TPP: The Largest and Most Dangerous Trade Agreement You ve Never Heard Of

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1 TPP: The Largest and Most Dangerous Trade Agreement You ve Never Heard Of A Global Race to the Bottom Continues Negotiations being kept secret from the public but not from corporations US Sovereignty at risk Jobs will disappear in all sectors Health and safety regulations at risk

2 The Race to the Bottom Strategy What Corporations and What They Said What Really Political Allies Did Would Happen Happened Cut Labor Reduce/Eliminate Unions Cut Labor Costs Increase Productivity Globalize Profits Historic Highs Investment Productivity not Jobs Cut Government Jobs 20m w/o full time jobs Taxes on Wealthy + Corps Wages Stagnant Social Spending Quality of Life Eroded Deregulate Trade Surplus Trade Deficit Environment Trade Labor Politics Privatize & Cut Govt Jobs

3 Corporate Attack on Workers Power 60-year campaign to weaken and eliminate unions, led by U.S. Chamber of Commerce Limit collective bargaining coverage and oppose worker-friendly legislation Oppose worker organizing (firings, shut down threats, etc) Block Employee Free Choice Act

4 Decline in Union Representation Union Members as % of Private Sector Workforce 35.7% 28.5% 17.1% 12.4% 6.6%

5 UNION DENSITY 2010: 11.9% 2004: 12.6% 1994: 15.7% 1984: 19.1% 1974: 26.2% 1964: 29.3% 0% to 9% 10% to 20% 21% to 30% Source: Unionstats.com 31% +

6 It s a concerted corporate effort to destroy unions political clout Union Membership USA % of Workforce Organized Date Public Sector- Prior to '80 Public Sector- Post '80 Overall Economy- Prior '80 Overall Economy- Post '80

7 With Attacks on Unions, Wages Stagnate Actual wages compared to estimated increases if wages had risen with productivity $1,178 $462 $731 Weekly wages if tied to productivity $631 Real average weekly wages Source: U.S. Bureau of Labor Statistics; Productivity Average Wage of Non-Supervisory Workers; Consumer Price Index

8 CEO Pay Skyrockets

9 The Race to the Bottom Strategy What Corporations and What They Said What Really Political Allies Did Would Happen Happened Cut Labor Reduce/Eliminate Unions Cut Labor Costs Increase Productivity Globalize Profits Historic Highs Investment Productivity not Jobs Cut Government Jobs 20m w/o full time jobs Taxes on Wealthy + Corps Wages Stagnant Social Spending Quality of Life Eroded Deregulate Trade Surplus Trade Deficit Environment Trade Labor Politics Privatize & Cut Govt Jobs

10 NAFTA: Destroyed Jobs and Exploded the Trade Deficit NAFTA eliminated over 700,000 jobs from the U.S. U.S. had $1.6 billion trade surplus with Mexico before NAFTA; Today, we have a $97.2 billion trade deficit (Before NAFTA) $1.3 Billion Trade SURPLUS Supported 29,400 jobs 2010 $97.2 Billion Trade Deficit Destroyed Over 700,000 jobs

11

12 KORUS: Jobs Promised, Not Delivered The 2010 Korea-US Free Trade Agreement (KORUS) was supposed to add over 70,000 jobs. Instead it destroyed 40,000. KORUS was supposed to lower the U.S. trade deficit with Korea. In its first year, the deficit worsened by $5.8 billion - a whopping 39.8% increase in ONE year!

13 More Free Trade Pacts = Higher Trade Deficits Net Exports as a Percentage of GDP 1.0% 1.0% SURPLUS DEFICIT -3.1% -3.6% -5.8%

14 The TPP is Much Bigger than NAFTA

15 TPP is Not Just About Trade Agriculture Environment Rules of Origin Investment State owned Enterprises Food Safety

16 The TPP Is a Back Room Deal Being Negotiated in Secret Members of Congress, journalists, and civil society are excluded from seeing draft texts Draft texts and proposals will not be released until four years after the talks have concluded or a deal is reached 600 corporate advisors have access to key texts and proposals

17 Partial List of Official Advisors to USTR

18 TPP: Why so Secret?? We are troubled that important policy decisions are being made without the full input from Congress. If Congress and the public are not informed of the exact terms of the agreement until the conclusion process, then any opportunity for meaningful input is lost Members of the House of Representatives The majority of Congress is being kept in the dark as to the substance of the TPP negotiations, while representatives of U.S. corporations like Halliburton, Chevron, PHRMA, Comcast, and the Motion Picture Association of America are being consulted and made privy to details of the agreement. Senator Wyden Chair of Senate Subcommittee on Trade

19 The TPP Will Exacerbate Our Democracy Crisis TPP would empower corporations to: Attack governments before private tribunals demanding our tax dollars to compensate loss of expected future profits from environmental, health, safety, land use, and zoning laws Call Center Bill could be subject to challenge Many laws, rules and regulations could be subject to challenge.

20 The TPP Will Exacerbate our Economic Crisis Loss of More Jobs Call center and other service sector jobs Manufacturing jobs U.S federal government contracts to foreign firms Further Erosion of Standard of Living Wages, benefits and collective bargaining rights. Faster Race to the Bottom TPP includes Vietnam which is the low-cost, no-labor rights, low environmental protection alternative to China

21 Service Sector Jobs will disappear

22 A problem will become a crisis

23 Bye Buy America & Jobs Preferences for Buy America, prevailing wages, renewable or recycled and other domestic preferences for signatory countries could be challenged. Companies could not be barred because of their human rights and labor rights records. Constrain how national and state governments may use public funds in construction projects, purchases of goods and services, etc.

24 Goods produced by Child Labor and Forced Labor. Vietnam is guilty of using child labor and forced labor in its garment sector. (US State Department) Vietnam No Labor Rights Suppression of the right to form independent unions. The law [in Vietnam] does not allow workers to organize and join independent unions of their choice. (US State Department) Restrictions on Strikes. Vietnam s Labor Code allows party-controlled unions to strike but imposes strict and cumbersome conditions that must first be met, which effectively nullify this right. (Human Rights Watch)

25 Vietnam Low Wages Daily Minimum Wages (January 2013 in Dollars) $58.00 $8.70 $4.59 $2.23 United States Malaysia China Vietnam

26 Vietnam Slave Labor Vietnam is one of 3 Countries found by our Department of Labor to use child slave labor There is a US arms embargo against Vietnam because of its human rights violations and imprisonment of political dissidents

27 Child Slavery

28 Broken Promises Examples of Failed Labor Protections in Free Trade Agreements Trade Agreements sometimes have Labor Chapters in a half-attempt to allow American workers to compete with countries with poor labor standards. These chapters are written with very weak language:...strive to ensure, etc. Examples: Bahrain Failed to uphold its own weak labor laws. Suspended and restricted many of its labor laws. During Arab Spring, Bahrain s King suspended free speech, right to protest, and others. Forcibly dissolved Bahrain s labor federation. Colombia FTA s Labor Action Plan has completely failed. Rampant violence and murder against laborers throughout the country. Evidence of forced, compulsory, and even child labor. Honduras Employers often use selective lay-offs to bust or avoid unions. Inadequate and/or corrupt labor inspections. 36% of employers don t pay minimum wage. Guatemala Blatant violence against laborers and labor leaders. Unenforceable labor laws. Bogus penalty system where violating country pays a fine to itself.

29 TPP jeopardizes the safety of our food

30 We Can Create Our Own Power We Have Won in the Past Successful battles Won Against Corporate Power-Grabs via Trade Agreements DERAILED: WTO Expansion: Seattle 99 today DERAILED: MAI (Multilateral Agreement on Investment) DERAILED: US - Malaysia, US SAf Customs Union, US- Thailand, US -UAE, Egypt FTAs, and more.

31 The TPP Process in the U.S. Negotiations: Ongoing, governments want to conclude in Dec Request for Fast Track - possibly within next few months Congressional Vote on Fast Track Congressional Vote on Agreement

32 Fast Track Fast Track or Trade Promotion Authority (TPA) is a way to force trade agreements through Congress No ability by Congress to change the text of the agreements Often presented with little time to review them Only allow a yes or no vote on the total agreement Congress cedes its Constitutional Authority to the President

33 People are Fighting Back

34 Other Americans Are Fighting Back Protests in Chicago, Los Angeles, San Francisco, Dallas, San Diego, Leesburg.

35 We Are Not Alone - The Global Fight Has Begun

36 Malaysians are Fighting Back

37 Japanese are Fighting Back

38 Australians are Fighting Back

39 It s Up to All of Us to Spread the Word and Let the Secret Out Talk to people about the issue Distribute flyers and information Distribute and Collect Post Cards In-District Meetings with Member of Congress Letters to the Editor Go to our tool kits for all the information you need:

40 TAKE ACTION Call Senator and Representatives CD address zip to Go to Text CWAAction to 69866

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