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THE SECRET DEAL - DAY 4: Fair Trade Populists Go On the Offensive
By David Sirota
Created May 14 2007 - 9:36am
This is the fourth in a series of posts [1] following the announcement of a
secret free trade deal this past week between a handful of senior Democrats
and the Bush administration. It has now been 4 days since the deal was
announced, and the specific legislative language of the deal remains secret.
With the opening of the new week, fair trade Democrats are going on the
offensive in response to the secret free trade "deal" worked out between a
handful of senior Democratic congressional leaders and the Bush
administration. It is now a full four days since the press conference
announcing the deal, and the dealmakers still have yet to release the
legislative language of the trade policies in question, instead simply
sending out their own press releases and triumphant statements from K Street
lobbying groups. Coincidentally (or maybe not so coincidentally) this
secretive behavior is happening at precisely the same time the Associated
Press reports that "Democrats are suddenly balking at the tough lobbying
reforms [2] they touted to voters last fall" with many wanting "to keep the
big campaign donations and lavish parties that lobbyists put together for
them."
The stonewalling, and the declaration by the Bush-connected U.S. Chamber of
Commerce that it has been given "assurances that the labor provisions [in
the deal] cannot be read to require compliance" has created a full-on
backlash on Capitol Hill and in the heartland. Though some say the specific
legislative language of the deal hasn't been written yet, that explanation
seems suspect considering the unity and enthusiasm with which top K Street
icons have endorsed the deal and the claims of "assurances" corporate
lobbyists say they have been given about the unenforceability of the labor
standards. Here's the latest news.
DETAILS EMERGE ON LEAD UP TO THE DEAL; LEGISLATIVE LANGUAGE STILL SECRET
HILL NEWSPAPER CONFIRMS EMANUEL STYMIED DEMOCRATIC MEETING ON TRADE: The
Hill Newspaper [3] reports that "six House Democrats had sought to get House
Speaker Nancy Pelosi (D-Calif.) to put off the announcement of a deal until
after the caucus reviewed it, but were rebuffed." As reported on this
website last week [4], a May 10th letter to Democratic Caucus Chairman Rahm
Emanuel (D-IL) [5] was ignored in advance of the press conference. Emanuel,
not surprisingly, was the Clinton administration official who helped ram
NAFTA through Congress. According to John D. MacArthur's groundbreaking book
The Selling of Free Trade [6], Emanuel's specific responsibility at the time
was convening weekly meetings with K Street lobbyists to plot about how to
put pressure on Democrats to support the deal. Similarly, as an investment
banker, he published a Wall Street Journal op-ed on the eve of the China
free trade deal demanding Democrats support the agreement, which has
resulted in the loss of thousands of good-paying U.S. jobs and further
domestic wage deterioriation. In 2004, House Democrats nonetheless rewarded
Emanuel by giving him a coveted slot on the Ways and Means Committee - the
panel that oversees trade policy.
NAM HEAD ECHOES CLAIM THAT SECRET LEGISLATIVE LANGUAGE WILL MAKE LABOR
STANDARDS UNENFORCEABLE: The Hill Newspaper reports that former Michigan
Republican Gov. John Engler, now head of the National Association of
Manufactuers, "said the secret deal would not bind the U.S. to more detailed
ILO convention" standards. This claim about the central tenet of the
much-touted deal echoes a similar claim by the U.S. Chamber of Commerce's
Tom Donohue.
AP - DEAL DESIGNED TO "PAVE WAY FOR FAST TRACK": The Associated Press [7]
reports that proponents of the deal believe it "could pave the way for an
extension or renewal of Bush's "fast-track" authority, which allows him to
present completed trade deals to Congress for an expedited vote." Earlier
reports have indicated that this is one of the major motivations for the
dealmakers. As just one example, Ways and Means Committee Chairman Rep.
Charlie Rangel (D-NY) said after the deal that he now supports fast track
reauthorization [8]. Rangel's congressional counterpart, Finance Committee
Chairman Sen. Max Baucus (D-MT), has not said where he stands on fast track.
Most recently, Baucus refused [9] to answer a direct question about his
position at the recent International Economic Summit in Butte (audio of the
interchange can be heard here [10]). The question followed a Montana State
Senate resolution demanding Baucus use his chairmanship to stop fast track
reauthorization.
OPPOSITION TO THE SECRET DEAL MOUNTS
LA TIMES - FAIR TRADERS WILL BE HEARD ON TUESDAY: The Los Angeles Times [11]
reports that with a potential revolt on their hands, Democratic leaders
added trade "to the caucus agenda [for Tuesday] through a petition letter
filed Thursday by six House members concerned about the new policy,
including Rep. Linda T. Sanchez (D-Lakewood), a former labor lawyer."
FRESHMAN DEM - MAJORITY OF DEMS OPPOSE THEIR OWN LEADERSHIP: Confirming a
New York Times report last week [12], The Times reports that "Rep. Betty
Sutton (D-Ohio), a labor lawyer who campaigned on a 'fair trade' platform
and became one of the freshman class leaders, said a majority of the caucus,
including many freshmen, opposes the new policy and is demanding more
details." These rank-and-file lawmakers "complained that Pelosi compromised
too much but also that her announcement of the deal Thursday took them by
surprise, included few details and angered key constituents."
PELOSI TOUTS DEAL'S DETAILS, YET REFUSES TO RELEASE DEAL'S DETAILS: In the
Times story, House Speaker Nancy Pelosi's spokesman said of fair trade
critics: "Once they see the details [of the deal], I think people will be
supportive." However, Pelosi's office has not yet released the legislative
language of the trade pacts at the core of the secret deal.
FAIR TRADE PRESSURE PUTS BREAKS ON COLOMBIA AND SOUTH KOREA PACTS: In light
of growing opposition to the secret deal and thanks to intensifying pressure
by populist lawmakers on Capitol Hill, the Hill Newspaper reports that "more
economically significant deals with Colombia and South Korea, while covered
by the deal, still face an uncertain future." United States Trade
Representative (USTR) officials and business lobbyists acknowledged there is
no guarantee those accords will come up for votes anytime soon.
KRUGMAN - FAIR TRADERS CRITICISM GROUNDED IN FACT: Writing in the New York
Times, longtime free trade economist Paul Krugman [13] acknowledges that
"fears that low-wage competition is driving down U.S. wages have a real
basis in both theory and fact." He acknowledges that in the 1990s he and
other economists "concluded that the depressing effects of imports on the
wages of less-educated Americans were modest" but "that may have changed."
Though he does not take a position on the deal, his piece was an important
benchmark for such a widely respected economist.
_______
About author David Sirota is a political strategist and NY Times bestselling
author whose work appears in major newspapers and magazines. He has appeared
on CNN, MSNBC, CNBC and The Colbert Report. He has appeared in TV debates
with right-wing icons like Ann Coulter, John Stossel and John Fund. Email:
david [at] davidsirota.com.
--
NOTICE: This post contains copyrighted material the use of which has not
always been authorized by the copyright owner. I am making such material
available to advance understanding of
political, human rights, democracy, scientific, and social justice issues. I
believe this constitutes a 'fair use' of such copyrighted material as
provided for in section 107 of the US Copyright
Law. In accordance with Title 17 U.S.C. Section 107
"A little patience and we shall see the reign of witches pass over, their
spells dissolve, and the people recovering their true sight, restore their
government to its true principles. It is true that in the meantime we are
suffering deeply in spirit,
and incurring the horrors of a war and long oppressions of enormous public
debt. But if the game runs sometimes against us at home we must have
patience till luck turns, and then we shall have an opportunity of winning
back the principles we have lost, for this is a game where principles are at
stake."
-Thomas Jefferson
By David Sirota
Created May 14 2007 - 9:36am
This is the fourth in a series of posts [1] following the announcement of a
secret free trade deal this past week between a handful of senior Democrats
and the Bush administration. It has now been 4 days since the deal was
announced, and the specific legislative language of the deal remains secret.
With the opening of the new week, fair trade Democrats are going on the
offensive in response to the secret free trade "deal" worked out between a
handful of senior Democratic congressional leaders and the Bush
administration. It is now a full four days since the press conference
announcing the deal, and the dealmakers still have yet to release the
legislative language of the trade policies in question, instead simply
sending out their own press releases and triumphant statements from K Street
lobbying groups. Coincidentally (or maybe not so coincidentally) this
secretive behavior is happening at precisely the same time the Associated
Press reports that "Democrats are suddenly balking at the tough lobbying
reforms [2] they touted to voters last fall" with many wanting "to keep the
big campaign donations and lavish parties that lobbyists put together for
them."
The stonewalling, and the declaration by the Bush-connected U.S. Chamber of
Commerce that it has been given "assurances that the labor provisions [in
the deal] cannot be read to require compliance" has created a full-on
backlash on Capitol Hill and in the heartland. Though some say the specific
legislative language of the deal hasn't been written yet, that explanation
seems suspect considering the unity and enthusiasm with which top K Street
icons have endorsed the deal and the claims of "assurances" corporate
lobbyists say they have been given about the unenforceability of the labor
standards. Here's the latest news.
DETAILS EMERGE ON LEAD UP TO THE DEAL; LEGISLATIVE LANGUAGE STILL SECRET
HILL NEWSPAPER CONFIRMS EMANUEL STYMIED DEMOCRATIC MEETING ON TRADE: The
Hill Newspaper [3] reports that "six House Democrats had sought to get House
Speaker Nancy Pelosi (D-Calif.) to put off the announcement of a deal until
after the caucus reviewed it, but were rebuffed." As reported on this
website last week [4], a May 10th letter to Democratic Caucus Chairman Rahm
Emanuel (D-IL) [5] was ignored in advance of the press conference. Emanuel,
not surprisingly, was the Clinton administration official who helped ram
NAFTA through Congress. According to John D. MacArthur's groundbreaking book
The Selling of Free Trade [6], Emanuel's specific responsibility at the time
was convening weekly meetings with K Street lobbyists to plot about how to
put pressure on Democrats to support the deal. Similarly, as an investment
banker, he published a Wall Street Journal op-ed on the eve of the China
free trade deal demanding Democrats support the agreement, which has
resulted in the loss of thousands of good-paying U.S. jobs and further
domestic wage deterioriation. In 2004, House Democrats nonetheless rewarded
Emanuel by giving him a coveted slot on the Ways and Means Committee - the
panel that oversees trade policy.
NAM HEAD ECHOES CLAIM THAT SECRET LEGISLATIVE LANGUAGE WILL MAKE LABOR
STANDARDS UNENFORCEABLE: The Hill Newspaper reports that former Michigan
Republican Gov. John Engler, now head of the National Association of
Manufactuers, "said the secret deal would not bind the U.S. to more detailed
ILO convention" standards. This claim about the central tenet of the
much-touted deal echoes a similar claim by the U.S. Chamber of Commerce's
Tom Donohue.
AP - DEAL DESIGNED TO "PAVE WAY FOR FAST TRACK": The Associated Press [7]
reports that proponents of the deal believe it "could pave the way for an
extension or renewal of Bush's "fast-track" authority, which allows him to
present completed trade deals to Congress for an expedited vote." Earlier
reports have indicated that this is one of the major motivations for the
dealmakers. As just one example, Ways and Means Committee Chairman Rep.
Charlie Rangel (D-NY) said after the deal that he now supports fast track
reauthorization [8]. Rangel's congressional counterpart, Finance Committee
Chairman Sen. Max Baucus (D-MT), has not said where he stands on fast track.
Most recently, Baucus refused [9] to answer a direct question about his
position at the recent International Economic Summit in Butte (audio of the
interchange can be heard here [10]). The question followed a Montana State
Senate resolution demanding Baucus use his chairmanship to stop fast track
reauthorization.
OPPOSITION TO THE SECRET DEAL MOUNTS
LA TIMES - FAIR TRADERS WILL BE HEARD ON TUESDAY: The Los Angeles Times [11]
reports that with a potential revolt on their hands, Democratic leaders
added trade "to the caucus agenda [for Tuesday] through a petition letter
filed Thursday by six House members concerned about the new policy,
including Rep. Linda T. Sanchez (D-Lakewood), a former labor lawyer."
FRESHMAN DEM - MAJORITY OF DEMS OPPOSE THEIR OWN LEADERSHIP: Confirming a
New York Times report last week [12], The Times reports that "Rep. Betty
Sutton (D-Ohio), a labor lawyer who campaigned on a 'fair trade' platform
and became one of the freshman class leaders, said a majority of the caucus,
including many freshmen, opposes the new policy and is demanding more
details." These rank-and-file lawmakers "complained that Pelosi compromised
too much but also that her announcement of the deal Thursday took them by
surprise, included few details and angered key constituents."
PELOSI TOUTS DEAL'S DETAILS, YET REFUSES TO RELEASE DEAL'S DETAILS: In the
Times story, House Speaker Nancy Pelosi's spokesman said of fair trade
critics: "Once they see the details [of the deal], I think people will be
supportive." However, Pelosi's office has not yet released the legislative
language of the trade pacts at the core of the secret deal.
FAIR TRADE PRESSURE PUTS BREAKS ON COLOMBIA AND SOUTH KOREA PACTS: In light
of growing opposition to the secret deal and thanks to intensifying pressure
by populist lawmakers on Capitol Hill, the Hill Newspaper reports that "more
economically significant deals with Colombia and South Korea, while covered
by the deal, still face an uncertain future." United States Trade
Representative (USTR) officials and business lobbyists acknowledged there is
no guarantee those accords will come up for votes anytime soon.
KRUGMAN - FAIR TRADERS CRITICISM GROUNDED IN FACT: Writing in the New York
Times, longtime free trade economist Paul Krugman [13] acknowledges that
"fears that low-wage competition is driving down U.S. wages have a real
basis in both theory and fact." He acknowledges that in the 1990s he and
other economists "concluded that the depressing effects of imports on the
wages of less-educated Americans were modest" but "that may have changed."
Though he does not take a position on the deal, his piece was an important
benchmark for such a widely respected economist.
_______
About author David Sirota is a political strategist and NY Times bestselling
author whose work appears in major newspapers and magazines. He has appeared
on CNN, MSNBC, CNBC and The Colbert Report. He has appeared in TV debates
with right-wing icons like Ann Coulter, John Stossel and John Fund. Email:
david [at] davidsirota.com.
--
NOTICE: This post contains copyrighted material the use of which has not
always been authorized by the copyright owner. I am making such material
available to advance understanding of
political, human rights, democracy, scientific, and social justice issues. I
believe this constitutes a 'fair use' of such copyrighted material as
provided for in section 107 of the US Copyright
Law. In accordance with Title 17 U.S.C. Section 107
"A little patience and we shall see the reign of witches pass over, their
spells dissolve, and the people recovering their true sight, restore their
government to its true principles. It is true that in the meantime we are
suffering deeply in spirit,
and incurring the horrors of a war and long oppressions of enormous public
debt. But if the game runs sometimes against us at home we must have
patience till luck turns, and then we shall have an opportunity of winning
back the principles we have lost, for this is a game where principles are at
stake."
-Thomas Jefferson
