Contrary to Obama’s Claim, the Three U.S. Free Trade Agreements Passed a Year Ago Today Have not Boosted U.S. Exports
October 12, 2012
U.S. Exports to Korea Are Down While Imports From Korea and Colombia Have Surged, Expanding Job-Killing U.S. Trade Deficit; Panama Deal not Even in Effect
WASHINGTON, D.C. – Contrary to President Barack Obama’s claim in last week’s
presidential debate that passage last year of free trade deals with Korea,
Panama and Colombia have expanded U.S. exports, U.S. exports to Korea have
declined, imports from Korea and Colombia have surged, and the Panama deal has
not even gone into effect, Public Citizen said today on the anniversary of the
deals’ passage.
During the first presidential debate on Oct. 3, Obama boasted that the three
trade deals, which he supported despite overwhelming opposition from
congressional Democrats, “are helping us to double our exports and sell more
American products around the world.” Republican nominee Mitt Romney, meanwhile,
named further expansion of such trade pacts as the second pillar of his U.S.
jobs creation plan. However, yet another month of Department of Commerce trade
data, released Thursday, supports the views of a majority of Americans who see
these deals as destroying – rather than creating – U.S. jobs.
“Corporate donors to both political parties love these deals because they
provide new investor protections to offshore jobs and rights to import products
that do not meet our safety standards,” said Lori Wallach, director of Public
Citizen’s Global Trade Watch. “But, as the government trade data again show,
the actual outcomes prove that the majorities of independents, Democrats and
Republicans who think that these deals hurt their families – and the country –
have it right.”
Obama’s claim – that the three trade deals are boosting exports – does not
survive a basic fact check. The Panama deal has not even taken effect. Since
implementation of the Korea Free Trade Agreement (FTA), U.S. goods exports to
Korea have declined by nine percent (a decrease of more than $1.2 billion) in
comparison to 2011 levels for the same months, while exports to Colombia since
implementation of the Colombia FTA have barely increased (by $358 million).
Under the FTAs, the United States has suffered a six percent fall in combined
exports to the two new U.S. FTA partners.
Meanwhile, imports from both Korea and Colombia have risen substantially since
implementation of the pacts. As a result, the combined U.S. trade deficit with
Korea and Colombia under the deals has jumped 29 percent above the 2011 levels
for the same months. Using the same ratio employed by the Obama administration,
this trade deficit expansion implies the net loss of more than 15,000 U.S. jobs
in just the first few months of the new trade deals.
“In a presidential campaign dominated by the urgent agenda of job creation, it
is a sorry statement about the domination of corporate money in American
elections that both presidential candidates would tout NAFTA-style deals that
most Americans oppose and that already have begun to cost more American jobs,”
said Wallach. “Polls show that opposition to these NAFTA-style deals is one of
the only issues uniting Democratic, Republican and independent voters in an
otherwise extremely polarized electorate. Public Citizen will continue to track
the damage of these pacts as we push for a new trade agreement model that
actually creates American jobs and does not threaten our environmental, health
and safety policies.”
Two-thirds of Democrats in the U.S. House of Representatives opposed the Korea
FTA, and 82 percent opposed the Colombia FTA – the largest percentages to ever
vote against a Democratic president on trade pacts. The Obama administration
promised a concrete benefit for each of the pacts on the date of their passage:
“greater U.S. access to the Korean auto market, significantly increased labor
rights and worker protections in Colombia, and enhanced tax transparency and
labor rights in Panama.”
But the facts show otherwise:
- U.S. Auto Exports to Korea Down: According to additional data released
today, U.S. automotive exports to Korea have dropped by $26 million, a seven
percent decline, since implementation of the pact, as compared to 2011 levels
for the same months. Meanwhile, in the months that the Korea FTA has been in
effect, imports of cars and auto parts from Korea have soared $1.8 billion
above 2011 levels for the same time period – a 25 percent increase. The U.S.
trade deficit with Korea in autos and auto parts has already climbed to $7.9
billion in five months under the Korea FTA – a $1.9 billion, or 28 percent,
increase over 2011 levels for the same period.
- Unionist Assassinations in Colombia Up: A year after passage of the
Colombia FTA and 18 months after the Obama administration announced a Labor
Action Plan with Colombia to improve Colombia’s labor protections, Colombia
remains the world’s deadliest place to be a union member. In 2011, four of
every 10 unionist murders in the world occurred in Colombia, with 29 slain.
This year, a reported 35 Colombian unionists already have been assassinated,
more than in all of 2011, the year the Labor Action Plan was announced. Sadly,
Colombian unions and human rights organizations predicted on-the-ground
realities would not change, denouncing the action plan as a series of cosmetic
changes. Since implementation of the FTA, imports from Colombia have increased
by nine percent relative to the same period in 2011.
- Panama Tax Haven Status Continues: To counter criticism that the
Panama FTA would assist corporations seeking to dodge U.S. taxes via secretive
Panama-based subsidiaries and bank accounts, the Obama administration announced
implementation of a Tax Information Exchange Agreement with Panama. However, a
large loophole in that agreement allows Panama to sidestep new tax transparency
provisions if they are “contrary to the public policy” of Panama, a country
that earns much of its revenue by providing strict banking secrecy and tax-free
status for foreign firms incorporated there. In June 2012, the Organization for
Economic Cooperation and Development, which tracks countries’ tax haven
statuses, reported that Panama remains one of a handful of countries in the
world that has not passed a first-stage review of its tax transparency measures,
due to nearly unparalleled nonconformity on six of nine regulatory checks
against tax evasion. Even the Cayman Islands did not earn that dubious
distinction. Despite the lack of progress, the Obama administration has
indicated its desire to implement the Panama FTA “very soon.”
###
The first of all time I discovered your ebooks follows drew in, discover your literate locution makes up truly fascinating personifies existent beneficial!
Posted by: Falcons Julio Jones Jersey | October 19, 2012 at 11:29 PM
Its really very great and informative post. thanks for sharing the information.
Posted by: Patriots Tom Brady Jersey | October 19, 2012 at 11:34 PM
Free trade is really a great starategy provide corporations with favorable investment conditions, while at the same time providing developing nations with vital capital, the ability to export, jobs that would otherwise not exist
Posted by: futures trading system | November 04, 2012 at 01:24 PM
Free trade has lots of benefits like promotes innovation and competition, economic growth and freedom.
Posted by: chevelle parts | November 08, 2012 at 04:20 AM
Interesting post, not heard many that are that positive about Obama on economy, but it's 4 more years, and the looming financial crisis will be a big issue not just in US but worldwide if Obama and Congress create a default.
Posted by: Catherine Gannon | November 13, 2012 at 04:48 PM
Please sign our petition on the White House website to get the U.S. out of the WTO http://wh.gov/Xq8e
Posted by: Lisa Nicole Lenger, Economy In Crisis | November 19, 2012 at 12:33 PM
Don't expect Obama that this fail. Of course he will say all good things to impress.
Posted by: Pharmaceuticals Jobs | December 04, 2012 at 02:11 AM
Yes I agrre an interesting post.It's incredible to see the new prototipes of ecological cars that we can find on this site.
Posted by: fitnash health | January 21, 2013 at 07:46 AM
We need widespread ways to make and be relevant learning’s just like the biopsy example
Posted by: www.forextradingforearngain.com | January 24, 2013 at 01:45 AM
You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new.
Posted by: Buy cheap youtube views | February 07, 2013 at 04:08 PM
Is it not a case that for some products, the US simply no longer produces the same quality, and can't compete on price anyway, with Asian markets ?
Posted by: Bradley Bloom | May 15, 2013 at 05:29 PM