By DON McINTOSH, Associate Editor
A week after Portland-headquartered Freightliner Corporation ended
local manufacture of its most famous product line, Freightliner
workers gathered five floors below an Oregon U.S. senator’s
federal building office to tell him how they felt about it. NAFTA,
the North American Free Trade Agreement, made it easy for Freightliner
to shift production, demonstrators said; trucks they made in Portland
will be now made in Mexico by workers making less than one-fourth
their wages.
In 1993, when NAFTA passed
234-200 in the U.S. House of Representatives, Ron Wyden was
a congressman, one of the two-fifths of House Democrats to vote
in favor. President George Herbert Walker Bush negotiated the treaty,
but President Bill Clinton pushed it through Congress. The passage
of NAFTA led many labor union members to feel the Democratic Party
had turned its back on working people.
Since NAFTA, eight other “free- trade” agreements have
passed Congress, including agreements with Jordan, Chile, Singapore,
Australia, Morocco, Bahrain, and Oman, plus CAFTA — an agreement
with the Dominican Republic and five Central American countries.
Congress also voted to remove human-rights-related restrictions
on trade with China and Vietnam.
Now, NAFTA-style treaties with four other countries are up for ratification:
Peru, Colombia, Panama, and South Korea. Of the four treaties up
for approval, the Korean agreement is most likely to impact the
U.S. economy. South Korea has almost 50 million people. Its economy
is the world’s 10th largest, and one-tenth the size of the
U.S. economy. The AFL-CIO says the pact would hurt workers in autos,
textiles and electronics. It’s also opposed by unions in Korea.
One Korean worker opposed to the treaty set himself on fire in protest.
But some trade watchers think the winds have shifted in Congress.
In 1993, NAFTA had the support of 102 House Democrats; CAFTA, in
2005, had just 15.
“The old Clintonite version of the Democratic position on
trade is in retreat at this point,” said Larry Weiss, executive
director of the Citizens
Trade Campaign. “Many Democrats have come to recognize
the agreements have not been good for American workers.”
“We’re kind of holding our breath right now,”
said Thea Lee, trade policy expert for the national AFL-CIO. For
the first time in years, Lee senses that one or more of these treaties
may fail to be ratified.
Plus, the president’s ability to negotiate the treaties is
up for debate. All the NAFTA-style agreements have been negotiated
by presidents who were granted “fast-track” authority
by Congress. Basically, Congress commits to vote trade treaties
up or down without amendment two or three months after getting the
text from the president.
“Fast-track abdicates Congress’ constitutional responsibility
to regulate foreign commerce,” Weiss said, “and gives
the executive branch the power to dictate the terms of trade policy.”
Presidents have argued that they can’t get trading partners
to make concessions on complicated agreements like these if the
agreements can later be modified by Congress. But in practice, “fast-track”
has given presidents free rein to leave out binding commitments
on workers’ rights or environmental protections. NAFTA-style
treaties contain hundreds of pages of guarantees for foreign investors
and tariff-enforceable trademark, copyright and patent monopolies,
but only the flimsiest pledges on workers’ rights or the environment.
Generally, the treaties say the countries agree to enforce their
own labor and environmental laws, whatever they may be at a particular
time. If they fail to do so, theoretically they would pay a fine
to themselves to fund enforcement of the un-enforced laws.
The current fast-track authorization expires June 30. It would have
to be renewed in order for President Bush to negotiate further treaties.
But Weiss thinks it may not even get a vote.
New York Democrat Charles Rangel now chairs the House Ways and Means
Committee, where trade bills originate. Rangel voted for about half
the trade agreements, but voted against NAFTA, CAFTA, and fast-
track in the past. On March 27, Rangel spelled out his approach
to trade policy, saying future trade agreements must include enforceable
commitments to internationally recognized labor standards. But it’s
not clear how Rangel will approach the already-negotiated treaties.
Oregon Third District U.S. Rep. Earl Blumenauer also now serves
on Ways and Means, and its Trade Subcommittee. Blumenauer has a
history of support for NAFTA-style treaties, but voted against CAFTA
and the 2006 treaty with Oman. If they pass the committee, trade-related
bills go to the House floor, where House Speaker Nancy Pelosi will
determine if they get a vote. Pelosi voted for four NAFTA-style
treaties, but against fast- track and the CAFTA and Oman treaties.
In the Senate, the bills must first go through the Finance Committee,
which is now chaired by Montana Democrat Max Baucus. Baucus voted
for NAFTA and every one of its follow-ups, but came out against
CAFTA. Ron Wyden and Oregon Republican Gordon Smith are also on
Senate Finance. Smith has voted for every NAFTA-style treaty to
come before Congress; Wyden voted for every one except Chile, Singapore,
and Oman. After the Finance Committee, trade bills must get a vote
in the full Senate, where Senate Majority Leader Harry Reid holds
sway. Reid has voted against NAFTA and every subsequent trade treaty.
So critics of the treaties will have multiple opportunities to stop
them from passing this year.
Last month, the AFL-CIO Executive Council approved an all-out drive
to stop President Bush’s renew “fast- track” trade
authority.
In Portland, Machinists District Lodge 24 Business Representative
Joe Kear says the Freightliner decision to shift production to Mexico
didn’t have to happen.
“We need to look at the consequences of these trade deals,”
Kear said. “The trade deals we have are specifically designed
to move our jobs someplace else.”