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.
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.
Institutions purchasing and serving regionally produced food has gained momentum in recent years, largely driven by the exponentially successful farm to school movement. But this practice has reached a critical transition point in the growth process: how to move from a good idea that is supported by end users to an economically sustainable one with wide appeal for those at the beginning of the supply chain—particularly the farmer that provide the fruits, vegetables and other products for the cafeteria tray.
In the newly released report “Building Minnesota’s Farm to Institution Markets: A Producer Survey,” the Institute for Agriculture and Trade Policy— along with project partners the Sustainable Farming Association and Renewing the Countryside—summarize the findings of a recently completed survey that identifies some of the key “next steps” that farmers feel are needed to ensure the state’s emerging farm to institution markets work for them. With over 75 percent of survey respondents interested in selling to these markets in the future, it make sense to develop a deeper understanding of how to make them as accessible and successful as possible.
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.
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.
On May 8th, President Obama told a crowd in Oregon: No trade agreement is going to force us to change our laws. Twelve days later, the House Agriculture Committee voted 38-6 to repeal in its entirety country-of-origin-labeling (COOL) for beef, pork and poultry. The House vote came in response to a May 18 ruling by the World Trade Organization (WTO) that the U.S. had violated global trade rules by requiring supermarket labels on beef and pork to indicate where livestock was born, raised and slaughtered. The meat industry is elated.
The longstanding principal goal of U.S. trade policy is to advance U.S. economic interests.
So, why is the Obama administration fighting so hard to help Monsanto -- a company that is openly trying to slash its taxes by moving its headquarters from St. Louis to Switzerland?
Earlier this month, Monsanto made an initial offer to purchase the Swiss-based Syngenta. The deal, if completed, would allow Monsanto to move its headquarters from outside St. Louis to Switzerland, thereby reducing U.S. corporate tax payments. According to financial analysts at Piper Jaffray, Monsanto would gain – and U.S. taxpayers would lose – about $500 million per year in tax revenues.
It would also create the largest seed and crop chemical company in the world.
At this moment, the Obama administration is undertaking a high profile effort to knock down global resistance to genetically engineered food and crops. It is advancing trade treaties both for Europe (Transatlantic Trade and Investment Partnership, TTIP) and Asia (Trans Pacific Partnership, TPP) to accomplish this goal.
Monsanto is the world’s largest producer of seeds, many of which are genetically engineered. It would be a major beneficiary of these treaties.
There were some decidedly Kafkaesque aspects of the Congressional debate this week on Fast Track legislation, designed to speed through the passage of secret trade deals that could have a serious impact on our food system. At first, the Senate refused to approve a bill to limit debate on Fast Track. Then, when the Senate did approve that bill, it turned out the real debate over Fast Track wouldn’t be happening in the Senate at all, but rather in the House (but not yet).
What?? Essentially, the Senate votes this week were over a procedural mechanism (cloture) to bring Fast Track to a vote (but not yet over Fast Track itself). The actual Fast Track vote will likely come in the Senate in the next few weeks. As we’ve discussed before, Fast Track would limit Congressional debate on trade agreements to an up or down vote, no amendments allowed. It would include the Trans Pacific Partnership (TPP, with 11 other Pacific Rim countries) and the Transatlantic Trade and Investment Partnership (TTIP, with Europe) and any other trade agreements negotiated over the next six years, including those completed by the next President. The votes this week were notable mainly because the Senate action had been expected to pave the way for a much more contentious vote in the House of Representatives. And it didn’t work out that way at all.