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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UN Expert Calls for 'Defossilization' of World Economy, Criminal Penalties for Big Oil Climate Disinformation
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As health officials across Europe issued warnings Monday about extreme heat that could stretch into the middle of the week in several countries—the kind of dangerous conditions that meteorologists have consistently said are likely to grow more frequent due to human-caused climate change—a top United Nations climate expert told the international body in Geneva that the "defossilization" of all the world's economies is needed.
Elisa Morgera, the U.N. special rapporteur on climate change, presented her recent report on "the imperative of defossilizing our economies," with a focus on the wealthy countries that are projected to increase their extraction and use of fossil fuels despite the fact that "there is no scientific doubt that fossil fuels... are the main cause of climate change."
"Despite overwhelming evidence of the interlinked, intergenerational, severe, and widespread human rights impacts of the fossil fuel life cycle," said Morgera, "these countries have and are still accruing enormous profits from fossil fuels, and are still not taking decisive action."
World leaders must recognize the phase-out of fossil fuels "as the single most impactful health contribution" they could make, she argued.
Morgera named the U.S., U.K., Australia, and Canada as wealthy nations where governments are still handing out billions of dollars in subsidies to fossil fuel companies each year—direct payments, tax breaks, and other financial support whose elimination could reduce worldwide fossil fuel emissions by 10% by 2030, according to the report.
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She also pointed to the need to "defossilize knowledge" by holding accountable the companies that have spent decades denying their own scientists' knowledge that continuing to extract oil, coal, and gas would heat the planet and cause catastrophic sea-level rise, hurricanes, flooding, and dangerous extreme heat, among other weather disasters.
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Morgera said states should prohibit all fossil fuel industry lobbying, which companies like ExxonMobil and Chevron spent more than $153 million last year in the U.S. alone—with spending increasing each year since 2020, according to OpenSecrets.
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While a transition to a renewable energy-based economy has been portrayed by the fossil fuel industry and its supporters in government as "radical," such a transition "is now cheaper and safer for our economics and a healthier option for our societies," Morgera toldThe Guardian on Monday.
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Several countries have taken steps toward meeting Morgera's far-reaching demands, with The Hague in the Netherlands introducing a municipal ordinance in 2023 banning fossil fuel ads, the Australian Green Party backing such a ban, and Western Australia implementing one.
The fossil fuel industry's "playbook of climate obstruction"—from lobbying at national policymaking summits like the annual U.N. Climate Change Conference to downplaying human rights impacts like destructive storms and emphasizing the role of fossil fuels in "economic growth"—has "undermined the protection of all human rights that are negatively impacted by climate change for over six decades," said Morgera.
Morgera pointed to three ways in which states' obligations under international humanitarian laws underpin the need for a fossil fuel phaseout by 2030:
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Morgera's report was presented as more than a third of Tuvaluans applied for a visa to move to Australia under a new climate deal between the two countries, as the Pacific island is one of the most vulnerable places on Earth to rising sea levels and severe storms.
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As Florida's Republican government moves to construct a sprawling new immigration detention center in the heart of the Everglades, nicknamed "Alligator Alcatraz," environmental groups and a wide range of other activists have begun to mobilize against it.
Florida's Republican attorney general, James Uthmeier, announced last week that construction of the jail, at the site of a disused airbase in the Big Cypress National Preserve, had begun. According to Fox 4 Now, an affiliate in Southwest Florida, construction has moved at "a blistering pace," with the site expected to be done by next week.
Three environmental advocacy groups have launched a lawsuit to try to halt the construction of the facility. And on Saturday, hundreds of protesters flocked to the remote site to voice their opposition.
Opponents have called out the cruelty of the plan, which comes as part of U.S. President Donald Trump's crusade to deport thousands of immigrants per day. They also called out the site's potential to inflict severe harm to local wildlife in one of America's most unique ecosystems.
Florida's government has said the site will have no environmental impact. Last week, Uthmeier described the area as a barren swampland. He said the site "presents an efficient, low-cost opportunity to build a temporary detention facility because you don't need to invest that much in the perimeter. People get out, there's not much waiting for 'em other than alligators and pythons," he said in the video. "Nowhere to go, nowhere to hide."
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"No wonder Pam Bondi gutted the public integrity section of DOJ. To protect utterly corrupt monsters like Kristi Noem."
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