Free
Trade Is Bad For Everybody
(That is, except Executives and Shareholders of Mega Corporations)
by James
Haslam
On August 6th
the Rutland Herald ran an editorial "Back On Track" which began
"President Bush signed legislation Tuesday giving him authority
to negotiate international trade agreements without interference
from Congress." The editorial went on to say that, "Because of the
benefits that free trade brings to the economies of both the United
States and its trading partners, it is good for the president to
have that authority. " The people who would most agree with that
opinion are the heads of multinational corporations. However, for
the majority of people in Vermont, and in the US, and the rest of
the world - the "free trade" agreements like NAFTA and Free Trade
Area of the Americas are almost entirely destructive.
"Free trade"
policies simply allow corporations to freely access cheaper labor
markets. Manufacturing facilities are moved to poorer nations -
which have miniscule wages, often terrible working conditions and
far fewer environmental regulations. Often these conditions result
from direct interference by the US government, international financial
institutions (such as the World Bank and International Monetary
Fund) and/or the multinational corporations themselves.
The idea that
President Bush will be able to solely negotiate international free
trade agreements - is downright terrifying. What the editorial calls
"interference from Congress" is basically the way our country's
Constitution is meant to work. Through our elected representatives
we have some degree of democratic control on major policies. What
Bush and this paper are supporting is almost completely undemocratic.
In Vermont we
are fortunate to have a representative in Washington who actually
acts in the interest of the majority of Vermonters - working people.
Rep. Bernie Sanders has consistently stood up for working Vermonters,
and that's a big deal.
Congressman
Sanders recently released a report "The Real Cost of 'Free Trade'",
which includes statistics that promoters of free trade policies
downplay, if not ignore. For instance, the net loss of jobs as a
result of these "free trade" policies from 1994 -2000 totaled over
6,000 jobs in Vermont and over 3 million nationally. Ask the folks
who feel free trade firsthand what they think of the North American
Free Trade Agreement. Families devastated by layoffs at Shaftsbury's
Stanley Tools, Bennington's Johnson Controls, Orleans' Ethan Allen,
Newport's Bogner, St. Johnsbury's Sheftex, and Springfield's Fair-Rite
Products, Cone Blanchard, and Fellows Corporation - just to name
a few.
Many of these
jobs were high paying blue-collar jobs, and as they leave Vermont
they are being replaced with low-wage, often part-time service sector
jobs. According to a report by the Vermont Department of Employment
and Training the three fastest growing occupational titles through
2005 will be waiters/waitresses, retail sales and cashiers. In addition
to being low-paying, these positions unfortunately also often come
without any benefits. Is this the future free trade offers Vermont?
What we need
are trade policies that that make sense for people and the environment.
The way they are currently crafted is solely for corporate stockholder
profits. The editorial rightfully pointed out the devastating results
of "doctrinaire loyalty to the tenets of free trade" in Russia and
Argentina. But it also stated "Bush has carried out several shamefully
political acts of protectionism". Confusingly enough, it says on
one hand Bush supports free trade, which is somehow good unless
left completely "free", but on the other hand Bush is wrong for
handpicking corporations to protect.
But let's be
clear, the corporations that basically run our country have never
really wanted "free trade". What they have wanted is to make as
much money as possible, whatever the costs. Sometimes this means
opening foreign labor and natural resource markets to corporate
exploitation under the guise of "free trade", no matter the effect
on the populations at home or abroad. But in other instances, making
as much money as possible means going completely against free trade
policies, for example, by having major domestic industries such
as aerospace, computer technology and pharmaceuticals, be highly
subsidized by the public while profits go to private shareholders.
The editorial
called for something they termed "free trade-plus", which puts some
fetters on corporations by including some sort of basic labor and
environmental standards. Others call this crazy idea - "fair trade".
And fair trade is exactly what Rep. Sanders has been fighting for.
The good news is that Vermonters and millions of people around the
world are joining him in the struggle to change our economy from
one focused on corporate profit, to one that puts people first.
James Haslam
is the Director of the Vermont Workers' Center, a community organization
committed to fighting for workers' rights. With questions or comments
contact 802-229-0009 or workerscenter@pjcvt.org
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