May, 31 2016, 09:45am EDT
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For Immediate Release
Contact:
American Antitrust Institute: Sarah Frey, 410-897-7028, sfrey@antitrustinstitute.org
Food & Water Watch: Kate Fried, 202-683-4905, kfried@fwwatch.org
National Farmers Union: Andrew Jerome, 202-314-3106, ajerome@nfudc.org
AAI, FWW and NFU Urge the U.S. Department of Justice to Challenge the Dow-DuPont Merger
WASHINGTON
In a letter sent today to the Principal Deputy Assistant Attorney General, Renata Hesse, the American Antitrust Institute (AAI), Food & Water Watch (FWW) and National Farmers Union (NFU) urged the U.S. Department of Justice (DOJ) Antitrust Division to challenge the proposed merger of Dow Chemical Co. and DuPont Co.
The letter details the group's analysis of the proposed merger that would create the largest biotechnology and seed firm in the U.S. The deal would further consolidate an already highly concentrated biotechnology industry and would likely curtail innovation, raise prices, and reduce cultivation choices for farmers, consumers and the food system.
AAI, FWW, and NFU urge the DOJ to critically review the implications of the pending deal. The letter unpacks three major areas of concern, including eliminating head-to-head competition in the corn and soybean markets, reducing vital innovation competition, and creating a large, integrated "platform" of traits, seeds, and chemicals that would make it harder for smaller biotechnology rivals to compete.
The groups point out that aggressive consolidation in agriculture, specifically in the agricultural inputs sector, has changed the landscape for independent crop input companies as well as for independent producers. The current rumored or announced deals--including Dow-DuPont, ChemChina-Syngenta, and Bayer-Monsanto--would be a third wave of consolidation. Two previous merger waves eliminated the majority of small to medium-sized biotechnology R&D firms to create the Big Six--Monsanto, Syngenta, Bayer, DuPont, Dow and BASF.
"Any consolidation among the Big Six firms should raise significant antitrust concerns. We encourage the DOJ to move to stop it, as it has in other recent and unfixable mergers that would leave only a few large players," explained AAI's President, economist Diana Moss.
Investor documents note that elimination of duplicative research and development programs will contribute to the $1.3 billion in cost synergies produced by a merger of Dow's and DuPont's agriculture assets. But competitive R&D investments have been "crucial for driving innovation in an industry where the probability of commercial success is relatively low due to the time and cost associated with bringing a trait from research to market," the letter explains.
"The Department of Justice must block this biotechnology mega-merger that would raise farmers' prices and severely limit the choices for farmers, consumers and rural communities," said Food & Water Watch executive director Wenonah Hauter. "Today's wave of agribusiness and food company mega-mergers is surrendering our food system to a corporate cabal that thwarts our efforts to build an fair and healthy food system."
The proposed merger would create a powerful duopoly between Dow-DuPont and Monsanto. Together, the two companies would control 76% of the market for corn and 66% of the market for soybeans, giving them the power to charge farmers higher prices and effectively decide which seeds farmers could plant.
"Seed costs are the highest input expense for farmers. While some of the cost can be attributed to more sophisticated technology, we have seen time and again that consolidation and market restructuring has increased the cost of crop inputs. In a lagging farm economy with multi-year trends of low commodity prices, additional cost increases for crop inputs could cripple a lot of family farms in this country," said NFU President Roger Johnson.
The groups conclude that the proposed Dow-DuPont merger "would be difficult, if not impossible, to remedy." The letter notes accumulating evidence on failed remedies in other mergers, the difficulty of finding viable buyers of to-be divested assets, and the ineffectiveness of divesting assets to other members of the Big Six firms.
The letter can be read in its entirety here.
Food & Water Watch mobilizes regular people to build political power to move bold and uncompromised solutions to the most pressing food, water, and climate problems of our time. We work to protect people's health, communities, and democracy from the growing destructive power of the most powerful economic interests.
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House Dems Unveil Sweeping Bill to Protect Worker Rights and Safety
"This bill will help level the playing field and, once again, restore the balance of power between workers and their employers," said Rep. Bobby Scott.
Jul 26, 2024
A group of Democratic U.S. House members on Friday unveiled legislation "aimed at bolstering protections for America's workers and ensuring accountability for employers who flout labor and employment laws."
The Labor Enforcement to Securely (LET'S) Protect Workers Act was introduced by Rep. Bobby Scott (D-Va.)—the ranking member of the House Committee on Education and the Workforce—and House Labor Caucus Co-Chairs Mark Pocan (D-Wis.), Debbie Dingell (D-Mich.), Donald Norcross (D-N.J.), and Steven Horsford (D-Nev.).
The bill's sponsors said their legislation is based on the premise that "employment laws are a promise to our nation's workers" meant to "secure the most basic rights of work."
"That promise is broken," they contended. "Recent shocking revelations about massive increases in the number of children illegally overworked and trafficked into dangerous jobs—just over 85 years since the passage of the Fair Labor Standards Act, which was enacted to eliminate that very problem—is the latest example of the ways that this promise to America's workers is broken."
Across the U.S., Republican state lawmakers have been advancing legislation to remove restrictions on child labor, despite several high-profile workplace deaths of minors. At the federal level, Sen. James Risch (R-Idaho) and Rep. Jared Golden (D-Maine) last year introduced a bill that would allow 16- and 17-year-olds to work in the logging industry.
The LET'S Protect Workers Act sponsors highlighted rampant wage theft and overtime violations, workplace injuries, and union-busting by employers who "know that even if a resource-starved Department of Labor catches a violation, the penalties are a mere slap on the wrist."
"People should be able to come home at the end of the day—alive, well, in one piece, and with all the wages they worked hard to earn," the lawmakers asserted. "Children should be in schools, not dangerous workplaces, and workers should be able to organize a union without interference or the threat of retaliation from their employers."
According to House Education and Workforce Committee Democrats, if passed, the LET'S Protect Workers Act would:
- Increase civil monetary penalties for violations of child labor, minimum wage and overtime, worker health and safety, and farmworker protection standards;
- Improve mine safety and reliable funding of black lung benefits through new and increased civil monetary penalties and the option to shut down scofflaw operators;
- Set new penalties for retaliation against workers who exercise their family and medical leave rights;
- Strengthen enforcement of mental health parity requirements for employer-sponsored health plans;
- Close a loophole that allows employers to escape penalties for failing to keep records of workplace injuries if [the Occupational Safety and Health Administration] does not detect the violation within six months; and
- Create new penalties for violations of the National Labor Relations Act, consistent with the Richard L. Trumka Protecting the Right to Organize (PRO) Act.
"Every American should be fairly compensated and be able to return home safely at the end of the day," Scott said in a statement Friday. "Unfortunately, shortcomings in our labor laws enable unethical employers to exploit workers, endanger children, and suppress the right to organize—with little accountability."
"That's why I'm proud to introduce the LET'S Protect Workers Act, which will hold bad actors accountable and strengthen penalties for labor law violations," he added. "This bill will help level the playing field and, once again, restore the balance of power between workers and their employers."
In a joint statement, Dingell, Horsford, Norcross, and Pocan said that "the lack of meaningful enforcement makes it all too easy for bad faith actors to get away with illegally violating workers' rights—from firing workers for organizing a union, to allowing children to work overnight shifts, or jeopardizing workers' safety by ignoring workplace regulations."
"We're proud to join Ranking Member Scott in introducing this bill to crack down on unscrupulous employers and to ensure that workers receive the protections they deserve," the lawmakers added.
Earlier this month, nearly 50 labor organizations led by the AFL-CIO and representing a wide range of U.S. workers urged congressional Democrats to resist Republican efforts to roll back rules enacted by the Biden administration to protect worker rights amid relentless attacks by abusive employers.
Specifically, the labor groups warned that Republicans are trying to use the Congressional Review Act—which was enacted to strengthen oversight of federal rulemaking—to overturn pro-worker rules enacted by the Department of Labor and other government bodies.
Meanwhile, Republicans including former President Donald Trump—the 2024 GOP nominee—have been trying to woo U.S. workers with proposals including a tax exemption for tipped employees panned as a "
hollow promise" by experts and by inviting Teamsters president Sean O'Brien to speak at the Republican National Convention last week.
In response to Republicans' dubious courting of U.S. labor, Rep. Greg Casar (D-Texas)—who is a co-sponsor of the LET'S Protect Workers Act—recently called for holding what would be a largely symbolic vote on the PRO Act. The bill was revived last year by Scott and Sen. Bernie Sanders (I-Vt.) and, if passed, would expand labor protections including the right to organize and collectively bargain.
"If Republicans wanna talk like they're pro-worker, then let's have a vote on the PRO Act next week," Casar
said on social media last week. "Let's see which politicians are for unions and which ones are all talk. Dems are ready to vote, how about you guys?"
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Amnesty Urges War Crimes Probe of Landmines in Russian-Occupied Ukraine
"In every region in Ukraine that was formerly occupied by Russia, we have seen evidence of civilians killed and injured by antipersonnel mines left behind by Russian forces," said one researcher.
Jul 26, 2024
Amnesty International on Friday demanded a "prompt, thorough, independent, and impartial investigation" into the use of antipersonnel landmines, "which litter territories in Ukraine formerly and currently occupied by Russian forces."
The Landmine and Cluster Munition Monitor says that Ukraine is "severely contaminated" with antipersonnel landmines, which Russia's troops have used since 2014, but particularly since Russian President Vladimir Putin's full-scale invasion in February 2022.
"Landmines have been documented in 11 of Ukraine's 27 regions: Chernihiv, Dnipropetrovsk, Donetsk, Kharkiv, Kherson, Kyiv, Luhansk, Mykolaiv, Odesa, Sumy, and Zaporizhzhia," according to the monitor's latest update, published in November. "Russian forces have used at least 13 types of antipersonnel mines in Ukraine since February 2022."
Ukraine is a state party to the Convention on the Prohibition of the Use, Stockpiling, Production, and Transfer of Antipersonnel Mines and on Their Destruction of 1997 but lacks legislation to enforce its implementation. Human Rights Watch last summer gathered evidence of the Ukrainian military's use of the banned mines. Russia is not a party to the treaty.
Patrick Thompson, a Ukraine researcher at Amnesty, said Friday that "in every region in Ukraine that was formerly occupied by Russia, we have seen evidence of civilians killed and injured by antipersonnel mines left behind by Russian forces."
"They are a daily, deadly threat to civilians. Some have been deliberately placed in civilian homes where they maim and kill," Thompson highlighted. "There must be an effective investigation into all such incidents as possible war crimes."
The group shared just one survivor's story of encountering a mine:
In March 2022, Russian forces evicted Oleksandr* (not his real name) and his mother from their flat in Snihurivka, in the region of Mykolaiv. A Russian military unit took over the entire apartment block until it was forced to withdraw following fierce fighting around Snihurivka in November 2022.
After the Russian retreat, Oleksandr returned to the apartment block to assess how badly it had been damaged. Upon entering the basement, he stepped on a disguised PFM-1 antipersonnel mine that had been placed under wooden planks. The mine exploded, Oleksandr fell, and landed on other disguised mines that had apparently, had been deliberately placed to injure or kill anyone entering the building. He lost both his left leg and arm in the incident.
“The deminers working to clear Ukraine of this threat are carrying out painstaking, dangerous work every day," Thompson noted. "While the scale of the problem is undeniably huge, the biggest obstacle to clearing Ukraine of landmines is Russia's ongoing aggression."
Thompson called on the international community to "commit to sustained financial and technical assistance to help Ukraine get rid of a danger that continues to wreck lives and livelihoods," and to continue fighting for an end to the use of the weapons.
"Countries must uphold the ban on the use, production, stockpiling, and transfer of antipersonnel mines worldwide," he said. "There must be an end to the use of such indiscriminate weapons."
The most recent report from the United Nations Human Rights Monitoring Mission in Ukraine states that the war has killed at least 11,284 civilians there since 2022 and injured another 22,594—though the actual tallies are believed to be "considerably higher."
"The number of civilian casualties is likely particularly undercounted in cities such as Mariupol (Donetsk region), Lysychansk, Popasna, and Sievierodonetsk (Luhansk region), where there was protracted intensive fighting at the start of the armed attack in 2022," according to the report.
While most of the deaths and injuries in Ukraine are attributed to "explosive weapons with wide area effects," the U.N. report accounts for at least 373 deaths and 855 injuries from "mines and explosive remnants of war."
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G20 Nations Take 'Important Step' Toward Fair Taxation of Ultra-Rich
"Our proposal for a common minimum tax on billionaires is now on the map. G20 finance ministers have started to engage with it—and there is no going back," said progressive economist Gabriel Zucman.
Jul 26, 2024
Despite pushback from the United States delegation, finance ministers at a meeting of the G20 countries in Rio de Janeiro on Thursday agreed on the need to develop a global taxation system in which the richest in the world are taxed at a higher rate—potentially unlocking hundreds of billions of dollars annually to help close the international wealth gap.
Ahead of the G20 Summit scheduled for November, which Brazilian President Luiz Inácio Lula da Silva's government will host, the finance officials met this week to discuss economic issues and ultimately agreed to start a "dialogue on fair and progressive taxation, including of ultra-high-net-worth individuals."
The Lula government pushed for a proposal by progressive economist Gabriel Zucman, who serves as a G20 adviser and is a professor of economics at University of California, Berkeley.
Zucman's proposal calls for a minimum 2% tax on the fortunes of the world's roughly 3,000 wealthiest billionaires, which could raise approximately $250 billion globally per year.
"With full respect to tax sovereignty, we will seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed," the ministers wrote in a declaration that was viewed by Politico.
"Finally, the richest people are being told they can't game the tax system or avoid paying their fair share. Governments have for too long been complicit in helping the ultra-rich pay little or zero tax."
The agreement to discuss higher taxes for the rich was reached despite objections from Germany and the U.S., whose treasury secretary, Janet Yellen, said that "tax policy is very difficult to coordinate globally."
"We don't see a need or really think it's desirable to try to negotiate a global agreement on that," Yellen said at a press conference before the ministers met Thursday evening. "We think that all countries should make sure that their taxation systems are fair and progressive."
Although the agreement only states that countries will discuss the need for the wealthy to pay their fair share to help fight poverty and fund public education and other services, the global anti-poverty group Oxfam International said the meeting represented "serious global progress."
"For the first time in history, the world's largest economies have agreed to cooperate to tax the ultra-rich," said Susana Ruiz, tax policy lead for Oxfam. "Finally, the richest people are being told they can't game the tax system or avoid paying their fair share. Governments have for too long been complicit in helping the ultra-rich pay little or zero tax. Massive fortunes afford the world's ultra-rich outsized influence and power, which they wield to shield, stash, and supersize their wealth, undercutting democracy and widening inequality."
An Oxfam study released ahead of this week's meetingfound that the richest 1% of people in the world increased their fortunes by $42 trillion over the past decade, while taxation fell to "historically" low rates.
Ruiz called on G20 heads of state to "go further than their finance ministers" at the G20 Summit in November "and back concrete coordination: agreeing on a new global standard that taxes the ultra-rich at a rate high enough to close the gap between them and the rest of us."
"Brazil has kickstarted a truly global approach to tax the ultra-rich. But the work is just beginning and international cooperation is crucial," said Ruiz, adding that the task of ensuring the wealthiest people in the world are taxed fairly must not be left up to the Organization of Economic Cooperation and Development (OECD)—"the club of mostly rich countries."
Zucman expressed hope that the agreement between the G20 finance ministers marked a "historic" moment, and called it "an important step in the right direction."
"Our proposal for a common minimum tax on billionaires is now on the map. G20 finance ministers have started to engage with it—and there is no going back," said Zucman. "In its declaration, the G20 finance ministers commit to important preliminary steps. They need to do more and commit to a coordinated minimum tax on the super-rich. We know that it is practically doable—we know the solutions exist. And I'm confident, because there is overwhelming popular demand everywhere to get there."
"The status quo, in which the biggest winners from globalization are allowed to enjoy the lowest tax rates, is simply not sustainable," said Zucman.
The findings released this week by Oxfam highlighted polling that "consistently" found people across the world support raising taxes on the richest individuals.
"Eighty percent of Indians, 85% of Brazilians and 69% of people polled across 34 countries in Africa support increasing taxes on the rich," said the group. "Nearly three-quarters of millionaires polled in G20 countries support higher taxes on wealth, and over half think extreme wealth is a 'threat to democracy.'"
The Independent Commission for the Reform of International Corporate Taxation (ICRICT) applauded the agreement and called on the G20 to "go further in [the] fight to tax the rich."
"To take this forward, G20 should support work on this at the Framework Convention on International Tax Cooperation currently being negotiated at the United Nations," said Jayati Ghosh, co-chair of the ICRICT.
A U.N. committee is scheduled to submit "terms of reference" regarding a tax convention framework in August, and a final vote on the framework is expected by the end of 2025.
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