Dissecting the new trade deal and its real impact on American workers

The best coverage of the new trade deal has come from David Sirota who has a series of posts deconstructing the new trade deal reached last week by leading Democrats and the Bush administration.  In his latest writing, David notes the growing opposition to the deal:

It is now five days since a handful of senior Democrats joined with the Bush administration to announce a new "deal" on free trade, while refusing to release the actual legislative language of the deal. Today, environmental and health advocates have come out slamming the deal, noting like other grassroots groups that what the deal doesn't cover says as much about its potential problems as does the secrecy the deal is shrouded in.

Last week, Sirota pointed out that the vehemently anti-labor Chamber of Commerce was assured that the key labor provisions weren't really going to require compliance with international labor agreements:

U.S. Chamber of Commerce President and Republican Party bigwig Tom Donohue tells AFP news service that he is "encouraged by assurances that the labor provisions [in the deal] cannot be read to require compliance with ILO Conventions."

Paul Krugman weighed in on the new trade deal as well.  He wrote about some of the pitfalls of trade deals in his NY Times column on Monday, May 14, 2007 (subscription required).  Krugman not only wants pro-labor trade policy, he thinks American workers need universal health care:

The key element of the new trade deal is its inclusion of “labor standards”: countries that sign free trade agreements with the United States will have to allow union organizing, while abolishing child and slave labor.

The Bush administration, by the way, opposed labor standards, not because it wanted to keep imports cheap, but because it was afraid that America would end up being forced to improve its own labor policies. So the inclusion of these standards in the deal represents a real victory for workers.

Realistically, however, labor standards won’t do all that much for American workers. No matter how free third-world workers are to organize, they’re still going to be paid very little, and trade will continue to place pressure on U.S. wages.

So what’s the answer? I don’t think there is one, as long as the discussion is restricted to trade policy: all-out protectionism isn’t acceptable, and labor standards in trade agreements will help only a little.

By all means, let’s have strong labor standards in our pending trade agreements, and let’s approach proposals for new agreements with an appropriate degree of skepticism. But if Democrats really want to help American workers, they’ll have to do it with a pro-labor policy that relies on better tools than trade policy. Universal health care, paid for by taxing the economy’s winners, would be a good place to start.


 

Posted by Staff on Tuesday, May 15 | 5688 comments | Permalink

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