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CAFTA
PEOPLE
WANT A DIFFERENT TREATY
Source:
Sun-Sentinel
Printed: Monday, June 27, 2005
Written by: Sherrod Brown |
Benjamin
Franklin's definition of insanity -- doing the same thing over and
over and expecting different results -- could refer to current U.S.
trade policy.
A dozen years ago, our nation's trade deficit -- the value of our imports minus
exports -- stood at $38 billion, a number that most economists thought too high.
Today, after a series of bilateral and multilateral trade agreements, it has
jumped to $618 billion.
When Congress voted on the North American Free Trade Agreement in 1993, our trade
deficit with Canada and Mexico was $8 billion. Now a dozen years later, our trade
deficit with these two nations has rocketed to $115 billion.
Since the passage of President Bush's Trade Promotion Authority in early 2002,
fully one-sixth of United States manufacturing jobs have disappeared.
Yet the Bush administration is asking Congress to pass the Central American Free
Trade Agreement. They and their allies in the business community, especially
pharmaceutical and financial firms, tell Congress the same old story. They claim
that this trade agreement is essential to ensuring economic viability for the
U.S. and Central American economies.
They promise more jobs for Americans, more manufacturing done in the United States,
and a higher standard of living for workers in developing countries.
Yet with every trade agreement, the predictions and the promises fall by the
wayside. Instead we see more job loss here, rapid decline in U.S. manufacturing,
and stagnant wages in the developing world.
While CAFTA supporters argue that U.S. farmers and ranchers and manufacturers
will export large quantities of their goods to Central America, they rarely mention
that the combined economic output of these countries is equivalent to that of
Columbus, Ohio. And that the per capita income of a Nicaraguan worker is about
$2,300 a year, less than one-sixteenth of an American's.
What CAFTA is not about is Central American workers being able to buy apparel
from North Carolina, or cars manufactured in Detroit, or computers from Austin.
What CAFTA is about are U.S. companies moving plants to Honduras, outsourcing
jobs to El Salvador, and exploiting cheap labor in Guatemala.
Each of the other four Bush trade agreements -- with Chile, Australia, Singapore
and Morocco -- was passed by Congress fewer than 60 days after the president
signed them. CAFTA has languished for almost 13 months.
Majority Leader Tom DeLay, the most powerful Republican in the House, said that
there would be a vote in the House in 2004. Then he promised House action by
Memorial Day.
Now he has pledged a vote before July 4.
But the American people -- and the representatives who work for them -- continue
to resist. The American people want a different CAFTA, one that will raise living
standards north and south of the border.
The United States, with its unrivaled purchasing power and its enormous economic
clout, is in a unique position to help empower poor workers in developing countries
while promoting prosperity at home.
When the world's poorest people can buy American products rather than just make
them, then we will know that our trade policies are finally working.
Sherrod Brown, a seven-term Democrat from Ohio, is the author of Myths of Free
Trade: Why American Trade Policy Has Failed.
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