Read The Times Australia

Daily Bulletin

Why Pelosi and House Democrats turned on their president over free trade

  • Written by: The Conversation
imageThe president's last ditch effort to woo House Democrats and their leader, Nancy Pelosi, failed.Reuters

Over the last several days, President Barack Obama pulled out all the stops to pass Trade Promotion Authority (TPA) – aka fast track – which would restrict Congress to an up-or-down vote without amendments on trade deals for the next three years.

On Thursday night, the president paid an unscheduled stop at an annual charity congressional baseball game across town to court Democratic Leader Nancy Pelosi and then made an impassioned 40 minute appeal to House Democrats on Capitol Hill Friday morning to pass fast track. Friday’s vote was essential to complete the Trans-Pacific Partnership (TPP), a trade deal encompassing 11 other countries and 40% of global GDP.

All the President’s efforts unexpectedly careened into a ditch. The actual details of this embarrassing pileup are laden with acronyms and more than a bit convoluted.

House members first buried Trade Adjustment Assistance (TAA), which would provide benefits to workers displaced by trade, by a vote of 126-302. Fast track itself actually then passed by a vote of 219-211, with 28 Democrats joining 191 Republicans. Since the Senate passed both these measures, the failure of aid to displaced workers has now stalled fast track.

What went wrong

What happened? Three factors resulted in the debacle. First, a growing feeling among the Democratic Party’s base that the TPP itself was a vehicle to advance the interest of transnational corporations at the expense of workers, communities, consumers and the environment.

In particular, the international arbitration procedure, Investor-State Dispute Settlement (ISDS) process, has raised hackles. Since ISDS involves three-lawyer extrajudicial panels drawn from industry friendly-attorneys, it is widely viewed as a fox guarding the hen house. Critics fear the interests of transnationals will trump government regulations and protections.

Second, proponents of the TPP tend to sing the praises of free trade, while critics draw on the real-life failures of earlier trade pacts such as the North American Free Trade Agreement (NAFTA).

When the New York Times sought to explain “the simple case” for TPP, it pointed out “when every country focuses on what it is best at, the overall economic pie becomes bigger.”

This is true enough in theory, but when Pelosi gave her floor speech for slowing down Fast Track just before the vote, she pointed out that “each week, each of us goes home to our districts. And in the case of many of us, we put our hand on a very hot stove.”

Pelosi takes the floor.

The “hot stove” includes not simply manufacturing workers who lost their jobs by closed plants but the teachers, nurses, cashiers and managers who were displaced throughout distressed communities.

Finally, the secrecy surrounding the agreement made many members of congress and senators wary. When lawmakers were allowed only to read the draft agreement in “secure” rooms and were told not to take notes transparency is not the first word that comes to mind. In fact, the democratic process requires at least a pad and a pencil.

Ultimately, the debate managed to galvanize large parts of the Democratic Party base from environmentalists to labor against fast track.

Citizens front and center

Was the president’s defeat a vote against expanded trade and a retreat from globalization? The Washington Post referred to Democrats who opposed the bill as “anti-trade Democrats.” The reality is far-different.

“We all understand we live in a global economy,” Pelosi said. “Some of us, as I do, represent cities built on trade.”

House leaders such as Representatives Rosa DeLauro (Democrat of Connecticut) and Sandy Levin (Democrat of Michigan) have a strong international vision and see the benefits of increased trade. They also understand that the gains must be shared to have “inclusive trade,” and TPP is “trickle-down trade,” in which the idea is if transnational corporations prosper we all benefit.

Whether fast track can be saved will depend on how many Democratic votes President Obama may be able to turn around early next week. The failure of fast track would effectively jettison TPP.

If we want inclusive prosperity, it will require a trade agreement that puts all citizens front and center in the US and in the countries with which we trade.

In my view, TPP, as currently presented, is corporate trade masquerading as free trade.

Harley Shaiken receives funding from the University of California. He has previously received research grants from a wide variety of foundations, the U.S. government and the University of California. He's also currently on the advisory boards of the Center for American Progress and Jobs With Justice.

Authors: The Conversation

Read more http://theconversation.com/why-pelosi-and-house-democrats-turned-on-their-president-over-free-trade-43222

Business News

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How Long Does a Solar Home Battery Last? LFP Cycles and Warranty Explained

A battery does not usually reach its advertised cycle count and suddenly stop working. Capacity ch...

How to Hire a Nanny: A Complete Guide for Families

Finding the right childcare professional can make everyday family life easier and give parents gre...

The Blue-Collar Shortage Employers Can't Solve With More Applicants

Australia's hiring market has cooled considerably since the post-pandemic frenzy of 2021 and 2022. F...

The Playground as Classroom: How Line Markings Are Reinforcing What Students Learn Inside

For a long time, the playground was treated as a break from learning rather than part of it. A place...

How Technology Is Changing the Way Gardens Are Maintained

Garden maintenance has always been a hands on ritual. Mowing on a schedule, watering by instinct, an...

One Blocked Drain Can Become a Whole House Plumbing Problem: How It Happens

A blocked hand basin feels local. So does a slow shower. Homeowners naturally focus on the fixture...

AI in Marketing: From Experiment to Everyday Tool

For the past couple of years, artificial intelligence in marketing has mostly lived in the "let's se...

What Businesses Can Do to Make Sustainability More Practical Day to Day

Sustainability can sound like a huge corporate project, something tied to annual reports, long-term ...

The Hidden Logistics Behind a Smooth-Running Construction Site

A construction site can look chaotic from the outside. There are machines moving in different direct...