Trade Up-Date - Thursday, May 26, 2011

Trade Update

It’s no secret that the Obama Administration has made effective implementation and enforcement of trade laws and agreements a priority. Thousands of Steelworkers are directly benefitting from these decisions, either retaining jobs or even adding jobs at their facilities in some cases. Given these gains, it is disappointing to hear that deals are now completed for expanded trade with South Korea, Colombia and Panama, and that these deals could be submitted to Congress for votes in the near future. While the Administration believes they have made gains in these agreements, they still fall short of what’s needed. The two of greatest concern are highlighted here.

U.S.-Korea Free Trade Agreement

This would be the largest trade deal for our nation since NAFTA. Our chief concern is with the auto provisions in this deal. USW members make glass, tires, steel, plastics, petroleum products and countless other components that are part of the auto supply and parts sectors. This agreement fails them for a number of reasons including:
• South Korea gets increased access to our market, but it’s unclear if they’ll open their borders to our
autos and other manufactured goods in the same way. Right now we already have a 14-1 imbalance
when it comes to autos. How much more lopsided can that number get?
• There is very little domestic content that’s required in Korean imports. This means they can load up their cars with Chinese and other foreign parts (up to 65 percent of the vehicle’s content), use the increased access to our markets to send those cars here, and end up putting U.S. workers in the autosupply sector at a serious competitive disadvantage. Plus, we have no meaningful recourse if our markets are flooded with cars from South Korea!

U.S.-Colombia Free Trade Agreement

When President George W. Bush first reached agreement on a trade deal with Colombia in 2007, there were 39 union members assassinated there that year. Last year, the number was 52, including 28 teachers. Clearly the Colombian government’s promises to address these crimes have not materialized. The outrageous and ongoing murders of teachers and workers who speak out for their union rights – with
only five percent of these cases prosecuted since the mid-1980s – leaves us standing in solidarity with our Colombian sisters and brothers in strong opposition to this agreement.

Thank you to all locals who have urged your Members of Congress to vote no on these agreements to date. Please keep up the efforts and be ready for more action in the days to come.

Printer friendly version

Registration System

Find Us On:

Trade Up-Date - Thursday, May 26, 2011