New Trade Rules
The current trade system does not benefit working families. Fast Track trade promotion authority has given the President and the business lobby enormous power in trade negotiations and has left Congress and other interested parties such as labor, consumer, and environmental groups mostly out of the process. This system has given us such bad bargains as the North American Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA). NAFTA, CAFTA and the World Trade Organization (WTO) all promote a "race to the bottom" in the global economy by making it easier for companies to move to where wages are lower and environmental standards weaker. The result is greater profits for corporations and lower wages for workers. Fast Track authority has expired and should be replaced with a new trade model.
New trade agreements cover not just manufacturing and agriculture, but also "services" which can include virtually every other part of the economy. Now white collar and information technology jobs are being outsourced, as well as manufacturing jobs. However, we could have trade agreements that raise wages and protect the environment, halting the "race to the bottom." Congress needs to adopt a new trade model that includes more voices in the negotiation process, protects and creates Americans, and that guarantees strong labor and environmental protections.
Working Families Win seeks a U.S. Trade System that follows a few basic guidelines:
- The trade negotiating process must be open to a broader group of interested parties. Workers, consumers, state and local governments, and environmentalists must all have as much say as corporations. Additionally, our elected representatives in Congress must take back their constitutional right to approve and manage trade agreements. This is the only way to ensure that everyone benefits from global trade.
- Must include provisions that promote job growth and discourage the offshoring of domestic jobs. The current system makes it far too easy for companies to simply move their U.S. operations across borders to take advantage of cheap labor and loose environmental standards.
- Must include worker protections including the core International Labor Organization standards and environmental protections that are enforceable. A recent deal between the Bush Administration and Congressional leaders takes a welcome step forward on this provision. However, WFW still have concerns about leaving enforcement in the hands of inherently political entities given that the current system for any trade enforcement leans heavily on political appointees.