[Congressional Record (Bound Edition), Volume 151 (2005), Part 9]
[House]
[Pages 12216-12224]
[From the U.S. Government Publishing Office, www.gpo.gov]




                                 CAFTA

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 4, 2005, the gentleman from Ohio (Mr. Brown) is recognized for 
60 minutes as the designee of the minority leader.
  Mr. BROWN of Ohio. Mr. Speaker, at a White House news conference 2 
weeks ago, President Bush called on Congress to pass the Central 
American Free Trade Agreement this summer. Last week in this Chamber, 
the gentleman from Texas (Mr. DeLay), the most powerful Republican in 
the House, promised a vote by July 4. Well, he actually promised a vote 
last year, and then he promised a vote again in May, but this time he 
means it, I think, and we are going to actually vote on this by July 4.
  I am joined tonight by the gentleman from Niles, Trumbull County, 
Ohio (Mr. Ryan) and the gentlewoman from Toledo, Ohio (Ms. Kaptur), two 
of my colleagues from my State; and there will be the gentlewoman from 
Illinois (Ms. Schakowsky) and others coming along later.
  Mr. Speaker, many of us who have been speaking out against the 
Central

[[Page 12217]]

American Free Trade Agreement have a message for the President, and 
that is we should renegotiate CAFTA.
  President Bush signed CAFTA more than a year ago. Every trade 
agreement negotiated by this administration has been ratified by 
Congress within 2 months of its signing. Australia, Singapore, Chile, 
Morocco, each of those trade agreements the President signed was 
passed, was ratified, was voted on by Congress within a couple of 
months. CAFTA, however, has languished in Congress for more than a year 
without a vote because this wrong-headed trade agreement offends both 
Republicans and Democrats. It offends small manufacturers and labor. It 
offends environmentalists and food safety advocates. It offends 
religious organizations in Central America and in our country.
  But most importantly, Mr. Speaker, look at what our trade policy has 
brought us. In 1992 the United States trade deficit, in other words, 
how much we import versus how much we export, our trade deficit was $38 
billion, the year I first ran for Congress, in 1992. Last year this 
trade deficit was $618 billion. It went from $38 billion to $618 
billion in literally a dozen years. It is hard to argue our trade 
policy is working when the deficit goes from $38 billion to $618 
billion in just a dozen years.
  Tomorrow, Mr. Speaker, the Senate Finance Committee is scheduled to 
take up CAFTA in what is called a mock markup. In tomorrow's mock 
markup, 10 legislators from Central America will attempt to offer 
statements on behalf of the hundreds of thousands of Central Americans 
who oppose this dysfunctional cousin of the North American Free Trade 
Agreement. I say these legislators will ``attempt'' because they have 
not been asked nor, the word we get, will they be allowed to offer any 
official remarks at any hearings on CAFTA.
  Instead, the administration and CAFTA supporters in Congress crafted 
a one-sided plan to benefit multinational corporations at the expense 
of U.S. workers and businesses, U.S. farmers and ranchers, and Central 
American workers and businesses and Central America's farmers and 
ranchers. Opponents to CAFTA know it is simply an extension of NAFTA, 
which clearly, as the gentlewoman from Ohio (Ms. Kaptur) has pointed 
out on this floor for a dozen years, has not worked for our country.
  It is the same old story, Mr. Speaker. Every time there is a trade 
agreement, the President says it will mean more jobs for the U.S., it 
will mean increased manufacturing in the U.S., increased exports of 
American-produced goods to other countries, and better wages for 
developing countries.
  But look at this chart, Mr. Speaker. The States here in red are 
States that in the last 5 years have lost 20 percent of their 
manufacturing. Michigan, 210,000 jobs, more than 20 percent of their 
manufacturing base; Illinois, 224,000; Ohio, 216,000; Pennsylvania, 
200,000 jobs; North Carolina, 228,000; Mississippi and Alabama 
combined, about 130,000 jobs. In State after State after State, we have 
lost 20 percent of our manufacturing base. In many of the other States, 
we have lost thousands of jobs also.
  So they continue to promise more jobs, more manufacturing, more 
exports, a higher standard of living in the developing world. But with 
every trade agreement, their promises fall by the wayside in favor of 
big business interests that send U.S. jobs overseas and exploit cheap 
labor abroad. In the face of overwhelming bipartisan opposition, the 
administration and Republican leadership have tried every trick in the 
book to pass this CAFTA.
  As I said earlier, we in this body could agree on a Central American 
Free Trade Agreement, but not one that is tilted against American 
workers, not one that is tilted against workers in Central America, not 
one that is tilted for the drug industry and against the environment 
and against worker rights.
  But this year, because nothing else seems to be working in convincing 
Congress, Republicans and Democrats alike, the administration is 
linking CAFTA to helping democracy in the developing world. Defense 
Secretary Rumsfeld, Deputy Secretary Zoellick, both have said CAFTA 
will help in the War on Terror. I am not sure how. They have never 
really explained that. But that is what they claim.
  Ten years of NAFTA, Mr. Speaker, has done nothing to improve border 
security between Mexico and the United States; so that argument does 
not wash. Then in May, the U.S. Chamber of Commerce, in one of their 
famous junkets that we hear more and more about from some of our 
friends in this body, flew the six presidents from Central America and 
the Dominican Republic around our country, hoping they might be able to 
sell CAFTA to newspaper editors, to our country's voters, to our 
country's Congress. They flew to Albuquerque. The Chamber of Commerce 
flew these six presidents to Albuquerque and to Los Angeles; to New 
York; to Miami; to Cincinnati, my home State of Ohio.
  Again they failed. And after the trip, the Costa Rican President 
broke off from the group and announced that his country would not 
ratify CAFTA unless an independent commission could determine the 
agreement will not hurt the working poor.

                              {time}  2000

  In addition, Mr. Speaker, we have seen demonstration after 
demonstration in Central America, 45 demonstrations with more than 
150,000 workers, opposing this agreement. Some of their Presidents 
might be for it, some of them might be, but their workers certainly are 
not. In this case, this was in Guatemala, when the police went up 
against 8,000 workers, two of these workers were killed by their 
country's security forces.
  Now the administration is trying something different. They have 
opened up the bank. Desperate after failing to gin up support for the 
agreement based on its merits, CAFTA supporters now are attempting to 
buy votes with fantastic promises. If history is any example, should 
the promises fail, they will try and force votes their way with 
outrageous threats.
  Instead of wasting time with toothless side deals, U.S. Trade 
Ambassador Portman should negotiate a CAFTA that will actually pass 
Congress. Republicans and Democrats, small manufacturers and labor 
groups, farmers, ranchers, faith-based groups in all seven countries, 
religious leaders, environmental human rights organizations and workers 
are all speaking with one voice: Renegotiate CAFTA; give us a CAFTA, 
but one very different from this.
  This CAFTA will not enable Central American workers to buy cars made 
in the district of the gentleman from Ohio (Mr. Ryan) or the district 
of the gentlewoman from Ohio (Ms. Kaptur.) They will not enable Central 
American workers to buy software developed in Seattle, or prime beef in 
Nebraska.
  A Nicaraguan worker, Mr. Speaker, earns $2,800 a year. The combined 
economic output of the Central American nations is equivalent to that 
of Columbus, Ohio, or New Haven, Connecticut, or Orlando, Florida, or 
Memphis, Tennessee. Workers in the United States make $38,000 a year on 
average.
  Workers in Costa Rica make $9,000; Dominican Republic, $6,000; 
Nicaragua and Honduras, the average makes significantly less than 
$3,000 a year. They are not going to buy the cars made in the district 
of the gentleman from Ohio (Mr. Ryan) or the gentlewoman from Ohio (Ms. 
Kaptur). They are not going to buy steel made in my district. They are 
not going to buy apparel made in North Carolina. They are not going to 
buy software from Seattle, or prime beef from Kansas. They simply 
cannot afford to do this.
  This CAFTA is not about exporting American products. It is about U.S. 
companies moving plants to Honduras, paying $2,600 a year; outsourcing 
jobs to El Salvador, where workers make less than $5,000; exporting 
cheap labor in Guatemala where workers make $4,000 a year.
  Mr. Speaker, when the world's poorest people can buy American 
products and not just make them, then we will know that our trade 
policies are working.

[[Page 12218]]

  Mr. Speaker, we should renegotiate; defeat this Central American Free 
Trade Agreement, start again and renegotiate a CAFTA that will lift up 
workers and environmental standards in all the involved countries.
  I would like to yield to my friend from Toledo, the gentlewoman from 
Ohio (Ms. Kaptur), and thank her for her terrific work for years on 
trade issues.
  Ms. KAPTUR. Mr. Speaker, I want to thank the able Member the 
gentleman from Ohio (Mr. Brown) for spearheading this Special Order 
this evening and for the great work he always does, and the gentleman 
from Youngstown, Ohio, and the surrounding areas, for being so much a 
part of our efforts to change America's trade policy so it again works 
for America's communities, America's workers and America's farmers.
  If you loved NAFTA, you are going to love CAFTA, and I cannot think 
of a single American that really loves NAFTA, because we have lost so 
many jobs, nearly 1 million jobs, since that agreement was passed in 
1993.
  It is really amazing to me to think about everything that is needed 
in this country and what the Bush administration is trying to push 
through this Congress. Just look at rising gas prices. Is this 
administration and Congress really trying to do anything to help 
America become energy-independent again? No, not really. We continue to 
become more dependent on imported petroleum than before this 
administration took office.
  All of our pension funds are underfunded. The Pension Benefit 
Guarantee Corporation, which is supposed to undergird all of our 
Nation's pension funds in private industry, needs over $23 billion to 
try to restore just the current needs in that bill. Are we getting a 
bill to fully fund the Nation's pension guarantee fund? No. The bill is 
not coming up here on that.
  What about Social Security? Well, their answer is privatize it. Try 
to divert money from the regular trust fund, rather than finding a way 
to make sure that Social Security is healthy long term.
  Health care, is anything really being done to insure America's 
families and to try to take care of all those in our nursing homes who 
do not have enough nurses at bedside? No, that bill is not coming up 
here.
  Or veterans, to make sure we have enough money in the accounts of 
this country to take care of all the disabled veterans returning home? 
We see our Family Assistance Centers having to raise money to buy 
special access ramps to people's houses and to try to take care of 
families because we lack TRICARE when our veterans come home. No, we 
are not getting a bill to do anything about that.
  What we are getting is we are getting a bill that would expand NAFTA 
to include five more countries, actually six more countries if you 
count the Dominican Republic. What it would do is add over 50 million 
more people into this NAFTA union, people who have hands to do work, 
but who through that work cannot really increase their own standard of 
living, as the gentleman from Ohio (Mr. Brown) has said, who could buy 
the goods that are made in this country, because they do not earn 
enough to afford them. But it would add 50 million more people to this 
trade effort.
  That means that our jobs, as happened with NAFTA, would continue to 
be outsourced, shipped out, even in greater quantity than they already 
are, to Guatemala, Costa Rica, the Dominican Republic, El Salvador, 
Honduras, Nicaragua, all these places so very far from home, and more 
of our agricultural production as well.
  So we are literally being asked in this agreement to add a State the 
size of California, 50 million people, or four States the size of Ohio, 
actually five Ohios, if you look at the population of the countries 
that they are trying to add to this DR-CAFTA agreement, add that many 
more people to our union and then say it is all going to work.
  This is an example of what has happened since NAFTA was passed back 
in the early 1990s and what has happened to our trade deficit, if you 
add NAFTA, if you add the special agreement with China and all these 
other trade agreements. We have fallen every year into deeper and 
deeper and deeper deficit. We are now over half a trillion dollars a 
year more goods coming into this country than exports going out.
  I just wanted to place the record as I begin my comments this evening 
that in the last official count in March-April of this year, the 
overall U.S. trade deficit in goods and services rose another 6.34 
percent from March to April, climbing from $53.6 billion to $57 billion 
overall, on top of all of the deficit we already had from last year, 
and this represents the fourth highest combined monthly deficit on 
record for our whole country.
  The deficit with Mexico in that period of time rose to $4.4 billion, 
up another 3.29 percent, and the deficit with Canada rose to $5.4 
billion, just for that month, another 8.9 percent increase.
  If I could just demonstrate these other two charts as I begin this 
evening, the gentleman from Ohio (Mr. Brown) referenced the trade 
deficits in various countries.
  With Canada, since NAFTA was signed, the proponents said, just like 
they are saying now, if we sign this agreement, we are going to have 
all the trade. Except it is modeled after the NAFTA accord. And after 
we signed NAFTA with Canada, though we already had a deficit with 
NAFTA, after the signing of NAFTA it just went deeper and deeper to 
where it doubled and tripled, more production in Canada than here in 
the United States. With Mexico, the very same pattern.
  This type of accord provides America with lost jobs, lost income, 
more imports coming in here than exports going out. With Mexico when 
NAFTA was signed, we actually had a little trade surplus with Mexico. 
We have fallen into heavy, heavy deficit, now nearly $50 billion a year 
in the hole with Mexico.
  Finally, before I yield back the time the gentleman was kind enough 
to give me, we already have today a $1.9 billion deficit in goods with 
these nations already. All CAFTA is going to do is push those numbers 
further down, which means more lost jobs in Ohio, more workers who 
cannot afford to own their home, these increasing bankruptcies we see 
across our country, and the same-old-same-old being thrust upon the 
American people voted on here in this Congress by some of the most 
powerful economic interests on the face of the globe.
  So I am very thankful that the gentlewoman from California (Ms. 
Solis) was speaking earlier this evening, the gentleman from Texas (Mr. 
Gene Green), now the gentleman from Ohio (Mr. Brown), the gentleman 
from Ohio (Mr. Ryan), to talk about, you know what, it is time to draw 
a line in the sand and say if an agreement has been out of whack, 
seriously in deficit for more than 3 years, it ought to be 
renegotiated, and we should not add any more pain to the American 
economy than we already have.
  I want to thank the gentleman for allowing me to speak this evening.
  Mr. BROWN of Ohio. Mr. Speaker, reclaiming my time, I thank my friend 
for her terrific work representing American workers.
  I yield to my friend the gentleman from Ohio (Mr. Ryan).
  Mr. RYAN of Ohio. Mr. Speaker, I thank the gentleman from Ohio (Mr. 
Brown) and the gentlewoman from Ohio (Ms. Kaptur) for their leadership 
on this issue. For years and years you guys have been at the forefront 
of this issue, and now it is becoming a little more trendy, a little 
more popular, to be against some of these trade agreements. I would 
like to thank you as a new Member, second term. I am a lucky guy to 
have two Members in the Ohio delegation with such strong leadership on 
this issue.
  As we talked about the trade deficits, whether they are with one 
country or the overall trade deficit, I think it is important, and this 
is the real disconnect that I think the administration and many of the 
people who are supporting CAFTA are missing. The disconnect is with 
those people who are in our district, those people who lose 
manufacturing jobs, those people who lose textile jobs, whether in the 
Southern States, those are the people we are here to represent.

[[Page 12219]]

  If the trade agreements that we have been signing, whether it was 
NAFTA or PNTR or Most Favored Nation with China over years and years 
and years, if they are not working for everyone, then they are not good 
trade agreements for the United States of America.
  I am sure both of you represent counties that probably have the same 
kind of situations that the counties in my districts have. They cannot 
pass a sales tax; they cannot pass police and fire levies, library 
levies, school levies. I think two-thirds of the school levies that 
were on the ballot in Ohio last year failed, two-thirds.
  So years ago we were promised when we had the debate, we are going to 
pass NAFTA, but we are going to invest in education. We are going to 
trade with the Chinese, but we are going to make sure that our workers 
are the most skilled, educated and healthiest workers on the planet. We 
failed to do that on this end, and at the same time we sign agreements 
that do not have the labor standards, do not have the environmental 
standards to help lift these people up.
  As the gentleman from Ohio (Mr. Brown) pointed out earlier, with the 
average wage of a Nicaraguan worker, what are they going to buy here? 
What are they going to buy that comes out of the United States? Not a 
Jeep from Toledo, not a Cobalt from Lordstown, Ohio. They cannot afford 
it. It would take them 10, 15, 20 years to come up with the kind of 
money that they would need to just buy a car coming out of the United 
States of America.
  I think it is important, because it is not just about CAFTA. If we 
take a step back and we try to look at how the world is going to look 
in the next 10 or 20 years, we have high-tech jobs making their way to 
India and China, and we have a lot of our manufacturing going to China 
that has come from Mexico, first it went down to Mexico and then over 
to China, and everyone keeps talking about this new economy and what is 
it going to be.
  Well, we do not really know what it is going to be. Nobody seems to 
know what this new economy is going to be like. We are going to have 
the high-tech jobs, and our people are going to work, and it is going 
to be great. It will be like America is going to be one big country 
club. Everybody is white collar, everybody gets to golf and go to the 
swimming pool, and it is going to be great. That was the idea they were 
trying to pitch to us in the 1990s, and it did not work out that way.
  So it is important for us, I think, not only those of us against the 
trade agreements, but as Democrats, to say this train is so far down 
the track, we do not even know how much we are going to be able to stop 
it. I think it starts with CAFTA would be a good place for putting our 
stake in the ground and trying to go in another direction.
  But at the same time, we have got to invest in education, we have got 
to make sure we have healthy citizens. Eighty-five percent of the 
students that go to Youngstown city schools qualify for free and 
reduced lunch. That is probably the same, if not higher, in Cleveland 
and Toledo. Fifty or sixty percent of those kids live in poverty.
  So even if we just, for the sake of argument, say these trade 
agreements are great, let us all compete; let us educate our kids; let 
us do what we have to do to compete with them, free markets, which we 
do not always buy, but let us for the sake of argument say that. How 
are we going to have the kids in Youngstown able to compete against 
these workers in the other countries if we are not investing in 
education and not making sure they are healthy, lifted out of poverty 
and on the playing field?
  I will say this before I yield back: We are going on the global field 
of competition with less than half a team because these kids are not 
getting the kind of education, the kind of health care that they need.

                              {time}  2015

  So here we are trying to compete with the Chinese, now we want to do 
it with some other countries, and we just are not making the proper 
investments to even come to the point where we are going to be able to 
lift all of our citizens up to compete with over a billion Indians and 
1.3 billion Chinese. And until we do that, fix these trade agreements 
and make those investments, we are going to see these trade deficits 
continue, we are going to see other countries like the Chinese and the 
Indians outpace us with engineers, computer scientists, and all of 
these other high-tech workers and, eventually, every community is going 
to be like some of the communities we represent, struggling to fund 
their schools, struggling to fund basic police and fire, libraries, the 
basic services that government needs to provide.
  So I am happy to join my colleagues here tonight, and I thank the 
gentleman again for his leadership, and I yield back.
  Mr. BROWN of Ohio. Mr. Speaker, I thank my friend, the gentleman from 
Ohio (Mr. Ryan). One of the things that the gentleman pointed out is 
talking about school kids in Youngstown or talking about police and 
fire in his community, and we do a lot of talking about statistics and 
numbers and the trade deficit going from $13 billion to $618 billion in 
a dozen years, but then we think about what this means. When President 
Bush, Senior, said for every billion dollars in trade surplus or trade 
deficit, that translated into 12,000 jobs; for every billion-dollar 
trade surplus, it is 12,000 more jobs for our country; for every 12 
billion-dollar trade deficit, it is 12,000 fewer jobs, many of those 
manufacturing jobs.
  So when we have this kind of trade deficit of $618 billion, you 
multiply that times 12,000 jobs, according to President Bush, Senior, 
however you do the math, these are a lot of people that lose jobs, 
communities that experience plant closings, a lot of police and fire 
who protect our communities who get laid off when these plants close. 
These are a lot of cuts to public education. As the gentleman from Ohio 
(Mr. Ryan) says, you then need to pass school levies and it is so hard 
to pass school levies when people have lost their homes and lost their 
jobs and are barely able to make ends meet, and have taken a job where 
they were making $35,000 a year and are now making $17,000 a year, and 
they cannot afford a property tax increase, so schools lose out and 
kids lose out, and it is just a downward spiral.
  So when you see these numbers, you think about people in our 
communities, it does not matter if they are Democrats or Republicans, 
because these job losses, as we have pointed out, these job losses in 
manufacturing alone, particularly throughout the Midwest and the south, 
North and South Carolina, Alabama, Georgia, Mississippi, and States 
from Pennsylvania, Ohio, Michigan, Indiana and Illinois, up into 
Wisconsin, think of these 200,000 per State manufacturing job losses is 
a whole lot of people, a whole lot of bread winners and families that 
come home to their kids and cannot do what they were able to do before 
they lost their jobs. Their schools are hurting, their public safety is 
hurting, they are not able to send their kids on to school, all the 
kinds of things that go with lost jobs. That is why this is so 
important.
  Mr. RYAN of Ohio. Mr. Speaker, the gentleman makes a great point. The 
whole idea of us representing the whole country is that these 
agreements are benefiting the very few people who are doing really 
well, and they are the same people who are qualified for the tax cut 
that goes to the top one percent. So there is a philosophical debate 
here: is the legislation and the trade deals that come out of this 
Chamber going to represent everyone, going to be good for everyone, or 
are they going to be good for the very few.
  That is the kind of philosophy. It has been divide and conquer down 
here for the last few years, and hey, if you get screwed out of your 
job, then so be it, that is where you are; my friends are doing good 
and they get to donate to my campaign, so we are just going to ignore 
you.
  Mr. BROWN of Ohio. Mr. Speaker, I would point out that the States in 
white, and there are two of them, actually had manufacturing job 
growth. In

[[Page 12220]]

these two States, total population is about 2 million people out of a 
country of 280 million, so these two States represent less than one 
percent of our country. Not that they are not important if you live in 
those two States, but they are the only States that have had 
manufacturing job growth.
  All of the States in red have lost 20 percent of their manufacturing, 
20 percent, hundreds of thousands of jobs in many of these States. The 
States in blue have lost up to 20 percent, 15 to 20, so it is State 
after State after State has just been hurt badly by this. And as we 
have all talked, it clearly translates into people's lives.
  Ms. KAPTUR. Mr. Speaker, people in our country intuitively know 
something is wrong. They go to the store and they try to buy something 
and they see ``made in China,'' or they see ``assembled in Mexico.'' 
And they also know that the quality of production is going down, that 
the metals that are used are not as good as they used to be; that the 
clothing is comprised of fabrics that do not breath as well and they do 
not wear as well. People know this.
  Shoes. They know that the shoes, most of which are imported now, they 
are not good quality. There is not rubber on the bottoms anymore on 
good leather. Now we have these combination fabrics and your feet hurt.
  We think about, and at least I, of the three this evening who are 
talking, am old enough to remember when America made American-made, 
quality goods. We used to even make American flags. And when they had 
that rally over here, the Speaker handed out flags made in China.
  Mr. Speaker, I can remember an America where there really was an 
America here, where we really made things, and we were proud of what we 
made. When you have these kinds of trade deficits that are massive, 
over a half a trillion dollars a year in deficit, more imports coming 
in here than exports going out, you are displacing production.
  I had an experience this past week in my district where I went 
through an old power plant, and the innards are being taken out because 
it is passe, its technology is passe. I said, well, now, where are we 
sending the copper to be reprocessed and used? They said oh, the copper 
was bought up by China. I said, oh. Well, what about the turbines? 
Well, the turbines are going down to Argentina. I said, you mean there 
is nobody in America that even wants to use the scrap metal?
  We look at the prices of steel and, in terms of coking, there are no 
coking operations here. The Chinese have us around the neck because 
they have been charging $43 a ton for coke and making steel production 
so expensive in our country. We are seeing parts of us being dismantled 
and sent somewhere else.
  I was down in North Carolina talking with some of the producers of 
hogs and turkeys and chickens down there, and the grains, rather than 
coming from the Midwest, is coming from Argentina delivered at the Port 
of Wilmington. The farmers in North Carolina and South Carolina want to 
buy grain from the Midwest, but yet it is coming from Argentina. It is 
very interesting to think what is happening to our country.
  Then, on the side of some of these nations, take the Dominican 
Republic. We had a couple of young people come to Toledo from the 
Dominican Republic a couple of years ago from one of our church groups, 
and they actually worked in a company making apparel; it was a South 
Korean contractor on contract to the government of the Dominican 
Republic, and these young women were making T shirts that were to be 
sold in the United States, all of their production came here. They were 
paid 12 cents a T-shirt. They worked 14 to 18 hour days, 7 days a week; 
they had absolutely no say in their company, nothing, forget it. They 
were just bonded workers. If they spoke up, they were fired. They 
worked behind barbed wire fences and gates, the plant was inside, it 
was like a reservation, actually.
  When they came to Toledo, we took them to a couple of shopping 
centers to try to find the shirt that they had made and, sure enough, 
we did. We found the T shirts hanging on a rack. This young woman, she 
just went up to it, she pulled it off and then we looked at the price 
tag. It was $20. I cannot forget her face. She just stood there. She 
said, you mean in America it is sold for $20 and I earn 12 cents? She 
could not even, she could not even fathom it.
  I said, yes, and let us think about who made the money off the sweat 
of your brow. This was actually sweat shop goods coming into the United 
States from the Dominican Republic by way of a special contract signed 
with the South Korean manufacturer who is doing business and, really, 
whose practices cannot be monitored well, and these young women were 
earning nothing.
  Now, is that the kind of world that we want to create? We are.
  Mr. RYAN of Ohio. Mr. Speaker, we hear the word ``freedom'' come out 
of this Chamber a lot. Is that young girl free? She is trapped. She is 
an indentured servant just like there has been throughout the history 
of, many times in this country, and many others. She is not free.
  So we use freedom when it is convenient for us, but in the instance 
where it may hurt some corporation to reduce their profits, freedom 
does not mean anything.
  Ms. KAPTUR. As the gentleman says, it ought to be called not free 
trade, because it is not free trade. It is not good trade, we know 
that. It certainly is not positive trade, because all we are yielding 
are deficits. Maybe we should call it sweat shop trade or indentured 
trade. There is some other word that should go here.
  Mr. BROWN of Ohio. Mr. Speaker, the gentleman from Ohio (Mr. Ryan) 
mentions freedom. Another word or phrase that is thrown around here a 
lot is Christian values and fair play and morality. And when we pass a 
trade agreement that throws American workers in these numbers out of 
jobs and then exploits a worker that the gentlewoman from Ohio (Ms. 
Kaptur) talked about making 12 cents that makes a product that sells in 
the United States for $20, what kind of exploitation, what kind of 
family values, what kind of morality that does describe our actions?
  Yet, it is pretty clear to an awful lot of people in this body, I 
think, and it is pretty clear to a whole lot of Americans that the 
values that we hold dear, no matter what your religion or your faith, 
if your religion or your faith is based on our country doing the right 
thing, it simply does not fit, to pass a trade agreement that costs 
people these kinds of jobs, that exploits the most defenseless people 
in the developing world, the people that the gentleman from Ohio (Mr. 
Ryan) says are trapped, the women that the gentlewoman from Ohio (Ms. 
Kaptur) describes, and then go home and talk about practicing our faith 
and family values and morality. It just does not work.
  Mr. RYAN of Ohio. Mr. Speaker, we may have developed a new word or 
new phrase. We are advocating for value-centered trade, trade that 
represents our values and, hopefully, what we are trying to spread 
around the world, value-centered trade.
  Ms. KAPTUR. And part of that I think is the development and 
sustenance of the middle class.
  We know that the workers in these other countries, because of the way 
the countries operate, are not creating a middle class. They are 
endowing the very top. In fact, they have a word for this, they call it 
oligarchies or plutocracies, they are endowing the wealthy, and the 
vast majority of people are poor. In Mexico, post-NAFTA, more people 
are poor today than before NAFTA was passed, and many of their small 
businesses were drummed out of existence, and many of their independent 
farmers are wandering across North America trying to find even enough 
to eat.
  In our country, we have been druming down the middle class. These 
other countries do not have a chance to build a middle class. Who is 
really benefiting off of the pain that is felt by the workers of our 
country and these other countries? It is very clear. There are a

[[Page 12221]]

few extraordinarily powerful corporations that are trading workers off 
against one another.
  And we as a Congress have a responsibility to stand for the 
development of the middle class and trade agreements that sustain the 
middle class in our country and help these other countries develop 
economies where their wealth comes from demand-led growth inside their 
own countries, not exporting everything they make to other places, 
paying their workers nothing, and then charging us high prices for 
those goods here in this country.
  We do not have that kind of trade regimen. That is why we need to 
stop CAFTA and go back and renegotiate NAFTA, and any other trade 
agreement where we have sustained massive deficits over the last 3 
years. That ought to be the priority of the President of the United 
States and of this Congress.
  Mr. BROWN of Ohio. Mr. Speaker, CAFTA specifically protects, if you 
look at the text of CAFTA, it specifically protects the prescription 
drug companies, but offers no real protection to workers. It 
specifically protects and supports Hollywood films and CD-ROMs, but 
does not have protection for the environment and for food safety. I 
mean, if that does not tell us something about values; we will write a 
trade agreement that will help the most privileged, wealthiest people 
in both our country and the six CAFTA countries, but we will not 
protect the workers, we will not protect and help and enhance the 
environment, food safety, safe drinking water, clean air, all of that.
  We are joined by my friend, the gentleman from Michigan (Mr. Stupak) 
who also has been in this Chamber, came with me in 1992 and has been a 
part of these discussions on trade for many, many years, and I thank 
the gentleman for joining us.

                              {time}  2030

  Mr. STUPAK. Mr. Speaker, I thank the gentleman from Ohio (Mr. Brown) 
for asking me to come down and speak with him and speak out against the 
Central America Free Trade Agreement called CAFTA. I am pleased to be 
here with the gentleman from Ohio (Mr. Ryan) and the gentlewoman from 
Ohio (Ms. Kaptur), all from the great State of Ohio. As we continue to 
look at just your map there, the job loss is 216,000 in Ohio, 210 in 
Michigan.
  Just one slight correction, if I may, on your map. The Upper 
Peninsula of Michigan still belongs to Michigan, not to Wisconsin. But 
anyone saw me down here arguing this from my district and knowing that 
I live in the Upper Peninsula, they would say, whoa, what happened 
here?
  Mr. RYAN of Ohio. If the gentleman from Michigan (Mr. Stupak) would 
yield, we left Ann Arbor in Michigan.
  Mr. STUPAK. But, you know, if CAFTA passes, there might as well not 
be an Upper Peninsula of Michigan just because we have lost so much. In 
fact, Michigan, right now our unemployment remains the highest in the 
State at about 7 percent. The small and the medium-sized manufacturing 
jobs are gone. We just have great difficulty with it.
  One industry we still have left in Michigan, and a little bit that it 
is, but it is vitally important, a new part of my district down there 
by the thumb area, as we call it, is the sugar industry. And CAFTA will 
just really wipe out the sugar industry in Michigan.
  We recently just have been declared a disaster area because of higher 
than normal temperatures in the region, where we lost 200,000 tons of 
sugar. That cost $33 million to our farmers. But now if we pass this 
trade agreement, and if it goes into effect, U.S. markets will be 
flooded with sugar imports, striking an even greater blow to our 
Michigan economy, especially our agriculture and sugar. And sugar 
actually ranks fourth in the country in production, Michigan sugar 
does. So we have a vital stake in the sugar industry in this Nation, 
being fourth in the country in production.
  And our sugar comes from sugar beet. And the sugar beet economy in 
Michigan, if you will, is about 2000 farms, employs thousands of 
people, and annually it is a $300 million product to agriculture in 
Michigan. Michigan farmers know how damaging CAFTA would be to them. We 
will also endanger many of the thousands of jobs at the mid-Michigan-
based Michigan Sugar Company. That is a cooperative, and they have 
worked very hard to maintain their jobs. And if CAFTA goes through, we 
think the Michigan Sugar Company would be history.
  We in Congress we need to send a strong signal to the Bush 
administration that this is one instance where sugar, if you will, does 
not belong on the table, so to speak.
  What can we expect from CAFTA? And I know all my colleagues here 
joined me in that fight in NAFTA about some 10 years ago. A significant 
job loss. Over the past 10 years we have 766,000 jobs lost here in the 
United States. And where did they go? They went to Mexico and other 
places for lower wages and labor standards that are appealing to big 
corporations.
  How many more American jobs can we afford to lose as a result of 
CAFTA? Why would CAFTA, under the same labor and environmental 
framework as NAFTA, be anything better for our manufacturing industry, 
our sugar industry or the American worker?
  CAFTA would allow foreign corporations to challenge U.S. 
environmental laws once again by establishing a three-member panel of 
international judges who meet behind closed doors with the power to 
award billions of dollars of U.S. taxpayers to multinational 
corporations.
  CAFTA's environmental provision is a sham. The agreement says that 
nations would simply enforce existing environmental laws, even though 
many of those laws are inadequate. Even that provision, the 
environmental provision, even that one fails to have a meaningful 
enforcement mechanism. CAFTA does not ask other nations to better 
preserve or protect their environments. It just says whatever laws you 
have is fine.
  In the U.S. we have many environmental laws to protect our food, 
other residents, our natural resources. Yet if CAFTA passes, we will 
import goods from countries that do not have the same safety standards.
  We all know about the food. I know the gentleman from Ohio (Mr. 
Brown) has helped on the Energy and Commerce Committee where we both 
sit on food safety issues, whether it is tomatoes out of Mexico versus 
Florida tomatoes. In this country we still, we pass every year a 
labeling law to label our food. So we could say, okay, these tomatoes 
are from Florida. We know what standards they are grown by. These are 
from Mexico. We do not know what standards they are grown by. We pass 
it, but yet it is never implemented by the current administration. 
People are willing to pay a few extra pennies, if you will, on their 
fruits or vegetables or beets or seafood just to know where it comes 
from, because our standards, our environmental standards, our consumer 
standards, our health standards, our safety standards are so much 
greater in this country than elsewhere.
  So CAFTA, in a way, wipes out all these protections for the American 
worker, for the American homeowner, for our American family. CAFTA also 
fails to protect Americans workers. It fails to offer protections to 
Central American workers who fall victim to their country's own 
diminishing standards.
  CAFTA does have its benefits. The only benefits I can find are to 
companies that would leave the U.S. to exploit cheap labor in countries 
with minimal protections. We need to be promoting business development 
and jobs in the U.S., not sending more of them overseas.
  Michigan, as I said, has lost, and on the gentleman from Ohio's chart 
there, 210,000 manufacturing jobs. Just since NAFTA alone, we can draw 
a direct line between NAFTA, the North American Free Trade Agreement, 
and 130,000 manufacturing jobs, just manufacturing jobs in Michigan. 
Companies are practically crawling all over one another to leave the 
U.S. for cheap labor in countries with little protection for their 
workers or the environment.
  Now I want to be clear, and I am sure all of us here tonight, we 
support fair

[[Page 12222]]

trade agreements; however, CAFTA is unfair at its worst. It is unfair 
to workers both at home and in Central America. It is unfair to small 
businesses. It is unfair to our communities, unfair to our environment. 
So I would urge the administration and this Congress to stop the exodus 
of jobs from the U.S., stop the challenges to our environmental 
protection laws.
  And when I came down here tonight to join you, you were talking a 
little bit about what about a faith base or a moral basis for some of 
these agreements, especially here in the United States. When you take a 
look at the United States Catholic Conference and the United States 
Catholic Bishops and the Catholic Relief Services have all come out 
opposing this trade agreement on basic fundamental human rights issues. 
Trade is all about people, their livelihood and how they live their 
lives. And they found CAFTA, you know, Catholics for Faithful 
Citizenship, they found that CAFTA is a trade investment agreement 
negotiated between the United States and six countries, and they are, 
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Dominican 
Republic. And the President wants us to pass this trade agreement. But 
before we go ahead and do it, just from a moral and faith-based 
perspective, we have to ask questions like how will CAFTA address the 
needs of small and medium-sized manufacturing and farms here in the 
United States and Central America?
  How will CAFTA protect the rights of worker and the environment?
  How will CAFTA impact the lives of people throughout this hemisphere, 
be it U.S. and Central America?
  What is the intellectual property provisions for protection of your 
intellectual property? What does CAFTA have? Very little.
  What is CAFTA's purpose, or how does CAFTA promote really human 
development and human rights, especially amongst poor people in Central 
America?
  If you start asking these questions, it is very clear this trade 
agreement is not negotiated in the best interests of the American 
people. It is not negotiated in the best interests of faith-based 
people. It is not negotiated in the best interests of people who come 
to this floor or go to work every day with a moral purpose of what they 
do.
  I have always been taught you work hard, you play by the rules, and 
good things will happen. Unfortunately, with these trade agreements, 
you work hard, you play by the rules, not only do you lose your job, 
but your job is shipped overseas, and it is sort of a race to the 
bottom, because the job you had before, now you earn so much less when 
you try to pick up a new job because there is just not the jobs there.
  I mentioned Michigan at about 7 percent unemployment. A month or two 
ago it was 7.5 percent. The tourism industry is starting to take off, 
so we are starting to see a little bit of an improvement in our 
economy, but still at 7 percent. We just cannot. The auto industry is 
hurting terribly in this Nation, and as we ship more and more jobs 
south to produce more and more cars, to produce our sugar, to produce 
our meats, our vegetables, our fruits, what is left for the farmers?
  And you cannot tell me these farmers in Central America are making 
the money. They really are going to be squeezed. The small and medium-
sized farmers will be squeezed out in these countries as the big 
international conglomerates will take over, and they will reap the 
profits, and these people will continue to live in poverty and in 
misery.
  So when the United States Catholic Bishops and the Catholic Relief 
Services come out against a trade agreement because they do not believe 
it will do anything to lift the workers, the farmers, the peasants out 
of poverty in Central America, at the expense of U.S. jobs, that is a 
strong statement.
  So I would hope people would take a very close look at CAFTA. Take a 
look at it from just your own job in our own district. Take a look what 
is does to the United States. But take a look at it from a moral and 
ethical perspective and say, is this the kind of trade agreement I can 
honestly vote for and go to church this Sunday and say, you know, I did 
the right thing?
  I think when we examine the questions put forth by all of you here 
tonight, I think the American people would agree that this CAFTA is 
just a bad deal not just for U.S. sugar, but for all of the United 
States and all of our manufacturing, and does nothing to help the 
people it professes to help in the Central America region of this 
hemisphere.
  So I would hope that people would not support this agreement. There 
is a lot of pressure being applied by the White House right now. There 
are meetings going on all the time. There is actually a picnic this 
Wednesday at the White House. I am sure they will be asking Members 
there in between their enjoyment to vote for this trade agreement. The 
President has sort of staked part of his administration upon it, and I 
hope we would see through all this and see what is done to our Nation, 
all these trade agreements that are really unfair. Again, not against 
trade agreements, but they have to be fair to both countries, to all 
the countries involved, and they have to be enforceable, and we are 
just not enforcing it.
  I mentioned the intellectual property rights. We have had hearings in 
our committee on China where they just openly are manufacturing these 
games that we see that young people play, whether it is their Gameboy 
or all of these video games, openly doing it in front of the Chinese 
officials. And they say, yeah, but they will not crack down on it. The 
intellectual property rights. The movies. The intellectual property 
rights is one of the last few industries we have left in this country 
where we have world supremacy on it, but yet we cannot get countries 
like China to enforce it, to protect it, even though it is part of all 
these trade agreements. It is just amazing. It is just simply amazing 
that we have these trade agreements we know are being violated, nothing 
is being done.
  Let us not do another trade agreement, this one being the Central 
America Free Trade Agreement, that is going to harm us not just from an 
agricultural point of view and manufacturing point of view, but even 
our intellectual property rights. If they cannot protect something like 
a video game, how are they going to protect your best interest when it 
comes down to these trade agreements? So I would hope that this House 
would reject this CAFTA. And remember, it is an agreement, and when it 
comes to the floor we cannot amend it, we cannot change it, we cannot 
alter it. It is either a yes or no vote.
  Mr. BROWN of Ohio. I thank the gentleman from Michigan (Mr. Stupak). 
And before calling the gentlewoman from Illinois (Ms. Schakowsky), I 
would like to reiterate a couple of things that the gentleman from Ohio 
(Mr. Stupak) said, talking about people playing by the rules, and 
American workers who played by the rules and were involved in their 
community and raised their kids and worked their jobs and put their 
time in, that they lose their jobs; people who have played by the rules 
in Central America, who have been exploited in these jobs that have 
been outsourced; and all the groups, all the religious leaders and all 
six of these, the six Central American countries and including the 
Dominican Republic; and the United States religious leaders that oppose 
these because they know that people that have played straight and 
played by the rules have been hurt by these trade agreements in the 
past.
  And I want to mention one thing before turning to the gentlewoman 
from Illinois (Ms. Schakowsky) because of what the gentleman from 
Michigan (Mr. Stupak) said and the gentleman from Ohio (Mr. Ryan), and 
the opposition to these agreements from the public. People know they 
are getting hurt by these agreements, people in Niles, Ohio, that work 
at Lordstown, people in Lorain or in the Upper Peninsula of Michigan or 
in Chicago that have been hurt by these agreements, people in Central 
America that have been hurt by these agreements. Because of that it is 
clear if this vote were to come to the House today, there is no doubt 
that we would defeat this trade agreement by 30 or 40 votes. But that 
is today. And

[[Page 12223]]

the gentleman from Ohio (Mr. Stupak) pointed out the White House is 
beginning all kinds of ways to convince this Congress to do something 
to vote for the agreement.
  Just a couple of days ago Tom Donahue with the Chamber of Commerce 
told a bunch of Members of Congress, if you vote against CAFTA, it will 
cost you. Those kinds of threats. At the same time the President and 
his people are now putting out carrots, not just sticks. They are, in a 
sense, bribing Members of Congress with everything from promising 
highways and bridges and other kinds of pork to now saying that they 
are going to put $20 million in labor enforcement assistance into 
something called the Department of Labor's Bureau of International 
Affairs.
  Now the administration cut the ILAB from $148 million in 2001 down to 
$12 million, from 148- to $12 million. Now they are saying they are 
going to add 20 million to it, as if that is helping something, when 
they have no interest, they have written a trade agreement that does 
not enforce labor standards or provide labor standards. Now they are 
saying they are putting a little money in even after they have cut it. 
At the same time something called the International Labor Organization, 
which is a multinational group that sets labor standards, were one of, 
I believe, two countries out of 80 that said we are going to vote 
against the funding for that international body.
  So it is pretty clear all the promises they want to make about 
enforcing labor standards, they wrote weak standards, they cut funding 
on enforcement. Now they are trying to buy off a few Members' votes by 
promising to put a little money in enforcing labor standards.
  I yield to the gentlewoman from Illinois (Ms. Schakowsky), who has 
been a stellar outspoken advocate for workers' rights and the 
environment, both internationally and in the gentlewoman's Illinois 
district and around this country.
  Ms. SCHAKOWSKY. Well, I thank the gentleman from Ohio (Mr. Brown) so 
much for the opportunity to join the gentleman tonight, and thank the 
gentleman for his leadership. As I have said, I have learned a lot from 
the gentleman. Actually wrote the book on trade agreements called the 
Myths of Free Trade. You can get it at a book store. If they do not 
have it, order it. It is a good read and educational.
  What we are seeing right now is a growing bipartisan consensus that 
CAFTA is not a good idea.

                              {time}  2045

  I realize there are all kinds of pressures going on on the side to 
get Members to vote for it, and I think the reason is very simple.
  Why do we have trade agreements? Well, of course, we have now an 
increasing global economy. That is inevitable. It is going to happen as 
the world gets smaller, because of technology, because of our capacity 
to trade with each other across borders, and that is a good thing. But 
we are at a point now where we have to decide what are the 
beneficiaries, who are going to be the winners and the losers of this 
international trade.
  Clearly, we are talking about businesses being able to sell their 
products and import products and to set a level playing field, but we 
want to make sure that it is not just multinational corporations, the 
huge companies that benefit from this global marketplace, but that it 
is consumers, that it is workers, and that at the same time we are not 
damaging our environment. The thing about trade agreements is that it 
is possible to craft trade agreements that are not only good for 
business, but they are also good for workers and that they do take into 
consideration the environmental impact.
  We had a trade agreement with Jordan that, if we used it as kind of a 
template for how we write these agreements, could have been a model for 
how we do it around the world, but instead, this trade agreement speeds 
up or at least contributes to what we call the race to the bottom; that 
is, the kind of agreement that does nothing to lift the wages or the 
living standards of people in the Central American countries and the 
Dominican Republic, and makes it easier to actually lower the standards 
of workers here in the United States. It starts pushing down wages, 
pushing down working conditions, and that is not the kind of 
globalization we want, where the whole world is diminished in terms of 
its workers by these trade agreements.
  I went to Cuidad Juarez right across from El Paso at the 10th 
anniversary of NAFTA, and it was a trip that was organized in large 
part by the gentlewoman from Ohio (Ms. Kaptur). When I went there, what 
I saw were workers living in the packing crates of the products that 
they were manufacturing, often American companies, who had crossed the 
border and set up shop there so that they could pay very low wages to 
Mexican workers who were benefiting hardly at all.
  I mean, yes, they wanted some kind of a job, but their standard of 
living was to live in packing crates without health care, without 
certainly any kind of a living wage. In fact, we saw children who 
looked pretty sick, but they could not afford to take them to the 
doctor or even to send their children to school.
  Is this the kind of world that we want to help create with these 
trade agreements? Is this good for the people in Mexico? Is this good 
for Americans? Because then those jobs go to places where there are low 
wages and where it is dangerous to try and organize for higher wages 
and higher benefits. It is dangerous to talk about unions. In our 
country, every 23 minutes a worker gets fired for trying to organize a 
union. In some of those places, you can get killed if you try to 
organize a union. It can be very, very dangerous.
  So the United States is the richest country in the history of the 
world. It could be a leader in saying we want to establish rules that 
lift all people, that make it possible for our workers to have a living 
wage here at home, to have our consumers be able to buy products from 
other countries where the people who produce them are not living in 
slave or near slave labor conditions. I feel bad because often it is 
posed, you are either for trade agreements or you are not; you are an 
isolationist; you do not want to.
  It is not that at all. We could craft an agreement. We could go back 
to the drawing board, and we could craft an agreement that would work 
for workers here and workers there, too.
  Mr. BROWN of Ohio. Mr. Speaker, I thank the gentlewoman from Illinois 
(Ms. Schakowsky). She is exactly right. I think the point she made is 
so important.
  First of all, at the beginning of her comments, she said there is a 
growing bipartisan group, and it is clearly way larger than a majority 
of this Congress, large numbers of people in both parties, who do not 
like our trade policy, who see that we have seen this incredible growth 
in the deficit from $38 billion to $618 billion in 12 years. It is 
clear our policies are not working.
  We have seen the kind of job loss that the gentleman from Michigan 
(Mr. Stupak) and others have talked about, particularly in these red 
States, with losing 200,000 jobs.
  She talked about that we are not against trade agreements; we are 
against this Central American Free Trade Agreement. We are against this 
trade agreement because we know who the winners and losers are. The 
winners have been the drug companies, the largest most powerful 
corporations. The losers are small manufacturers that are from my 
district and in Chicago or in the upper peninsula of Michigan. The 
losers are workers all over the country.
  When these workers lose, it is not just 216,000 Ohioans who lost 
their jobs. It is the families. It is the children. It is the school 
districts, the police and fire protection, and the safety of these 
communities.
  It is clear, Mr. Speaker, that we can simply do better, that we 
should reject the Central American Free Trade Agreement as presented to 
us for this vote; renegotiate CAFTA; come back here and pass a trade 
agreement that lifts standards up, that lifts workers' standards up in 
our country and Central America; that protects and preserves the 
environment; that speaks to

[[Page 12224]]

food safety and all the things that matter in our lives.
  In closing, I would add both comments from the gentleman from 
Michigan (Mr. Stupak) and the gentlewoman from Illinois (Ms. 
Schakowsky) about what do we stand for as a Nation, what kind of 
values, and when I look at the fact that religious leaders in all seven 
of these countries, the six countries south of us and our country, 
religious leaders have spoken out saying they are not against trade 
either, but they can do better, they believe we can do better and come 
up with a negotiated trade agreement so that working families and the 
poor in these countries, the environment benefits, food safety 
benefits. We do better with all of those things that we care about.
  So I thank my friends for joining us tonight, the gentleman from Ohio 
(Mr. Ryan), the gentlewoman from Ohio (Ms. Kaptur), the gentleman from 
Michigan (Mr. Stupak), the gentlewoman from Illinois (Ms. Schakow-
sky), and just again saying we should renegotiate CAFTA, start again. 
It has been a year and a month since this agreement was signed by the 
President. We can do better. Let us start again and do it right this 
time.

                          ____________________