Jack Reed on Free Trade
Democratic Sr Senator (RI)
Reed stated, "With an economy that has not yet fully recovered, this additional federal assistance will give these workers a chance to continue to provide for themselves and their families while receiving help and the training they need to find new jobs."
Reed requested additional federal assistance through the TAA program, a program designed to assist workers hurt by foreign competition. TAA funds go towards job training, job-search help, relocation aid and cash to workers who lose their job due to foreign competition. To be eligible for the program the US Labor Department must find that the jobs were lost as a result of foreign competition.
Proponents support voting YES because:
Rep. RANGEL: It's absolutely ridiculous to believe that we can create jobs without trade. I had the opportunity to travel to Peru recently. I saw firsthand how important this agreement is to Peru and how this agreement will strengthen an important ally of ours in that region. Peru is resisting the efforts of Venezuela's authoritarian President Hugo Chavez to wage a war of words and ideas in Latin America against the US. Congress should acknowledge the support of the people of Peru and pass this legislation by a strong margin.
Opponents recommend voting NO because:
Rep. WU: I regret that I cannot vote for this bill tonight because it does not put human rights on an equal footing with environmental and labor protections.
Rep. KILDEE: All trade agreements suffer from the same fundamental flaw: They are not self-enforcing. Trade agreements depend upon vigorous enforcement, which requires official complaints be made when violations occur. I have no faith in President Bush to show any enthusiasm to enforce this agreement. Congress should not hand this administration yet another trade agreement because past agreements have been more efficient at exporting jobs than goods and services. I appeal to all Members of Congress to vote NO on this. But I appeal especially to my fellow Democrats not to turn their backs on those American workers who suffer from the export of their jobs. They want a paycheck, not an unemployment check.
The mission of the Cato Institute Center for Trade Policy Studies is to increase public understanding of the benefits of free trade and the costs of protectionism.
The Cato Trade Center focuses not only on U.S. protectionism, but also on trade barriers around the world. Cato scholars examine how the negotiation of multilateral, regional, and bilateral trade agreements can reduce trade barriers and provide institutional support for open markets. Not all trade agreements, however, lead to genuine liberalization. In this regard, Trade Center studies scrutinize whether purportedly market-opening accords actually seek to dictate marketplace results, or increase bureaucratic interference in the economy as a condition of market access.
Studies by Cato Trade Center scholars show that the United States is most effective in encouraging open markets abroad when it leads by example. The relative openness and consequent strength of the U.S. economy already lend powerful support to the worldwide trend toward embracing open markets. Consistent adherence by the United States to free trade principles would give this trend even greater momentum. Thus, Cato scholars have found that unilateral liberalization supports rather than undermines productive trade negotiations.
Scholars at the Cato Trade Center aim at nothing less than changing the terms of the trade policy debate: away from the current mercantilist preoccupation with trade balances, and toward a recognition that open markets are their own reward.
The following ratings are based on the votes the organization considered most important; the numbers reflect the percentage of time the representative voted the organization's preferred position.
[Explanatory note from Wikipedia.com "Exchange Rate"]:
Between 1994 and 2005, the Chinese yuan renminbi was pegged to the US dollar at RMB 8.28 to $1. Countries may gain an advantage in international trade if they manipulate the value of their currency by artificially keeping its value low. It is argued that China has succeeded in doing this over a long period of time. However, a 2005 appreciation of the Yuan by 22% was followed by a 39% increase in Chinese imports to the US. In 2010, other nations, including Japan & Brazil, attempted to devalue their currency in the hopes of subsidizing cheap exports and bolstering their ailing economies. A low exchange rate lowers the price of a country's goods for consumers in other countries but raises the price of imported goods for consumers in the manipulating country.
Excerpts from Letter from 31 Senators to the Secretary of Commerce: We are writing in strong support of the Department's decision to initiate antidumping and countervailing duty investigations of passenger vehicle and light truck tires from China.
China has targeted the tire sector for development and there are several hundred tire manufacturing facilities now operating in that country. In 2009, the United Steelworkers (USW) sought relief from a flood of similar tires from China that were injuring our producers and their workers.
Unfortunately, shortly after relief expired in 2012, imports of these tires from China once again skyrocketed. In June 2014, the USW alleged dumping and subsidies, identifying dumping margins as high as 87%. Our laws need to be fairly and faithfully enforced to ensure that workers can be confident that, when they work hard and play by the rules, their government will stand by their side to fight foreign predatory trade practices.
America's laws against unfair trade are a critical underpinning of our economic policies and economic prosperity. Given the chance, American workers can out-compete anyone. But, in the face of China's continual targeting of our manufacturing base, we need to enforce our laws.
Opposing argument: (Cato Institute, "Burning Rubber", Sept. 11, 2009) USW and the unions feel that they have earned the president's support. The president is presumed to owe Big Labor for his election last November. Will the president do what is overwhelmingly in the best interest of the country? Or will he do what he thinks is best for himself politically? The president should reject the recommendations of the USITC and deny import restrictions altogether. A decision to reject trade restraints in the tires case would be reassuring to a world that is struggling to grow out of recession. The costs of any protectionism under these circumstances could unleash a protectionist backlash in the US an
Heritage Action summary of vote# S206: The Senate voted to table (kill) an amendment by Sen. Kirk to reauthorize the Export-Import Bank. Sen. Kirk recommends voting NO. Heritage Foundation recommends voting YES because the "Ex-Im Bank is little more than a $140 billion slush fund for corporate welfare."
OnTheIssues explanation: Voting NO would allow a vote on reauthorization of the Ex-Im Bank. Voting YES would kill the bill for reauthorizing the Ex-Im Bank.
Cato Institute reason for voting YES to kill the bill:The Ex-Im Bank's reauthorization buffs contend that Ex-Im fills a void left by private sector lenders unwilling to provide financing for certain transactions. Ex-Im's critics [say that] by effectively superseding risk-based decision-making with the choices of a handful of bureaucrats pursuing political objectives, Ex-Im risks taxpayer dollars. It turns out that for nearly every Ex-Im financing authorization that might advance the fortunes of a single US company, there is at least one US industry whose firms are put at a competitive disadvantage. These are the unseen consequences of Ex-Im's mission.
Summary from Congressional Record and Wikipedia:Vote to amend the North American Free Trade Agreement (NAFTA) and establish the United States-Mexico-Canada Agreement (USMCA). Rather than a wholly new agreement, it has been characterized as "NAFTA 2.0"; final terms were negotiated on September 30, 2018 by each country. The agreement is scheduled to come into effect on July 1, 2020.
Case for voting YES by Rep. Charlie Crist (D-FL); (Dec. 19, 2019)The USMCA includes stronger protections for American workers and enforceable labor standards, as well as environmental protections. It eliminates the Trump Administration's threat that the US could walk away entirely from the trade agreement with Canada and Mexico, which would devastate US jobs and our economy.
Case for voting NO by Jared Huffman (D-CA); (Dec. 19, 2019) Democratic negotiators did a lot to improve Donald Trump's weak trade deal, especially in terms of labor standards and enforcement, but the final deal did not reach the high standard that I had hoped for. The NAFTA renegotiations were a once-in-a-generation opportunity to lift labor and environmental standards across the continent--to lock in serious climate commitments with two of our largest trading partners and dramatically improve labor standards and enforcement to slow the rise of outsourcing.
Legislative outcome: Bill Passed (Senate) (89-10-1) - Jan. 16, 2020; bill Passed (House) (385-41-5) - Dec. 19, 2019; signed at the G20 Summit simultaneously by President Trump, Mexican President Enrique Nieto, and Canadian Prime Minister Justin Trudeau, Nov. 30, 2018
Ratings by USA*Engage indicate support for trade engagement or trade sanctions. The organization's self-description: "USA*Engage is concerned about the proliferation of unilateral foreign policy sanctions at the federal, state and local level. Despite the fact that broad trade-based unilateral sanctions rarely achieve our foreign policy goals, they continue to have political appeal. Unilateral sanctions give the impression that the United States is 'doing something,' while American workers, farmers and businesses absorb the costs."
VoteMatch scoring for the USA*Engage ratings is as follows :
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Senate races 2019-20:
AK: Sullivan(R,incumbent) vs.Gross(I) vs.
AL: Jones(D,incumbent) vs.Tuberville(R) vs.
AR: Cotton(R,incumbent) vs.Harrington(L) vs.
AZ: McSally(R,incumbent) vs.Kelly(D)
CO: Gardner(R,incumbent) vs.Hickenlooper(D) vs.
DE: Coons(D,incumbent) vs.
GA-2: Isakson(R,resigned) Loeffler(R,appointed) vs.Warnock(D) vs.Collins(R) vs.Tarver(D) vs.
GA-6: Perdue(R,incumbent) vs.Ossoff(D) vs.Hazel(L) vs.Tomlinson(D) vs.Terry(D)
IA: Ernst(R,incumbent) vs.Greenfield(D) vs.
ID: Risch(R,incumbent) vs.Jordan(D) vs.
IL: Durbin(D,incumbent) vs.Curran(R) vs.
KS: Roberts(R,retiring) vs.Marshall(R) vs.Bollier(D) vs.
KY: McConnell(R,incumbent) vs.McGrath(D) vs.
LA: Cassidy(R,incumbent) vs.Perkins(D) vs.
MA: Markey(D,incumbent) vs.O`Connor(R) vs.Ayyadurai(R) vs.
ME: Collins(R,incumbent) vs.Gideon(D) vs.
MI: Peters(D,incumbent) vs.James(R) vs.Squier(G)
MN: Smith(D,incumbent) vs.Lewis(R) vs.Overby(G) vs.
MS: Hyde-Smith(R,incumbent) vs.Espy(D) vs.
MT: Daines(R,incumbent) vs.Bullock(D) vs.
NC: Tillis(R,incumbent) vs.Cunningham(D) vs.
NE: Sasse(R,incumbent) vs.Janicek(R)
NH: Shaheen(D,incumbent) vs.Messner(R) vs.
NJ: Booker(D,incumbent) vs.Mehta(R) vs.
NM: Udall(D,retiring) vs.Lujan(D) vs.Ronchetti(R) vs.Walsh(L) vs.
OK: Inhofe(R,incumbent) vs.Broyles(D) vs.
OR: Merkley(D,incumbent) vs.Perkins(R) vs.
RI: Reed(D,incumbent) vs.Waters(R)
SC: Graham(R,incumbent) vs.Harrison(D) vs.
SD: Rounds(R,incumbent) vs.Ahlers(D) vs.
TN: Alexander(R,retiring) vs.Hagerty(R) vs.Bradshaw(D) vs.
TX: Cornyn(R,incumbent) vs.Hegar(D) vs.
VA: Warner(D,incumbent) vs.
WV: Capito(R,incumbent) vs.Swearengin(D) vs.
WY: Enzi(R,retiring) vs.Lummis(R) vs.Ben-David(D) vs.
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