TPP: The Largest and Most Dangerous Trade Agreement You’ve Never Heard Of A Global Race to the Bottom Continues

Negotiations being kept secret from the public but not from corporations

US Sovereignty at risk

Jobs will disappear – in all sectors

Health and safety regulations at risk

The Race to the Bottom Strategy What Corporations and What They Said What Really Political Allies Did Would Happen Happened

Cut Labor

Reduce/Eliminate Unions Cut Labor Costs Increase Productivity Globalize Profits Historic Highs Investment Productivity not Jobs

Cut Government Jobs 20m w/o full time jobs

Taxes on Wealthy + Corps Wages Stagnant Social Spending Quality of Life Eroded

Deregulate Trade Surplus Trade Deficit Environment Trade Labor Politics Privatize & Cut Govt Jobs

Corporate Attack on Workers’ Power

60-year campaign to weaken and eliminate unions, led by U.S. Chamber of Commerce

Limit collective bargaining coverage and oppose worker-friendly legislation

Oppose worker organizing (firings, shut down threats, etc)

Block Employee Free Choice Act

Decline in Union Representation

17.1%

12.4%

35.7%

28.5%

6.6%

1920 1930 1940 1945 1950 1953 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012

Union Members as % of Private Sector Workforce

0% to 9%

10% to 20%

21% to 30%

31% + Source: Unionstats.com

UNION DENSITY

1964: 29.3%

1974: 26.2%

1984: 19.1%

1994: 15.7%

2004: 12.6%

2010: 11.9%

It’s a concerted corporate effort to destroy unions political clout

Union Membership USA

0.02.04.06.08.0

10.012.014.016.018.020.022.024.026.028.030.032.034.036.038.040.042.0

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Date

% o

f Wor

kfor

ce O

rgan

ized Public Sector- Prior to '80

Public Sector- Post '80

Overall Economy- Prior '80

Overall Economy- Post '80

With Attacks on Unions, Wages Stagnate

1947 1955 1963 1971 1979 1987 1995 2003 2011

$731

$462

$1,178

$631

Real average weekly wages

Weekly wages if tied to productivity

Source: U.S. Bureau of Labor Statistics; Productivity Average Wage of Non-Supervisory Workers; Consumer Price Index

Actual wages compared to estimated increases if wages had risen with productivity

CEO Pay Skyrockets

354 2012

The Race to the Bottom Strategy What Corporations and What They Said What Really Political Allies Did Would Happen Happened

Cut Labor

Reduce/Eliminate Unions Cut Labor Costs Increase Productivity Globalize Profits Historic Highs Investment Productivity not Jobs

Cut Government Jobs 20m w/o full time jobs

Taxes on Wealthy + Corps Wages Stagnant Social Spending Quality of Life Eroded

Deregulate Trade Surplus Trade Deficit Environment Trade Labor Politics Privatize & Cut Govt Jobs

NAFTA: Destroyed Jobs and Exploded the Trade Deficit • NAFTA eliminated over 700,000 jobs from the U.S. • U.S. had $1.6 billion trade surplus with Mexico before NAFTA; Today, we have a $97.2 billion

trade deficit.

1993 (Before NAFTA) $1.3 Billion Trade SURPLUS

Supported 29,400 jobs

2010 $97.2 Billion Trade Deficit Destroyed Over 700,000

jobs

KORUS: Jobs Promised, Not Delivered

• The 2010 Korea-US Free Trade Agreement (KORUS) was supposed to add over 70,000 jobs. Instead it destroyed 40,000.

• KORUS was supposed to lower the U.S. trade deficit with Korea. In its first year, the deficit worsened by $5.8 billion - a whopping 39.8% increase in ONE year!

More Free Trade Pacts = Higher Trade Deficits

1.0% 1.0%

-3.1%

-5.8%

-3.6%

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

SURPLUS

DEFICIT

Net Exports as a Percentage of GDP

The TPP is Much Bigger than NAFTA

TPP is Not Just About Trade

Agriculture

Investment

Environment

State owned Enterprises

Rules of Origin

Food Safety

The TPP Is a Back Room Deal Being Negotiated in Secret

Members of Congress, journalists, and civil society are excluded from seeing draft texts

Draft texts and proposals will not be released until four years after the talks have concluded or a deal is reached

600 corporate advisors have access to key texts and proposals

Partial List of Official Advisors to USTR

TPP: Why so Secret?? “We are troubled that important policy decisions are being made without the full input from Congress.… If Congress and the public are not informed of the exact terms of the agreement until the conclusion process, then any opportunity for meaningful input is lost….” -134 Members of the House of Representatives

“The majority of Congress is being kept in the dark as to the substance of the TPP negotiations, while representatives of U.S. corporations – like Halliburton, Chevron, PHRMA, Comcast, and the Motion Picture Association of America – are being consulted and made privy to details of the agreement.” – Senator Wyden – Chair of Senate Subcommittee on Trade

The TPP Will Exacerbate Our Democracy Crisis

Attack governments before private tribunals demanding our tax dollars to compensate “loss of expected future profits” from environmental, health, safety, land use, and zoning laws

• Call Center Bill could be subject to challenge • Many laws, rules and

regulations could be subject to challenge.

TPP would empower corporations to:

The TPP Will Exacerbate our Economic Crisis

Loss of More Jobs

Call center and other service sector jobs

Manufacturing jobs

U.S federal government contracts to foreign firms

Further Erosion of Standard of Living

Wages, benefits and collective bargaining rights.

Faster Race to the Bottom

TPP includes Vietnam which is the low-cost, no-labor rights, low environmental protection alternative to China

Service Sector Jobs will disappear

A problem will become a crisis

Bye Buy America & Jobs

Preferences for Buy America, prevailing wages, “renewable or recycled and other domestic preferences for signatory countries could be challenged. Companies could not be barred because of their human rights and labor rights records. Constrain how national and state governments may use public funds in construction projects, purchases of goods and services, etc.

Vietnam – No Labor Rights Suppression of the right to form independent

unions. “The law [in Vietnam] does not allow workers to organize and join independent unions of their choice.” (US State Department)

Restrictions on Strikes. Vietnam’s Labor Code allows party-controlled unions to strike but imposes strict and cumbersome conditions that must first be met, which effectively nullify this right. (Human Rights Watch)

Goods produced by Child Labor and Forced Labor. Vietnam is guilty of using child labor and forced labor in its garment sector. (US State Department)

Vietnam – Low Wages

$58.00

$8.70$4.59

$2.23

United States Malaysia China Vietnam

Daily Minimum Wages (January 2013 in Dollars)

Vietnam – Slave Labor

Vietnam is one of 3 Countries found by our Department of Labor to use child slave labor

There is a US arms embargo against Vietnam because of its human rights violations and imprisonment of political dissidents

Child Slavery

Broken Promises

• Trade Agreements sometimes have “Labor Chapters” in a half-attempt to allow American workers to compete with countries with poor labor standards.

• These chapters are written with very weak language:“...strive to ensure”, etc.

• Examples: – Bahrain

• Failed to uphold its own weak labor laws. • Suspended and restricted many of its labor laws. • During Arab Spring, Bahrain’s King suspended free speech, right to protest, and others. • Forcibly dissolved Bahrain’s labor federation.

– Colombia • FTA’s Labor Action Plan has completely failed. • Rampant violence and murder against laborers throughout the country. • Evidence of forced, compulsory, and even child labor.

– Honduras • Employers often use selective lay-offs to “bust” or avoid unions. • Inadequate and/or corrupt labor inspections. • 36% of employers don’t pay minimum wage.

– Guatemala • Blatant violence against laborers and labor leaders. • Unenforceable labor laws. • Bogus penalty system where violating country pays a fine to itself.

Examples of Failed Labor Protections in Free Trade Agreements

TPP jeopardizes the safety of our food

We Can Create Our Own Power We Have Won in the Past

Successful battles Won Against Corporate Power-Grabs via “Trade” Agreements

DERAILED: WTO Expansion: Seattle ‘99 –today

DERAILED: MAI (Multilateral Agreement on Investment)

DERAILED: US - Malaysia, US – SAf Customs Union, US-Thailand, US -UAE, Egypt FTAs, and more.

The TPP Process in the U.S.

Negotiations: Ongoing, governments want to conclude in Dec

Request for Fast Track - possibly within next few months

Congressional Vote on Fast Track

Congressional Vote on Agreement

Fast Track

Fast Track or “Trade Promotion Authority” (TPA) is a way to force trade agreements through Congress

No ability by Congress to change the text of the agreements

Often presented with little time to review them

Only allow a yes or no vote on the total agreement

Congress cedes its Constitutional Authority to the President

People are Fighting Back

Other Americans Are Fighting Back

Protests in Chicago, Los Angeles, San Francisco, Dallas, San Diego, Leesburg.

We Are Not Alone - The Global Fight Has Begun…

Malaysians are Fighting Back

Japanese are Fighting Back

Australians are Fighting Back

It’s Up to All of Us to Spread the Word and Let the Secret Out Talk to people about the issue Distribute flyers and information Distribute and Collect Post Cards In-District Meetings with Member of

Congress Letters to the Editor Go to our tool kits for all the information

you need: http://www.stopthetpp.org

TAKE ACTION

Call Senator and Representatives

CD address zip to 69866

202-224-3121

Go to www.stopthetpp.org

Text CWAAction to 69866