"Trade for America": Trade, or America Gets It

Big business stepped up its efforts this week to push through both the Peru and Panama bilateral trade deals as well as give a new lease of life to Fast Track. In Monday's Roll Call, Brigitte Gwyn, a trade lobbyist for the Business Roundtable said she expects a large coalition of businesses to participate in hundreds of meetings with members of Congress in the next few weeks. "We are going to start increasing our number of meetings on the Hill, as well as communicating the benefits of moving TPA [Fast Track's alter-ego, Trade Promotion Authority]. You'll see an intense fight with regard to lobbying," she says. Well, we can't say we're surprised. Once again, American business confirms that it values profit before people.

So ideally, they would like the recent disastrous deal on trade to be rushed through. Not that anyone really knows what the deal is. No-one, including senior Democrats, has actually seen the legal text of the deal - because it hasn't been drafted yet. And who has the responsibility for drafting the text? You guessed it. And I wonder who will be advising the administration on this...Let's get to know them a little better, just in case.

So you're calling yourselves the "Trade for America" coalition. Who exactly do you represent?

"Trade for America represents a wide range of companies and trade associations representing virtually every sector of the U.S. economy, all dedicated to continuing U.S. economic growth and prosperity."

Oh, well I guess increased prosperity sounds good. But are you sure you're not the only ones who will benefit?

"The new consensus between the Administration, Congress and the private sector will translate into trade policies that are good for business, consumers, workers and farmers"

Well, ok, but exactly how will that happen?

"...free trade agreements allow America's manufactured goods to be exported duty-free, compared to the 14 percent duty that is imposed, on average, in countries without an FTA... Without TPA, it's not possible to get these market-opening agreements through Congress."

So fast track has an impact on your profits? But what do the rest of us get? Maybe the USTR can help us understand this...Ms Schwab?

"The equation is quite simple. Whether we are talking about bilateral or regional Free Trade Agreements or multilateral agreements like the Doha Development Round, trade agreements mean more exports, and more exports mean better jobs."

Better jobs? Erm...run that by me again?

"Just look at the experience with NAFTA. When it comes to jobs, the average U.S. unemployment rate was 5.1% in the 11-year period beginning when NAFTA took effect -- compared to 7.1% during the 11 year-period leading up to NAFTA."

But correlation isn't causation, is it? Bureau of Labor Statistics data says we've actually lost manufacturing jobs. Let's ask a leading CEO...

"The evidence is clear that expansion of trade promotes economic growth and adds jobs for people across the nation...The bipartisan agreement will allow policymakers and the private sector to continue to make progress on current and future initiatives that help the U.S. and its workers compete. It is important that this process moves forward with opening markets and also provides the strongest protections for intellectual property."

Protections? Now I'm confused. I thought you supported free trade... Well, I guess if it's ok to protect the rights of big companies, it's ok the protect the rights of workers, right?

"We hope that the provisions on labour and the environment will not be used for protectionist purposes...We will work to ensure that this agreement will be used to advance the cause of free trade and the economic and job growth that comes with free trade."

Oh. I'm glad that's cleared up then...

by Holly Jarman, Galbraith Fellow