Secrets of a new "Free Trade Frankenstein"

Remember NAFTA? 

The North American Free Trade Agreement between the U.S., Mexico and Canada was supposed to promote commerce between the three countries creating the world’s largest “free trade” area by removing tariff and quotas on U.S. goods.

It was supposed to increase employment and prosperity across borders.

But there was nothing free about NAFTA.

It turned out to be a devastating trade for nearly a million American workers, whose jobs were exported to other countries where wages are lower and U.S. companies aren’t subject to worker, health and environmental rules, and got nothing in return.

Millions of workers in Mexico’s small-scale agriculture also lost their livelihoods because they couldn’t compete with subsidized U.S. corporate agribusiness, which flooded Mexico with corn.

Look out, because there’s a new “free trade” Frankenstein on the horizon. Because the public has gotten wise to the big lie of “free trade,” the authorities have changed the labeling – they call this one a “partnership” – the Trans-Pacific Partnership agreement.

So far, it includes U.S., Australia, New Zealand and several Pacific Rim nations.

Who’s not included in the partnership?

Anybody from the public, or advocates for consumer, labor, environmental rights, improved health care, or anybody else that would question the notion of giving the corporate giants who have exclusive access to the negotiations anything they want.

According to critics, these deals should be more accurately labeled “corporate rights agreements,” because that’s what the real focus is ­ – protecting corporate interests and their private property rights against any interference from environmental, labor or financial regulations they disagree with  – either in the United States or any other country.

For example, the World Trade Organization, which judges trade disputes, recently ruled against a number of U.S. regulations designed to protect consumers, like labeling meat with its country-of-origin, and a ban on clove cigarettes to reduce teen smoking.

These trade agreements allow corporations to challenge national laws they don’t like in special courts. As in the secret negotiations, the public has no right to appear in those courts.

In addition, critics fear that the negotiations could lead to the imposition of strict intellectual property protections for companies that would have wide-ranging impacts, including limiting the availability of less expensive generic medicines, including AIDS drugs, critical to Third World countries’ efforts to limit illness and disease.

U.S. negotiators, led by trade representative Ron Kirk, insist the negotiators need secrecy to be able to negotiate freely.

Trust us, he insists.

But the negotiations aren’t secret from the lobbyists for the corporations whose rights and profits are at stake – they have full access, through “trade advisory groups” that review documents that are off limits to the public.

Corporate bigwigs also gain access to the negotiations while wining and dining with trade negotiators and politicians at fancy dinners at swank restaurants.

At one recent dinner in February in Washington D.C., the sponsors included a who’s who of corporate power – Amgen, Chevron, Dow Chemical, GE, Microsoft, Target and Wal-Mart, along with industry groups such as the Business Roundtable, Chamber of Commerce and PhRMA.

Fortunately, all the issues and secrecy around the talks have attracted attention.

Oregon Sen. Ron Wyden has become a leader in the fight to open up the TPP talks. Meanwhile several other groups, including Public Citizen’s Global Trade Watch, the California Fair Trade Coalition, and the Citizens Trade Campaign, have launched campaigns against the secrecy surrounding the TPP and raising issues about the substance of the agreements.

We don’t need more assurances that the trade negotiators and lobbyists are protecting our interests. We don’t need any more PR about how trade will create jobs in America. We can predict the unfortunate outcome of the TPP talks if they remain closed to the public, with only the insiders working to pursue their interests.

We need the most open process, public participation and the toughest scrutiny possible to avoid a massive rip-off at the hands of our secret “partners.”

 

Why the Supreme Court Wants to Kill Universal Health Care

Name the most popular federal program of all time, and you’ll understand why the Republican Supreme Court wants to kill health care reform before it gets going in 2014.

It’s Social Security, of course. Part of FDR’s New Deal, Congress enacted it in 1935 to provide insurance against the vicissitudes of old age, poverty and unemployment, all of which were made more horrific by the Great Depression.

Social Security retirement benefits are based on an individual mandate, just like the new health care law is. Workers and employers are required to pay taxes into the system now, to cover them later. You can’t have a solvent health or retirement insurance program if participation is voluntary, because no one will contribute until they need the benefits – and then they can’t pay for them, as I’ve noted. Social Security, like the health care law, is a universal system - everyone has to be part of it – both getting the benefits and paying for its cost.

Due to a limited grasp of their own history, most Americans don’t realize how similar today's campaign against universal health care is to the one waged against Social Security.

Republican lawmakers bitterly opposed (PDF) FDR’s measure – and still do, though these days they cloak their hostility behind the hysterical and unfounded argument that Social Security is about to go bankrupt. Federal Reserve Chairman Alan Greenspan claimed in 2004 that retirement benefits had to be cut and the system “privatized” or the nation would face an economic disaster (it did four years later, thanks not to Social Security but to Greenspan’s policies).  The Bush Administration concocted a plan to turn over Social Security proceeds to Wall Street, which it claimed would do a better job of investing people’s retirement savings.  Had it succeeded, most of that money would have been lost in the financial crash of 2008.

But the conservatives’ attempts to demolish Social Security have consistently failed. Why? Because Social Security works. Americans support it by huge margins – even Republicans.

Hence the vehemence of the attack on the health care law now. The anti-government forces realize that once Americans begin to receive the benefits of universal health care – no denials for pre-existing conditions, no medical underwriting, no caps on benefits – they won’t want to give them up.

That’s not all.  Under the law passed by Congress, the insurance industry stands to gain the most from the mandate that all Americans buy health insurance. But the experts understand that the program will end up being too expensive – in most states, private insurance companies are going to be able to raise their rates at will.  If this doesn’t kill universal care, it will eventually lead to a single public system just like Social Security.

Last week’s spectacle at the Supreme Court – three days of “hearings,” with some lawyers appointed by the Court itself to argue positions no party had taken – looked more like a political ambush by a legislative body than the supposedly chaste pursuit of constitutional principles.  It’s important to remember that an unelected majority of the U.S. Supreme Court almost nipped Social Security in the bud 75 years ago. Pro-industry conservatives on the Court consistently rejected FDR’s proposals to provide Americans relief from the New Deal, as I explained recently.  The Social Security law was considered in danger by FDR’s advisors. Criticism of the Supreme Court became widespread, and FDR began to prepare a plan to add more justices to the nine serving on the high court. Unwilling to provoke a constitutional confrontation that would sully the independence of the judicial branch, the Supreme Court backed down, and upheld the law.

It’s difficult to discern any similar hesitation by the current majority of the Supreme Court, with five of its nine members increasingly unabashed ideologues willing to rewrite the Constitution. Think about the Court’s decision to interfere with the Florida vote count and award the 2000 election to George Bush. Consider its 2011 decision in Concepcion v. AT&T, where five Republican appointees determined that “arbitration clauses” inserted in the fine print of virtually every contract between a giant corporation and consumers can rob people of their right to their day in court.  And then there’s the infamous 2010 Citizens United case, in which the five ruled that spending money to influence elections is a form of free speech, protected by the First Amendment. In one fell swoop, the Court disenfranchised the vast majority of Americans who cannot hire their own lobbyist or fund the election of a friendly politician.

On the other hand, yesterday President Obama sent the politicians on the high court a powerfully worded message. Briefly channeling FDR, he said: “I’d just remind conservative commentators that for years what we’ve heard is, the biggest problem on the bench was judicial activism or a lack of judicial restraint — that an unelected group of people would somehow overturn a duly constituted and passed law. Well, this is a good example. And I’m pretty confident that this court will recognize that and not take that step.”

Much is at stake here – more than health care reform itself. Public confidence in government is at record lows. As the financial crash of 2008 confirmed, money has corrupted the electoral process; the wealthy and powerful dictate public policy. The judiciary used to be the only branch of government in which a citizen could take on any person or corporation and be accorded equal stature. When Americans loses their confidence in the integrity of the courts, what is left?