Obama continues to support Free Trade Agreements, despite campaign promises

 Obama, Trade Agreements  Comments Off on Obama continues to support Free Trade Agreements, despite campaign promises
Nov 202010

President Obama has forgotten about his promise to review NAFTA and make changes in favor of American workers and the environment. However, right after the election, Obama met with George Bush and agreed to continue with NAFTA. He is on board with the Security and Prosperity Partnership of North America and meets yearly with his counterparts to complete the North American Community, an integrated continental trading region. He also agreed to takeover Bush’s Pathway’s to Prosperity in the Americas Initiative, an integrated region of the Western Hemisphere, following in the path of the European Union.

As a senator, and now president, Obama has so far supported these trade agreements that cause American job losses and a decline in wages. The efforts by Obama to complete Bush’s free trade agreement (FTA) with Korea has resulted in a large number of Americans who oppose it because “at issue is whether the Obama administration will remove the investment rules, which promote offshoring of jobs, and the financial regulation requirements, while fixing the pact’s unbalanced commercial terms.” Public Citizen.

All trade agreements have the same pro-corporate rules in them and they don’t get changed. But now you have the Chinese manipulation of their currency and China and Germany saying the United States is doing the same thing. Meanwhile, this global system of trade is destroying our nation.

Sam Mittal, president of the National Association of Software and Services Companies, said that “President Obama’s speech (Nov. 6, 2010 in India) is a recognition that jobs cannot be created by protectionism but by a growth in trade…” That obviously is not true since we have 17 percent real unemployment in the U.S. and no one has any idea how to turn that around. Easy. First step. Get out of FTAs. Consider this proposition for saving American manufacturing jobs. It was published several years ago. The problem is those in power don’t want to save those jobs.

Remember this:

If the U.S. Chamber of Commerce supports a trade agreement, you can be sure that it will be bad for America and for American workers. Think NAFTA. Millions of jobs were lost and America has had a constant deficit every year since it was signed by Bill Clinton. But those corporate political donations add up around election time and multinational corporations really need Congress to pass those trade agreements so they can benefit from “free trade.”

Senators Obama and Clinton, before the election of 2008, pledged their support of the Peru FTA and said there were provisions in there for protection of workers rights and the environment. That was false and I said so in an article. I’ve read it carefully. There are no “enforceable” protections for either in the Peru Trade Agreement with the United States.

Senator Clinton:

“I support the trade agreement with Peru. It has very strong labor and environmental protections. This agreement makes meaningful progress on advancing workers’ rights, and also levels the playing field for Americans’ workers.”

Tom Donohue wants no protections for the worker or the environment.But the U.S. Chamber of Commerce and the National Association of Manufacturers supported it because the agreement doesn’t have any protections for labor or the environment. Tom Donohue, President of the U.S. Chamber of Commerce, said “…that the labor provisions (Peru agreement) cannot be read to require compliance with ILO (International Labor Organization) Conventions.”

After the U.S.-Peru Trade Agreement was passed, Peru president Alan Garcia, before attending the signing at the White House, spoke to guests at a “U.S. Chamber of Commerce victory celebration.” Garcia asked the executives in the audience to “Come on down and open your factories so we can sell your products back to the U.S.” Read the full report. (american economic alert)

An American has a factory in the U.S. employing American workers. He doesn’t have to open a factory in Peru. Now, with this agreement, he can move his factory to Peru where the locals will work for cheap wages and long hours. The owner can ship his products to the U.S. and charge the same price. He’s making a fortune and investing it. Life is good. Meanwhile, the American workers are unemployed, joining many more like them. Corporate CEOs are in a frenzy, abandoning America in their rush to increase their wealth. And when the factory owner finds another country with a better offer, he’ll pack up again. Some would call this insanity.

A home-based garment factory in Lima, Peru.“Peruvian factories won’t ever make all or even close to most of what the United States produces. Even super-low wages and regulatory vacuums won’t attract investment if productivity levels aren’t satisfactory or capable of being so. Not to worry, though – there are plenty of labor-intensive industries for Peru to enter. Peruvian workers are no less intelligent than workers anywhere, and multinational companies are happy to transfer their state-of-the-art product and process technologies, as well as their management savvy – especially when a recipient country’s workforce is so big and so full of jobless people that the intense competition for jobs guarantees wages will stay very low. (american economic alert)

“At the same time, because the outsourcers have gotten their way in trade policy so often for so long, they have lots of options other than Peru. Its fellow Andean countries Columbia, Ecuador, and Bolivia are on the future trade list, and there are scores of other countries and regions clamoring for export-oriented capital. Finally, there are the current beneficiaries of the trade deal club – Mexico, Central America, the Caribbean, sub-Saharan Africa, and of course China – where all the same conditions favorable to outsourcing exist.

“As a result, the mutinationals can watch as each competes against the others to offer the lowest wages, the flimsiest regulatory structures, and the lavish subsidies in a classic race to the bottom. The more countries involved, of course, the fiercer the competition and the merrier the outcome for the outsourcers.”

This is the plan for all trade agreements made by our government on the advice of American CEOs. Remember the NACC. This is the group of CEOs that put together the plan for a North American Community and are still advising the president on the completion of this trading region and “persuading” him to pass all of these trade agreements. The result would be a region where skills are high and wages would be low enough, thanks to a planned demographic change to Mexicans, OTMs, and Asians. These new North Americans will compete with the rest of the world. That would be the direction Obama and company are taking us. And so will the Republican president who follows him.

The plan for building a North American Community, which has the seal of approval from the Department of State, declares at what point Mexicans should have full labor mobility in North America:

“Move to full labor mobility between Canada and the United States (by 2010). To make companies based in North America as cooperative as possible in the global economy, Canada and the United States should consider eliminating all barriers to the ability of their citizens to live (pp. 27,28) and work in the other country. This free flow of people would offer an important advantage to employers in both countries by giving them access to a larger pool of skilled labor, and would enhance the well-being of individuals in both countries by enabling them to move quickly to where their skills are needed.”

“In the long term, the two countries should work to extend this policy to Mexico as well, though doing so will not be practical until wage differentials between Mexico and its two North American neighbors have diminished considerably.”

Of course, the authors of building a North American Community should have said that a larger pool of skilled labor means wages will go down because there will be too many people fighting for few jobs. And it would be more accurate to say they should extend the policy to Mexico when the wages of Canada and the United States have diminished considerably. I’m sure that corporations don’t want to give incorrect information about their plans for our nation.

But there is at least one nation that thinks the United States has cheap labor now.


(10/27/2010) German auto maker BMW recently hired 1,000 new workers for their BMW plant in Greer, South Carolina at $15 per hour. Many of the laid off workers were laid off from higher paying jobs. The Germans hired the Americans because starting wages are much lower than in Germany.

An American auto worker now receives $15 per hour in a BMW plant in South Carolina.The big 3 American automakers union took a big cut in pay a couple of years ago for new hires. New workers start at $14 per hour.

“The International Labor Organization has pegged hourly manufacturing wages in Germany at nearly 24 euros, or more than $33…the German Association of the Automotive Industry reports that the cost of an auto employee, including benefits, is 46 euros hourly in Germany and 26 euros per hour in the United States.”

“We’re a low wage country compared to Germany,” said Kristin Dziczek, director of the Labor and Industry Group at the Center for Automotive Research. “And that helps put jobs here.”

It’s good to know that others realize we are becoming a source of cheap labor for the first world. And as more Mexicans pour into our nation and our wages continue to drop, perhaps we can become a leader in quality products and cheap labor. If the President and Congress put their minds to it, I’m sure it can be done. Si se puede.

This is exactly where our leaders are taking us. Their plan is fully operational. The jobs they want for American (North American) citizens will pay much less in the future. We are approaching that world without borders and the sovereign nation state, especially the United States, is withering away. The final blow for America will come when that amnesty bill, as it has been presented over the last 5 years, passes. And you, the American citizen, sometime this century, will no longer exist.