Saturday, May 16, 2015

Secrecy in trade

The restrictions the Obama administration has placed on members of Congress wishing to peruse the text of the Trans-Pacific Partnership, a managed trade agreement among the United States and 11 other countries, are something of a shock in a democratic republic. Lawmakers can bring staff, but only those with the necessary security clearances. They can take notes, but must surrender them to the guards upon leaving. They may not bring in electronic devices such as cameras or cellphones that could be used to copy passages of the bill. 

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The extreme secrecy of the text hasn’t stopped interest groups from lobbying in its favor, though. The U.S. Chamber of Commerce is pushing the agreement, quoting studies on the unread document that project it will lead to a $124 billion surge in U.S. exports by 2025. A review of first quarter lobbying filings shows 134 corporations, 78 trade associations and 13 labor unions lobbying on the bill. The interests pushing the pact include industry groups like the Pharmaceutical Manufacturers and Research of America and the American Apparel and Footwear Association, corporations like Caterpillar and Coca-Cola, agricultural groups like the National Cattlemen’s Beef Association, the National Milk Producers Federation and the National Chicken Council, and the Emergency Committee for American Trade (ECAT).
Business leaders formed the latter group in 1967 to battle what it called protectionist measures under consideration in Congress, and it has been in emergency mode ever since. Its president is Calman J. Cohen, who joined in 1981 after working as the congressional liaison at the Office of the United States Trade Representative, the government organization charged with negotiating trade agreements to create “higher living standards for families, farmers, manufacturers, workers, consumers, and businesses.” Pushing those policies has certainly raised Cohen’s living standard. ECAT’s most recent disclosure with the Internal Revenue Service showed his salary was $415,000 a year, or $15,000 more than President Barack Obama makes.
Domestic interests won’t be the only ones pushing the bill. Japan, one of the 11 trans-Pacific partners, has hired five new lobbying and public relations firms to present its view on the trade deal. Among the land of the rising sun’s new foreign agents is the Larson Shannahan Slifka Group, which will “help to educate … public officials by providing information on the benefits of the Trans Pacific Partnership.” The three named principals may not be household names, but Charles Larson, Joe Shannahan and Karen Slifka have all played key rolls in Iowa politics, working for governors, senators, political parties and presidential primary campaigns. 

So....is this free trade?  Really?

5 comments:

  1. Promoting such a partnership and trying to get the bill passed through congress has been anything but free. It is remarkable how much money the big corporations and benefiting countries are spending in lobbying for this bill ("134 corporations, 78 trade associations and 13 labor unions"). It doesn't take an expert to figure out that the TPP will stretch the pockets of the super rich (i.e. executives/owners of the large corporations) and increase the income inequality gap. There are reports stating that most of the gains in yearly worker income from the passing of the bill would go to workers making more than $88,000 a year.
    It is clear this bill is in the best interest for large corporations and large exporting nations, but what is still unclear to me is how the rest of us will fare from the partnership.

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  2. I agree with what Tyler said; everything about this bill is highly confidential, but what little we do know of it, it will help the rich and could hurt those who aren't. Many people are worried that jobs will become outsourced, and many Americans working already low paying jobs will lose their job and income altogether. Furthermore, I want to emphasize how political this economic treaty is. Everyone involved with it is deeply politicized, working or having worked in politics. How could this be a thoroughly good economic decision for the US when it's a giant political fight?

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  3. ...wow. How can people not even take notes in the meetings regarding the TTP?! How can an effective deal be struck if only folks with high security clearances are allowed to sit in on the meetings?! This is absolutely appalling behavior. It certainly makes me think that this isn't really in the interest of the general public. Those with the money to lobby for this partnership are those that can see what financial gain can come it, and they certainly seem to be those pushing hardest for it.

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  4. I agree with everyone that this trade deal is anything but free. Large firms and corporations are already spending tons of money to lobby for the bill, and if passed we can assume that there will be a large cost to the general public. As Shelby mentioned, this bill has created a huge political fight, with President Obama even speaking out against members of his own party. Something that I have been curious about throughout this debate over the TPP is why Obama is pushing so hard when so many Democrats seem to disagree with him? How did this divide within the party arise?

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  5. Like Bronte, I agree with all the above posts. The decision to pass the trade deal is highly political and the corporations/business that have much power and are potentially benefited by the deal are pushing Congress to pass the deal. Similarly to Bronte, I also question why Obama is pushing for the deal when so many democrats are against it? Overall, the actions that Congress is taking with regards to the bill are not transparent and this could ultimately come back to haunt the US economy.

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