Friday, May 22, 2015

President Obama's response to a message I sent him opposing the TPP

Some time ago I sent a message to President Obama opposing the TPP and asking him to reconsider his position. I received the following email today from the White House. I have written and posted much against the TPP and in fairness, I thought I also should share the President's response:

Dear Dan:
Thank you for writing.  My Administration is pursuing a trade agenda that will place our workers, farmers, manufacturers, and businesses at the center of the 21st-century global economy—one that promotes both our interests and our values.  Trade done right is a critical part of my strategy to create jobs, spur growth, and strengthen the middle class.
With 95 percent of the world’s customers living outside our borders, our ability to access new markets is vital to our economic well-being.  The export of American-made products supports millions of jobs here at home that pay up to 18 percent more than non-export-related jobs.  And, 98 percent of the more than 300,000 companies that export are small businesses.  However, even though more American businesses are exporting than ever before, most businesses still don’t export anything—leaving an incredible amount of opportunity that can be unlocked for our middle class.  To take advantage of that opportunity and level the playing field for our workers and businesses, we’re moving forward with the most ambitious trade agenda in American history, including the Trans-Pacific Partnership.
In the Asia-Pacific region, the Trans-Pacific Partnership will knock down barriers that block American made goods and services while promoting high standards in the fastest-growing region in the world, including the strongest enforceable labor and environmental provisions of any trade agreement.
To protect our workers, the trade agreement will require countries to set a minimum wage, protect the freedom to form unions and collectively bargain, and work to end child and forced labor.  To preserve the environment, it will require countries to take tangible steps to curb wildlife trafficking, crack down on illegal logging, and prevent overfishing.  That’s why conservation organizations like the World Wildlife Fund and The Nature Conservancy agree that the enforceable provisions in the Trans-Pacific Partnership are a critical step forward for environmental protection.
Some prior trade agreements, like the North American Free Trade Agreement, or NAFTA, have not lived up to their promise.  The Trans-Pacific Partnership addresses these problems through strong enforcement mechanisms, including for the labor and environmental standards.  This means that if our trading partners, including Canada and Mexico, aren’t playing by the rules, we can hold them accountable.  The agreement also includes new rules that make sure our businesses and property owners are protected from having property taken by foreign countries, while making sure that foreign corporations can’t undermine or get around our own laws and regulations.  Because we know that unfair currency practices by some governments hurt our workers, businesses, and farmers, we are working with Congress on new tools and standards that will make it easier for us to protect American workers and firms from unfair competition.
The Trans-Pacific Partnership is also America’s opportunity to lead in the Asia-Pacific.  The alternative to this agreement is to let other powers, like China, carve up the region and drive down standards through bad trade agreements.  We cannot stay on the sidelines while China and other countries write the rules of the road.  We have to seize this opportunity to help American workers and businesses compete on a level playing field in the world’s largest markets in the decades to come.
To help us secure the benefits of the Trans-Pacific Partnership, we are working with Congress to enact Trade Promotion Authority, which allows Congress to put forward its priorities for negotiating trade agreements.  The new version of Trade Promotion Authority Congress is considering guarantees that future trade agreements, including the Trans-Pacific Partnership, will have progressive, pro-worker, and pro-environment standards.  This gives us the leverage to bring home the best possible agreements for the American people.
The new Trade Promotion Authority mandates unprecedented transparency by requiring that any trade agreement be published online for 60 days before I sign it, and Congress will then have months to review, debate, and hold hearings on the details of the agreement before they vote on it.  And while we have not yet finalized the Trans-Pacific Partnership, the current agreement is available for all members of Congress to read and review, and we have conducted over 1700 regular briefings with members of Congress on the status of the negotiations and have provided full similar briefings for labor groups, environmental groups, and other interested parties.
With a highly educated workforce, an entrepreneurial culture, strong rule of law, and abundant sources of affordable, clean energy, the United States has what’s required to be the world’s manufacturing hub.  My Administration is working every day to help businesses locate, grow, and hire here so that our businesses ship goods all over the world stamped with "Made in the U.S.A." The good news is that this is already beginning to happen—over the last few years, our manufacturers have been steadily creating jobs in the U.S. for the first time since the 1990s.  Good trade deals like the Trans-Pacific Partnership will continue that trend and ensure that jobs are not outsourced, but rather are created here at home.  We will continue to push forward on these efforts because we know that when the playing field is level, American workers and businesses don’t just compete, they win.
Again, I appreciate your message.  I am confident we can support job growth at home and boost exports while promoting our values and raising standards around the globe.
Sincerely,
Barack Obama

Thursday, May 14, 2015

The Trojan Horse in the TPP that Should Make all Americans Oppose It

Also posted on DailyKos.com and democraticunderground.com

By Dan Riker

Opponents of fast-tracking the Trans-Pacific Partnership ("TPP") won one round, but lost the second in the Senate, and now appear unable to block it there. However, the battle is far from over. Passage in the House is far less certain. And even with the Republicans compromising on some  amendments progressives want attached, perhaps the most dangerous provision of the TPP will remain untouched, a possible "Trojan Horse" that could nullify much of federal, state and local environmental and consumer protection laws and regulations.

The actual provisions of the TPP are being kept secret, with only members of Congress allowed to see them. Of course, there have been many leaks of various details. New York Attorney General Eric T. Schneiderman wrote in Politico Magazine[i] last month: "One provision of TPP would create an entirely separate system of justice: special tribunals to hear and decide claims by foreign investors that their corporate interests are being harmed by a nation that is part of the agreement. This Investor-State Dispute Settlement provision would allow large multinational corporations to sue a signatory country for actions taken by its federal, state or local elected or appointed officials that the foreign corporation claims hurt its bottom line."

Consider what this means. Major multinational corporations, many of which moved their headquarters out of the U.S. to avoid taxes, would be able to evade American federal, state and local judicial and regulatory systems that currently have authority over them.  The implications are enormously dangerous to the American democratic system of government and justice, as well to environmental, consumer and health safety. Schneiderman describes exactly what could occur:

"To put this in real terms, consider a foreign corporation, located in a country that has signed on to TPP, and which has an investment interest in the Indian Point nuclear power facility in New York’s Westchester County. Under TPP, that corporate investor could seek damages from the United States, perhaps hundreds of millions of dollars or more, for actions by the Nuclear Regulatory Commission, the New York State Department of Environmental Conservation, the Westchester Country Board of Legislators or even the local Village Board that lead to a delay in the relicensing or an increase in the operating costs of the facility."

The fast track temporarily was blocked in the Senate because supporters could not overcome the filibuster mounted by the progressives over the refusal of the Republicans to simultaneously approve three amendments to the bill that would mitigate some of the potential negative effects of the TPP. Strong arming by the White House and Mitch McConnnell compromising on the amendments led to a victory for fast tracking today. But Republican support in the House is weaker than it is in the Senate.

One of the amendments limits the ability of participating countries to manipulate their currencies. This is critically important because lowering tariffs does no good for American companies if other countries are able to manipulate their currencies to keep them worth less than the American dollar. That makes their products less expensive in the United States, thus giving them a competitive advantage over rival American products.

But none of the amendments deals with the TPP's new system of regulation that sidesteps American governmental and judicial regulation. As long as this provision remains in the TPP, the treaty, and, especially its "fast-track" should be opposed by all Americans.

That the actual provisions of the TPP are being kept secret and that this separate system of regulation is included are more than adequate reasons for Americans to be deeply suspicious of the real purposes of the TPP. It does not appear to be a real "trade" deal. It does not appear to have great benefits to the people of the United States. It appears to be the work of special corporate interests, multinational corporations already operating almost beyond government regulation. The TPP appears to be another case, a major case, of government largesse for major corporations at the expense of the people.

This is not a conservative vs. liberal issue. This should not be a Republican vs. Democrat issue. It is not an issue of federal vs. states' rights. This is an issue of preservation of the existing American federal system that provides states and local communities the powers necessary to protect themselves from hazardous behavior by corporations.

It is time for Americans to put a stop to the TPP.



[i] Eric T, Schneiderman, Don't Let TPP Gut State Laws: The partnership's potential to undermine state laws should concern Congress. Politico Magazine, April 19, 2015. http://www.politico.com/magazine/story/2015/04/trans-pacific-partnership-state-laws-117127.html#ixzz3a8JQvQGo