Nel's New Day

June 11, 2015

Trans-Pacific Partnership, A Deal with the Devil

The Trans-Pacific Partnership (TPP) is nearing fruition tomorrow as House Speaker John Boehner (R-OH) has worked hard to make a deal with Minority Leader Nancy Pelosi (D-CA) by dumping the proposed Medicare cuts to pay for workers displaced by the agreement. Boehner’s word on this is worthless because he plans to attach the Medicare cuts to a separate trade “preferences” bill with African countries that is not considered must-pass legislation. Fast-track authority gives the president the authority to negotiate trade agreements and limit Congress to an up-or-down vote on them, with no amendments or filibusters permitted, that requires only fifty-one votes, not sixty, to pass.

Despite President Obama’s furious push to “fast track” the TPP and Pelosi’s caving in on a worthless agreement, a large number of Democrat House members plan to vote against the fast tracking. Even so, the White House thinks is has 19 Democratic votes with others still in play. Thirty GOP House members are “no” or “leaning no” on the vote, according to The Hill’s Whip List.

 

As the vote grows closer, more has been disclosed about the secretive agreement, and none of it is good. While skipping over the details about how the TPP was negotiated by corporations for the benefit of corporations around the world to lower wages and benefits while erasing regulations through blackmailing countries, the following is more information about the TPP—all of it bad.

The House has made the TPP worse than the Senate version after Rep. Paul Ryan (R-WI) successfully attached a new negotiating objective late Tuesday night: it specifically instructs the U.S. trade representative to ignore action on climate change while negotiating future trade deals. Specifically, it “ensure[s] that trade agreements do not require changes to US law or obligate the United States with respect to global warming or climate change.”

The TPP may force privatization of so-called “public” institutions such as the post office, public schools, public roads, public libraries, public parks, public pensions, etc. so that corporations can replace these with profit-making enterprises that send the profits to the wealthy few. The U.S. Trade Representative website says TPP will have “groundbreaking new rules designed to ensure fair competition between state-owned enterprises (SOEs) and private companies.” Also:

“We are also pursuing pioneering rules to ensure that private sector businesses and workers are able to compete on fair terms with SOEs, especially when such SOEs receive significant government backing to engage in commercial activity.

“… Commitments ensuring SOEs act in accordance with commercial considerations and compete fairly, without undue advantages from the governments that own them, while allowing governments to provide support to SOEs that provide public services domestically; and Rules that will provide transparency with respect to the nature of government control over and support for SOEs.”

Corporations are also battling to privatize highways and make public schools into corporate profit centers. Private companies have largely taken over the U.S. prisons to the detriment of everyone. Private prisons contain 6 percent of state prisoners and 16 percent of federal prisoners. Corporations are trying to take over water delivery from publicly-owned municipal systems.

A majority of people in the United States seem to understand the danger of the TPP. According to an International Business Times poll, 62 percent oppose the TPP, and 85 percent of moderate and conservative Republicans oppose it. A top concern is that U.S. workers shouldn’t have to compete with imports made under conditions less costly to employers. Those benefiting from TPP are Philip Morris, fossil fuel companies such as Exxon, financial institutions such as Goldman Sachs, military profiteers such as Halliburton, pharmaceutical companies such as Pfizer—the list of corporations goes on and on.

The legislators who have voted for TPP or plan to vote for the TPP tell naysayers that this trade agreement is different, that it won’t be like all the others—although they most likely have not read the agreement and have no idea what they’re talking about. With past trade agreements almost identical to the proposed TPP, U.S. workers compete with children coerced to work in foreign factories, trafficked and forced labor, and foreign workers so mistreated that they jump to their deaths from factory buildings. U.S. consumers buy products made in collapsing and/or burning buildings that kill thousands of foreign workers. Labor provisions of trade agreements aren’t enforced, and union activists are murdered, tortured, kidnapped, and threatened. The 14 free trade agreements that the United States signed with 20 countries allow filling of complaints for labor violations, but almost no one has done this filing because no one is told about the provisions. Even for the few complains, serious allegations, such as human trafficking and child labor, remain unsettled for years.

The newest leak of the TPP draft reveals that it would block Congressional reforms for lower drug costs and extend the life of patents through “Evergreening,” slight modification of products for new patents. A comparison of drug costs between Canada and the United States shows the exorbitant prices that people on this side of the border pay. Doctors without Borders declared that the TPP could become “the most harmful trade pact ever for access to medicines” in developing countries.

Even if the TPP fails, the U.S. Trade Representative is negotiating for two other, more dangerous deals. The Trans-Atlantic Trade and Investment Partnership (TTIP) would bind the two biggest economies in the world, the United States and the European Union, and the largest agreement, the 51-nation Trade in Services Agreement (TiSA), combines the U.S. and the European Union with 22 other countries scattered throughout the world. TiSA, negotiated for the past two years, would liberalize global trade covering almost 80 percent of the U.S. economy. (TPP will encompass forty per cent of global economic activity.) Like the TPP, it would restrict how governments manage public laws through a regulatory cap and dismantle state-owned enterprises, turning these services over to the private sector. TiSA measures:

  • Limit regulation on service sectors at all levels with “standstill” clauses to freeze regulations in place and prevent future rulemaking for professional licensing and qualifications or technical standards such as staff to patient ratios in hospitals or safety controls on airlines.
  • Make any broken trade barrier irreversible through a “ratchet” clause.
  • Disallow regulations that are “more burdensome than necessary to ensure the quality of the service.”
  • Eliminate restrictions on foreign investments with corporate control.
  • Permit corporations a dispute mechanism giving them money equal to “expected future profits” lost through violations of the regulatory cap.
  • Allow financial services suppliers’ transfer of individual client data out of a TiSA country for processing, regardless of national privacy laws.

To satisfy the trade agreement supporters who want to open up trade in services among the 51 TiSA nations, an international deal, the General Agreement on Trade in Services (GATS), governs these sectors through the World Trade Organization (WTO). TiSA’s goal is to deregulate and privatize services worldwide, even among emerging nations with no input into the agreement. Social, cultural, and even public health goals would be sidelined in favor of a regime that puts corporate profits first. It effectively nullifies the role of democratic governments to operate in the best interest of their constituents.

The love that the GOP, U.S. Chamber of Commerce, Business Roundtable, K Street lobbyists, and giant multinational companies have for the TPP should be a red flag for the dangers of the TPP. Bill Moyers wrote:

“[The TPP] favors CEOs over workers, profits over the environment and corporate power over the rule of law. Small wonder that it was drafted in secret or that Obama, McConnell and Boehner are determined there will be no amendments permitted once it is made public.”

Congressional supporters of the TPP are selling the soul of the United States to the devil.

January 22, 2015

Stop the Trans-Pacific Partnership Trade Agreement

President Obama’s State of the Union speech earlier this week rated higher than his previous ones with 81 percent of the 31.7 viewers having a very or somewhat positive opinion and only 18 percent reacting negatively. Watchers’ confidence that the president’s policies “will move the country in the right direction” increased 15 percentage points from a pre-speech survey to 72 percent. The high point of the speech for many people happened after Republicans interrupted it with applause when the president said, “I have no more campaigns to run.” He responded, “I know, because I won both of them.” Democrats applauded, and Republicans whined about how nasty the president was.

On their website, House Republicans omitted a couple of the president’s statements.  some of the president’s statements. One was his saying that GOP tried to avoid discussion of climate change by saying that they are “not scientists,” and the other, the president’s statement about torture:

“As Americans, we respect human dignity, even when we’re threatened, which is why I’ve prohibited torture, and worked to make sure our use of new technology like drones is properly constrained. It’s why we speak out against the deplorable anti-Semitism that has resurfaced in certain parts of the world.”

In his response to the president, Sen. Ted Cruz (R-TX) showed himself not yet ready for prime time when he interrupted his own speech about a minute into it by muttering, “Ah, lemme start again.” The video was pulled from YouTube but is available here.

The president’s one clinker in his speech was his support of the Trans-Pacific Partnership, the biggest trade deal in history with countries from Chile to Japan representing 792 million people and 40 percent of the world economy. It was worked out by lobbyists from the nation’s biggest corporations and banks with no participation from the U.S. public.People should know how bad this secret deal by the support from Republicans and rejection of Democrats.

The U.S. chose free trade, opening borders to products made overseas, after World War II to raise living standards and create different jobs. In the last few decades, the win-win situation of free trade skewed the payoff from trade agreements to those at the top. With low tariffs, negotiations are more concerned with protections for intellectual property while decreasing labor laws, financial regulations, and rules for health, safety, and the environment. Big Business still wants free trade while extending their trademarks, copyrights, and patents abroad and protecting their global franchise agreements, securities, and loans. With those rights, they want to stop interference with their profits by doing away with protection for consumers, workers, small investors, and the environment.

Leaks from the TPP proposal show it gives stronger patent protections for pharmaceutical industry to delay cheaper generic versions of drugs. Global corporations will gain an international tribunal of private attorneys, outside any nation’s legal system, who can order compensation for any “unjust expropriation” of foreign assets. The same tribunal can order compensation for any lost profits from a nation’s regulations. Right now, Philip Morris is using this provision against Uruguay in a bilateral trade treaty between that country and Switzerland; the corporation claims that their profits are unfairly diminished by Uruguay’s strong anti-smoking regulations. The year 2012 saw nearly sixty cases in which Big Business sued governments, most of them by U.S. companies trying to undo regulations in different countries.

With TPP’s “minimum standards” affecting financial regulations in a trade deal, a country could be ordered to pay an international bank if the government doesn’t bail out the failing institution. An example is the $200 million cost against the Czech Republic in 2006. TPP rules could also “curtail certain limitations on the size or the operations of financial firms,” according to a letter that three Senators sent U.S. Trade Representative Michael Froman about their objections to his delegation’s provisions. The TPP could also stop any future financial transaction taxes.

Because the TPP lets Big Business eliminate all laws and regulations that threaten their profits, foreign subsidiaries of U.S.-based corporations can destroy regulations in the United States and take compensation from any laws that protect people from unsafe products or unhealthy foods, fraudulent securities or predatory lending, unsafe working conditions, and toxic emissions.

In his speech, the president claimed that the TPP will increase U.S. exports in its competition with China. The same agreement, however, lets U.S. corporations outsource even more jobs abroad. President Obama wants the TPP to be on “fast track” (aka Trade Promotion Authority) because he then gets the constitutional trade and legislative writing authority from the Congress. It prevents amendments and debates on any trade deal that the president negotiates.

At the end of the last century, NAFTA was supposed to be a boon to the United States. Instead it lost almost 700,000 jobs (60.8 percent in manufacturing), expanded inequality, degraded the environment, and destroyed Mexican agriculture. Permanent Normal Trade Relations with China lost over 2.7 million jobs in the U.S., and the Korea Free Trade Agreement destroyed another 70,000 jobs. The most recent South Korean trade pact has lost jobs and expanded U.S. trade deficits.

Proposed trade agreements such as TPP, the Transatlantic Trade and Investment Partnership (TTIP), and the Trade in Services Agreement (TISA) promise the same result. The TTIP agreement with Europe would drive the United States into the same horror of austerity as the EU. Like TTP, Big Business designed its further deregulation of economic, financial, health, labor, safety, privacy, and environmental protections to weaken labor and government. Yet the most optimistic projection of the trade agreement’s impact is a one-time increase of 0.1 percent of GDP.

Sen. Bernie Sanders has provided more ways that the TPP could hurt working families:

Outsourcing even more jobs overseas: More than 130,000 jobs would go to Vietnam and Japan alone. Also disappearing from the U.S. would be many of these service sector jobs in outsource call centers; computer programming; engineering; accounting; and medical diagnostic jobs. More manufacturing jobs would vanish because the TPP provides special benefits to firms that offshore jobs and reduces risks associated with operating in low-wage countries.

Benefiting and expanding Wall Street at everyone else’s expense and financial instability: TPP would stop governments from imposing “capital controls” to avoid financial crises. There can be no financial speculation tax to limit huge transfers of speculative capital in and out of countries responsible for the Asian financial crisis in the 1990s.

Threatening wages, benefits, and collective bargaining: Workers in the U.S. will be competing with those in Vietnam where the minimum wage is 56 cents per hour. 

Undermining environmental protection: Pending claims worth over $14 billion have been filed in other countries on the basis that regulations, mostly environmental, negatively impact future profits. International tribunals will bypass domestic courts to decide these cases.

Ending “Buy America” laws: TPP requires equal access to foreign corporations for competition in contracting with the government. Even companies with horrible human rights records must receive government contracts paid by U.S. taxpayers.

Rewarding authoritarian regimes: The TPP would give all countries, even those that violate basic international standards for human rights, duty-free access to the U.S. market. The Sony hackings could not be reported under TPP rules.

The TPP has no expiration date. It can be repealed only with the consensus of all the countries that agree to it. Other countries, such as China, can also join the TPP in the future.

Two weeks ago, Sanders asked Michael Froman, the chief trade representative for the U.S., to submit the full text of the proposed TPP.  At this time, Congress can assess the proposal only through a few leaked documents. If Froman turns down Sanders’ request, he has asked for the legal basis for a denial. Sanders also plans to introduce a bill requiring that the contents of any trade agreement being negotiated by the U.S. would be made public with the request of any member of Congress.

If the TPP were good for people of the U.S. , it wouldn’t be secret. ISIL is less of a threat to the people of the United States than the proposed trade agreements are. All we can hope for is that the Republicans hate President Obama so much that they won’t give him anything he wants even if the GOP might support it.

[More horrifying information about TPP is available here. And here.]

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