About Us

  • Eyes on Trade is a blog by the staff of Public Citizen's Global Trade Watch (GTW) division. GTW aims to promote democracy by challenging corporate globalization, arguing that the current globalization model is neither a random inevitability nor "free trade." Eyes on Trade is a space for interested parties to share information about globalization and trade issues, and in particular for us to share our watchdogging insights with you! GTW director Lori Wallach's initial post explains it all.

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March 09, 2010

Putting Twitter Above Labor, Environmental, and Consumer Protections?

Spillovers to Central America in Light of the Crisis: What a Difference a Year Makes: by Andrew Swiston; IMF Working paper 10/35; February 1, 2010

TwitterIn January, Peter Cowhey stepped down from his yearlong stint as senior counselor at the Office of the U.S. Trade Representative (USTR) and he may be giving us an inside look at what the USTR staff is thinking going into the first round of negotiations for the Trans-Pacific Partnership (TPP) agreement with Singapore, Peru, Australia, Chile, Brunei, New Zealand, and Vietnam next week. Inside U.S. Trade gives us the scoop (sorry, subscription only):

In an interview with Inside U.S. Trade, former USTR senior counselor Peter Cowhey signaled that negotiations to establish a Trans-Pacific Partnership (TPP) agreement could be used to improve upon past bilateral trade deals the U.S. has already negotiated with Singapore, Peru, Australia and Chile, particularly on rules for advanced technologies.

Great! USTR might be looking to improve the Singapore, Peru, Australia and Chile trade agreements while negotiating the TPP!  They could amend the trade agreements to add enforceable labor and environmental protections and remove excessive intellectual property protections on pharmaceuticals and investor-state lawsuit provisions that threaten public interest legislation, all of which would be major improvements to those trade agreements.  But what was that about advanced technologies?

Historically, U.S. trade agreements have assured access for basic telecommunications services and basic data transmission networks, [Cowhey] said. But it is not entirely clear from a legal point of view whether those agreements cover new services such as Twitter and Facebook on the one hand, or integrated energy and environment management control systems for entire buildings and cities on the other, Cowhey explained.

What a let down! Twitter is nice and all, but could we be a bit more ambitious here when we reopen those trade agreements in the TPP negotiations, please?  This must be just a warm up for when the USTR announces a new trade agreement model based on the TRADE Act that a majority of House Democrats have co-sponsored, right?

"Buy, Buy American Pie"

...performed by The Capitol Steps.


 

March 04, 2010

Green Job Offshoring Reignites Buy America Debate

Last month, an American University think tank made this startling conclusion: 79 percent of the $2 billion in clean energy grants under a U.S. Treasury/ Energy Department stimulus initiative have gone to foreign - not U.S. - companies. By industry estimates, the program has lead to well over a thousand net job losses in manufacturing.

While President Obama ran and won (and has since advocated) a green industry agenda that creates jobs in the U.S., the AU report finds that the Energy Secretary and American Wind Energy Association stating for the record that the grant program did not have immediate U.S. manufacturing job creation as a major goal.

Yesterday, Sen. Sherrod Brown (D-Ohio) joined Sens. Bob Casey (D-Pa.), Chuck Schumer (D-N.Y.) and Jon Tester (D-Mont.) in calling for a suspension of the grant program until legislation can be passed that makes sure the federal agencies prioritize U.S. job creation. In Schumer's words, "We should not be giving China a head start in this race at our own country's expense."

And as the New America Foundation showed, all of this is part of a longer term "green trade deficit" the U.S. has yet to address.

This latest kerfuffle has reignited last year's debate about Buy America provisions. People need to remember two things: Buy America has been shown to aid U.S. job creation, and neither the stimulus bill nor this latest Brown amendment change long-standing U.S. policy.

Continue reading "Green Job Offshoring Reignites Buy America Debate" »

March 03, 2010

Live Blogging the Senate Finance Hearing on Kirk

Note: This is not a verbatim transcript. Not even close. It is an attempt to capture major areas of discussion of interest to EOT readers.

Continue reading "Live Blogging the Senate Finance Hearing on Kirk" »

March 02, 2010

Is There an Outbreak of Amnesia at USTR?

During the presidential campaign, Obama made it clear that he intended to renegotiate NAFTA to include enforceable environmental and labor rights provisions in the main text of the agreement.  The USTR’s 2010 Trade Policy Agenda, released yesterday, entirely lacked any plans to fulfill this crucial campaign promise.

When President Obama was campaigning for office, the only “r” verb he used on NAFTA was “renegotiate,” coupled with a friendly “opt out.” In contrast, USTR's report uses the verbs “review” and “recalibrate,” but then only to refer to actions they promised to take but still haven't taken. On NAFTA’s severe environmental and labor shortcomings, the report only stated that NAFTA’s central oversight body, comprised of officials from each country’s trade negotiating body, would “strengthen its relationship” with the North American Commission for Environmental Cooperation and the North American Commission for Labor Cooperation, which are bodies established under NAFTA whose role is mostly limited to releasing reports about the labor and environmental effects of NAFTA. They have no enforcement capabilities, which Obama heavily criticized.

It’s not like Obama whispered his position on NAFTA to labor unions and environmentalists in private meetings.  He was loud and clear about his plan to renegotiate NAFTA, proclaiming it several times in the televised presidential debates.  In a January 2008 debate, he said that “it is absolutely true that NAFTA was a mistake.” Obama reminded us that his position on NAFTA has been consistent during a February 2008 debate:

MR. RUSSERT: Senator Obama, you did in 2004 talk to farmers and suggest that NAFTA had been helpful. The Associated Press today ran a story about NAFTA, saying that you have been consistently ambivalent towards the issue. Simple question: Will you, as president, say to Canada and Mexico, "This has not worked for us; we are out"? 

SEN. OBAMA: I will make sure that we renegotiate, in the same way that Senator Clinton talked about. And I think actually Senator Clinton's answer on this one is right. I think we should use the hammer of a potential opt-out as leverage to ensure that we actually get labor and environmental standards that are enforced. And that is not what has been happening so far.

That is something that I have been consistent about. I have to say, Tim, with respect to my position on this, when I ran for the United States Senate, the Chicago Tribune, which was adamantly pro-NAFTA, noted that, in their endorsement of me, they were endorsing me despite my strong opposition to NAFTA.

In the Democratic candidates’ debate in August 2007, Obama had a sense of urgency in his voice when he discussed his position on NAFTA:

Continue reading "Is There an Outbreak of Amnesia at USTR?" »

USTR’s 2010 Trade Policy Agenda: The Good, The Bad, and the Bizarre

Statement of Lori Wallach, Director, Public Citizen’s Global Trade Watch Division

Relative to last year’s March 1 report, the 2010 Trade Policy Agenda released today by the Office of the U.S. Trade Representative (USTR) excludes some troubling elements, such as the call for rapid action on the leftover Bush trade pact with Panama, the demand that climate policy conform to trade rules and the reference to renewed presidential trade authority. But at the same time, the report unfortunately fails to deliver the new fair trade agenda that President Barack Obama promised during the campaign and that is needed for our country’s economic recovery.

It also continues to mimic the misrepresentations that the Bush administration borrowed from the U.S. Chamber of Commerce with respect to only considering the role of exports on U.S job creation, as if the U.S. did not have a massive job-killing trade deficit. An example is the hilarious statement about 10 million U.S. jobs being supported by exports in 2008 – a year we had a $696 billion deficit – without any reference to the net U.S. jobs effect of the flood of imports underlying that deficit. The report also fails to mention that 5 million net U.S manufacturing jobs – one out of every four – have been lost since the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA) went into effect, or the downward pressure our current trade policies are putting on wages across the economy.

Continue reading "USTR’s 2010 Trade Policy Agenda: The Good, The Bad, and the Bizarre" »

March 01, 2010

5,500 is Just the Beginning

Last Friday's rally and protest at the soon-to-close Whirlpool plant in Evansville, Indiana drew a massive crowd. Organizers said 5,500 protesters joined the day's actions against the corporate greediness of Whirlpool's - which just received $19 million in federal stimulus money for job creation! Protesters demanded Whirlpool reverse its plan to shift good 1,100 jobs to Mexico - a move facilitated by unfair trade deal-in-chief: NAFTA.

The AFL-CIO has already produced a short video of highlights from the actions:

And this is only the beginning. Imagine how workers in Evansville would react if the President tried to pass yet another NAFTA-type trade deal - like one with South Korea where the U.S. auto industry takes on it on the chin. Now imagine what happens if they tried to pass one with tax haven Panama or unionist murder capitol Colombia!

Clearly, U.S. workers, facing some of the hardest economic times in memory, won't stand idly by while their families' futures are washed down the drain by corporate greed and bad trade policy. That's why they're mobilizing behind the TRADE Act - the comprehensive trade reform bill - and pressuring to hold President Obama accountable to his campaign promises.

February 26, 2010

Fighting To Save Jobs in Evansville

Any minute now, the huge rally to save 1,100 good, family-supporting union manufacturing  jobs will begin. Brother Richard Trumka, president of the national AFL-CIO, will headline the event, along with other local labor and elected officials.

IUE CWA - Whirlpool
Trumka has and Oped in today's Evansville Courier & Press that shows the stakes:

After more than 50 years, Whirlpool is turning its back on Evansville — shipping hundreds of good local jobs to Mexico despite the company's healthy profits and millions of taxpayer dollars in federal economic stimulus money.

We need jobs. And we can't stop in Evansville.

We have to take the fight to every company that wants to cut out on America's workers, to the big banks that ruined our economy and to elected officials who refuse to stand up for working families.

When companies such as Whirlpool choose cheaper labor and lax environmental standards over America's workers, consumers and communities, we're going to let them know we won't stand for it.

There's a lot at stake, both nationally and here in Evansville.

Brother Trumka is right indeed. It's a national policy problem that requires a national policy solution. The fight is not just going on in Evansville, but in towns like Newton, Iowa and Galesburg, Illinois, and all throughout the country where good manufacturing jobs being are lost to lower wage countries like Mexico. Thanks to unfair policies like NAFTA, that's where the Whirlpool jobs will go thanks.

That's why we need to pass forward-looking reforms like the TRADE Act that allow for a sane manufacturing policy that creates good jobs right here in the U.S.

For more on the local buildup to today's rally, check out:

~ WFIE's coverage of the Whirlpool Corporation's threat letter to displaced workers who plan to participate in today's action, and ongoing protest preparations, or

~ The local Fox affiliate's continuing coverage of how the threat letter steeling the union's resolve, or

~ The Evansville Courier & Press Editorial expressing some limited solidarity with displaced workers marching against the 'recommendation' of their unfaithful boss:

Cobern [local Whirlpool manager] said in his letter that the decision to close the Evansville plant is final and will not be reconsidered....

In the meantime, allow these workers the freedom to express their frustration and disappointment at seeing their employer pack up for the trip to Mexico.

It has to hurt.

Hurt must barely begin to describe it. But here's hoping that pain will give way to anger at the unfair trade policies and corporate greed at the root of the problem/ Then that anger can transform into organizing to build another world in which the needs of normal hard-working women and men of the world come first!

February 25, 2010

Whirlpool: Taking Tax Dollars, Taking Jobs

It can barely get greedier than this: We're in tough economic times, so Whirlpool receives $19 million in taxpayer funds to create jobs. Then it turns around and announces it will shutter its Evansville, Indiana refrigerator plant and displace the 1,100 workers there. Disgusting.
WHIRLPOOL_8_2009
And where, you might ask, will those jobs go? They'll follow so many other lost family-supporting jobs on the NAFTA train to Mexico.

But workers are hoping to make the planned Evansville closing a turning point in the battle for American manufacturing, and are fighting to keep the plant open. The president of the national AFL-CIO, Richard Trumka, is scheduled to speak tomorrow at a major rally to keep plant open. Many hundreds are expected to join the demonstrations from across the region and the country.

The union representing the Whirlpool workers, IUE-CWA Local 808, is fighting fiercely. Financial Secretary of Local 808, Barbara Reich, lays it bare on evening news of the local Fox affiliate:

We need to bring to the attention of the American public when a so-called - in my opinion - American company gets American tax dollars, $19 million American tax dollars to create jobs, then they should not be taking existing American jobs to Mexico or China... We need those jobs right here in this community.

Sister Reich is right. It's a long shot that the plant will stay open, but workers are rallying to a higher cause. Under the influence of unfair NAFTA/WTO-style trade policies, manufacturing job loss has hobbled the country's economic prospects. Working people in Evansville are fighting not just to keep the plant open, but also to change the policies of "taking these jobs to other countries."

That's why solutions like the TRADE Act that correct our failed trade policies, are a crucial element of this fight. Indiana Representatives Visclosky, Donnelly, and Carson have endorsed the comprehensive reform legislation, but 8th District Rep. Brad Ellsworth, who is expected to speak at the rally and whose hometown is Evansville, has yet to sign on. Hopefully he'll see the light and join the growing reform consensus.

Mobilization and protest are another critical element of the fight. So tomorrow - Friday, February 26th - working families will assemble in Evansville to say, enough!

Continue reading "Whirlpool: Taking Tax Dollars, Taking Jobs" »

USTR Citing the Chamber of Commerce's Slanted Website?

USTR trade data CoC Given that the Chamber of Commerce is fiercely lobbying against the fairer trade model supported by President Obama and members of Congress (and against almost everything else the Obama administration is trying to achieve), it is shocking that the USTR’s webpage of links to trade data includes the Chamber of Commerce’s slanted “trade benefits” website. The USTR webpage lists all government agencies and then only the Chamber as sources of trade data – no unions, no universities, just the country’s main corporate lobby.

Did they miss the wonderful trade data resources of the Economic Policy Institute (EPI), the AFL-CIO, or our searchable Trade Adjustment Assistance database? Or, maybe the USTR staff just hasn’t had a chance to update the webpage in the 14 months since Bush left?—Actually, no, the page says that it was last updated on July 29, 2009.

On the other hand, maybe it’s not an oversight? While most of the administration is engaged in mortal combat with the Chamber, USTR Ron Kirk seems to be all warm and fuzzy toward the Chamber. Consider his comments at a speech there last year:

I couldn't think of a better, more welcoming environment than being right here at the Chamber….I was really excited about the opportunity to come and be with you today because -- I think I've got this thing figured out now, after 60 days; I've got it all down. But considering some of the audiences that I've been in over the last 60 days, I needed a little bit of home cooking, so to speak. So I feel like I'm very much preaching to the choir, and if so, please don't be offended.

This cuddly view of the Chamber is inconsistent with pursuing a new, fairer trade model, which the Chamber strongly opposes. Over half of Democrats in the House have endorsed this new vision for trade policy – by formally sponsoring the Trade Reform Accountability Development and Employment (TRADE) Act. (The Chamber has launched a campaign against the Democrats’ initiative.)

The Chamber of Commerce’s website purports to show the trade “benefits” for each state. The problem is that the Chamber’s website only covers states’ exports, as if the United States were not being swamped in a flood of job-killing imports.  Imports represent goods that American consumers and businesses have purchased from other countries that they could have purchased from U.S. manufacturers employing U.S. workers.  

The Chamber’s website says virtually nothing about the harmful effects of our massive trade deficit that accrued since the Chamber’s beloved NAFTA, WTO and similar trade deals went into effect. (Indeed, our trade deficit increased from $25 billion in 1993 to $263 billion in 2009 with NAFTA countries alone.)  EPI estimated that if we had balanced trade with Canada and Mexico, the U.S. economy could have supported about one million more jobs in 2004. Yup, the Chamber of Commerce site also makes no mention of the nearly 5 million manufacturing jobs that we've lost since NAFTA and WTO went into effect – that’s one out of every four manufacturing jobs.  Balanced trade could help U.S. businesses, but instead the large U.S. trade deficit is a significant drag on growth that is killing U.S. manufacturers and American jobs.

Plus, the Chamber dodges the wage stagnation that has plagued the U.S. during the era of Fast Track and NAFTA-WTO model trade deals. And it does not even get into all of the horrible import safety problems – tainted food, toys and more – or the trade tribunal attacks on key consumer, toxics and environmental law.

What is even stranger about the USTR linking to the Chamber  is that the Chamber has relentlessly attacked President Obama’s major policy priorities.  The Wall Street Journal has called the Chamber’s assault “the biggest undertaking in the Chamber's 100-year history.” Last year, the Chamber spent $140 million lobbying to prevent the administration from passing  health care reform, financial sector reregulation, and climate change legislation.

Instead of heaping praise on an organization that is attacking his boss’ goals and citing the Chamber as a reliable source of trade information, perhaps USTR Kirk could achieve more progress by  advancing the new trade model that so many members of Congress have endorsed.