Mazie Hirono on Free Trade
Democratic challenger; Representative (HI-2)
A: Globalization is happening, and happening fast. We must recognize this reality, and support trade policies that work for Americans. We cannot support policies that encourage businesses to take advantage of underpaid foreign workers and lax environmental standards while moving jobs out of the United States. Any new trade agreements we enter into must have strong protections for workers and for the environment.
Proponents support voting YES because:
Rep. RANGEL: It's absolutely ridiculous to believe that we can create jobs without trade. I had the opportunity to travel to Peru recently. I saw firsthand how important this agreement is to Peru and how this agreement will strengthen an important ally of ours in that region. Peru is resisting the efforts of Venezuela's authoritarian President Hugo Chavez to wage a war of words and ideas in Latin America against the US. Congress should acknowledge the support of the people of Peru and pass this legislation by a strong margin.
Opponents recommend voting NO because:
Rep. WU: I regret that I cannot vote for this bill tonight because it does not put human rights on an equal footing with environmental and labor protections.
Rep. KILDEE: All trade agreements suffer from the same fundamental flaw: They are not self-enforcing. Trade agreements depend upon vigorous enforcement, which requires official complaints be made when violations occur. I have no faith in President Bush to show any enthusiasm to enforce this agreement. Congress should not hand this administration yet another trade agreement because past agreements have been more efficient at exporting jobs than goods and services. I appeal to all Members of Congress to vote NO on this. But I appeal especially to my fellow Democrats not to turn their backs on those American workers who suffer from the export of their jobs. They want a paycheck, not an unemployment check.
Proponents support voting YES because:
Rep. RANGEL: In recent years, trade policy has been a dividing force. This legislation develops a new trade policy that more adequately addresses the growing perception that trade is not working for American workers. The Trade and Globalization Assistance Act would expand training and benefits for workers while also helping to encourage investment in communities that have lost jobs to increased trade--particularly in our manufacturing sector. The bill is a comprehensive policy expanding opportunities for American workers, industries, and communities to prepare for and overcome the challenges created by expanded trade.
Opponents recommend voting NO because:
Rep. McCRERY: We should be considering trade adjustment assistance in the context of trade opportunities generally for US workers. That is to say, I think we should be considering modifications to our assistance network in the context of the pending free trade agreements that are before the Congress. Unfortunately, we are not doing that. We are considering TAA in isolation. [We should instead] restructure TAA from a predominantly income support program into a job retraining program. Other problems include that H.R. 3920 would:
[Explanatory note from Wikipedia.com "Exchange Rate"]:
Between 1994 and 2005, the Chinese yuan renminbi was pegged to the US dollar at RMB 8.28 to $1. Countries may gain an advantage in international trade if they manipulate the value of their currency by artificially keeping its value low. It is argued that China has succeeded in doing this over a long period of time. However, a 2005 appreciation of the Yuan by 22% was followed by a 39% increase in Chinese imports to the US. In 2010, other nations, including Japan & Brazil, attempted to devalue their currency in the hopes of subsidizing cheap exports and bolstering their ailing economies. A low exchange rate lowers the price of a country's goods for consumers in other countries but raises the price of imported goods for consumers in the manipulating country.
Heritage Action summary of vote# S206: The Senate voted to table (kill) an amendment by Sen. Kirk to reauthorize the Export-Import Bank. Sen. Kirk recommends voting NO. Heritage Foundation recommends voting YES because the "Ex-Im Bank is little more than a $140 billion slush fund for corporate welfare."
OnTheIssues explanation: Voting NO would allow a vote on reauthorization of the Ex-Im Bank. Voting YES would kill the bill for reauthorizing the Ex-Im Bank.
Cato Institute reason for voting YES to kill the bill:The Ex-Im Bank's reauthorization buffs contend that Ex-Im fills a void left by private sector lenders unwilling to provide financing for certain transactions. Ex-Im's critics [say that] by effectively superseding risk-based decision-making with the choices of a handful of bureaucrats pursuing political objectives, Ex-Im risks taxpayer dollars. It turns out that for nearly every Ex-Im financing authorization that might advance the fortunes of a single US company, there is at least one US industry whose firms are put at a competitive disadvantage. These are the unseen consequences of Ex-Im's mission.
Ratings by USA*Engage indicate support for trade engagement or trade sanctions. The organization's self-description: "USA*Engage is concerned about the proliferation of unilateral foreign policy sanctions at the federal, state and local level. Despite the fact that broad trade-based unilateral sanctions rarely achieve our foreign policy goals, they continue to have political appeal. Unilateral sanctions give the impression that the United States is 'doing something,' while American workers, farmers and businesses absorb the costs."
VoteMatch scoring for the USA*Engage ratings is as follows :
The Progressive Caucus opposes awarding China permanent Most Favored Nation trading status at this time. We believe that it would be a serious setback for the protection and expansion of worker rights, human rights and religious rights. We also believe it will harm the US economy. We favor continuing to review on an annual basis China’s trading status, and we believe it is both legal and consistent with US WTO obligations to do so. The Progressive Caucus believes that trade relations with the US should be conditioned on the protection of worker rights, human rights and religious rights. If Congress gives China permanent MFN status, the US will lose the best leverage we have to influence China to enact those rights and protections. At the current time, the US buys about 40% of China’s exports, making it a consumer with a lot of potential clout. So long as the US annually continues to review China’s trade status, we have the ability to debate achievement of basic worker and human rights and to condition access to the US market on the achievement of gains in worker and human rights, if necessary. But once China is given permanent MFN, it permanently receives unconditional access to the US market and we lose that leverage. China will be free to attract multinational capital on the promise of super low wages, unsafe workplace conditions and prison labor and permanent access to the US market.
Furthermore, giving China permanent MFN will be harmful to the US economy, since the record trade deficit with China (and attendant problems such as loss of US jobs, and lower average wages in the US) will worsen. For 1999, the trade deficit is likely to be nearly $70 billion. Once China is awarded permanent MFN and WTO membership, the trade deficit will worsen.
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