Do-Nothing Congress Poised to Do Something on NAFTA-Style Deal With Peru

REPORT: Peru Deal's Labor Provisions "Worse Than Existing Law"

By David Sirota

Tompaine.com

In a stunning new report on the eve of the congressional vote on the Peru Free Trade Agreement, a Columbia University legal expert shows the pact may weaken the United States' ability to enforce basic labor standards in trade agreements. The report by Columbia Law professor Mark Barenberg finds that the much-touted labor protections in the Peru deal are "even worse than existing law" and "in no respect do the Agreement’s labor provisions mark a significant improvement."

The Columbia University report compares labor provisions in already-passed trade deals with the proposed provisions in the Peru deal, which congressional Democrats and the White House have sold to the public and rank-and-file lawmakers as a new and improved model. But the Columbia report shows how the Peru deal's model actually undermines existing trade laws, which he notes are already "weak, unreliable, and inadequate to the task."

For example, the report points out that "if the U.S.-Peru Agreement becomes a model for future trade agreements, then those countries that have not adopted core labor rights in their domestic law will not be bound" by international labor standards. He also notes that under current law, a President of the United States has the unilateral authority to impose sanctions on a country that does not respect international labor standards. But under the Peru trade model "If the President decides that Peru is failing to comply with vague labor 'principles' or domestic labor law, he cannot impose sanctions - he can only file a complaint."

The report's findings likely explain why no major labor, human rights, environmental, religious, anti-poverty or consumer protection groups have endorsed the Peru Free Trade Agreement, while most of Washington's corporate lobbying sector has. It also explains why the U.S. Chamber of Commerce has assured its members that "the labor provisions cannot be read to require compliance."

Download the Columbia University report here. The Peru Free Trade Agreement is expected to be voted on in the U.S. House this week.

Every Vote Counts (No, Really!) - Democratic Rank and File Opposing Bush Trade Agreement

By Holly Shulman

Eyes on Trade

According to Jerome-Sherman, Pittsburgh Post-Gazette,

[The Peru Free Trade Agreement] could split the party this week, as the full House of Representatives considers the first vote on a free-trade agreement since the 2006 election, when Democrats won control of both chambers of Congress.

The party leadership supports a Peru pact because it contains stronger labor and environmental standards than past agreements. Yet many rank-and-file Democrats, including freshmen lawmakers who assailed the dangers of free trade for American workers on the campaign trail last year, are skeptical.

Despite the unsatisfactory record of NAFTA as a "free trade" model, the neoliberal economic policy has continued its march forward in the same direction. This week, the Democratic-led Congress will have its first vote on the Bush administration's latest NAFTA-like expansion, the US-Peru bilateral free trade agreement.

The United States-Peru Trade Promotion Agreement being considered by Congress continues the practice of overseas outsourcing and job erosion, among other labor and environmental concerns, says Rep. Steven Rothman, D-Fair Lawn, in a press release.

Freshman Dems Revolt on "Free Trade"

By Jonathan Kaplan

The Hill

Many freshman Democratic lawmakers are expected to oppose a free trade deal with Peru this week despite pressure from House leaders.