Im going to both start with a list of questions. Hopefully Ill provide some information, a few suggestions, maybe even have a few answers.

1. How do we create and build jobs to sustain our trade, decrease the deficit, and maintain sustainability in this global economy?
2. How do we build labor internationally to raise the standards of living and guarantee or at least progress towards fair wages and working conditions?
3. How do we improve the labor and environmental standards in future trade agreements, how do we ensure a seat at the table?
4. How do we increase penalties for jobs moved, increase tuition payment benefits for displaced workers, longer-term unemployment benefits and eliminate the tax breaks and protections of the corporations that allow them to move the jobs to begin with?
5. How do we build on the momentum and increase the solidarity among rank and file workers worldwide? And how to stop the race to the bottom?

Trade deficit
In the last 14 years since NAFTA was passed, our global trade deficit has increased more than tenfold, from $70 billion to more than $700 billion in 2007. Ill be honest, I still dont completely understand this. But basically, since were importing much more than we export, the question most logical to ask is how do we balance it? Or to raise CJs point again, what is the tipping point? As has been mentioned many times, the jobs arent coming back, so how do we fix this? Are we going to consume less, not likely. Well just continue to dig personal debt even deeper and work longer hours at crappier jobs. What new goods could be produced? Our other new favorite idea, green technology. Its already being implemented, re-fitting old factories for new green machines to make green things. Solar panels and wind-farm turbines are just the beginning.

Fair trade, building labor
Theres a shift in the trade agreement trends recently. The demand by labor that the agreements include requirements of the International Labour Organizations Fundamental Principles and Rights at Work; the principle tenants of which are: a. freedom of association and the effective recognition of the right to collective bargaining; b. the elimination of all forms of forced or compulsory labour; c. the effective abolition of child labour; and d. the elimination of discrimination in respect of employment and occupation.

How do we get rid of the WTO, or at least have a seat at the table? We need to make sure we can ensure labor and environmental standards are improved. And its happening, slowly but surely. These agreements do have to pass Congress, so thats our easiest way to impact. NAFTA passed by a vote of 234 to 200 in the House. CAFTA passed 12 years later, by a vote of 217 to 215. While 102 Democrats voted for NAFTA, only 15 voted for CAFTA. The Peru FTA was passed last fall, by a vote of 285 to 132. Sounds like bad news, but this one was different. It was the first step in trade agreements being the way they should be, or at least the way we think they should be. This one had input from labor, and a breakthrough with the Democrats able to secure enforceable, basic labor rights and environmental standards in the core text of the agreement. Was it good enough? No way, but it is a start. And as much as Bush thinks he can shove the Colombia FTA through Congress, well, Bush shouldnt think, first of all, second, the fightback against Colombia FTA increases everyday, due to the labor-led and supported effort to insist on no agreements with countries that openly murder union members, organizers, and leaders. And thats only one part of the fightback, and doesnt take into account the struggle to improve labor and environmental requirements and ways to enforce those provisions in the agreements. We also need to ensure that strong workers rights provisions apply globally, not just to the handful of countries with which we have trade agreements.

There also has to be a change in the policies that allow and even encourage corporations to shift production and jobs out of the U.S. Between the previous FTAs, a high dollar policy, tax breaks for producing overseas and trade agreements aimed at protecting the profits and flexibility of mobile capital combined to send a powerful signal to businesses that moving jobs offshore was the right response to tightening global competition. Wall Street encouraged this mind-set by balking at financing any expansion of U.S.-based production facilities, instead encouraging global sourcing. This now means that employers everywhere (and not just in the U.S.) go to the bargaining table or face down unions armed with threats to move production to countries where unions arent a problem, where health and safety regulations arent enforced, where environmental protection is ignored and where wages are competitive. We have to send this in complete reverse, and if nothing else, start out by forcing increased penalties for jobs moved, increase education/tuition payment benefits for displaced workers, and longer-term unemployment benefits.

As John R. mentioned yesterday, this past December 10 (Intl Human Rights Day), the AFL-CIO hosted a three-day Global Labor Summit to address some of the issues weve been discussing over the past two days, and to continue the movement of building global labor solidarity. A major issue has been the outsourcing of union busting. Well, I guess we really are outsourcing everything. Theyre building coalitions to combat this, and a few weeks ago leadership from the AFL-CIO took their first major follow-up step with a couple days meeting with the leadership of the TUC in the UK, talking about the worldwide union-busting, but also working together on many issues to strengthen labor.

The Steelworkers are also in the process of merging with the British Steel union; and the news last year was full of talk about the number of labor leaders from the U.S. making trip to China to meet with labor leaders there. We just have to make sure that this sense of solidarity with rank and file workers worldwide does not fall victim to the vicious China-bashing campaigns, or the viewpoint of a competition to keep from falling victim of the race to the bottom.

Im going to wrap up with a few of the key components to a new global strategy outlined in a recent statement released by the AFL-CIO executive council at their meeting last week, entitled What is Wrong with U.S. Trade Policy?

For the United States, there are several key components to a new global strategy:

First, we need to take a strategic pause in implementing and negotiating new trade agreements until we can build a comprehensive new trade policy that will support the creation of good jobs at home. This must apply both to bilateral agreements and new talks at the World Trade Organization. In particular, we remain strongly opposed to the proposed free trade agreements with Colombia and South KoreaColombia because of the egregious violence and abuse of workers human rights, and Korea because of the imbalanced market access provisions, particularly with respect to the auto sector. We should use the strategic pause to review the performance of past trade agreements and recommend renegotiation where needed.

Third, our corporate tax system is insanely inefficient and unfair. American taxpayers currently subsidize the offshoring of their own jobs (at a rate of $7 billion to $9 billion a year) through policies that exempt income earned offshore from corporate taxes. Very few other countries have similar systems, and most (especially industrialized countries) have some form of border-adjustable tax that exempts exports from sales or value-added taxes. Our current system taxes the profits earned on exports (unlike many other countries) while subsidizing offshoring of jobs. We need a complete overhaul of our corporate tax system to address this competitive disadvantage. This outdated loophole must be closed, and the United States must take action to assist production here in America.

Fourth, we need to strengthen and effectively enforce our trade laws so when foreign governments and companies engage in anti-competitive trade actions they are held accountable to ensure that Americas workers and businesses can compete fairly on a level playing field. We must ensure that WTO negotiations and actions do not undermine our ability to use our trade laws effectively.

Fifth, we need to ensure import safety. We must also insist that items produced and maintained elsewhere meet the highest quality control and safety standards available. (We also need to continue to lead the charge for holding the corporations responsible for this as some of our members in both USW and CLUW have done).

Finally, we need to ensure that when we act domestically to address the challenge of climate change, our trading partners also take commensurate actions. Otherwise, we will lose our own jobs as production moves to the least-regulated countries, and global emissions will actually worsen. World Trade Organization rules must accommodate trade-related measures to coordinate responses to global environmental challenges.

We face enormous challenges, but politically viable solutions are within reach. No single action will get us out of the hole were in, but addressing the tax, currency and trade policy pieces points us in the right direction.

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