[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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