LABOR RAISES THE BAR ON THE TRADE ISSUE (NIGHTMARE FOR THE CORPORATE DEMS) [View All]

[Omaha Steve]

http://taussblog.typepad.com/laying_it_on_the_line/2006/03/labor_raises_th.html

NIGHTMARE FOR THE CORPORATE DEMS

It rated one paragraph in the New York Times and passed under the radar of most people on the Hill. But the AFL-CIO’s major change in its trade policy, passed at the recent Executive Council meeting, may have more impact on the political front than its $40 million election year budget.

The AFL-CIO issued a call for the U.S. to exercise our rights under Article 12 of the W.T.O. and impose a temporary, across-the-board tariff increase to reduce America’s trade deficit. Contrary to popular belief (Rep. Charlie Rangel recently told a reporter it was illegal), W.T.O. rules allow tariff increases, but only for the purpose of closing a persistent trade deficit. We can’t raise tariffs to gain a trade surplus, but we can do so to close a deficit.

Things Have Changed
After the passage of NAFTA, labor responded by raising the banner of labor and environmental rights in trade treaties – a move which, among other things, allowed us to shed the label of ‘irrelevant protectionists’ and get back in the debate.

This successfully changed the trade debate. But, while valuable, we were never under any illusion that this would turn around the trade imbalance.

Now things have changed:

Outsourcing Spreads
1) The rapid entry into the global capitalist workforce of a billion low-wage workers has combined with rapid changes in technology to put almost any job at risk of being sent offshore. The main defense of NAFTA – we’ll send the ‘crummy’ jobs overseas and keep the ‘good’ jobs here – wouldn’t pass the laugh test today with almost every job that doesn’t require physical presence (retail, burger-flipping and hands-on health care) already on its way out the door.

This changes the political dynamic of the issue, putting millions more workers in economic jeopardy and expanding the base of any popular movement to deal with it.

Trade Deficit: Looming Disaster
2) This change has produced a second change. The balance of trade deficit has increased steadily since 1992 in both absolute terms and relative to the size of our economy. Americans are currently living 7% beyond our means (i.e., consuming 7% more than we produce). And this is expected to continue to rise. The U.S., which was a creditor nation in the 90’s, has become a debtor nation, slipping further and further into debt.

FULL story at link.