[Congressional Record Volume 161, Number 52 (Monday, April 13, 2015)]
[Senate]
[Pages S2096-S2098]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TRADE PROMOTION AUTHORITY AND THE TRANS-PACIFIC PARTNERSHIP
Mr. BROWN. Madam President, let me start with a story. More than 15
years ago, a friend and I--I met with friends, and I flew to South
Texas at my own expense. I wanted to see how the North American Free
Trade Agreement was working.
During my first year in Congress 20-plus years ago, in the House of
Representatives, I helped to lead the opposition to the North American
Free Trade Agreement. I stood up to a President of my own party,
President Clinton, who I think was wrong on the North American Free
Trade Agreement. Since then, I disagreed with President Bush--a
President not of my party--on his trade policy.
I wanted to see, 4, 5 years after NAFTA was implemented, what it
looked like, what went on along the U.S.-Mexican border. As I said, at
my own expense I rented a car with a couple friends and went to Mexico.
Here is what I found. I walked into a neighborhood where thousands of
workers lived, workers who were working in formerly U.S. plants that,
because of NAFTA, had crossed the river and were relocated in Mexico in
some areas called maquiladoras. These were American plants that
relocated to Mexico, producing with very low-income workers, no
environmental labor standards, and selling those products back into the
United States. It is a 20th-century, 21st-century way of doing business
for far too many companies. Unknown in human history, to my knowledge,
have so many companies, as they have in the United States, incorporated
their business plans where they shut down production in Sandusky or
Mansfield, OH, and move production to Wuhan or Shiyan, China, and sell
those products back into the United States.
I wanted to see what it looked like. I walked through this
neighborhood where thousands of workers lived in very abject, poor
conditions. These were workers working for in most cases American
companies south of the border in Mexico, for very low wages.
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I walked through these neighborhoods. I saw people living in shacks.
These shacks were often made of packing materials, maybe wooden crates
from products that had been shipped in for assembly at these plants,
cardboard boxes often with the names of the companies on them. They
were living in conditions like that.
I walked through the neighborhood, and I saw kind of meandering
through the neighborhood these ditches filled with industrial and human
waste. Who knows what was in those ditches. Children were playing
nearby, walking across and jumping across the ditches, sometimes
playing far too close to these ditches filled with toxic waste. The
American Medical Association in those days called that area in Mexico
across from the United States, across from the Rio Grande River, the
most toxic place in North America.
Then I went to an auto plant. Nearby was an auto plant. It was a new
auto plant. It looked a lot like a U.S. auto plant. It was new and
modern. In fact, it was newer than many auto plants in the United
States. The workers were working hard. The machines were new. The
workers were productive. The floors were clean. There was one
difference between a U.S. auto plant--a plant in Avon Lake or Lorain,
OH--there was one difference between a U.S. auto plant and a Mexican
auto plant. Do you know what the difference was? The difference was the
Mexican auto plant had no parking lot because the workers in Mexico
weren't paid enough to buy the cars they make.
Go halfway around the world. Go to China and go to an Apple plant--
actually, it is a Foxconn plant. Apple has hired a Chinese contractor.
Go to an Apple plant in China. The workers don't make enough in those
plants to buy the iPhone they make.
Go to Bangladesh and go to a designer clothing factory, an apparel
factory, and the workers don't make enough to buy the apparel they
make.
Go back to this side of the globe and go to Colombia and go to a farm
where they are growing cut flowers. The workers don't make enough to
buy flowers for their girlfriends and wives for Valentine's Day. They
don't make enough to buy the cut flowers they are growing for
Americans.
That is what has happened around the world with these trade
agreements. You see the same things--a race to the bottom. Almost
anywhere the United States passes trade agreements, we see workers
overseas making products they cannot afford for themselves. These trade
agreements would be different if workers were paid enough that they
began to make products made in Dayton, OH, or Gallipolis, OH, or Troy,
OH. Instead, these workers cannot afford to buy the products they are
making.
That is what our trade deals force American workers to compete with--
jobs that pay pennies an hour. They lead to a downward wage spiral
across the globe. Why do most people sitting in this gallery, why do
most people in this country, unless they are in the top 5 or 10
percent, why have they not gotten a raise in the last 10 years? The
middle class in this country has not seen their incomes go up even
though the wealthy get wealthier, even though companies are more
profitable, even though executives pay themselves higher bonuses. The
middle-class wages have been stagnant, partly because of these trade
agreements and partly because my friends on the other side of the aisle
won't let us fix the Tax Code, where if you shut down production in
Lima or in Ravenna, OH, and move it to Wuhan or Shiyan, China, and sell
it back into the United States, you get a tax break. American companies
get a tax break for shutting down production in this country and moving
it overseas and partly because of trade policy.
The reason people don't get raises in this country--a big reason--is
because of a trade policy and a tax policy that far too many
politicians in this body have allowed to happen. That is why we can't
afford another agreement like the Trans-Pacific Partnership. We can't
allow a fast track of the Trans-Pacific Partnership. The last thing we
need is another NAFTA, another Northern American Freed Trade Agreement.
We do not need a deal negotiated in secret and rushed--hence the term
``fast track''--rushed with no amendments, with no real oversight, with
no access even to reading the text.
It would intrigue people if they knew that it is harder for a Senator
or a Senator's staff to get the opportunity to read the Trans-Pacific
Partnership--this newly negotiated trade deal--it is harder for us to
get access to read that than it is to read about the Iran sanctions or
to read a CIA report or to read a classified document from the
Department of Defense. It is actually harder to get access to the
Trans-Pacific Partnership, to this trade agreement, to study it, than
it is to national defense, national security concerns. What are they
trying to hide? Why would that be?
I have spent much of the last couple of weeks talking with workers
and businesses around Ohio. I met with workers like Darryl Parker, a
former worker at R.G. Steel's Warren, OH, plant and former president of
the Steelworkers Local 1375. The plant has a proud history dating back
to 1912. Close to 3 years ago, it was the fourth largest flat-rolled
steel maker in America. It didn't close because of poor performance.
These are some of the most productive workers in the world. There is
one reason 1,300 workers like Darryl lost their jobs: unfair trade.
I met with Vinny Gaietto in Toledo, a former American Standard
worker--actually, in Tiffin. I met him in Toledo. Vinny lost his job in
2007 when the plant closed down and moved to Mexico.
We cannot allow this to continue. We have no business passing fast
track to fast track jobs out of this country, to fast track weaker
environmental rules and worker safety rules.
Trade policy should ensure a level playing field for all companies
competing in a global economy. Instead, our trade policy is unfair to
small businesses, to workers, and to those communities where plants
shut down one after another. The communities then have to lay off
teachers, firefighters, police officers, and municipal garbage
collection workers because their tax base has shrunk because their jobs
have gone overseas.
Although worker productivity is higher, they face stagnating wages,
increased middle-class insecurity, and rising inequality at home. Yet
corporate profits are up and CEO pay has reached record levels.
Fundamentally the workers are not sharing in the wealth they have
created for their employers.
The reason our economy worked so well after World War II is because
productivity went up, profits went up, wages went up, but since the
assault on organized labor and trade unions and the decline of
unionization in this country, productivity continues to go up, profits
continue to go up, and executives' compensation and bonuses continue to
skyrocket, yet wages have stayed flat and most Americans have not had a
wage increase.
Last year Wall Street bonuses--just the bonuses on Wall Street--were
double what all minimum-wage workers earned in the country combined. I
will say that again. Wall Street bonuses--mostly their Christmas
bonuses, or whenever they are given--were double what all the minimum-
wage workers in the country made combined.
We need to invest in supporting workers with a living wage, paid sick
and family leave, and equal pay for equal work. We need to invest in
infrastructure. When the State government is cut, we know what
happens--particularly in my State. When the State government is cut, it
cuts support for local communities. We know what happens to our
highways, our streets, and our bridges.
We fundamentally know that trade, done right, creates prosperity. I
want trade, and I want more of it. I think Ohioans want trade, but we
want trade that builds an on-ramp to the middle class here at home and
lifts workers from poverty in America and around the world. We do not
want another NAFTA.
Earlier this month, I visited the Ford plant near Cleveland in Brook
Park, OH. Ford brought its manufacturing of EcoBoost engines back from
Valencia, Spain. They invested $200 million and brought 450 new jobs to
Cleveland. Some companies, such as Ford, are beginning to reshore
manufacturing jobs because they know our workers are skilled and
efficient. But auto companies need protections from foreign
governments' unfair trade practices.
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While I disagree with President Obama on the trade promotion
authority fast track and on the Trans-Pacific partnership agreement, I
give him credit for being more aggressive than President Bush or
President Clinton on enforcing trade rules and trade laws. It makes a
difference in helping to create jobs.
Trade agreements must include provisions protecting our workers and
our companies from foreign governments that artificially manipulate
their currency. For example, Japan has a history of shutting out
American auto companies and manipulating their currency to benefit
their own manufacturers. That policy has worked for Japan, but it has
not worked for us. In 2013, for every 1 car the United States sold to
Japan, we imported 99 cars from Japan. That doesn't sound like a level
playing field, where cars that were made by American workers get an
opportunity to sell in Japan. It is not much different with Korea. Too
much is at stake. Our capacity to outcompete and outinnovate our
competitors depends on our capacity to outmanufacture them. That means
we need trade policies that will create opportunities for workers and
small businesses so they can earn a living wage and join the middle
class.
I urge my colleagues to demand increased transparency in this
process. I urge everyone to say no to a deal that shortchanges our
workers and companies and does not ensure a level playing field.
We cannot allow another trade deal--we had NAFTA, PNTR with China,
CAFTA, South Korea, and Colombia, one after another--that sells out our
workers and ships jobs overseas. It is time for a very different trade
policy.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. BOOKER. Madam President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
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