As representatives from the Pacific Rim gathered in Vina Del Mar, Chile, this week, the United States was on the sidelines. The death of the US-driven Trans-Pacific Partnership should be a wakeup call that we are paying attention to globalization and demanding a trade regime that works for all people, not just multi-national corporations. Over two hundred of our organizations in 15 countries sent a letter to the negotiators in Chile, telling them that a way forward on trade must reject the principles on which TPP was based. Countries should look to Fair Trade for guidance, and even further to their own domestic policies, for a sustainable way to build the global economy.
The stakes could not be higher. The backlash to corporate led globalization has been sharply felt around the world as Nationalist leaders from Donald Trump to Rodrigo Duterte in the Philippines, and Narendra Modi in India have risen to power, while others in the EU and around the world are gaining prominence. In this era of growing nationalism, it is time for government trade officials to get back to basics. Instead of first asking how trade agreements can increase trade volumes, lower non-tariff barriers, or harmonize regulations, they should start with the question, “Will a trade agreement improve the quality of life for the people in my country?”
A few years ago, IATP published four reports on the Global Meat Complex: The China Series. Today, we are pleased to launch the Chinese translation of these reports to contribute to the ongoing debate within China about meat consumption. These reports illustrate China’s path to becoming one of the biggest producers of pork, poultry and dairy and the biggest importer of soy, which is critical for the mass production of food animals. These reports provide an overview of China’s production and trade of meat and feed grains and what these trends mean for China’s food security, its environmental quality and its agriculture. They address the emergence of transnational corporations and how this has dramatically changed the fundamental nature of meat production and trade. The series highlights the consequences of these changes on China’s environment and rural makeup as well as impacts on other parts of the world.
In introducing the series, we write:
Aside from operating in the U.S., the global meat industry is increasingly interlinked with emerging economies. China and Brazil are now not only big agricultural producers and consumers but they have spawned a new set of agribusinesses that is shaping the global meat complex.
Last week we highlighted the contradictions in the Trump administration’s stance on trade in our blog on Robert Lighthizer. The contradictions have only increased this week with the announcement that Andrew Quinn will be joining the National Economic Council. Quinn is a former Deputy US Trade Representative, and was a lead negotiator for the Trans-Pacific Partnership (TPP) since 2012. Trump bashed the TPP throughout the campaign and withdrew from the trade deal in his first week.
Quinn is a career civil servant, having worked primarily in Southeast Asia, and was also instrumental in the passage and implementation of the Korea Free Trade Agreement (KORUS). How this appointment will gel with other members of the President’s administration, such as open China and free trade critic, Peter Navarro, remains to be seen, but the lack of a coherent trade ideology within the administration only makes the future more unpredictable for anyone looking for answers on trade, including the base who voted Trump in. Re-negotiating NAFTA within his first hundred days appears to be the first campaign promise Trump has broken – he has yet to notify Congress to trigger the 90-day period prior to re-negotiation.
Trump’s trade policy is a series of contradictions wrapped in a mystery. While advancing a boldfaced pro-business agenda, promising to gut regulations and reduce public spending on healthcare and other social programs, he has also claimed to care about American workers and jobs losses caused by trade agreements like NAFTA that were specifically designed to reduce regulations. While his own businesses have included licensing deals for goods produced in developing countries known for poor labor standards, publicly he attacked U.S. companies that offshored jobs to lower costs and promised to rewrite the rules to somehow bring those vanished jobs back. He promises to negotiate better trade deals but is poisoning the political atmosphere for negotiations with xenophobic proposals such as building a wall and ordering to ban migrants. Exactly how his administration will reconcile all of those contradictions is a mystery, and there are real reasons for alarm over his lack of commitment to international human rights standards.
Food & Water Watch
Institute for Agriculture and Trade Policy
National Family Farm Coalition
National Farmers Union
Current U.S. trade policy is designed to promote the interests of agribusinesses and other multinational corporations over those of family farmers. The resulting agreements have contributed to the economic and social erosion of rural communities in the U.S. and oftentimes devastation of its trading partners and fail to address very real problems of price volatility and environmental sustainability. These problems will not be solved simply by increasing exports.
We support the demands of many civil society organizations who reject NAFTA and similar free-trade agreements. NAFTA should be replaced with a different agreement with the goal of increasing living standards in all three countries. This should start from a thorough, open and democratic assessment of those agreements that involves both rural and urban communities. The trade negotiation process itself must be made more transparent to include the participation of all affected sectors, including independent farmers. If trade agreements include provisions related to agriculture, the overall goal should be to achieve balanced trade that supports fair and sustainable rural economies and food supplies. We call for the following priorities:
Ahead World Bank’s release of the 2017 “Enabling the Business of Agriculture” (EBA) project report this month, 156 organizations (including IATP) and academics from around the world, denounced the Bank’s scheme to undermine farmers’ rights to seeds and destroy their food sovereignty and the environment. In letters to World Bank President Jim Yong Kim and EBA’s five Western donors, the group has demanded the immediate end of the project, as a key step to stop the corporatization of global agricultural development.
There is little doubt that many supporters of the Donald Trump candidacy for President expect President-elect Trump to carry out his promise to deport millions of undocumented immigrants and to keep out more immigrants by building a wall along the U.S.-Mexico border. (The Center for Migration Studies estimated 11 million undocumented immigrants in the United States with about six million from Mexico.)
However, according to a 2014 report commissioned by the American Farm Bureau Federation, about half of all hired farm workers are undocumented immigrants. U.S. industrial-scale animal agriculture and horticulture depend on “the abundant supply of undocumented workers available and their willingness to accept transitory, seasonal, or physically arduous work that pays introductory wages that are unattractive to the U.S.-born.” According to a U.S. Department of Agriculture survey of farm labor, non-supervisory wages for all farm workers reported in 2012 averaged $10.80 an hour. How will the Trump administration both protect the agribusiness migrant labor dependent business model and fulfill the campaign promise to protect American jobs by deporting the undocumented?
Congress has gone on recess without holding a vote to approve the Trans-Pacific Partnership (TPP) Agreement during the last days of the Obama administration. But on the day after the U.S. elections, Inside U.S. Trade reported that Senate Majority Leader Mitch McConnell reminded journalists that President Donald Trump will still be able to present new trade agreements for an expedited, no amendments vote under the 2015 Trade Promotion Authority Act. Free trade proponents are already fretting that Trump’s notion of a better trade deal would mean “protectionism.” But what does that term really mean?
Conventionally, “protectionism” describes government actions and policies, such as taxes on imports, i.e. tariffs, and import quotas to restrain international trade and to protect local economic development. “Free” trade is said to be the absence of such actions and policies, to maximize international trade and, in theory, produce benefits for all consumers and most workers.
However, as economist Dean Baker has written, “the TPP goes far in the opposite direction [from free trade], increasing protectionism in the form of stronger and longer patent and copyright protection.” He estimates that intellectual property protectionism increases prices of prescription drugs, software and other protected products by an equivalent to a several thousand fold increase in tariffs.
Last week in Berlin, Arbeitsgemeinschaft bäuerliche Landwirtschaft e.V. (ABL), Meine Landwirtschaft (a broad platform of over 50 organizations demanding an alternative agricultural system), PowerShift and Institute for Agriculture and Trade Policy (IATP) Europe launched the German version of our report Selling Off the Farm to highlight why trade agreements such as the Comprehensive Economic and Trade Agreement (CETA, between Canada and the EU) and the Transatlantic Trade and Investment Partnership (TTIP, between the U.S. and EU) will be disastrous for European agriculture. Given that German farmers are struggling in one of Europe’s biggest farm crises, a rise in imports from North American “factory” farms, lax food safety rules and greater corporate control will make an agriculture deal in CETA and TTIP very costly and perhaps the last straw for European family farms.
Our tour across Europe on Selling Off the Farm Corporate Meat’s Takeover Through TTIP and its links to the EU-Canada Comprehensive Economic and Trade Agreement (CETA) launched on November 29 at the European Parliament. IATP’s Senior Advisor, Sharon Treat, Waldemar Fortuna from the Polish organization, IGO and I met with several members of the European Parliament (MEPs), including coordinators of different political parties that will decide CETAs fate in early February.
In the last two years, there has been an unprecedented awakening by ordinary citizens across Europe about the damage that free trade agreements do to policy making in the public interest. People have begun to understand that treaties, such as CETA and the Transatlantic Trade and Investment Partnership (TTIP), give transnational corporations even more power to expand and consolidate than they already possess. Many citizens have begun to challenge key elements of these agreements—such as the provisions that allow these corporations to sue governments for enacting public policies that might dampen their profits.