April, 08 2011, 01:54pm EDT
Obama's Korea Trade Deal Undermines Future of U.S. Auto Industry, Government Report Finds
A newly released study by the U.S. International Trade Commission (USITC) on the U.S.-South Korea Free Trade Agreement's (FTA) supplemental auto deal found that the already hard-hit U.S. auto industry is in for more pain if the FTA is approved by Congress. The study was requested following a December 2010 "supplemental deal" that exempted some U.S. autos from having to meet stringent Korean auto safety and environmental standards.
WASHINGTON
A newly released study by the U.S. International Trade Commission (USITC) on the U.S.-South Korea Free Trade Agreement's (FTA) supplemental auto deal found that the already hard-hit U.S. auto industry is in for more pain if the FTA is approved by Congress. The study was requested following a December 2010 "supplemental deal" that exempted some U.S. autos from having to meet stringent Korean auto safety and environmental standards.
"The latest study confirms that, even with the supplemental agreement, very few U.S. autos will be sold in Korea, and a huge increase in Korean auto imports into the U.S. is predicted," said Todd Tucker, research director of Public Citizen's Global Trade Watch. "Moreover, the new study did not alter the previous findings that the bilateral and global balance in autos will worsen under this agreement, nor that the U.S. will see an increase in its overall global trade deficit."
The USITC's newest findings were not unexpected because, in undertaking its congressionally mandated studies of each trade pact, the agency assumes an agreement is fully implemented and tariff reductions are already phased in. The December supplemental deal did not change the ultimate tariff phase-outs - just the timelines over which tariffs go to zero. The USITC's initial 2007 study on the Korea FTA found that the U.S. auto deficit would increase by $531 million to $708 million as a result of the pact. "The House GOP leadership didn't like that finding, so they requested a new one that incorporated the changes made to the pact in 2010," said Tucker.
In the new study, the USITC noted that slightly improved numbers on U.S. exports to Korea "stem from changes to the economic environment (e.g., the recent economic downturn) and declines in trade flows in 2009."
"Bizarrely, House Ways & Means Committee Chairman Dave Camp (R-Mich.) celebrated this new finding, which is akin to celebrating the worst job environment in a generation," said Tucker. "While touting an estimate that the supplemental deal will increase U.S. auto exports to Korea by between $48 million and $66 million, Chairman Camp fails to note that his new study does not change the initial troubling finding that U.S. imports from Korea will also increase $907 million."
The findings of the new USITC study, though already bad news for U.S. autoworkers, are also likely to be underestimating the actual damage and inflating the prospective benefits of the FTA and supplemental agreement, for several reasons:
* The USITC refused to incorporate into its modeling more realistic assumptions about Korean consumer preferences, which are overwhelmingly biased in favor of domestically made goods.
* The USITC also did not incorporate into its model the fact that "South Korean" autos can be made with up to 65 percent Chinese or North Korean content and still receive the privileges of the deal.
* The USITC did not address the concern that members of Congress, industry and unions had that the "transplant" Korean companies now producing in the U.S. South might reduce their employment there, as tariffs are phased out and it becomes easier to simply ship Korean-made cars to the United States.
* The USITC also does not attempt to model the specific non-tariff barriers that Korea promised to remove in the December negotiations, for instance exemptions from safety standards for U.S. automakers that sell below 25,000 cars a year in the Korean market and the exemptions from environmental standards from 2012 to 2015. The agency simply assumes that all non-tariff barriers are removed. (The USITC's model assumes that any difference between the price of U.S. autos in the world market and the price of U.S. autos in the Korean market are attributable to a black box that is deemed one big "non-tariff barrier." That price differential is simply assumed to disappear.)
"Given that Koreans already are disinclined to buy foreign cars, a high-profile exemption of U.S. cars from having to meet Korea's strong safety and environmental standards will only exacerbate Korean consumers' notions that imports are inferior," said Tucker.
President Barack Obama campaigned and won on overhauling our unfair trade policies. Instead, what Americans face with the Korea FTA is the same George W. Bush North American Free Trade Agreement-style agreement, with slightly altered auto tariff schedules, Public Citizen maintains. The Korea trade deal is still projected to increase the overall U.S. trade deficit and cost 159,000 U.S. jobs. The Korea deal requires the kind of financial deregulation that contributed to the economic crisis. The FTA's labor chapter still contains Bush's ban on reference to the International Labor Organization conventions when enforcing its weak labor standards. This agreement even allows South Korean goods to be given the benefits of the agreement even if such goods contain inputs or parts from North Korea, despite our sanctions on trade with that country. And it still has sovereignty-eroding, public-interest-policy-chilling rules that allow multinational corporations to sue governments in private, foreign tribunals for taxpayer money. There are nearly $9.1 billion in claims in the 14 so-called investor-state cases outstanding under NAFTA-style deals. None relate to traditional trade concerns; all relate to environmental, public health and transportation policy.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
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300+ Arrested Outside Schumer's Home During Jewish-Led Seder Against Gaza Genocide
"No one is free until everyone is free," read a banner representing a Seder plate. "Jews say stop arming Israel."
Apr 24, 2024
As U.S. Senate Majority Leader Chuck Schumer prepared to vote on Tuesday night for a foreign aid package including billions to continue arming Israel in its bombardment of Gaza, roughly 300 protesters were arrested outside his home in Brooklyn for holding an "emergency Passover seder" protest, demanding the U.S. end its support for an assault that has killed at least 34,262 Palestinians.
The protest was led by anti-Zionist Jewish organizers with Jewish Voice for Peace, IfNotNow, and Jews for Racial and Economic Justice, with a large round banner representing a traditional Seder plate at the center of the protest at Grand Army Plaza, a block from Schumer's home.
Hundreds of people, some wearing traditional Palestinian keffiyehs, linked arms and chanted, "Free, free Palestine!" while blocking traffic and displaying the Seder plate.
"No one is free until everyone is free," read the banner. "Jews say stop arming Israel."
Schumer's home has been the site of numerous protests since October, when Israel began its attacks on and blockade of Gaza, which have left parts of the enclave facing famine and the entire population of 2.3 million people suffering from "acute food insecurity," at a minimum.
"A genocide being carried out in our names as Jews demands that we adapt our sacred tradition again, take to the streets, and do everything we can to prevent more death," author and activist Naomi Klein said at the protest.
The Biden administration has approved numerous weapons transfers to Israel, and the Senate overwhelmingly voted Tuesday night in favor of the package that includes $17 billion more in unconditional aid for the Israel Defense Forces.
Sens. Bernie Sanders (I-Vt.), Peter Welch (D-Vt.), and Jeff Merkley (D-Ore.) were the only members of the Democratic caucus who voted against the funding bill. Fifteen Republicans also opposed the bill over its inclusion of Ukraine aid.
The demonstration at Grand Army Plaza was organized amid a burgeoning protest movement on U.S. college campuses, including at Columbia University, where more than 100 students were suspended and then arrested for trespassing last week after setting up an encampment to demand the school divest from all companies that work with the Israeli government.
The student-led protests have been denounced by President Joe Biden and other pro-Israel critics as "antisemitic" and endangering Jewish students, despite the fact that Jewish students have helped to organize the nonviolent demonstrations.
One organizer, Calvin Harrison, told The New York Times that he attended the Brooklyn protest Tuesday night "because I'm a Jew and I was raised to believe that Judaism is about justice."
"Passover is a celebration of liberation for the future," he told the Times. "We can't celebrate liberation for ourselves while we're oppressing Palestinians."
Yonah Lieberman, co-founder of IfNotNow, recalled the group's Liberation Seder in 2016 in New York, where campaigners protested the Anti-Defamation League's support for the Israeli occupation of the Palestinian territories.
"Eighteen of us were arrested," he said. "Tonight: [Organizers] led a Seder in the streets demanding Schumer stop arming Israel. Hundreds are being arrested. The movement grows."
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'Blood on Their Hands': 79 US Senators Approve Billions More in Military Aid for Israel
Sen. Bernie Sanders, one of just three Senate Democratic caucus members to oppose the bill, said that "U.S. taxpayers should not be providing billions more to the extremist Netanyahu government."
Apr 24, 2024
With the support of nearly 80% of the chamber's lawmakers, the U.S. Senate on Tuesday approved a sprawling foreign aid package that includes $17 billion in unconditional military assistance for the Israeli government as it ramps up its catastrophic assault on the Gaza Strip.
The final vote on the $95 billion package, which also included military aid for Ukraine and Taiwan, was 79-18, with just three members of the Senate Democratic caucus—Sens. Bernie Sanders (I-Vt.), Peter Welch (D-Vt.), and Jeff Merkley (D-Ore.)—and 15 Republicans opposing the bill.
Sanders called Tuesday "a dark day for democracy," condemning the upper chamber's refusal to even allow a vote on his proposed amendment to cut offensive military aid to Israel from the legislation.
"I voted no tonight on the foreign aid package for one simple reason: U.S. taxpayers should not be providing billions more to the extremist Netanyahu government to continue its devastating war against the Palestinian people," Sanders said in a statement following the vote. "Thirty-four thousand Palestinians have already been killed and 77,000 have been wounded—70% of whom are women and children."
"The housing in Gaza is destroyed; the infrastructure in Gaza is destroyed; the healthcare system in Gaza is destroyed; the educational system in Gaza is destroyed," Sanders added. "Enough is enough. No more money for Netanyahu's war machine."
The bill, which passed the House over the weekend, now heads to the desk of President Joe Biden, who is expected to sign it in the coming days.
"That Congress passed many billions of dollars for new weaponry for Israel that will be used to devastate Gaza, and could be used in a war against Iran, is deeply disturbing," said the National Iranian American Council.
The 79 senators who voted to pass Biden's foreign aid bill/expand Israel's genocide in Gaza: pic.twitter.com/bVQisvOndd
— Stephen Semler (@stephensemler) April 24, 2024
Overwhelming congressional and White House support for arms and military support stands in stark contrast to U.S. public opinion, which has increasingly turned against Israel's assault on Gaza in recent months as the grisly death toll and humanitarian emergency have worsened and evidence of Israeli war crimes has mounted.
As Tuesday's vote took place, thousands of Jewish New Yorkers and allies rallied outside of Senate Majority Leader Chuck Schumer's (D-N.Y.) home to voice outrage over U.S. lawmakers' growing complicity in Israel's military assault.
"We're here as thousands of Jewish New Yorkers, calling on Senator Schumer to halt weapons funding to Israel as it massacres and starves Palestinians in Gaza," said Eva Borgwardt, national spokesperson for IfNotNow, one of the groups that organized the mass demonstration on the second night of Passover.
A Gallup survey released last month found that 55% of U.S. voters—including 75% of Democrats, 60% of Independents, and 30% of Republicans—disapprove of Israel's military assault on Gaza. A separate poll commissioned by the Center for Economic and Policy Research showed that a majority of American voters support halting U.S. weapons shipments to Israel.
Since October, the Biden administration has quietly approved more than 100 arms sales to Israel, flouting U.S. laws that prohibit weapons deliveries to countries that are violating human rights or blocking American humanitarian aid.
"As I have said countless times, sending Prime Minister Benjamin Netanyahu's government the munitions it is using to destroy Gaza is wrong and inconsistent with our foreign policy goals," Welch said Tuesday after voting against the aid package. "It is unthinkable that an ally of the U.S. would conduct its military campaign with planes, tanks, bombs, and artillery supplied by the U.S., while impeding access for aid trucks to destitute civilians under its occupation."
"Urgent calls for peace are loudly echoing across the country but seem to fall on deaf ears on Capitol Hill."
Days before the Senate vote, mass graves were discovered at two Gaza hospitals that Israeli forces recently raided and destroyed. The United Nations Human Rights Office on Tuesday demanded an international probe into the mass graves, noting that bodies of Palestinians were found stripped naked with their hands tied.
"Victims had reportedly been buried deep in the ground and covered with waste," Ravina Shamdasani, a spokesperson for the U.N. High Commissioner for Human Rights, told reporters in Geneva on Tuesday.
One Gaza official toldCNN that a total of 300 bodies were found in a mass grave at the Nasser Medical Complex in Khan Younis and that "there were signs of field executions."
"The U.S. government is arming a regime creating mass graves in Gaza, indeed turning all of Gaza into a mass graveyard," Sarah Leah Whitson, executive director of Democracy for the Arab World Now, wrote on social media Tuesday.
On the heels of the Senate vote, Agence France-Pressenoted that one of its correspondents and eyewitnesses "reported heavy bombardment of several areas of northern Gaza."
"Early Wednesday, hospital and security sources in Gaza reported Israeli air strikes in Rafah, as well as the central Nuseirat refugee camp," the outlet reported.
The anti-war group CodePink said in a statement after Tuesday's vote in the U.S. Senate that "urgent calls for peace are loudly echoing across the country but seem to fall on deaf ears on Capitol Hill."
"People and the planet desperately need healthcare, housing, and climate justice, not a further descent into darkness through this massive war bill that funds death and destruction," the group added. "Every elected official who voted in favor of this bill has blood on their hands."
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Defeating 'MAGA Dark Money,' Summer Lee Wins Primary in Landslide
"This is a huge testament to our collective strength and resilience as a progressive movement," said the executive director of Justice Democrats.
Apr 24, 2024
U.S. Rep. Summer Lee, a member of the progressive "Squad," won the Democratic primary for Pennsylvania's 12th Congressional District on Tuesday, fending off an opponent whose campaign was backed by a billionaire Republican megadonor and ally of Israeli Prime Minister Benjamin Netanyahu.
Lee, a vocal critic of the Netanyahu government and leading supporter of a cease-fire in Gaza, handily defeated Bhavini Patel, a borough councilmember in Edgewood, Pennsylvania whose effort to unseat the progressive incumbent was bankrolled by Jeffrey Yass, the state's richest man. Patel actively courted Republican and pro-Israel voters, characterizing Lee as "fringe."
With more than 95% of the vote counted, Lee is ahead of Patel by more than 20 percentage points.
"I am so humbled and proud to win my first primary reelection to be the congresswoman for this incredible district I've spent my life fighting for," Lee said after the race was called in her favor. "Our campaign was built on a record of delivering for our democracy, defending our most fundamental rights, and expanding our vision for what is politically possible for our region's most marginalized communities."
"Our victory is a rejection of right-wing interests and Republican billionaires using corporate super PACs to target Black and brown Democrats in our primaries—be it AIPAC or Moderate PAC or any other MAGA billionaire in Democratic clothing," Lee added. "Western PA is the blueprint for the future all of America deserves."
Opposing genocide is good politics and good policy. #CeasefireNOW https://t.co/A7pnJNskWS
— Summer Lee (@SummerForPA) April 24, 2024
Through the misleadingly named Moderate PAC, Yass—a prolific tax dodger who has been floated as a possible treasury secretary pick if former President Donald Trump wins another term—spent hundreds of thousands of dollars boosting Patel and attacking Lee.
Rahna Epting, executive director of MoveOn Political Action, said that by ushering Lee to victory, residents of Pennsylvania's 12th District "soundly rejected MAGA dark money."
"MoveOn members are ready to defeat this dangerous flood of dark-money spending against progressive champions and ensure that we continue to elect working-class people to Congress," said Epting.
"Now that it's clear Summer won her primary, AIPAC's super PAC has already officially failed at their one goal for this cycle: taking out the entire Squad."
During her 2022 campaign, Lee faced and overcame huge spending by the powerful pro-Israel lobbying group AIPAC via its super PAC, the United Democracy Project. But the organization opted to stay on the sidelines this time around, even as it plans to spend $100 million to defeat progressives in this year's cycle amid growing public opposition to Israel's war on Gaza.
"They had every intention of spending in this race—but they didn't, because they realized they would likely lose," Justice Democrats executive director Alexandra Rojas wrote in an email late Tuesday. "And that is because all of us had Summer's back and supported her campaign to out-organize AIPAC in every way."
"This is a huge testament to our collective strength and resilience as a progressive movement," said Rojas. "Now that it's clear Summer won her primary, AIPAC's super PAC has already officially failed at their one goal for this cycle: taking out the entire Squad."
While AIPAC ultimately sat out the Pennsylvania race, it is devoting considerable resources to ousting other progressive lawmakers, including Reps. Jamaal Bowman (D-N.Y.) and Cori Bush (D-Mo.).
The pro-Israel lobbying group has endorsed Bush challenger Wesley Bell, calling him a "strong advocate for the U.S.-Israel relationship." As The Guardianreported last week, Bell has "raised more than $650,000 in earmarked contributions through the group Democracy Engine Inc. PAC—a donation platform that allows unpopular PACs to obscure their donations and lists AIPAC as a client on its LinkedIn page."
AIPAC is the largest donor to Bowman challenger George Latimer, who has supported Israel's war on Gaza and denied that Israel is committing genocide. The Democratic primary for New York's 16th Congressional District is on June 25.
We must be clear-eyed about what's next. @JamaalBowmanNY & @CoriBush are facing an existential threat from AIPAC, their GOP megadonors, and the politicians willing to compromise on core Democratic values to try to take a school principal & nurse out of Congress. #ProtectTheSquad
— Justice Democrats (@justicedems) April 24, 2024
Michele Weindling, political director of the youth-led Sunrise Movement, said Tuesday that following Lee's victory, "we're ramping up to take on AIPAC in Jamaal Bowman's race."
"With a candidate like George Latimer willing to sell their lies to the district, we are going to prove once again that a politician's commitment to their community beats dark money every time," said Weindling. "Whether it's in Pittsburgh or New York, Minneapolis or St. Louis, our generation is going to send billionaires packing and reelect the squad."
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