would give corporations like United Technologies the option of moving to places like Vietnam where they could pay trafficked workers and child laborers $1 an hour. Or less.

Just like with NAFTA, there’s nothing enforceable in the TPP that would stop the labor abuses. It would facilitate corporations forcing workers from Indianapolis, Philadelphia and Monterrey, Mexico, into competition with 14-year-olds laboring 60-hour-weeks for $1-an-hour in Malaysia.

Just like United Technologies, these corporate CEOs would say it was “strictly business” to offshore American mills, industry that had served as city centers for decades, even centuries, factories so synonymous with towns that the communities took their names like Ambridge (American Bridge) and Hershey, which, by the way, laid off workers at its Pennsylvania home in 2007 and opened a chocolate plant in Monterrey, Mexico.

The AFL-CIO investigation of the TPP determined that it would do nothing more than increase corporate profits while sticking workers—in the United States and elsewhere—with lost jobs, lower wages and repressed rights.

For 22 years NAFTA has destroyed subsistence farming in Mexico and good, middle class factory jobs in the United States. Maybe corporations have made out like bandits. But the banditry should be stopped for the heartache it has caused on both sides of the border.

As Carrier President Nelson told the Indianapolis workers, members of my union, the United Steelworkers, that he was taking their jobs from them so that shareholders and corporate executives could make a few extra bucks, the workers protested. Nelson kept saying, “Quiet down. Let’s quiet down.”

That’s exactly the opposite of what American workers and communities should be doing. They should shouting from rooftops, “No TPP!”  For the love of American manufacturing, they should be yelling bloody murder.

This blog was originally posted on inthesetimes.com on February 24, 2016. Reprinted with permission.

Leo Gerard is the president of the United Steelworkers International union, part of the AFL-CIO. Gerard, the second Canadian to lead the union, started working at Inco’s nickel smelter in Sudbury, Ontario at age 18. For more information about Gerard, visit usw.org.

 


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Trade Deals Like TPP Encourage ‘Business Decisions’ Like This Heartbreaking One from Indianapolis

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Kenneth Quinnell

In this video, workers at the Carrier plant in Indianapolis react to the company announcing that it will ship 1,400 local jobs to Mexico in what they described as “strictly a business decision.” You can hear the heartbreak and outrage in the voices of the workers who must now scramble to figure out how to take care of their families. Carrier makes heating, air conditioning, ventilation and other systems. The layoffs are scheduled to begin in 2017.

Aside from corporate greed, the main reason that Carrier can get away with something like this is the major flaws that have been built into international trade deals like North American Free Trade Agreement and the Trans-Pacific Partnership. These kinds of deals make sure that these types of tragic moments happen more frequently.

First off, these deals provide companies that want to offshore to trading partners with extraordinary powers and legal rights they do not have under U.S. law–powers and rights that shift the balance of power further away from working people. Second, these deals put U.S. manufacturers in closer competition with foreign companies that pay low wages and don’t respect labor rights. This encourages U.S. companies to offshore in order to keep up with those foreign companies.

The third reason these deals encourage outsourcing is that they fail to level the playing field in terms of taxes. Such a deal could set a minimum level for corporate tax rates or create rules to prevent companies from gaming the tax system and pitting countries against each other. With those options left off the table, a race to the bottom is encouraged, where companies shift jobs to countries with lower tax rates, which, in turn, encourages higher-tax rate countries to lower taxes and the ripple effect those lower rates have on the economy and the government’s goods and services. A trade deal meant to create U.S. jobs would address this.

And lastly, of course, these trade deals eliminate tariffs in the trade zone, further encouraging companies to shift jobs to trade partners because corporations know they can ship goods back into the United States without paying tariffs, thus using the tariff cuts to increase U.S. imports instead of increasing U.S. exports.

This blog originally appeared in aflcio.org on February 11, 2016. Reprinted with permission.

Kenneth Quinnell is a long time blogger, campaign staffer, and political activist.  Prior to joining AFL-CIO in 2012, he worked as a labor reporter for the blog Crooks and Liars.  He was the past Communications Director for Darcy Burner and New Media Director for Kendrick Meek.  He has over ten years as a college instructor teaching political science and American history.


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Trumka: TPP Is a New Low

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Kenneth Quinnell

In a new op-ed for the Hill, AFL-CIO President Richard Trumka explains the key reasons why the Trans-Pacific Partnership is bad for working people, both in the United States and overseas. Trumka describes the deal by saying that “the TPP is a giveaway to big corporations, special interests and all those who want economic rules that benefit the wealthy few.”

An excerpt:

We’ve been down this road before. The Wall Street and Washington elite always tell us that this time will be different. The truth is these trade deals have ripped apart the fabric of our nation. We see the shuttered factories. We visit towns that look like they are stuck in the past. We talk to the workers who lost everything, only to be told they should retrain in another field—but Congress has been slow to fund and authorize those programs. From NAFTA to CAFTA to Korea and now the TPP, these agreements have continually put profits over people. By driving down our wages, they make our economy weaker, not stronger.

In many ways, the TPP is a new low. A quick search of the agreement shows no mention of the terms “raising wages” or “climate change.” And by ramming through fast track legislation earlier this year, Congress effectively barred itself from making a single improvement to the TPP.

Working people deserve a better process and a better product. We understand better than anyone that the TPP is just another tool to enrich corporations at the expense of everyday families. We cannot and should not accept it.

Because it can’t fix the TPP, Congress has to take the step of saying to 11 other countries, “No, not this TPP.” Taking that brave step is necessary to create trade rules that lift people up, not crush them under crony capitalism.

Read the full op-ed.

This blog originally appeared in aflcio.org on February 3, 2016. Reprinted with permission.

Kenneth Quinnell is a long time blogger, campaign staffer, and political activist.  Prior to joining AFL-CIO in 2012, he worked as a labor reporter for the blog Crooks and Liars.  He was the past Communications Director for Darcy Burner and New Media Director for Kendrick Meek.  He has over ten years as a college instructor teaching political science and American history.


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State of the Union: Don’t Let the TPP Sink Our Wages

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CD speaking at UCSD FairTrade RallyThe president will give his final State of the Union address tonight. Traditionally, this annual speech reviews the accomplishments of years past and sets out a “to-do” list for the year ahead. Although the White House has indicated that this year’s speech will be “nontraditional,” it has made clear the economy will be a major focus.

I hope the president will talk about the importance of the proposed overtime rule, which could raise wages for some 15 million of America’s working people. I also hope he talks about how the auto manufacturing industry has soared back to life since the so-called bailout, which saved 1.5 million jobs in its first year alone.

While the economy isn’t perfect, and most of us are still feeling the pinch of student loans, too-smallpaychecks, threats to retirement security and not enough voice in our workplaces, there are a lot of successes the president can look back on with pride in his speech.

On the other hand, there is also a new trade and economic deal on the horizon—the Trans-Pacific Partnership—that could poke a hole in the progress our economy has made since the president came in to office in 2009.

The thing that’s dangerous about the TPP, and the reason we should worry about it shrinking our paychecks, is not the idea of trade. Trade is good—but we shouldn’t confuse “trade” with so-called “trade agreements,” which set down rules not just for “trade,” but for food safety, Wall Street regulations, prescription medicines and investor rights. These are the kind of rules that should be made in public, in democratic fashion, not in a secretly negotiated agreement that can’t be amended. The TPP’s corporate giveaways are dangerous.

Existing trade rules (including those in the North American Free Trade Agreement and the U.S.–Korea trade deal) already cost the average U.S. worker $1,800 a year, according to the Economic Policy Institute, and preliminary studies on the TPP by Center for Economic and Policy Research and Tufts indicate that we can expect that figure to get worse.

Working people are deeply disappointed that the opportunities to put workers’ interests first and eliminate corporate entitlements in the TPP were largely ignored.  And more importantly, working people are disappointed because we know that all of these things mean fewer good jobs in our communities and fewer opportunities for our children.

The TPP is the latest example of the failed U.S. approach to trade that started with NAFTA, which drives down wages and creates special rights for corporations.  The TPP could have been different, but instead it is a collection of minor tweaks designed to get congressional votes rather than ensure workers’ wages rise.

The AFL-CIO wants trade agreements that grow our economy, create good jobs in America and give working people in all countries the chance to succeed when they work hard. Instead, passage of the TPP will mean lost jobs and lower wages.

Compared to eight years ago, the U.S. economy is afloat and heading toward improvement. The TPP will undermine that progress and give us rocky sailing ahead. There is simply no good argument for trading away our right to control our economy in exchange for more corporate power.

I hope the TPP doesn’t come up at all in the State of the Union speech. We’d be better off without it. But if it does—let’s be clear about what it really means for America’s working families.

Let’s raise our voices against this corporate giveaway and make it clear the TPP must go down to defeat!

This blog appeared on aflico.org on January 12, 2016.  Reprinted with permission.

Celeste Drake is a Trade & Globalization Policy Specialist at AFL-CIO.  Her experience with the labor movement was as a UFCW member while bagging groceries during college.  She also served as the Legislative Director for Representative Linda Sanches (D-CA).


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Now Vietnam Thumbs Nose At TPP’s Unenforceable Labor Provisions

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Dave JohnsonVietnam is already snubbing the unenforceable labor provisions in the Trans-Pacific Partnership (TPP).

Voice of America reports, in “Vietnam Beating Case Highlights TPP Labor Rights Issue“:

A Vietnamese labor activist has accused authorities of beating and detaining her after she talked with fired workers in southern Long An province.

Long-time labor rights advocate Do Thi Minh Hanh, once imprisoned for helping organize labor strikes, said she was held Monday for “13 hours without being given any reasons.”

… Hanh, co-founder of Free Viet Labor Federation, and another activist, Truong Minh Duc, said they came to give support and advice to dozens of workers who maintained they had been unlawfully fired by a foreign-owned company.

What is going on here?

Brad Adams, Asia director of Human Rights Watch, said last week that Vietnam appeared to “play nice during TPP negotiations, but now that the agreement has been signed, it is taking steps to tighten government control over critics.”

Right. Now that the unenforceable agreement has been signed, there is no need to “play nice.”

To be fair, Vietnam is raising their minimum wage,

The monthly minimum wage for Zone 1 will increase from the current VND3.1 million ($138) to VND3.5 million ($155.8), and that of Zone 2 will rise from VND2.75 million ($122.4) to VND3.1 million.

For Zones 3 and 4, the monthly minimum wages will go up from VND2.4 million ($106.8) and VND2.15 million ($95.7) to VND2.7 ($120.2) million and VND2.4 million, respectively.

Got that? After the raise workers in Vietnam will be starting at $155 a month. That’s as little as $6.45 a day for Vietnamese working the standard six-day, 48-hour workweek. And that’s the top minimum. Others will be getting $95.70 a month, as little as $3.99 a day.

So you have “foreign-owned companies” illegally firing workers who will be making less than $7 a day. Workers are harassed, arrested and beaten if they try to do something to improve their lives.

And TPP is being sold as a “job creator” here in the U.S. Right.

Unenforceable Labor, Environment, Other Provisions

TPP has special provisions for enforcement of provisions that benefit corporations, while the already weak labor, environmental and other provisions that protect other “stakeholders” get no special enforcement mechanisms. Corporations can bring their own cases to a special corporate court that sits above governments, where corporate attorneys adjudicate. But violations of TPP’s labor, environmental and other provisions depend on governments to decide to bring the cases. And these cases do not go before panels friendly to labor or environment or other aggrieved parties. Our own government won’t even enforce labor rules inside our own country, never mind filing trade cases.

Slavery In Malaysia Ignored So TPP Can Pass

To make matters worse, the “fast track” trade promotion authority clearly specifies that the U.S. cannot enter into a trade agreement with countries designated as participating in human trafficking (slavery). Malaysia was designated as a human trafficking country. So to grease the skids for TPP our own government reclassified Malaysia, even though Malaysia had changed nothing. A Reuters investigation reported that the State Department downgraded Malaysia for political reasons. House Democrats and “stakeholder” groups are demanding an investigation.

A more recent Reuters report, “As Obama heads to Malaysia, human trafficking stance questioned,” describes what Malaysia’s trafficking victims endure,

…he was cooped up in a filthy, overcrowded detention center near Kuala Lumpur’s international airport, squatting or sleeping on the floor in a hall with scores of other men. During his fourth month, wardens ordered them not to move or talk, he says, and beat them with belts if they did.

“There was no rest. You couldn’t sit or lie down without touching someone else,” he said, pointing to a welt on his forearm that he says he received when a guard beat him for arguing with another detainee over space.

This Reuters report describes the Obama State Department’s changes to Malaysia’s trafficking status,

… senior officials instead in July upgraded Malaysia to the Tier 2 Watch List, freeing the country from potential sanctions and international condemnation, and paving the way for the ambitious 12-nation Trans-Pacific Partnership trade agreement. If Malaysia remained a Tier 3 country, the Obama administration would have had to exclude it from the deal under the fast-track negotiating authority it had from Congress, potentially torpedoing the agreement.

Starkly worded criticism of Malaysia was excised from the final report, according to internal documents seen by Reuters that have not been previously made public.

… The analysts were overruled by senior American diplomats at the State Department, according to sources with direct knowledge of how the report was compiled. By the time the report was published, much of the tougher criticism of Malaysia’s detention facilities was removed.

I discussed this in a “Malaysian Slavery & the TPP” segment of “The Zero Hour with RJ Eskow” last August.

P.S., Japan recently announced it will ignore the unenforceable currency side-agreement. This means companies making things in the U.S. will be put at a competitive disadvantage against companies making things in Japan.

This blog originally appeared in Ourfuture.org on November 25, 2015. Reprinted with permission.

About the Author: Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.


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Bottom Line: Does the TPP Trade Deal “Put American Workers First”?

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Dave Johnson

The full text of the Trans-Pacific Partnership (TPP) has finally been released and We the People can see what has been negotiated in our name. President Obama laid out the bottom line, saying the deal “puts American workers first.” Does it?

TPP Text

The full text of TPP can be seen here. The text consists of more than a thousand pages of incomprehensible legalese like this:

… the rate of customs duty applicable to the originating good from the Party where the good acquired the originating status in accordance with the process requirement or change in tariff classification requirement set out in Annex (PSR); or (ii) the rate of customs duty applicable to the originating good from the Party where the largest value was added among claimed production process, or the highest rate among the rates applicable to the originating good from those Parties involved in claimed production process, when the good acquired the originating status through a production process in accordance with the requirement set out in Article DD. 2(a), (b) or the regional value content requirement set out in Annex (PSR).

and this:

Pursuant to paragraph 1(b), the Commission shall review the operation of this Agreement with a view to updating and enhancing this Agreement, through negotiations, as appropriate, to ensure that the disciplines contained in the Agreement remain relevant to the trade and investment issues and challenges confronting the Parties.

You get the picture. This is going to take time and experts to figure out. Worse, it was negotiated in a corporate-dominated process, so if TPP is approved we have to assume that anything that is hard to understand or ambiguous will later be used to justify taking from We the People and giving to A Few People.

So Does TPP “Put American Workers First”?

President Obama set down the bottom line of TPP by releasing a statement calling TPP, “a new type of trade deal that puts American workers first.” In the statement he wrote, “If you’re an autoworker in Michigan, the cars you build face taxes as high as 70 percent in Vietnam.”

It is interesting that he would use the example of auto workers here. The September post “TPP Terms Are Even Worse For U.S. Than NAFTA?” looked at how TPP will affect the American auto industry and found:

Under NAFTA 62.5 percent of the value of cars and 60 percent of auto parts must be made in NAFTA countries, or a tariff will apply. But for TPP the U.S. Trade Representative Michael Froman appears to have made a deal saying only 45 percent for cars and 30 percent for parts need to be made in TPP countries – the rest of that business goes to China and other non-TPP, low-wage, low-labor-standards and low-environmental-protection countries. The result will be a huge shift of jobs and business away from American, Mexican and Canadian auto and parts makers.

Now we know the actual terms. Canada’s Globe and Mail reports, in “Canadian auto sector alarmed by concessions revealed in full TPP text ,” that

Canada’s auto parts makers, who employ 81,000, say the text of the agreement shows the local-content protections for vehicle components are significantly skimpier than the former Conservative government had advertised. Former prime minister Stephen Harper had said local-content requirements for important vehicle components would be between 40 per cent and 45 per cent.

… Engine parts and such body stampings as truck frames and metal roof panels will only be required to have TPP content of 35 per cent.

Basically when we are talking about “non-TPP countries” getting some percent of the business, we are really just talking about China. So says tariffs do not apply if 35 percent to 45 percent of the car and parts are made in TPP countries. This means that 55 percent to 65 percent of the car and parts can be made in China and still be tariff-free. This is much worse than even NAFTA, which, as we know, destroyed American auto and parts manufacturing jobs and entire regions of our country.

Kevin L. Kearns, President of the U.S. Business and Industry Council, in the post “Domestic Manufacturers Call Full Text of Trans-Pacific Partnership (TPP) Agreement a ‘Very Bad Deal for America.’” says of this,

“Apparently, one of America’s biggest economic problems is that Toyota does not sell enough cars and trucks here, and thus does not displace enough American jobs. The TPP deal allows Toyota and other Japanese automakers a special concession to keep their global supply chains intact.”

So the president’s singling out of auto workers as benefiting from TPP was unfortunate. They do not, and American auto workers will be hit hard as production moves to China.

In the release statement Obama also wrote, “If you’re a worker in Oregon, you’re forced to compete against workers in other countries that set lower standards and pay lower wages just to cut their costs.”

Does TPP stop the competition of Oregon’s workers “against workers in other countries that set lower standards and pay lower wages just to cut their costs” as the president promises here?

The athletic apparel maker Nike is based in Oregon. The workers who actually make Nike’s shoes are already all outsourced, already located in countries “that set lower standards and pay lower wages just to cut their costs,” including TPP signatories Vietnam (where it employs 345,000 workers), Mexico and Malaysia. TPP will remove tariffs already charged on those shoes and garments as they come into the U.S., making it even more attractive to outsource production to countries “that set lower standards and pay lower wages just to cut their costs.” Nike will be rewarded by that tariff cut with greater profits from their choice to outsource.

Meanwhile Nike competitor New Balance has been trying to continue to make shoes in the U.S., and this removal of tariffs is likely to force them to give up. TPP lowers the cost of moving production to countries “that set lower standards and pay lower wages just to cut their costs.”

So the president cited autos and Oregon, but a close look reveals these to be unfortunate choices. In both cases American workers are put first – first in line to be laid off as even more production shifts out of the country.

Does TPP Put American Steelworkers First

If TPP truly puts “American workers first” you’d think that American workers would be happy about TPP. They aren’t. The United Steelworkers said of the TPP text:

“It’s a dagger twisting in the heart of American manufacturing,” the USW said in a Nov. 5 statement. “Even the Wall Street Journal predicted the deal would cause a massive trade deficit in manufacturing, which would result in hundreds of thousands of job losses.”

The TPP, the union said, provides incentives for U.S. companies to outsource production and send jobs overseas. It would cause dramatic job losses in the U.S. manufacturing sector, and its rules of origin for automobiles and auto parts would allow China to provide the majority of a vehicle’s content, it said.

The TPP also would allow currency manipulation to continue, do nothing to prevent state-owned enterprises from receiving state support and protection, and allow foreign workers to continue to suffer violations of their rights, the USW said.

So it looks like TPP does anything but “putting American workers first.” It puts them first in line to be laid off.

Economic Theory

So why the big push for TPP?

Here’s the thing. By moving production to low-wage countries with poor environmental and safety (and other) regulations that protect people, American companies can lower the cost of production. Economic theory says this “frees up resources” in our own economy to be put to “more productive uses.” Economists say the workers can thereby move into higher-paying jobs, doing things that can’t be done in Vietnam.

But of course this is not what has been happening since the country’s elites were sold on the “free trade” agenda decades ago. We have seen the financial sector (and its associated value system) increase as the manufacturing sector (and its associated value system) declines. We have seen a dramatic increase in inequality as the “investor class” pockets the wage and other cost differential from moving production out of the country. We have seen entire regions of the country literally devastated (see Detroit and the “Rust Belt”) because the resources released by outsourcing America’s production have not been reinvested in the U.S. They have instead found their way to foreign tax shelters. We have seen the country lose entire industries, and the supply chains, “know-how” and other elements of a manufacturing ecosystem that might enable us to rebuild someday.

Now that we can actually read it we can see that TPP is just one more “NAFTA-style” power-grab elevating the “investor class” above the rest of us and our ability to run our own government in ways that make our lives better. TPP is about taking from We the People and giving to A Few People. It is a bad deal and it must be stopped.

This blog originally appeared in Ourfuture.org on November 6, 2015. Reprinted with permission.

About the Author: Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.


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Top 10 Unknown Things About TPP

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Kenneth QuinnellWorking people are paying very close attention to the debate and negotiations surrounding the Trans-Pacific Partnership (TPP), the massive trade deal that proponents are saying is the “most progressive trade agreement ever.” Unfortunately, at this point, too many details of the agreement aren’t public. Trade can obviously be a good thing for the country, but only if it is done the right way. And with TPP, what we know at this point is enormously problematic. Here are the 10 biggest unknowns about the TPP:

1. How will the TPP raise American wages? While there certainly are some U.S. companies that will benefit from the TPP, how will the TPP restore the connection between increased productivity and increased wages? By encouraging and rewarding more outsourcing of jobs, it is likely to put downward pressure on U.S. wages, as prior free trade agreements (FTAs) have done.

2. How will the TPP ensure labor obligations actually are enforced? Will it require an administration to self-initiate a case when another party’s labor rights violations are well known? Will countries like Vietnam and Malaysia be in compliance with the labor standards on day one? Existing trade deals allow too much discretion to delay labor rights complaints or ignore them altogether. From what is publicly known about the TPP, these and other critical labor issues remain inadequately addressed.

3. How will the TPP fix our trade balance or create jobs when it contains no mechanism to control currency manipulation? Addressing currency manipulation is probably the single most effective way the United States can create jobs, as it allows U.S. products to compete on fair terms in the global marketplace. The promised TPP tariff benefits could be undermined overnight if trading partners devalue their currency. Despite urging from Congress, all reports indicate no effective currency disciplines are included in the TPP.

4. What mechanism will ensure a level playing field between foreign investors and America’s small businesses and their workers? Foreign investors will have access to a private justice system—investor-state dispute settlement (ISDS)—that allows them to bypass American courts and hold for ransom laws and regulations they think will interfere with their profits. This right creates an enormous influence that local businesses and workers simply won’t have.

5. Will the TPP ensure all parties adopt climate measures at least as strong as those the United States implements—or allow for offsetting fees at the border? If it fails to do this, then the TPP will exacerbate incentives to move production outside the United States to escape carbon reduction efforts.

6. How will the TPP adequately protect local and national control over public services? If important public services, including schools, libraries, the Post Office and water systems aren’t completely carved out of the TPP’s obligations, American taxpayers may be stuck having to pay a ransom to wrest back democratic control over expensive, low-quality, private contractors.

7. Will the TPP adequately protect against unfair competition by state-owned and state-subsidized companies? Such companies often operate at a loss simply to drive U.S. competitors out of business. They also may buy U.S. companies in order to take technology to their home country, leaving U.S. workers holding the bag. It’s not clear how small U.S. businesses will be able to use the TPP to fight back.

8. Will the TPP ensure the United States “writes the rules” of trade? For example, the reported weak rule of origin for automobiles ensures that China and other non-TPP countries will be able to benefit from the TPP without ever joining. That means China still can write its own rules. Americans need to know “who” is the “we” writing the rules, because it doesn’t appear to be working people.

9. How will the TPP “help Americans buy American”? The TPP will require many government purchasing decisions to treat bidders from the 11 TPP countries with exactly the same preferences as U.S. bidders. Won’t this actually reduce the likelihood that Americans can use their own tax money to create jobs here in the United States?

10. Will the TPP make medicines more expensive? Will the drug pricing provisions give foreign pharmaceutical companies more leverage to force Medicare to cover their products and pay higher prices for them?

This blog originally appeared in AFL-CIO on October 14, 2015. Reprinted with permission.

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist.  Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.  Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History.  His writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.


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TPP Deal Rushed Through; Working Families Respond

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Kenneth QuinnellIn Atlanta this weekend, negotiators rushed through a deal for the Trans-Pacific Partnership (TPP) and working families were quick to respond, asking why the deal has to be rushed when there are many unanswered questions, and demanding that the details of the agreement be released as soon as possible so the people most affected by the deal—working people—know what to expect. Here are the responses from the AFL-CIO and other working family organizations.

Richard Trumka, AFL-CIO president:

We are disappointed that our negotiators rushed to conclude the TPP in Atlanta, given all the concerns that have been raised by American stakeholders and members of Congress. The Administration had a hard time reaching this deal for good reasons: it appears that many problematic concessions were made in order to finalize the deal. We ask the Administration to release the text immediately, and urge legislators to exercise great caution in evaluating the TPP. As we’ve said, rushing through a bad deal will not bring economic stability to working families, nor will it bring confidence that our priorities count as much as those of global corporations. We will evaluate the details carefully and work to defeat this corporate trade deal if it does not measure up.

Chris Shelton, president of the Communications Workers of America (CWA):

Negotiators from the 12 Trans-Pacific Partnership trade deal countries, meeting in Atlanta, have announced an agreement. Despite all the hype, and given what we’ve learned over the past many months and years of negotiations, it’s clear that this TPP remains a bad deal for working families and communities. The corporate lobbyists who make up the majority of U.S. trade advisers have been pushing hard for an agreement, mainly because they’ve known all along that what’s in the TPP represents a sweet deal for multinational corporations and the 1 percent.  For the rest of us—U.S. working families and communities, and workers in the other TPP countries—this agreement is bad news.

Despite broad promises from the Obama administration and U.S. Trade Representative Michael Froman that the deal would deliver for middle-class families, working people know that TPP would be a disaster. It would continue the offshoring of jobs and weakening of our communities that started under the North American Free Trade Agreement and hasn’t stopped. It would mean labor and environmental standards that look good on paper but fall flat when it comes to enforcement. It’s a corporate dream but a nightmare for those of us on Main Street.

We’re still very concerned about the Investor State Dispute Settlement (ISDS) process. The window dressing changes adopted in Atlanta don’t change the fact that corporations still have an extra-judicial process—ISDS 0151to enforce their rights. That’s not the case for labor and environmental standards. And we’re concerned that the protections given to pharmaceutical companies will mean that life-saving drugs won’t be affordable for millions. Before the TPP is put to a full vote in Congress, there must be adequate time for full review and discussion. Even on the quickest timetable, a vote that can’t happen until early 2016. Few members of Congress will want to vote in an election year on the mass giveaway of U.S. jobs that this TPP allows. CWA and our allies will be certain to hold accountable those members of Congress who support this giveaway to the 1 percent.

Marc Perrone, president of the United Food and Commercial Workers (UFCW):

The only good thing about a TPP agreement being reached is that the American people will finally be able to read every line of this deal. Given what we already know from leaked drafts, we should prepare for the worst, and expect even worse than that. This deal will most likely fail to address currency manipulation, offer big pharmaceutical corporations unacceptable protections that will limit access to life-saving medicine and threaten every hardworking American family with job losses and lower wages. How could this be good for America? Contrary to the rosy rhetoric and false promises, a long history of trade agreements proves that the TPP will have a devastating impact upon our families, our jobs and this nation. In the coming months, hardworking men and women who are a part of the UFCW family will be pushing every member of Congress—Republican and Democrat—to see the harmful effects of this deal through the eyes of everyday American families. Make no mistake, this fight is not over.

R. Thomas Buffenbarger, president of the Machinists (IAM):

As a labor union whose members build products that are exported all over the world, the IAM has always taken a strong interest in the development and growth of international trade. We know firsthand that trade done right will improve living standards and strengthen our economy to the benefit of all Americans. Unfortunately, the recently concluded Trans-Pacific Partnership (TPP) represents a new low in corporate dominance of our nation’s trade agenda. Despite the rhetoric, this deal represents a step backward in efforts to achieve effective labor standards and human rights. Negotiated in secret by and for multinational corporations that have no allegiance to any flag or country, the TPP will facilitate the export of American jobs to countries like Vietnam, Malaysia, Brunei and Mexico, which lack fundamental labor rights, some of which even engage in slave labor. Reports of a secret side agreement with Vietnam are especially offensive to anyone who takes internationally recognized labor standards seriously.

Earlier this year, Congress passed Fast Track legislation that laid out an ambitious set of negotiating goals that we, and others, warned were completely unenforceable. Reports indicate that we were correct in our assumption about the congressional negotiating goals; the U.S. Trade Representative simply ignored them. Although the agreement has not been made public yet, these reports indicate that, substandard labor standards remain weak and ineffective, currency manipulation has not been effectively addressed, rules of origin for autos are greatly weakened, access to affordable medicines is reduced, post Great Recession financial regulations were made less effective and secret non-governmental tribunals will interpret and enforce the agreement. As job and income growth continue to stagnate, Americans know that the economic system is rigged against them and the TPP is just the latest example. Congress must put the American people first and reject this deeply flawed trade agreement.

National Nurses United:

National Nurses United today urged Congress members to reject the Trans-Pacific Partnership final agreement, warning there remains inadequate guarantees to assure patients and consumers will not be harmed by pharmaceutical price gouging.

NNU, the nation’s largest organization of nurses, says it also opposes any trade agreement that permits transnational corporations to use extra-legal proceedings to overturn public laws and regulations, the Investor State Dispute Settlement corporate tribunals seen in prior trade deals.

The nurses said they are in full agreement with Sen. Bernie Sanders who said today, that “Wall Street and other big corporations have won again. It is time for the rest of us to stop letting multinational corporations rig the system to pad their profits at our expense.”

While full details of the final pact remain murky, “there is simply no basis for any concessions that give the pharmaceutical corporations a green light to continue pricing patients in the U.S. or other countries out of affordable medications,” said NNU Co-President Jean Ross, RN.

Recent outrage over the decision of one pharmaceutical CEO, Martin Shrkeli to jack up prices by 5,000 percent on Duraprim, an anti-infection drug critical for people with weakened immune systems, “symbolizes why we need to close down on the handouts to big pharma, not give them greater monopoly control over high prices,” Ross noted.

With profits for the five largest pharmaceutical corporations topping $56 billion last year alone, and increased reporting on how much of the “innovation” drug companies claim they need is actually financed with taxpayer subsidies, “no one should be assisting the price gouging that puts patients’ lives at risk,” Ross said.

Ross cited concerns voiced by economist Joseph Stiglitz and Adam Hirsh who warned last week about the U.S. insistence on TPP language that permits the drug companies to maintain “their monopolies on patented medicines, keep cheaper generics off the market, and block ‘biosimilar’ competitors from introducing new medicines.”

The nurses “will also protest any agreement that allows any corporation to sue a government for ‘lost’ profits due to laws or regulations that establish public protections,” Ross added. News reports today said that the final TPP agreement had excluded tobacco companies from ISDS, which have committed some of the most notorious abuses under the corporate tribunals. “Why just tobacco when you have had many other corporate giants exploiting the same disgraceful extra-legal proceedings, Ross said. “No corporation should ever have the right to override laws that protect public safety.”

Professional and Technical Engineers:

Negotiators from the United States, Canada and 10 other countries reached an agreement in principle on the Trans-Pacific Partnership (TPP), the ‘free trade agreement’ that has essentially been negotiated in secret over the last several years.

 Representing workers across North America, IFPTE has and will continue to oppose TPP, which has been dubbed “NAFTA on steroids.” Unless major changes were included by negotiators, the pact’s contents are designed to primarily benefit multinational corporations at the expense of workers, domestic manufacturers, and IFPTE members’ local and national economies and communities. The TPP is likely to further exacerbate the loss of well-paying jobs in both the Canadian and US manufacturing sectors, grant foreign corporations rights to contest local and national laws and regulations, and undermine financial regulations. TPP further perpetuates the global race to the bottom as TPP nations such as Malaysia, Vietnam, and Brunei have shown little to no commitment to international standards of human and workers’ rights. The trade agreements that TPP is modeled after have repeatedly failed to enforce language on labor and environmental standards.

IFPTE and its members will continue to urge legislators in Congress and Parliament to oppose ratification of TPP when it comes before their respective chambers.

Leo W. Gerard, president of the United Steelworkers (USW):

Since negotiations on the Trans Pacific Partnership (TPP) started, the cleared advisers of the USW have devoted substantial resources and time to working with the trade negotiators responsible for developing and advancing U.S. interests in the trade talks.  Because the USW is the largest industrial union in North America, we see the real-life effects of trade policy every day. That is why we are paying close attention to the provisions that have the potential to harm the majority of our membership.

From what we know, the draft TPP threatens the future of production and employment. It compromises the so-called 21st century standards that were supposed to form the foundation for this agreement. It will deal a critical blow to workers and their standard of living in the United States. Although the final text has not been made available and will contain some new bells and whistles; from what we have seen and know, at its core the hastily concluded TPP deal will simply continue today’s outdated, disastrous approach to trade. This TPP deal shouldn’t even be submitted to Congress and, if it is, it should be quickly rejected.

You only have to look at the consistently dismal job numbers in manufacturing to understand what every manufacturing worker already knows. We have been on the losing end of trade deals. Once again, it appears that misguided foreign policy and global corporate interests have trumped sound economics and the opportunity to get things right. Our negotiators are trying to beat the clock to close a deal so they can rush it through Congress before next year’s elections.

TPP is sold as a way for the United States to write the rules of trade before China does. In many areas, the agreement fails this objective and the language on rules of origin will put a smile on the faces of China’s leaders. China didn’t get to write the rules in their favor because our American negotiators did it for them. The rule of origin on autos governs how much of a vehicle’s content must be produced by the twelve TPP countries to get the preferential treatment the TPP will provide. In this quickly concluded deal on rules of origin, Chinese-produced auto parts could account for more than a majority of a car’s parts and still get sweetheart treatment. While China is not as yet a party to the twelve-nation TPP, the TPP is designed so that other countries can join.

In many other areas critical to workers, U.S. negotiators refused to take the advice that was provided to them time and time again by the representatives of working people. But while supporters tout the deal, those promises will fall on deaf ears. Workers across this country have had to fight to get our trade rules enforced in the face of inadequate enforcement and constant cheating by our trading partners.

Even the best rules, which were not included in TPP, if unenforced, are essentially worthless. How trade rules are implemented, how we monitor imports, obtain market access for our exports and how we enforce our rules are all critical to any deal’s success. So far, there has been no progress or willingness of the Administration to even discuss specific steps that could be taken. TPP may be the final blow to manufacturing in America. Our producers and workers are under siege from other nations’ massive overproduction, foreign currency devaluation, our own lack of long-term infrastructure investment and the strong dollar.

Therefore, trade policy is not the only issue that determines what the economic prospects will be for working people. But, trade is the critical link to the world economy and global pressures are being felt in virtually every occupation and in every workplace.

Unions weren’t the only ones to express concern about TPP, Ford Motor Co. said the following via press release:

As a top U.S. exporter, Ford supports free trade agreements that result in real market openings and a level playing field for all to compete. Within the U.S. Congress, there is bipartisan consensus that currency manipulation needs to be meaningfully addressed. This summer, U.S. lawmakers took unprecedented action to set a clear negotiating objective for addressing currency manipulation in all future trade deals. The TPP fails to meet that test. To ensure the future competitiveness of American manufacturing, we recommend Congress not approve TPP in its current form, and ask the Administration to renegotiate TPP and incorporate strong and enforceable currency rules. This step is critical to achieving free trade in the 21st century.

This blog originally appeared in AFL-CIO on October 5, 2015. Reprinted with permission.

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist.  Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.  Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History.  His writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.


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