Category Archives: Trade

Despite Obama’s claims, the Korea-US free trade agreement has cost American jobs

Geoffrey Cain | August 08 2013 | Global Post

SEOUL, South Korea — Although the Korea-US Free Trade Agreement (KORUS FTA) has been in effect for little more than a year, it is already drawing vehement condemnation from both sides of the Pacific.

It wasn’t supposed to be this way.

The Obama administration feted KORUS as a veritable job-creation machine, a remedy for the tepid post-crisis recovery. When the US Congress voted in favor of the deal in October 2011, the president called it “a major win for American workers and businesses.” Some proclaimed that KORUS was the most significant trade agreement since NAFTA in 1994.

The US forecast an additional 70,000 American jobs from exports alone. The International Trade Commission estimated the pact would kick-start some $10 billion in US exports to Korea, improving the trade balance by a net $4 billion or more, a boon to the economy.

But already, it’s not clear that the agreement is living up to its promise.

In the US, critics claim that KORUS, which went into force in April 2012, is costing American jobs.

Continue reading Despite Obama’s claims, the Korea-US free trade agreement has cost American jobs

New Data Show U.S. Trade Deficit Doubled, More Jobs Lost Under Obama Trade Deal That Was Template for the TPP

Lori Wallach | May 05 2016 | Trade Watch

2016-05-04-1462387225-7586866-ABANDONED_FACTORY_IN_RIVERSIDE_A_SUBURB_OF_DULUTH_ON_THE_ST_LOUIS_RIVER__NARA__5515861-thumb
New report dissects U.S. – Korea Free Trade Agreement losing 106,000 American jobs

Today’s alarming fourth-year trade data on President Obama’s U.S.-Korea Free Trade Agreement (FTA) arrived just as the Obama administration has started its hard sell to pass the Trans-Pacific Partnership (TPP). And that is a real problem for the White House.

The Korea deal served as the U.S. template for the TPP, with significant TPP text literally cut and pasted from the Korea agreement. And the Obama administration sold the Korea deal with the same “more exports, more jobs” promises now being employed to sell TPP.

And since then, our trade deficit with Korea more than doubled as imports surged and exports declined. The increase in the U.S. trade deficit with Korea equates to the loss of more than 106,000 American jobs in the first four years of the Korea FTA, counting both exports and imports, according to the trade-jobs ratio that the Obama administration used to promise at least 70,000 job gains from the deal.

Today’s Census Bureau trade numbers provide the grim data fueling the nationwide bipartisan trade revolt now underway as public opposition to more-of-the-same trade policies surges and presidential and congressional candidates spotlight the problems with the TPP and the failure of U.S. trade policies.

And the Korea trade debacle shuts down Obama’s oft-repeated mantra that TPP opponents are somehow stuck in a past fight over the North American Free Trade Agreement (NAFTA). Today’s job-killing trade data are the result of a 2011 trade agreement pushed passionately by Obama himself, which he sold as “fixing” NAFTA.

If you review the Obama administration sales pitch for the Korea pact, you will hear the same exact claims now being made for the TPP.

Continue reading New Data Show U.S. Trade Deficit Doubled, More Jobs Lost Under Obama Trade Deal That Was Template for the TPP

Some Real Costs of the Trans-Pacific Partnership: Nearly Half a Million Jobs Lost in the US Alone

Published  March 1, 2016 at Naked Capitalism 

By Jomo Kwame Sundaram, an Assistant Secretary General working on Economic Development in the United Nations system during 2005-15, and was awarded the 2007 Wassily Leontief Prize for Advancing the Frontiers of Economic Thought. Originally published as a Global Development and Environment Institute Policy Brief

The Trans-Pacifc Partnership (TPP) Agreement, recently agreed to by twelve Pacifc Rim countries led by the United States,1 promises to ease many restrictions on cross-border transactions and harmonize regulations. Proponents of the agreement have claimed significant economic benefits, citing modest overall net GDP gains, ranging from half of one percent in the United States to 13 percent in Vietnam after fifteen years. Their claims, however, rely on many unjustified assumptions, including full employment in every country and no resulting impacts on working people’s incomes, with more than 90 percent of overall growth gains due to ‘non-trade measures’ with varying impacts.

A recent GDAE Working Paper finds that with more realistic methodological assumptions, critics of the TPP indeed have reason to be concerned. Using the trade projections for the most optimistic growth forecasts, we find that the TPP is more likely to lead to net employment losses in many countries (771,000 jobs lost overall, with 448,000 in the United States alone) and higher inequality in all country groupings. Declining worker purchasing power would weaken aggregate demand, slowing economic growth. The United States (-0.5 percent) and Japan (-0.1 percent) are projected to suffer small net income losses, not gains, from the TPP.

Continue reading Some Real Costs of the Trans-Pacific Partnership: Nearly Half a Million Jobs Lost in the US Alone

The Trans-Pacific Partnership and the Death of the Republic

by Ellen Brown, published April 24, 2015

“The United States shall guarantee to every State in this Union a Republican Form of Government. — Article IV, Section 4, US Constitution

A republican form of government is one in which power resides in elected officials representing the citizens, and government leaders exercise power according to the rule of law. In The Federalist Papers, James Madison defined a republic as “a government which derives all its powers directly or indirectly from the great body of the people . . . .”

On April 22, 2015, the Senate Finance Committee approved a bill to fast-track the Trans-Pacific Partnership (TPP), a massive trade agreement that would override our republican form of government and hand judicial and legislative authority to a foreign three-person panel of corporate lawyers.

The secretive TPP is an agreement with Mexico, Canada, Japan, Singapore and seven other countries that affects 40% of global markets. Fast-track authority could now go to the full Senate for a vote as early as next week. Fast-track means Congress will be prohibited from amending the trade deal, which will be put to a simple up or down majority vote. Negotiating the TPP in secret and fast-tracking it through Congress is considered necessary to secure its passage, since if the public had time to review its onerous provisions, opposition would mount and defeat it.

Abdicating the Judicial Function to Corporate Lawyers

James Madison wrote in The Federalist Papers:

“The accumulation of all powers, legislative, executive, and judiciary, in the same hands, . . . may justly be pronounced the very definition of tyranny. . . . “Were the power of judging joined with the legislative, the life and liberty of the subject would be exposed to arbitrary control, for the judge would then be the legislator. . . .”

And that, from what we now know of the TPP’s secret provisions, will be its dire effect.

Continue reading The Trans-Pacific Partnership and the Death of the Republic