[Congressional Record Volume 161, Number 167 (Tuesday, November 10, 2015)]
[Senate]
[Pages S7895-S7896]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TRANS-PACIFIC PARTNERSHIP
Mr. SESSIONS. Mr. President, I would point out to our colleagues,
that we now have now received the Trans-Pacific Partnership Agreement.
It amounts to 5,544 pages, not including the dozens of side-
agreements--three times the book I know the Presiding Officer knows,
the Bible. It is three times the length of the Bible and several times
the length of ObamaCare. It has just been delivered to us with all
kinds of promises for good things that might result from its
affirmation.
No American has the resources to ensure that his or her interests are
being protected in this document. It is so long and the ramifications
are so broad that Congress cannot do its job to ensure that the
people's interests are safeguarded by such an agreement.
We already have trade deals with all the major TPP countries, except
Japan. So I will say with real confidence this is much more than trade.
If it was, a bilateral agreement with Japan would fix it. We have
agreements with Australia, Chile, Canada, and other countries.
The TPP is about the goal of creating a new global regulatory
structure--what I have called a Pacific Union--transferring power from
individual Americans and Congress, eroding Congress, to an
unaccountable, unelected, international bureaucratic committee.
Because President Obama has been given fast-track powers by this
Congress--unwisely I think--Congress cannot amend this deal, we cannot
strike one offending provision, apply a filibuster to force a
supermajority of 60 votes, as we have to have for most legislation, or
to apply a two-thirds treaty vote. Additionally, the White House writes
the implementing legislation, which, in turn, necessarily supersedes
any existing American law. So this is what we mean by fast-track.
Today I would like to share a few thoughts about one aspect of this
agreement, the Trans-Pacific Partnership Commission. There is a
particular chapter in this mammoth agreement, chapter 27, titled--
innocuously enough--``Administrative and Institutional Provisions,''
which deals with the creation of a Trans-Pacific Partnership
Commission.
Section 27.1 outlines the creation of this Commission and who is a
member. The agreement states that ``each party shall be responsible for
the composition of its delegation.'' In other words, we are empowering
the Trans-Pacific Partnership countries to create a new congress of
sorts--a group with delegates that goes and meets and decides important
issues that can impact everyday lives of Americans. The American
representative in this Commission, which will operate in many ways like
the U.N., will not be answerable to voters anywhere. How long will
their terms be? How will they be chosen? Will there be any restrictions
on lobbying, any requirements of transparency? Can they always meet in
secret? Are there any ethics rules? The answer is, it will be whatever
the TPP countries decide it will be.
The fact that they negotiated this in secret for months--years,
really--indicates that transparency is not a quality they value very
highly. It is an entity untethered above and outside the Constitution
of the United States. All our government agencies in the United States
must answer to the Congress and the President, the Chief Executive.
These institutions will not. So we need to be cautious.
All I am saying is, why do we have to do this? Why do we have to
create a Commission in which Vietnam or the Sultan of Brunei gets the
same vote as the President of the United States?
Section 27.2 lists several powers of the Commission which should be
expected in any regulatory body. It is granted the power to oversee the
implementation of the TPP and the power to supervise the work of
relevant working groups under its jurisdiction. However, then the
section states this: Under the rules, the Commission shall ``consider
any proposal to amend or modify this Agreement,'' to change the
agreement. They get to change the agreement. We can ratify this, but
they get to change it whenever they deem appropriate. Also, the
Commission shall ``seek the advice of non-governmental persons or
groups on any matter falling within the Commission's functions'' and
``take such other action as the Parties may agree,'' while considering
``input from non-governmental persons or groups of the Parties.''
It also says it will consider the findings of international fora to
help advise them. I guess one of the fora they will not be considering
is a group like the National Federation of Independent Business, small
businesses.
None of these terms are defined as to what constitutes a
nongovernmental person or group. What is that?
Remember, when the Founders of our country negotiated the
Constitution, they worried about every word. They thought about what it
would mean and could mean decades, centuries later. They talked about
creating a new form of government on this entire continent. They
actually believed that could be possible, and it certainly has become
reality. Have we given that kind of thought to the power we are
delegating to this Commission? How will the agreement be amended or
modified?
Just last week, the Secretary of State, Secretary Kerry, was in
Kazakhstan. He told the television station in Kazakhstan that he is
interested in seeing China and Russia be added to the TPP and that they
would consider the Philippines a prime candidate to join in the future.
That is an interesting thing to announce, particularly in Kazakhstan.
Since it impacts the people of the United States, it might be nice for
him to be talking more to the people of the United States.
So this would create a situation in which new countries can be added,
it appears, most any different way.
The point is, this global governance authority is open-ended. The
agreement states that ``the Commission and any subsidiary body
established under this Agreement may establish rules of procedures for
the conduct of its work.''
It even covers climate regulation--a lot about climate regulation.
The agreement states that ``the Parties acknowledge that transition to
a low emissions economy requires collective action.'' Having been a
proud cold warrior, I have never been happy with people who use the
word ``collective.'' It makes me nervous.
The TPP is a living agreement. According to the U.S. Trade
Representative's own Web site, the living agreement provision is in the
TPP: ``. . . to enable the updating of the agreement as appropriate to
address trade issues that emerge in the future as well as new issues
that arise with the expansion of the agreement to include new
countries.'' It says it is to deal with trade issues and new issues.
Are those issues nontrade? Are they environmental issues? Are they
labor agreements or other kinds of things that are unrelated directly
to trade? I think it is clear this would allow that to happen.
Regardless, after the TPP is passed and Congress has blessed the
union, the Senate will have no say in how the
[[Page S7896]]
Commission is established or the rules by which it is governed. It is
untethered to the Congress.
Second, currency manipulation is a serious issue. It is impacting our
ability to trade effectively today in a very large way.
Paul Volcker, Chairman of the Federal Reserve during a time when he
and President Reagan transformed the American economy from raging
inflation and interest rates to a sound economy, said that currency
manipulation could wipe out decades of trade negotiations in a matter
of minutes. We have seen that happen.
Currency is huge and impacts so many companies. If you read the
financial pages, you will see that companies are worried about their
bottom line in large part because it will be harder for them to compete
with foreign competitors who devalue their currency deliberately in
order to gain an advantage in trade. But there is no enforceable
currency mechanism in this agreement, although it was fought for in
both Houses of Congress and came close, but it is not in it.
On November 5, the Wall Street Journal wrote: ``Mexico, Canada and
other countries signaled they were open to the [currency] deal when
they realized it wouldn't include binding currency rules that could
lead to trade sanctions through the TPP.'' This caused Ford Motor
Company to immediately reject the TPP the day it was released. Their
spokesman argued that they could not support a deal in which currency
rules ``fell outside of TPP and [failed to] include dispute settlement
mechanisms to ensure global rules prohibiting currency manipulation are
enforced.''
This is a huge matter. Ford says that when they are selling an
American-made automobile or truck in a foreign country, they are losing
thousands of dollars as a result of currency manipulation by many of
our trading partners. So it is hard to sell an automobile if our
foreign competitors have, in effect, a comparative advantage on
currency alone of several thousand dollars.
The administration has zero interest in preventing foreign market
manipulations and currency manipulations, and thus the TPP will cause
massive job losses. It just will. We will be less able to compete.
Let's be frank. I supported the Korean trade agreement. We have great
allies in Japan and Korea and others in the Pacific, but they are tough
trading partners--competitors, if you want to know the truth. They are
competitors. They are mercantilists. They have a goal. Their goal is to
sell as much as possible to foreign countries and particularly to the
greatest market in the world, the market they lust to gain even more
access to--our market. They want to sell to us. Through a whole lot of
different mechanisms, they resist purchasing anything from us. Have we
made any progress in lessening the trade deficit to Japan or Korea
lately? It is not going to happen because these barriers are nontariff,
currency being one of the most noteworthy.
Foreign workers and governments under the TPP are not inhibited from
illegally undercutting American workers through currency manipulation
in order to export their unemployment to the United States.
The way this happens is, if you have a business in a foreign country
and the world market has slowed down and your exports are slowing down,
if you devalue your currency, your product becomes cheaper and can be
sold in the United States or other countries at a cheaper price, and
you keep your people working and manufacturing those widgets, whereas
the country that imported your product lays off its workers because it
can't compete at that price--for the widgets. It is an artificial way
to gain market advantage.
In May of this year, I wrote the President and asked him simple
questions. This is important, colleagues. I asked him to state whether
the TPP would increase or decrease our trade deficit. He refused to
answer. I asked him whether the TPP would increase or decrease the
number of manufacturing jobs in the United States. He refused to
answer. I asked him how the TPP would affect the average hourly wages
of the American middle class. He refused to answer. He never wrote
back. All that the proponents in the White House have said about this
deal is that it would increase production and jobs in the export
industries. But exporting is such a small part of American industry
production. They don't mention how many jobs would be lost by the
increased imports into our country.
Dan DiMicco, the CEO emeritus of Nucor Steel, which operates steel
plants all over the Nation, wrote in his recent book:
The world says one thing about open markets and free trade
but does another. Whatever sharp cultural or political or
language differences may separate the Japanese from the
Chinese, or the Germans from the French, this much they all
have in common: they know how to advance and protect their
economic interests.
Mr. President, has my time lapsed?
The PRESIDING OFFICER. The Senator from Alabama, there is a 10-minute
time limit.
Mr. SESSIONS. Mr. President, I ask unanimous consent for 2 minutes to
wrap up.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. SESSIONS. They know how to advance their interests, and we have
not been effective in advancing ours.
It is time to take TPP off the fast track, take this off the fast
track and get busy defending the interests of the American people.
DiMicco writes:
In principle, any industrial policy would begin by saying
the business of creating, making, and building things must be
at the heart of any overreaching economic strategy.
This agreement is not just about promoting trade; it is about
creating a framework for a transnational union which supersedes the
authority of Congress.
Finally, if it were truly about opening markets to U.S. producers,
the United States would simply have negotiated bilateral agreements
with the countries we need to talk to.
We are the world's greatest market for worldwide products that are
made, and right now we give open access, incredibly, to foreign
imports. Just look at those containerships on the Pacific coast stacked
to the top. It is not working for jobs in America, it is not working
for wages in America, and it is not working for manufacturing. We have
to make things. Moving to a services economy would be failure.
Of course we want trade. Of course we want to purchase items from
abroad. I am not saying we shouldn't. What I am asking is, are we, in
negotiating this trade agreement, giving even broader access to our
markets without getting enough in return? That is the problem. America
must make things. Consumption in America should be for Americans and
for export. Our competitors want the opposite, and they have been
winning, but they need us more than we need them; thus, we have great
power to reverse this course.
Figuratively speaking, some of our politicians will be pushing up
daisies if they don't listen to what the American people are saying.
They must listen to the sound, common sense of the people who hold the
ultimate power. They expect us to make sure their interests are
legitimately defended. I don't believe this trade agreement does that,
and we will talk more about it as time goes by.
I thank the Chair and yield the floor.
The PRESIDING OFFICER. The Senator from North Carolina.
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