We must have fair trade

Last November, the American people cast their votes for new leaders with a hope that we would replace our broken trade model with one that will truly allow for fair competition. We know that if given a fair playing field we will excel in the global marketplace.

Recently, the Bush administration and some congressional leaders announced that labor and environmental standards will be added to the pending Peru and Panama free trade agreements (FTAs). However, reports indicate the standards may be put in side agreements, and those representing multi-national interests benefiting under our current broken trade policy have boasted that the standards will be unenforceable.

And, even if the standards are ultimately included in the core of the FTAs, experience tells us that they will not be enforced.
In 2000, Congress passed an FTA with Jordan with labor and environmental standards. As a result, it received the support of many members committed to “fair trade.” But, alas, despite documented violations, some of which have been extreme, there has been no enforcement of those labor standards. There is no reason to believe that the same result will not prove true with the pending FTAs, even if they contain similar standards.

Time and time again, we have seen the failure of the Bush administration to enforce our current trade laws. Let’s be clear: This is an administration that is also pushing for the U.S. to enter into an FTA with Colombia, where murders of labor organizers and human rights violations abound. The administration’s willingness to enter into an FTA with Colombia should tell us all we need to know about any commitment it would have to enforcing labor standards in general.

It doesn’t make sense to pass additional FTAs when we know there won’t be enforcement of labor or environmental standards and that their passage will further the negative effects of our current broken trade policy. Instead, Congress should focus on fixing what is broken.

Congress has constitutional authority over trade. We have a responsibility to develop a trade model that will allow our businesses and workers to flourish. Rather than passing more FTAs that will not be enforced, Congress should focus on addressing the ever-evolving tactics by foreign governments to unfairly manipulate trade to benefit their economies.
Inexplicably, the United States is the only nation that does not find it acceptable to protect our companies, workers and communities against unfair trade practices. As a result, our current trade policies put American businesses and workers at a disadvantage and reward companies that move overseas or outsource jobs.

Congress must stop ceding its authority and responsibility over trade to the president. The lack of oversight and accountability that giving the president “fast track” authority has wrought on U.S. trade policy has led to devastating consequences throughout this country. We must let fast track expire permanently at the end of this month.

Congress must focus on replacing policies that reward businesses for outsourcing jobs with incentives and sensible tax policies that will help businesses and workers make it in America. We must develop a trade model that puts an enforceable end to currency manipulation, illegal subsidies and product dumping; requires reciprocity of market access; and ensures that products produced elsewhere are safe for consumption here. Legislation to address these issues should be pursued.

In an attempt to shut down the effort to revamp our trade laws and level the playing field, those benefiting under the current broken system call those of us seeking a new direction names. They complain that we are against trade and don’t understand the realities and positive potential of globalization. They are incorrect. This is not about being pro-trade or anti-trade. It’s about the rules of trade and making sure that they are fair and enforceable. The American people want nothing more, and they deserve nothing less.

There are those who argue we must invest in new technology, research and workforce development to successfully compete in this global economy. I agree. But, it isn’t an either/or proposition. Despite new product development, increased productivity, and technological gains, unless we also develop a truly new trade model, with enforceable standards and rules to eliminate unfair practices, this nation’s businesses, workers, farmers and communities will continue to be undercut and will continue to suffer.

Last November, the American people cast their votes to put an end to our current, flawed trade policies. Congress must act immediately to develop a new trade model that will ensure fairness and which will be enforced, if we are to keep faith with the American people.

Sutton is a member of the House Rules and Budget committees.

SPECIAL SECTION: Trade
Standing up for American businesses, workers, farmers
Change course on U.S. trade policy
Extending trade promotion authority
Voters in November demanded a new direction for trade
Goal: Protect intellectual property from piracy in China, other countries
Combating currency misalignment
Without TPA reauthorization, trade agenda will flounder
Don’t handcuff Congress through fast track