Fair trade or free trade? Let your voice be heard on Minnesota’s future!
The Obama Administration is negotiating two new mega trade deals (one with Pacific Rim countries, another with Europe) entirely in secret, with the goal of further expanding the NAFTA-model of free trade. These trade agreements could have major impacts on Minnesota's farmers, workers, small business owners and rural communities. They could limit Minnesota’s ability to support local food and energy systems and grow local businesses. In order to stay up to speed, Minnesota has set up a new Trade Policy Advisory Council (TPAC) to advise the state legislature and Governor.
TPAC wants to hear from Minnesotans: What concerns do you have about free trade? What role could TPAC play in the future? Now is your opportunity to have a say in our future trade policy. Complete the survey and let them know future trade negotiations should be public, not secret. Help ensure the voices of all Minnesotans are heard in the development of trade agreements and that they protect local control and our quality of life. The free trade model has failed for Minnesota and we need a new approach to trade. Help ensure the voices of all Minnesotans are heard before trade agreements are completed, and that they protect local control, our natural resources and our quality of life.
Posted June 30, 2010 by
With the passing of Senator Robert Byrd, and the retreat of several Senate Republicans, the passage of financial reform now appears to be in doubt. While most of the press coverage has focused on the bill's impact on financial services, including credit cards, mortgages, payday loans and investment bank practices, the effect of the bill on farmers and ranchers has been given less attention.
In a commentary written right before the House-Senate conference committee agreement on financial reform last week, IATP's Steve Suppan outlines how excessive financial speculation from Wall Street banks prevented the commodity futures markets from playing their traditional role in agriculture.
Steve writes, “In 2008, futures prices had become so volatile that rural banks could not assess price risks in order to make loans. Some banks were not loaning to country elevators, and some of those elevators therefore could not pay farmers to forward contract their grain and oilseed production.”
A primary target of the financial reform bill is over-the-counter (OTC) trading: trades that are conducted in private and not over regulated exchanges but that can deeply influence commodity futures markets. OTC trading by big Wall Street led commodity index funds, combined with a regulatory loophole allowing those funds to flood the market and contributing to massive price volatility in agriculture and energy prices in 2007 and 2008. As IATP reported in 2008, this volatility not only affected U.S. farmers but had repercussions—particularly for countries battling hunger.
Reforming our financial system is a work in progress. As Steve writes, we can't afford a watered down approach or to continue “creating unfair markets that damage farmers, ranchers and rural communities.”