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NAFTA Redux: Reporters Again Refuse to Ask Simple Questions

Posted by David Sirota at 12:32 PM on May 5, 2007.


David Sirota: Why is the Washington press corps refusing to even ask about major hypocrisy?

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Thanks to the now-famous abdication of responsibility by the media to actually "report" news in the lead up to the Iraq War, many people forget that the Washington press corps had displayed the same kind of power-worshiping proclivities during the debate over NAFTA 15 years ago (The most famous anecdote from the time came when polls showed the public opposed NAFTA, yet the Washington Post almost categorically refused to print any anti-NAFTA op-eds because its editor claimed with a straight face that the paper didn't want "to create an artificial balance where none existed"). But though Bill Moyers has recently humiliated Beltway reporters for their irresponsible behavior before the war, this same press corps seems uninterested in reforming itself as evidenced by its "coverage" today of the negotiations over global economic policy going on today between the White House and congressional Democrats.

These negotiations could be the most important deliberations on global economic issues in a generation with Democrats now demanding basic labor standards be included in all of our future trade deals - standards that would finally end the situation where American workers are deliberately forced into a wage and job-destroying race to the bottom against oppressed slaves in third world countries. Yet I put the term "coverage" in quotes, because reporters are refusing to ask or even report on a very simple question: Why does Big Business think America should be subject to lawsuits by foreign corporations but not by multinational unions? I have been following this debate very closely, and I haven't seen one story from any major news outlet that has tried to address this basic question, even though it is at the core of whether Congress and the White House enact a serious agreement or not.

Here's what's going on: Corporate lobbying groups are screaming bloody murder over the potential for the new agreement to allow foreign governments and unions to launch legal complaints against the United States for not complying with basic United Nations-supported international labor standards that Democrats are trying to put into the deal. They are threatening to use all of their power to stop any White House-congressional agreement on labor standards over this complaint. Yet, these same corporate lobbying groups have long ago added provisions to our existing trade pacts that allow multinational corporations to sue the federal government and state governments for "damages" when those governments pass profit-inhibiting laws protecting the environment, consumers and workers. American taxpayers have already been forced to shell out about $2 billion in "damages" because of these suits, which of course are litigated by unaccountable international courts. Reporters surely know about these cases - it takes all of 5 seconds to google "Nafta Chapter 11" to see what's going on.

So again, how come Big Money interests believe they should be able to sue America's federal, state and local governments to protect their profits, but unions shouldn't be able to have the same right to sue over enforcement of labor laws? And perhaps more importantly, how come not a single reporter is even bothering to ask about this brazen hypocrisy?

This question is at the crux of the fragile trade negotiations going on between House Ways and Means Committee Chairman Charlie Rangel (D-NY) and the White House. This is not some small technical issue - this question and these negotiations are at the heart of what could be the most far-reaching globalization reforms in the last decade and at the heart of whether we are going to continue to economically reward countries and corporations that violate basic labor/human rights standards. That no one has tried to ferret out an answer to this is yet more proof that in Washington, the new zeitgeist among the Fourth Estate is power worshiping, not power challenging, stenography not actual reporting.

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Tagged as: globalization, free trade, charlie rangel, nafta

David Sirota is a veteran political strategist and author of Hostile Takeover, a New York Times bestseller about the corruption of both political parties.


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Labor Standards
Posted by: unlawflcombatnt on May 5, 2007 3:09 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
It sounds like Corporate America is not going to sign on if ILO standards are applied to new trade deals. And I can't see any reason why any American legislator, especially a Democrat, would allow a trade deal to go through without ILO standards being mandatory.

What is Rangel actually "negotiating" about on this point? ILO standards should be mandatory. Period. There's no room for any middle ground here. Is Rangel going to let another trade deal go through that has no wage standards? Is he going to knuckle under to rich Corporate campaign contributors?

There's always another option in these "negotiations." Just say "no." Just don't pass the deal. Don't let it come out of committee. Better still, don't pass ANY more free trade scams/deals.

We don't need to "negotiate" (or renegotiate) anything. We need to withdraw from the WTO, NAFTA, CAFTA, and all of the rest of our American job killing trade "deals." (Which means all of them.)

unlawflcombatnt

Economic Populist Forum

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Viscious circle
Posted by: Lincoln fan on May 5, 2007 6:21 PM   
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The crux of the matter is that the news media worships the power of corporations because the mainstream media are fast becoming a monopoly of powerful corporations themselves.

There are certain truths that to me are logically self-evident. The most important is that we are in a viscious circle.
1. The financial, military, insurance, pharmaceutical and other industries contribute to the campaigns of both parties and spend millions annually on lavish lobbies. The sole purpose of investing this money is to influence the government so that it won't control the corporate establishment.
2. The corporations are subject to only two forces. The profit motive, which is the only reason for their existance, and the laws passed by the government. Corporations aren't controlled by people. They're controlled by law or they are not controlled at all.

The only way to force our parties to control the corporations is to refuse to vote for either. This could be done with a third party, but third parties are notoriously unsuccessful. The other is a powerful grassroors movement.

The The Lincoln Initiative is not an organization but a grassroots strategy based on the successful tactics of the labor unions. Government of the people, by the people and for the people" is our only goal.
Bob Reichenbaach,
Director, The Lincoln Initiative.

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» RE: Viscious circle Posted by: champion
Thank you for the reportage.
Posted by: Sojourner on May 5, 2007 11:30 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I had not heard about the Rangel effort on international trade. I assumed that American labor was so whipped that they could barely stay alive and were vulnerable to corporate marauders.

So I assume that either the press has no time for losers or that it's now "everyone for himself:" we are without leadership on labor issues.

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They refuse to ask simple questions???
Posted by: JoshuaLudd on May 6, 2007 6:49 AM   
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Thats not NAFTA redux... that is EVERY important news story redux.

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the owned media support their owners adjunct corporate investments
Posted by: thoughtcriminal on May 6, 2007 1:23 PM   
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It's far worse than 'pressure from advertisers' - after all, what international import/export company advertises in daily papers? (oh wait... the oil companies...and Starbucks...and the car companies...and everyone who outsourced their labor to Guatemala and China...etc.). Well, it's also the owners of the media corporations - the giant media holding firms, such as General Electric, Viacom, TimeWarner, Disney and Rupert Murdoch - and the banks that control those companies are also the majority shareholders in a) the international oil, coal and gas corporations, b) the agribusiness and petrochemical corporations, c) the automonile industry, etc. Oh well... I guess everyone knows the media is bought and paid for... or do they?

It's not surprising that the media is lying and slavishly serving the ownership's interests - what IS surprising is that people believe what the talking heads have to say... "a bipartisan plan to bring democracy to the Middle East", for example, as a description of the leadup to the Iraq war, uncritically accepted as the truth - now that's mind-boggling.

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America is joining the third world.
Posted by: KeepsonTickn on May 7, 2007 5:04 AM   
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Circuit City may be at the vanguard of a new wave in the race to the bottom. The company is laying off 3500 employees, who will then be "allowed" to reapply for their own jobs back at a lower wage.

I think there should be billboards in every congressional district in America, listing every congressman and senator (of any party) who voted for NAFTA, then after seeing the results, went on to vote for CAFTA. We don't need any of them.

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» You are exactly right. Posted by: JoshuaLudd
NAFTA is complicated to report
Posted by: Shirley Hicks on May 7, 2007 5:52 AM   
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Trade issues require indepth coverage and understanding to report well. Unless you are a reporter with an economics degree, it can be difficult to follow trade negotiations through to their possible implications. I think it requires more time than most US dailies are willing to give to their staff for coverage. For indepth economic reporting, I read _The Economist_.

Opposition to NAFTA was as bitter on the Canadian side of the border as it was on the American. From many of the same groups; labour, who saw the potential for companies to rationalize and have centralized facilities for all of North America and Canada (and not necessarily in Canada!) social advoctates, who were concerned about the new ability of corporations to sue goverments under the agreement, professionals who were worried about certification standards and "experts" coming in from abroad.

As it has turned out, Canada did relatively well under NAFTA, with the exception of the long running softwood lumber dispute. Which, when it was settled twelve years (almost as long as NAFTA has been in effect), was a long, expensive, political defense of southern US timber interests against less expensive lumber coming in from (mostly) British Columbia. Quebec, Ontario and New Brunswick lumber being of different grades and cuts and of comparable cost to the southern US product.

I personally have benefitted from NAFTA, working up until last year for an employer who supplied most of our regional packaging printers with their pre-press and platemaking work. We had a competetive advantage in regards to our dollar, but more importantly in regards to scale. Our presses were all set up to handle what were large national runs in Canada, but which were "boutique" and "specialty" runs in the United States. Our printers specialized in the size of the print runs and gained a competetive advantage.

OTOH, a lot of plants in southern Ontario closed within a few years of the start of NAFTA, as lower skilled assembly work was moved off to Mexico and oher lower wage southern US jurisdictions. What stayed and grew was the highly skilled technical assembly work, knowledge based work (after an initial contraction, the design and advertising industries in Toronto are doing very well, often acting as back offices for New York and Chicago) and resource related support companies.

We've lost NAFTA category professionals to the US, but the flow goes both ways. A lot of Canadians started returning and US professionals started arriving post 2004. It's a flow that benefits both countries as highly trained professionals grow their expertise as centres of excellence around the continent.

Canada is finally starting to lose it's inferiority complex as our firms go head to head with the US... and do very well, thank you very much.

I _would_ like to see labour unions empowered to sue under NAFTA. I think it could make for more effective enforcement of contracts and existing pension/benefit structures. One of the big issues outstanding for senior workers is corporate unfunded pension liablities which may _never_ be realized.

Another are enviromental issues. Effective enforcement of existing enviromental law is a Big Issue. It's going to take citizen pressure and corporate embarassment to bypass lax enforcement under the current US federal regime and some state regimes. Why not go for that tool too?

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» RE: corporate embarassment ? Posted by: kettleblack
frank67
Posted by: frank67 on May 7, 2007 1:29 PM   
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NAFTA,CAFTA, you get the SHAFTA! Any working person who votes Republican is an asshole! The same goes for DLC-type Democrats! Those DLC types are just Republicans wearing Democratic clothes, kind of like the Big Bad Wolf! Union Solidarity forever!

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US and EU agree 'single market'
Posted by: lessbread on May 7, 2007 4:19 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
US and EU agree 'single market' (BBC 30 April 2007)

The United States and the European Union have signed up to a new transatlantic economic partnership at a summit in Washington.

The pact is designed to boost trade and investment by harmonising regulatory standards, laying the basis for a US-EU single market.

The two sides agreed to set up an "economic council" to push ahead with regulatory convergence in nearly 40 areas, including intellectual property, financial services, business takeovers and the motor industry.

The aim is to increase trade and lower costs.

Some reports suggest that incompatible regulations in the world's two richest regions add 10% to the cost of developing and producing new cars.

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Index Labor Costs
Posted by: TarryFaster on May 7, 2007 8:23 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Can somebody tell me why indexing labor costs wouldn't solve a lot of problems?

Here is an example of what I'm talking about:
A store clerk in China is paid, on a locally indexed cost of living scale, at the same rate of pay as a store clerk in the U.S. So, when the Chinese store clerk goes to buy a carton of milk, he/she will have worked the same amount of time as the U.S. worker would have to work to buy his/her carton of milk.

Additionally, indexing labor costs could include the hidden costs of labor like worker safety factors, retirement expenses, health care, etc. and could thus remove the cost of labor factor from corporate competition as they "race to the bottom." Included in indexed labor costs among all participating parties, would be other matters of concern such as environmental impact, political involvement, etc.

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