Need Help Understanding Fast Track Debate

I've been going through the NAFTA debate from 1990-1994, and almost no one in politics comes out well.  Characters that are notably bad include Bill Bradley and Al Gore.  Characters that are spectacularly bad include Bill Clinton and Bill Richardson, who actually pioneered some of the K-Street whipping tactics Tom Delay later used in the House.  The story connects business coalitions to Daley's urban Chicago machine (Rahm) to the current crop of Democratic media-pollster-consultants (Mandy Grunwald, Carter Eskew, Stanley Greenberg) to a horrible trivializing media establishment.  And looking at it now, the insiders involved in the fight on the pro-NAFTA side got really rich through their relationships with defense contractors, telecom, and pharma.  

All the elements of the war with Iraq were there in that fight.  Through it all, I'm struck by just how pathetic and callow a figure Dick Gephardt cuts, and how badly labor and the environmental movements handled themselves from a strategic standpoint.  David Bonior, Ralph Nader, Lori Wallach, Sherrod Brown and Marcy Kaptur come out reasonably well.  But it strikes me that the political system today is broken in ways that we haven't even begun to understand.

For instance, I just don't understand this.

A senior U.S. Democratic lawmaker said on Tuesday he believed Congress would give the Bush administration a limited extension of fast-track trade negotiating authority to finish current world trade talks.

"We are prepared to give a restricted fast-track, limited to the Doha convention," House of Representative Ways and Means Committee Chairman Charles Rangel, a New York Democrat, said in remarks at a National Press Club luncheon...

After his speech, Rangel said the Bush administration would need to make a formal legislative request before Congress would act on the issue. The length of any renewal would depend on the time estimated to complete the Doha round, Rangel said.

Rangel also made clear he does not want the White House to frame its request in a way that blames Congress for the death of Doha if fast track is not renewed.

Can anyone who knows Charlie Rangel explain why he's doing this?  The guy just started a PAC with Baucus to attract business donations in the wake of his ascension to the Ways and Means Chair.  I'm honestly curious as to what Rangel is thinking here, both in terms of being excessively friendly to business interests and being afraid of a backlash from a trade deal that isn't widely understood (or in all likelihood very popular).  I'd particular appreciate comments from people who know trade issues or are from New York and know Rangel.

Update [2007-4-19 9:43:58 by Matt Stoller]: This is an interesting comment from debcoop.

Charlie has always been a little more free trade than other progressives. I know that he's interested in helping some of the islands in the Caribbean and he feels that some free trade agreements may help them over helping China or other Asian manufacturers.

As chairman of ways and means he has a lot of authority in this area. And I may be giving him more progressive cred than warranted, but I think he thinks the horse is already out of the barndoor on globalization so you might as well get as much benefit to folks as is possible.

Charlie also does indeed want to raise money for the party and he wants to do it through him. He loooves being Chairman of Ways and Means. It's why he ran again this time, why he worked so hard raising money in 2006 and it impacted his marriage. His wife wanted him to stop....and well they're not together anymore. He wants to stay chairman.

And remember Charlie has been in congress a long time. He remembers a more congenial, bipartisan time.



Display:


Politics? (none / 0)

Might that be why?


by dpANDREWS on Wed Apr 18, 2007 at 11:19:08 PM EST

Re: Need Help Understanding Fast Track Debate (2.00 / 2)

So we regain the House...and it seems like these idiots think it's a good idea to return straight to the 1980s version of House Democrats that succeeded in getting us thrown out not so long afterwards?

Idiots.


by PsiFighter37 on Wed Apr 18, 2007 at 11:25:38 PM EST

Re: Need Help Understanding Fast Track Debate (1.00 / 1)

backwards protectionist democrats like yourself are the idiots. forward-looking democrats understand that the doha round of trade talks is vital to the sustained growth of our global economy.


by eddersen on Thu Apr 19, 2007 at 07:55:20 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (none / 0)

Are you planning on posting more on the debate from NAFTA?  I really never paid attention to it back then and wish I had.  But, I'd have no one to debate it with then.  lol.
no blogs.
But, it would help to refresh our memories of those of us who barely remember the fight.

by vwcat on Wed Apr 18, 2007 at 11:26:05 PM EST

Re: Need Help Understanding Fast Track Debate (none / 0)

Yes


by Matt Stoller on Thu Apr 19, 2007 at 12:24:22 AM EST
[ Parent ]

Excellent post, Matt. (none / 0)

You are right.  These were the "New Democrats."

They screwed working folks.  Rahm Emanuel, Rubin.

Check out the Hamilton Project.  That's where they hang out now.


by littafi on Thu Apr 19, 2007 at 02:55:15 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (3.00 / 2)

In general, Congress is and has been disconnected from the American people for decades, primarily due to the fact that Congressional campaigns require huge amounts of financing from special interests, particularly the large corporations that dominate all sectors of the American economy.

The best way to figure out why certain Congressional representatives do what they do is to look at who their campaign contributors are.

Giving fast track authority to the president is one of the subterfuges that Congress uses to deflect blame for the manner in which U.S. trade policies harm our domestic industries and destroy jobs.


Nancy Bordier is the founder of Citizens' Winning Hands (www.citizenswinninghands.net)
by Nancy Bordier on Wed Apr 18, 2007 at 11:26:21 PM EST

Could it be (none / 0)

he's in love with being the Chair of Ways and Means?


by Nazgul35 on Wed Apr 18, 2007 at 11:26:38 PM EST

Re: Need Help Understanding Fast Track Debate (3.00 / 2)

This is curious, and I think that what Rangel's trying to say is that he would grant Fast Track Authority so that the Bush administration can put legislation for the passage of permanent normal trade relations (PNTR) to comply with WTO agreement.  

So say that Ukraine joins the WTO, if my understaning is right that means that as part of our WTO responsbilities the US would have to post the same tarriffs against Ukraine as any other WTO member.  Ukraine sparked off a collapse in steel prices a few years back, so you can see where this is headed.  The US can't pass tarriffs against Ukranian steel alone unless we claim dumping, but even then the Ukranians can take the matter to WTO arbitration and argue for damages.

By limiting fast track to Doha, I think that Rangel is saying that the president would only have the power to present treaties for an up or down vote where it's PNTR for new WTO members, or other agreements relating to meeting WTO obligations.

I could be wrong on this.  I still think that this is a mistake. We should withdraw from multilateral trade arrangement like the WTO, and conclude biliateral trade agreements instead.  Congress has the power to advice and consent to treaties, not just consent.  It's the expansion of executive power yet again.  The basic phenomena at work here is what got us into Iraq, Congress ceded power to the president.  And these trade agreements are honestly more important in the long term than Iraq.


by ManfromMiddletown on Wed Apr 18, 2007 at 11:28:08 PM EST

Re: Need Help Understanding Fast Track Debate (none / 0)

One of the main interests of Wall Street in the Doha round is tying the hands of middle income nations as far as restricting wealth flows in the name of "free trade in financial services".

The Doha round has been severely battered by the willingness of middle and low income nations to stand up to high income industrial economies. Things have been so delayed that Doha round fast track authority is at risk of expiring long before a deal is finalised, and if fast track expires, the credibility of the US in making deals goes out the window.

So, Wall Street wants something from the Doha round. That requires extension of fast track for the Doha round.

Therefore, Rangel considers "limited extension" of fast track authority for the Doha round a reasonable idea.

Confusion cleared up?


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Thu Apr 19, 2007 at 02:07:04 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (3.00 / 2)

The answer is easy.  Business is the dominant force in American society and the Dems believed that they had to pledge themselves to NAFTA to avoid a full-court business opposition to electing Bill Clinton in 1992.  The Democratic leadership then found socially liberal/ economically conservative suburban constituencies in states like NY, PA, CT, and New Jersey to whom that kind of message appealed.  In relation to the presidential campaign, it appears that Hillary Clinton would still go for business-oriented comprises with labor, consumer groups, and environmentalists.  Edwards and Obama seem less pro-business, but also appear to be extremely naive about the power of business interests to hobble a Democratic presidency.


by Ric Caric on Wed Apr 18, 2007 at 11:57:18 PM EST

Re: Need Help Understanding Fast Track Debate (none / 0)

Perhaps he likes the Doha round because it's the round that is principley dealing with agricuture subsidies that primarily benefit the farm belt redstates; also, the Doha round is favored by mostly poor agricultural countries that believe that they are being unfairy hurt by American subsidies and trade restrictions that keep their farm products out.  The poor countries that are for Doha include Latin American and African countries.  I believe Rangel voted in favor of the last free trade accord with Africa.


McCain is defining Obama, and Obama is neither defining himself, nor McCain. This is awful.
by jgarcia on Thu Apr 19, 2007 at 12:15:07 AM EST

Re: Need Help Understanding Fast Track Debate (3.00 / 1)

its not a belief! developing countries such as argentina are being unfairly hurt!

thats FACT.


by serge in dc on Thu Apr 19, 2007 at 12:42:23 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (none / 0)

I understand the enthusiasm about ending farm subsidies, but the truth is that the greatest benficiaries from this liberalization in ag producuts are likely to be large American farmers.

Let me explain.  Due to advances in soil tech, the cerrado, a vast region in south central Brazil, has been openened to commerical ag.  Americans are arriving in droves to snap up extremely cheap land that's only now being cultivated.  This is going to end up driving many if not most smallhold farmers in the eastablished agricultural regions, particularly the poverty stricken, and drought plaqued northeast.  

Also remember that slavery is a diminishing but important problem in the Amazonian region where there are large cattle ranches remote from cities.    

Free trade harms small stewards of the land wherever they farm, nd these trade deals only make the situation worse.


by ManfromMiddletown on Thu Apr 19, 2007 at 01:00:43 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (none / 0)

It does, but sad to say under virtually any system economies of scale will benefit larger conglomerations. I don't think you can stop big ag under the capitalist system, you can at best make it behave better. How would you help the small farmers remain economically viable?


Visit Forgotten Countries, my new foreign policy-based blog
by Englishlefty on Thu Apr 19, 2007 at 12:43:21 PM EST
[ Parent ]

If Latin America and Africa were in favor ... (none / 0)

... of the Doha round as originally proposed, the deal would already have been finalized. It was the group of low income nations, led by Brazil, India and China, in sometime alliance with another group of agricultural and commodity exporters, that hung up the deal by demanding real concessions on agriculture if the high income nations are going to get the "intellectual property" and financial "services" provisions they want.

But even if the terms they demand are delivered, that does not mean that the Doha round is pro Africa and Latin America, just that its not as badly anti Africa and Latin America as they fear it could be.


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Thu Apr 19, 2007 at 02:12:10 AM EST
[ Parent ]

Re: If Latin America and Africa were in favor ... (none / 0)

Is that why we are getting mangos from India and we are giving them nuke material...?

Interesting subject.  I too want to know more about this fast track deal/


by SandThroughTheEyeGlass on Thu Apr 19, 2007 at 02:25:56 AM EST
[ Parent ]

Re: If Latin America and Africa were in favor ... (none / 0)

Yes, that's why. Co-opt the leaders.


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Thu Apr 19, 2007 at 10:24:13 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (3.00 / 1)

The Doha Round is extremely important. The Dems are doing the right thing and I'm actually surprised by this since the building opposition to trade deals was the main thing I was worried about with the new Dem Congress. Give Bush the fast-track, get the Doha  Round signed, and share in the credit. It reduces farm subsidies, opens markets for the least developing countries, and opens up trade in services. It will be very good for the world.

J.S.


Vision and consistent progressive principles is what wins.
by jscorse on Thu Apr 19, 2007 at 12:26:36 AM EST

Re: Need Help Understanding Fast Track Debate (none / 0)

agree 100%

there is a tendency to discount free trade and its advantages..

it hurts certain people but it helps others...i think the US gains from NAFTA have been far more than the losses...but of course we focus on the mills in south carolina..understandle....

but the idea that free trade does not help the US is questionable..after NAFTA what was the US growth rate anyways???  i seem to remember we were doing pretty well..


by serge in dc on Thu Apr 19, 2007 at 12:33:35 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (3.00 / 3)

The only people who've been helped by NAFTA are large corporations who've used trade liberalization as cover for consolidating market share and jamming through deregulation through Chapter 11 suits.  

To use econo speak, a possibility is that we have a situation where low wages are being used as an unfair subisidy to capital (see  this book by Jonas Pontusson for more.) creating a deadweight loss to society.  That means that because income has been transferred from lower income workers who tend to use additional income to consume, growing the economy through the expansion of demand, towards stockholders who tend to keep that money out of the economy, reducing aggregate demand.  So the country is worse off on the whole.  

The Economic Policy Institute published a report in 2001, showing that the country lost 750,000 jobs due to NAFTA between 1993 and 2000.

Free trade, in the NAFTA style, has been a failure, because it fails to establish the political prequisites of socially responsible markets before integrating greatly divergent economies.  When we import products from countries where labor is repressed, or regulations on food safety is lax, we import their laws to replace our own.  Because in order to compete companies have to be able to play by the same rules.  So deregulation and falling wages become an economic neccesity, rather than a political manipulation attacking American sovereignty for profit.


by ManfromMiddletown on Thu Apr 19, 2007 at 01:16:02 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (3.00 / 1)

Gains from NAFTA have been less than losses if the focus is on total employment in the US, or on total employment in Mexico.

Gains from NAFTA have been greater than losses if the focus is on profits of US headquartered corporations.


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Thu Apr 19, 2007 at 02:13:43 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (none / 0)

Charlie has always been a little more free trade than other progressives.  I know that he's interested in helping  some of the islands in the Caribbean and he feels that some free trade agreements may help them over helping China or other Asian manufacturers.

As chairman of ways and means he has a lot of authority in this area.  And I may be giving him more progressive cred than warranted, but I think he thinks the horse is already out of the barndoor on globalization so you might as well get as much benefit to folks as is possible.

Charlie also does indeed want to raise money for the party and he wants to do it through him.  He loooves being Chairman of Ways and Means.  It's why he ran again this time, why he worked so hard raising money in 2006 and it impacted his marriage. His wife wanted him to stop....and well they're not together anymore.  He wants to stay chairman.

And remember Charlie has been in congress a long time.  He remembers a more congenial, bipartisan time.  

I honestly don't remember what he did or said re NAFTA.


by debcoop on Thu Apr 19, 2007 at 02:07:53 AM EST

Re: Need Help Understanding Fast Track Debate (none / 0)

one qualification.  While Charlie remembers a more congenial Congress, unlike some other Dems, he doesn't want compromise for the sake of compromise.  It serves some policy purpose.


by debcoop on Thu Apr 19, 2007 at 11:21:00 AM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (none / 0)

Yeah it's the great compromise, to screw over the industrial unions and the Midwestern states that are going to be hurt the most by trade liberalization in order to get the passage of the Employee Free Choice Act and a higher minimum wage.  Or at least that was the plan, Sirota's written all about this.


by ManfromMiddletown on Thu Apr 19, 2007 at 12:18:49 PM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (3.00 / 0)

I wasn't commenting on his specific position on this legislation, which I personally don't understand well enough or even fully understand Charlie Rangel's own policy positions on it.  

I tend to agree more with folks on the other side of free trade and have ever since this was an issue in the 90's.  

I was commenting only on his general political temperment.


by debcoop on Thu Apr 19, 2007 at 03:26:09 PM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (none / 0)

This is really interesting stuff.  Please write more.  


by aiko on Thu Apr 19, 2007 at 08:29:08 AM EST

Re: Need Help Understanding Fast Track Debate (none / 0)

I'm a New Yorker as well, and you can't get to hard on Rangel as it would seem like this move is in line with his constituents. Rangel's district is almost entirely in Manhattan. It's probably fair to say that there's not a single major manufacturing operation there, and to the extent that there is given the cost of space there's probably a reason, and it's not likely to suddenly move to India to save a few pennies. That horse left the barn of Harlem in the 50's. NYC's economy at this point is a lot more helped by free trade than hurt most likely.

But framing NAFTA as a progressive vs. corporatist issue isn't really fair in my opinion. It's pretty clear that many of the proponents of NAFTA honestly believed that it was a way to help the poor as well as perhaps some corporations.

As a progressive myself I am torn... if free trade kills manufacturing in Ohio but lifts many people in the third world out of poverty - even slightly - that's a hard call. People in other countries are no less people than my fellow Americans. Though I understand the political implications.

The problem with "free trade" at least in part is that it's not free, not that it is free. What we do to protect certain industries and eviscerate the homegrown industries of certain regions, especially wheat, cotton, sugar, and textile production regions is not remotely free, and if that's the subject of trade barrier lowering I'm for it. If it's just a way to dodge that issue while sloughing off environmental regulations to some other place and put american skiled labor out of work, then it's not so good.

Like they say at Justice, it's complicated. Again as a progressive who's general instincts are in favor of free trade I'm very glad there's a vigorous debate about it. I think it's sad that in the 90's it was free trade democrats versus free trade republicans, and that very real concerns had absolutely no voice at all. That said, let's hope we don't  just write off future trade talks rather than work to make them "good." Despite the very well deserved criticisms of globalization from many fronts, there are certainly aspects of it that represent hope for the vast majority of this world living below subsistence levels.

Rangel is in a position of considerable authority and ability to affect the outcome of these talks, and I don't see his views as out of step with his constituents nor without a place in the progressive movement as a whole.


by Flailey on Thu Apr 19, 2007 at 10:26:17 AM EST

Free trade, or any agreement labelled free trade? (none / 0)

So much of this debate is at the level of whether "free trade" sui generis is good or bad, not about whether specific classes of agreements bearing the "Free Trade" brand name are good or bad.

But framing NAFTA as a progressive vs. corporatist issue isn't really fair in my opinion. It's pretty clear that many of the proponents of NAFTA honestly believed that it was a way to help the poor as well as perhaps some corporations.

As a progressive myself I am torn... if free trade kills manufacturing in Ohio but lifts many people in the third world out of poverty - even slightly - that's a hard call. People in other countries are no less people than my fellow Americans. Though I understand the political implications.

If a "free trade agreement", like NAFTA, kills manufacturing in Ohio and at the same time tends to push many very small rural producers in the third world off their plots and into desperate poverty in big city slums, then its a much easier call.

Bear in mind that 80% of the text of NAFTA has nothing to do with trade, and is focused on removing fetters on wealth flows across national boundaries. And since channeling wealth is how corporations exercise power, that translates into 20% of NAFTA was focused on trade issues, and 80% was focused on increasing corporate power.

An actual balanced free trade system would be a tremendous benefit to low-income nations participating and a modest benefit to the US ... but the NAFTA type system is not a balanced trade system at all, and more generally is not primarily about trade in the first place.


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Thu Apr 19, 2007 at 10:40:56 AM EST

Re: Free trade, or any agreement labelled free tra (none / 0)

Economic progress without increased urbanisation and temporary instability has historically proved almost impossible. It's natural to feel a sympathy for the small farmer, but I'm not convinced enough of them are economically powerful enough to survive under any system. The issue to my mind is whether it's possible for the slums to be lifted up out of crushing poverty.


Visit Forgotten Countries, my new foreign policy-based blog
by Englishlefty on Thu Apr 19, 2007 at 12:48:09 PM EST
[ Parent ]

Re: Free trade, or any agreement labelled free tra (none / 0)

But there is a massive difference between being drawn to the cities by opportunity and being driven out of the countryside by economic collapse in the countryside.

Consider the cases of Japan, the US Midwest, the Low Countries ... urbanization and successful industrialization followed upon successful agrarian development, not upon the collapse of the rural economy as a market for the products of the cities.

I know that there is this massive stereotype of a stagnant Japanese economy under the shogunate, so that the Meiji restoration broke the bonds of tradition and allowed economic growth to occur, but that stereotype is more informed by the successful policical propaganda supporting the Meiji restoration than economic reality. The reality is that on the establishment of the shogunate, there were only a small handful of actual urban centers in Japan, all of them in a single region of the country. Following the agrarian development that took place under the shogunate, by the time of the Meiji restoration, there were urban centers spread all around the country.

And bear in mind that the net job effect of NAFTA on Mexica was a loss of jobs.

Of course, that is not a blanket condemnation of "free trade" as such, because NAFTA was not primarily about free trade. It may well have been that the trade-related employment effects were positive, but were just swamped by the impact of the net financial capital flows from Mexico to the US.
 


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Thu Apr 19, 2007 at 05:34:13 PM EST
[ Parent ]

Re: Free trade, or any agreement labelled free tra (none / 0)

I realise agrarian collapse and increased urbanisation are often two different sides of the same coin, but I do tend to believe there are sound economic reasons for this - in this case, the reason is that the agricultural systems are not politically robust.

In Tudor Britain economic growth had an agrarian element, but this came from breaking the old system of strip-farming which drove vast numbers of people into extreme poverty. I tend to the view (possibly derived from reading a bit too much history written by Communists or ex-Communists) that economic progress generally consists firstly of the powerful trying to increase the proportion of power they have in society and that oppression is the simplest way to do that in most cases.

Of course, that's not to say that the current systems of agriculture in parts of the Third World could manage to survive, but I'm not hopeful. I can't think of any comparison of the two different systems except Stolypin's and Stalin's agricultural programs, but the analogy's far from perfect and neither method really worked.

I believe agriculture in the developing world can't survive as is and as it develops there will be fewer jobs in agriculture, so urbanisation will naturally increase. I don't think we can stop the process, so we're better off just ameliorating the effects.


Visit Forgotten Countries, my new foreign policy-based blog
by Englishlefty on Thu Apr 19, 2007 at 08:42:05 PM EST
[ Parent ]

Re: Free trade, or any agreement labelled free tra (none / 0)

Yes, but the impact of NAFTA is not a net growth of agricutural output and productivity combined with negative impacts on a class of very small farmers and farm workers.

Indeed, the negative impact of NAFTA on the microfundistas was via the negative impact on middle-sized farmers. It was the loss of seasonal employment, and the falling income of middle-sized farmers for purchase of market produce that drove so many microfundistas off their land. It was not the loss of markets for corn, since microfundistas are typically net corn buyers rather than net corn sellers.

It would have been different if the predicted employment gains in the formal urban employment sector simply did not materialize. However, none of the increase in demand to drive any gain in urban employment could come from the countryside, since disposable incomes of middle sized farmers were being driven down.


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Fri Apr 20, 2007 at 12:31:23 PM EST
[ Parent ]

Re: Need Help Understanding Fast Track Debate (none / 0)

I am generally pro-free trade (as long as the agreements are designed to ensure that country X's environmental and labor standards get closer to ours), but I am against giving Bush Fast Track power even though I was for Clinton getting it.  

To me the difference between Clinton and Bush is not just ideology competence or party label, but that Clinton was popular during the fast track period, whereas Bush is a rouge president.

Bush couldn't give two sh!ts if what was agreed to was something Congress or the American people would like, he just is looking out for his rich friends.  Clinton on the otherhand genuinely cared about environmental and labor practices in other countries.  He was able to get consessions on that basis as well.


by DaveB on Thu Apr 19, 2007 at 12:15:11 PM EST


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