The people of Greece are at a critical moment as the country teeters on the verge of financial default. This is a clear case of the people against global banks and financial institutions. The Institute for Agriculture and Trade Policy urges all of our friends and allies to stand together with the Greek people and say no to the banks.
Greece is getting the kind enhanced financial torture from the European Union that the poor and working class received from Obama in the 2008 financial meltdown. Banks were bailed out and the people left to make do. The slow recovery in the U.S. has helped us to forget the days when ninety year old grandmothers, like Addie Polk in Akron, Ohio, were killing themselves in the face of bankruptcy and foreclosure. But in Greece, a country similarly brought to its knees by uncontrolled banks and corrupt politicians, the majority of its citizens have yet to experience any relief.
Years of austerity imposed on the Greek people have failed to solve the problems confronting the birthplace of democracy. Five months ago, the Greek people elected a progressive party called Syriza to say no to the austerity policies of the IMF and European Union. The Greek government has called for a referendum on Sunday, July 5th, when the people of Greece can say whether or not they want to submit to more unemployment, wage cuts, destruction of pensions, regressive taxes, and deregulation.
For the past year, IATP has been working with partners Europe and the U.S. in a project to consider the potential impacts of TTIP on the rest of the world. As part of those efforts, we participated in a meeting in Brussels on TTIP and the Caribbean-Latin American region (CELAC). The title of the project working paper, “TTIP: why the world should beware,” indicates the general tenor of the Brussels meeting, which took place during the EU CELAC Summit and a tempestuous European Parliament debate about TTIP.
U.S. Trade Representative Michael Froman has characterized TTIP as a ‘high standards’ 21st century trade agreement that non-TTIP countries will want to join if they want access to the U.S. and EU member state markets. However, nobody asked the non-TTIP governments if they will now agree to new trade policies that they successfully have resisted at the World Trade Organization. According to the Brussels meeting participants, TTIP, the Trans Pacific Partnership (TPP) and the Trade In Services Agreement (TISA) would force the “rest of the world” to trade, invest and develop their national economies according to rules decided by U.S. and European Union negotiators.
The hazy term “Climate Smart Agriculture” (CSA) came into sharper focus this month after a series of high-level intergovernmental meetings that prioritized corporate-led solutions. While actual climate negotiators were immersed in talks in Bonn during the first two weeks in June (as part of the lead up to the annual UN climate meeting later this year in Paris), other groupings circled around the term at other key international summits. The most powerful western governments, known as G7 (Canada, France, Germany, Italy, United Kingdom and the United States), had their annual gathering on June 7 and 8 in Schloss Elmau, in Bavaria, Germany. CSA was on the agenda in both places, and it was also an important focus of the 39th session of the FAO held in Rome from June 6 to June 12, 2015.
CSA advocates define food security in the context of water and climate challenges, often equating it with increasing agricultural productivity and resource use efficiency. While increasing productivity of the resources is indeed desirable, unfortunately it is often conflated with increasing private sector investments in land, water and agricultural infrastructure in developing countries, and in the African continent in particular.
When fast track trade authority squeezed through the House of Representatives last week by 10 votes, big corporate donors breathed a sigh of relief. They had heavily invested in political donations and K Street lobbying power to advance their trade agenda—and expected a return on investment.
And it has been quite an investment. According to Maplight, corporate interests supporting Fast Track contributed more than nine times as much money to House members ($197 million), compared to interests opposing Fast Track ($23 million).
Now, the Fast Track fight returns to the Senate where the flood of corporate money flows just as rapidly. The Guardian, analyzing Federal Election Commission data, reported that corporate members of the U.S. Business Coalition for TPP contributed $1,148,971 to U.S. Senate campaigns between January and March 2015—an average of $17,676.48 was donated to each of the 65 “yea” votes in a previous Fast Track vote in May.
Fast Track approval of highly secretive trade agreements that will threaten local food procurement programs across the U.S. and give corporations the standing to sue governments for lost profits passed the U.S. House of Representatives by a slim margin of ten votes yesterday. It was a nasty battle, with House proponents succeeding only through cynical political and procedural brinksmanship. The same strategies will be on display next week in the U.S. Senate. Fast Track (officially called Trade Promotion Authority, or TPA) now requires additional approval in the U.S. Senate. Expect more brinksmanship, less honesty and certainly less democracy.
Supporters of Fast Track authority -- many of whom took their few minutes on the floor of the House debate to claim (disingenuously) that the behind-the-scenes, corporate-led trade negotiation process (and abdication of congressional responsibility when it comes to trade agreements) -- is really very democratic have decided that the American way forward is to make the process even more undemocratic. And that means getting Fast Track approved as fast as they can by burying important pieces of the Fast Track package here and there in other popular pieces of legislation. Nothing up my sleeve. Presto.
For much of our history, trade agreements were considered treaties. According to the Constitution they had to be ratified by a two-thirds vote of the Senate. The House does not participate in ratification of treaties (Article II, Section 2).
By the late 19th century Congress realized it was far too cumbersome to require a Congressional vote to change individual tariffs, so they delegated to the President the authority to use tariffs as a flexible tool in the exercise of foreign policy.
In the 1970s trade agreements stopped focusing on tariffs and began addressing an increasingly broad group of rules (e.g. procurement, copyrights and patents, product standards, subsidies, environmental standards) called non-tariff trade barriers. Modern multi-faceted trade pacts have more to do with pre-empting national, state and local rules that could favor communities or regional economies or domestic businesses or the environment than with lowering tariffs.
Article I, Section 10 of the Constitution gives Congress a little wiggle room by making a distinction between “treaties” and “agreements”. Congress can change the ratification process for agreements. But it is highly probable that the Constitution’s Framers would have expected Congress to do so only with respect to agreements of limited importance.
In 1974 Congress made clear it thought otherwise. That year Congress acquiesced to a dramatic reduction in its and by extension the citizenry’s authority over trade rules. Under the new procedure the President was allowed to unilaterally negotiate the final terms of a trade agreement. He would then present the final agreement to Congress, which would be unable to change it in any way and would have a limited time for debate. Instead of requiring ratification by a two-thirds vote of the Senate, trade pacts would require only a simple majority from both chambers.
Last week the World Trade Organization (WTO) ruled that India is unfairly preventing the import of poultry and eggs from the U.S. India instituted the ban against U.S. dumping of poultry products in 2007, ostensibly to protect against the spread of highly pathogenic Avian Influenza, commonly known as bird flu, though more likely to protect its own rapidly growing domestic poultry industry from giant U.S. companies like Tyson. The Obama administration's aggressive challenge to India’s ban sends a clear message to trading partners, particularly those in the Trans Pacific Partnership, that the U.S. will not tolerate trade barriers against U.S. corporations; we are sure to see more disputes brought to the WTO in the future.
In December, the world’s leaders will meet for two separate important global meetings. The global climate talks in Paris aim to chart a course for reducing greenhouse gas (GHG) emissions. The World Trade Organization ministerial in Kenya will advance global trade rules. Unfortunately, the two meetings will take place without acknowledging the inescapable connections between free trade rules and climate change.
Globalization – largely promoted through free trade agreements – has brought about more expansive and complex supply chains.1 Liberalized trade agreements, extending more rights to transnational corporations, have been linked to increased GHG emissions attributable to industrialization and the global transportation of goods and services.2 Though globalization has contributed to economic growth in some countries, there has been extensive documentation of how it has also brought increased fossil fuel consumption and environmental degradation.3,4,5
Many concerned with globalization’s effect on the environment advocate for more emphasis on localized systems. These localized systems emit fewer GHGs due to smaller supply chain networks. Nate Hagens, of the Post Carbon Institute, stated in a July 10, 2014 lecture, “A lower consumption, more local and regional future is not only needed [for reducing carbon emissions] but probably more desirable [for creating community].”
The congressional vote on Fast Track Trade Promotion Authority (TPA) has entered into a period of what appear to be rather convoluted twists and turns. Whether that path eventually leads to its approval—giving the President authority to negotiate trade deals in secret and then bring them to Congress for a yes or no vote, no amendments allowed—or to its defeat is simply impossible to predict at this point. The way this debate is playing out highlights several basic concerns, starting with transparency but extending to the content of the trade deals as well.
Fast Track is an extraordinary surrender of congressional authority to the President. It was first created during the Nixon administration, and has been granted for a total of only five years in the last two decades. It last expired in 2007. If approved, the current bill would cover the Transatlantic Trade and Investment Partnership (TTIP), Trans Pacific Partnership (TPP) and any other trade deal that could emerge in the next six years. Much of the focus in the media has been on TPP, since that agreement is closer to completion, but the proposed TPA is much broader than that, and extends into the completely unknown terrain of the next presidential administration.
The Obama Administration claims that the new round of secret trade deals will be the greenest ever. Its latest attempt to sell that story was released earlier this week in a slick new report titled “Standing Up For The Environment: Trade For A Greener World.” As with most of the spin coming from the U.S. Trade Representative these days – there’s a lot of “trust us” bluster in the report, marketed with unattributed numbers and fancy graphics. But, perhaps most notably, it ignores the largest environmental issue of our times – climate change – and the numerous concerns raised by environmental groups about how these trade deals will damage the climate, not protect it.
While the report touts new provisions on wildlife protection, animal trafficking and illegal logging, we’ll have to take the Administration’s word for it. The environmental chapters for the Trans Pacific Partnership (with 11 Pacific Rim countries) and the Trans Atlantic Trade and Investment Partnership (with Europe) are still secret documents. But there are good reasons for concern. A leaked version of the TPP environmental chapter posted on WikiLeaks last year was ripped open by U.S. green groups for not being “fully enforceable.”