[Congressional Record Volume 163, Number 158 (Tuesday, October 3, 2017)]
[House]
[Pages H7729-H7730]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1815
       WHAT A RENEGOTIATED NAFTA COULD MEAN FOR AMERICA'S WORKERS

  (Ms. KAPTUR asked and was given permission to address the House for 1 
minute and to revise and extend her remarks.)
  Ms. KAPTUR. Mr. Speaker, during the August recess, I held a field 
hearing in Ohio to hear firsthand accounts from American workers and 
farmers and all our constituents on what a renegotiated NAFTA could 
mean for jobs in Ohio and America.
  At the end of my remarks, I will include in the Record the testimony 
of Roger Wise, of the Ohio and National Farmers Union, and Nick 
``Sonny'' Nardi, of the Teamsters Local 416 in Greater Cleveland.
  Roger discussed the loss of American jobs to low-wage workers south 
of the border, and Nick emphasized the need to overhaul U.S. trade 
policy, including outlawing child labor, with stronger labor rights and 
true enforcement, calling for a tri-national Labor Secretariat to hear 
and resolve labor issues.
  I am grateful for their contributions, as only by listening to those 
who have witnessed the effects of bad trade agreements can we move 
forward and bring jobs back to America and prevent exploitation of 
workers abroad.

        Testimony of Roger Wise, Ohio and National Farmers Union

                     (August 3, 2017 NAFTA Remarks)

       Good afternoon. Thank you Rep. Kaptur, Elizabeth of the 
     Citizens Trade Campaign and President Mark Payne, Local 1250 
     for hosting this very timely event about this very important 
     topic.
       My name is Roger Wise and I am a 4th generation full-time 
     family farmer and have been so for more than 40 years. I am 
     here today on behalf of the Ohio and National Farmers Union. 
     NFU is the oldest active farm organization in the country, 
     advocating since 1902. Ohio has been chartered since 1934.
       Nationally we represent over 200,000 family farmers and 
     ranchers and fishers. Here in Ohio we tout 2500 of those 
     members. Four of them are here with me today, Marge and Mardy 
     Townsend from Astabula County, and of course Congresswoman 
     Kaptur.
       The Farmers Union organization works through grassroots 
     driven policy to improve the well-being and quality of life 
     for family farmers, ranchers, fishers and rural communities. 
     Each year at our national fly in we bestow on like-minded 
     members of Congress our most prestigious award, the Golden 
     Triangle. Rep. Kaptur has received it more than 25 years 
     running, more than any other legislator; and we are grateful 
     for her support.
       I remember vividly when the Secretary of Agriculture, Earl 
     Butz declared the United States would plant ``fence row to 
     fence row'' and we would export our nation to prosperity and 
     feed the world along the way. That 70's expansion lasted only 
     a few years because American farmers soon produced massive 
     surpluses, interest rates, inflation ad input costs 
     skyrocketed, prices plummeted and competing countries 
     developed their own farming techniques. The farm cries of the 
     80's began and lasted for the next 25 years. Farm program 
     payments accounted for 50% of farm income. The mantra was 
     that profit came in ``economies of scale'', and we must ``get 
     big or get out''. Many family farmers and ranchers did 
     exactly that, some by choice, many by the force of the bank.
       Trade agreement seeds were planted and gathered momentum in 
     the 80's.
       NAFTA was the poster child. Assurances were given that no 
     jobs would be lost, in fact, many more would be created; and 
     the economies of the United States, Mexico and Canada would 
     explode for he benefit of the people in all 3 countries. 
     President Clinton signed on to the agreement ensuring us this 
     would be the economic model for the world.
       Now, 25 years later we know the rosey assumptions and 
     predictions did not play out in reality like they did on 
     paper. American workers lost their manufacturing jobs to low 
     wage Mexican workers who were also decimated product quality 
     eroded, unions were decimated, family farmers either quit or 
     were forced out of business, the middle class began to shrink 
     and the trade deficit began to climb.
       Agriculture, however, through it all was championed because 
     the United States consistently enjoyed trade surpluses 
     primarily form corn and soy exports. Unfortunately though, 
     family farmers, ranchers, and consumers did not benefit from 
     NAFTA. With the exception of the boom year 2008-2013, which 
     were due to the Renewable Fuel Standard, not NAFTA, close 
     inspection reveals vertically integrated multi-national 
     companies reaped the profits while farmers in all 3 countries 
     saw margins decline to the point of non-profitability; and 
     all the while our trade deficits soared. Additionally, trade 
     deals opened the door to consolidation and mega-mergers which 
     led to less competition, non-competitive markets, higher 
     costs, fewer choices and reduced research and development. An 
     example of the latter is herbicide weed resistance.
       For decades Country of Origin Labelling, ``COOL'' has been 
     the signature issue the Farmers Union. We pushed for its 
     passage with great vigor because it benefits producers and 
     95% of consumers support it. Simply, it requires beef pork 
     and poultry to be labeled with the country from which these 
     products came. Rep. Kaptur has been indefatigable promoting 
     this issue. In fact, she is more steadfast supporting and 
     promoting COOL than any congressperson in D.C. and we are 
     grateful for her efforts. This requirement is not unique and 
     this virtually all of our trading partners have a form of 
     COOL and all of them are WTO compliant.
       Our coalition efforts paid off in 2002, when COOL was 
     included in the Farm Bill. Unfortunately, special interests, 
     uncaring about its popularity and practicality, lobbied to 
     prevent its funding and the measure was not implemented. Our 
     efforts continued and in the 2008 Farm Bill COOL was 
     mandatory and it became law of the land.
       Again special interests went to work to derail the law. 
     They challenged it 3 times in Federal Court and lost each 
     time. Undeterred and well financed, Canada and Mexico were 
     coerced into filing suit with the WTO. Ironically, the 
     tribunal was chaired by none other than Mexico. With the deck 
     clearly stacked against us, our case was lost and Congress, 
     under bogus threats of economic reprisals repealed COOL.
       For NAFTA to be meaningfully renegotiated, re-instating 
     COOL must be a high priority for the benefit of farmers and 
     consumers.
       Food production and its safety are national security issues 
     as well as an economic ones. Trade agreements have led to 
     reduced border inspections of food imports. Further, these 
     agreements have deemed other counties less stringent safety 
     regulations adequate for our import inspections. This 
     relaxing of regulations puts our farmers and ranchers at a 
     disadvantage because our products are routinely of higher 
     quality.
       Currency manipulation and the overvalued U.S. dollar makes 
     our exports more expensive relegating us to the supplies of 
     last resort which also adds to the trade deficit.
       Farmers and ranchers were not helped by America's 
     withdrawal from the Paris Climate Agreement. Farmers are 
     poised to help mitigate climate change both here and around 
     the world through conservation, carbon sequestration and 
     other initiatives to assure sustainability for decades to 
     come. Climate change must be part of any meaningful trade 
     agreement based on public funded, peer reviewed science based 
     research.
       To conclude, the record must be clear. NFU is not anti 
     trade or protectionist. We are keenly aware that the economy 
     is global and trade is a critical component of world 
     economics. We do, however, believe that trade deals should 
     benefit farmers and workers in all counties. Living wages, 
     competitive markets, with safety and welfare in the work 
     place guaranteed; and all nations must strive for a clean and 
     healthy environment to preserve our planet for centuries 
     hence. Only then will trade be fair and our deficit decline.
       Thank you

               NAFTA Field Hearing With Rep. Marcy Kaptur


   Testimony of Nick ``Sonny'' Nardi, President, Teamsters Local 416

       Good afternoon. My name is Sonny Nardi and I am president 
     of Teamsters Local 416 in Cleveland.
       In May 2000, 320 Teamsters got laid off from the Mr. Coffee 
     plant in Glenwillow, about 20 miles east of here. Their jobs 
     went to Mexico because of the North American ``so-called'' 
     Free Trade Agreement.
       My Local, Teamsters 416, lost hundreds of jobs to NAFTA
       --120 jobs at HOSPECO on 79th and Carnegie in Cleveland,
       --60 jobs at Muller Electric on Pain Avenue in Cleveland
       --96 jobs in Bedford Heights, The Mr. Coffee Filter 
     Division
       --115 jobs at Blue Coral Car Wax in Maple Heights
       These were all good paying jobs with benefits and many were 
     inner city jobs, workers could walk to work and had much 
     tenure.
       Most of of these guys, because their production jobs were 
     simply shifted to Mexican plants, were eligible for some 
     federal benefits under a narrow NAFTA program called ``Trade 
     Adjustment Assistance,'' or TAA. Here in Ohio, under NAFTA 
     TAA, more than 150,000 workers have been certified as lost 
     their jobs due to offshoring--plant relocation like Mr. 
     Coffee--or because of increased imports from Mexico and 
     Canada that reduce production and jobs at American companies.
       But, as everybody knows, the TAA totals are the tip of the 
     iceberg because that program certifies only the manufacturing 
     jobs that we have lost because of NAFTA--not the services 
     jobs that depend on a strong manufacturing base.
       So, when you factor in those jobs, as well as the 
     manufacturing jobs Ohio has lost due to our flawed and failed 
     so-called ``free

[[Page H7730]]

     trade'' policies, than Ohio. And, on a personal note, as a 
     longtime northern Ohio Teamster leader, there aren't many 
     Local unions that have been decimated, the way 416 has, by 
     NAFTA.
       And on another point of personal privilege, I want to say 
     that American workers, not just here in Cleveland but all 
     over the country, have had no better friend, no greater ally, 
     than Congresswoman Marcy Kaptur.
       Some folks here are probably too young to remember the 
     NAFTA Accountability Act back in the mid-90s. That was Marcy 
     Kaptur shining a legislative light on the NAFTA disaster even 
     as the jobs were staring to flow south.
       That's why this field hearing is so important and that's 
     why the renegotiation of NAFTA is an historic opportunity.
       So I want to spend a couple of minutes on how we can 
     overhaul the NAFTA to begin to repair the damage. 
     Specifically, I want to describe some things that must be 
     included in a new NAFTA, new Chapters, as well as some old 
     parts of NAFTA that must come out.
       But let me be really clear at the outset: if the Trump 
     trade team does not renegotiate NAFTA in a thorough way that 
     works for workers, then the US should quit the deal 
     altogether.
       I can't speak for the other folks on this panel today, but 
     the Teamsters demand a complete overhaul of the NAFTA model. 
     No cut-n-paste of the Trans-Pacific-Partnership, no tweaking 
     around the edges. We want a NAFTA upgrade that puts in 
     interests of working families first and foremost.
       To achieve this goal, the top priority has to be a new 
     Labor Rights Chapter to replace the weak and unenforceable 
     side agreement added to NAFTA to get Congress to support 
     ratification in 1993.
       When it comes to North American worker rights, we've got to 
     level the playing field, so Mexican workers and union 
     organizers have the same rights we take for granted up here. 
     That will reduce the incentive for corporations to relocate 
     jobs down there, if they can't oppress labor or avoid 
     collective bargaining
       The new NAFTA must prohibit child labor and forced labor 
     and protect the freedom of association and the right to 
     bargain collectively through independent unions. Further, 
     those fundamental labor rights must be enforceable by the 
     same or better trade sanctions that protect commercial 
     interests.
       Moreover, a truly modernized NAFTA should establish a 
     process to determine basic living wage rates in all regions 
     of all free countries and an enforcement mechanism to 
     guarantee a decent standard of living, including to save for 
     retirement.
       All these basic labor rights and the sanctions that protect 
     them and the commitment to living wage must be enforced by an 
     independent tri-national labor secretariat that can hear 
     labor cases and resolve them on behalf of all workers, 
     including migrant workers.
       Last point on labor: this new NAFTA chapter will serve as a 
     template for future negotiations, so it is crucial that 
     America get it right this time.
       Another new chapter that must be part of the NAFTA 
     replacement model is Currency. One of the reasons we could 
     not support the TPP was the previous administration refused 
     to include enforceable disciplines against currency 
     manipulation.
       America has learned the hard way how our trading partners 
     manage their currencies against the dollar to increase their 
     exports to us (and limit imports from us), which increases 
     our trade deficits, which costs American jobs. We're not 
     saying that Mexico or Canada is currently manipulating their 
     currencies. But we are saying that a replacement trade model 
     that we will support must finally address the issue of 
     currency misalignment.
       Let me finish by mentioning a couple bad NAFTA provisions 
     that must come out during renegotiation.
       The first is Government Procurement, which is NAFTA chapter 
     10. It has undermined ``Buy American'' laws by requiring the 
     federal government to treat foreign bidders as if they were 
     US bidders. To Buy American is to Hire American; that's how 
     it works, and we want our jobs back and our tax dollars spent 
     at home.
       Going into these new NAFTA talks, the U.S. should retract 
     all procurement commitments that undermine responsible 
     bidding standards and all domestic or local preferences. 
     Teamsters and taxpayers from both sides of the partisan 
     divide support ``Buy American''--and we don't want the new 
     NAFTA to weaken that economic policy, especially as we look 
     forward to the infrastructure investment that this country 
     needs so badly.
       The second thing that must come out is the controversial 
     system of private corporate courts that protect foreign 
     investors. NAFTA's chapter 11 introduced so-called 
     ``investor-state dispute settlement'' (ISDS) into our ``free 
     trade'' deals, giving foreign companies superior rights over 
     U.S. firms.
       ISDS undermines the rule of law and facilitates offshoring 
     by creating unique privileges and secretive arbitration 
     chambers in which foreign investors, but not American firms, 
     can challenge laws the claim will cut profits.
       A third bad provision, of particular interest to the 
     Teamsters, is in Chapter 12, which deals with trade in 
     services. The old NAFTA opened up American highways to unsafe 
     Mexican-domiciled long-haul carriers.
       We and our allies like Advocates for Highway Safety, the 
     Sierra Club and the Owner-Operator Independent Truckers, have 
     fought for many years, in the Congress and in the courts, to 
     keep that provision from being fully implemented.
       The original intent of the NAFTA negotiators was to keep US 
     interstates closed to Mexican carries until the safety of the 
     trucks and drivers could be certified. That never happened. 
     Accordingly, we call on the new NAFTA RE-negotiators to end 
     this controversy once and for all. The new NAFTA should 
     require Mexican-domiciled trucks to transfer their loads to 
     US trucks in the 20 mile wide border commercial zone.
       In conclusion, I have named two new chapters that must be 
     included in NAFTA 2.0 and three bad aspects that must come 
     out--five reforms that will keep and create middle class jobs 
     and help America lead the way towards a new trade policy 
     program, a template for all future international commercial 
     agreements.
       But, seeing as we are enjoying the hospitality of our UAW 
     brothers and sisters here in Local 1250, I want to mention 
     one last NAFTA fix.
       The Rules of Origin for autos and auto parts should be 
     beefed up. The ``regional value content'' should be raised 
     and all loopholes closed. In order to enjoy the low tariffs 
     and NAFTA market access, all cars and trucks that are made in 
     the three countries should not have components that are made 
     in other countries where wages are suppressed by companies 
     that oppress workers and pay them less than their labor is 
     worth.
       That solidarity is what this opportunity is all about. 
     Autoworkers and Steelworkers and Machinists and Teamsters, 
     the labor unions that have had the worst experience under 
     NAFTA and now have the greatest stake in real overhaul in its 
     renegotiation. We must stand in solidarity with our brothers 
     and sisters in the independent unions in Canada and Mexico. 
     And, in turn, all of labor must stand in solidarity with 
     environmental activists, consumer advocates and the family 
     farmers.
       Together, we have been fighting NAFTA and its expansion for 
     a generation. Now we can work together, with our allies in 
     Congress, to finally fix it.
       Thank You

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