Edwards Campaign Press Release - On 14th Anniversary Of NAFTA, Edwards Condemns Failed Trade Policies That Hurt Workers And Families

As president, Edwards will give America a trade policy that puts the interests of American workers and communities first

Derry, NH – Today, on the fourteenth anniversary of NAFTA, Senator John Edwards delivered remarks condemning NAFTA and other failed trade policies that put the interests of multinational corporations ahead of the needs of working families. At a town hall meeting in Derry, New Hampshire, Edwards said that growing up in North Carolina, he saw the effects of unfair trade and failed economic policies when the mill where he and his father worked shut down. And as president, Edwards said he will give America a trade policy that puts the interests of American workers and communities at its core.

"Fourteen years ago today, the treaty creating NAFTA was signed into law," said Edwards. "NAFTA was sold to the American people with promises that it would grow the economy and create millions of new jobs. But today, we know those promises were empty. NAFTA has actually cost us more than 1 million American jobs. NAFTA has failed Mexico and Canada too. In all three countries, it has hurt workers and families while helping corporate insiders.

"NAFTA also paved the way for a series of unfair trade deals that have helped create an American economy that is not working for American workers and families," Edwards continued. "When I'm president, we aren't going to judge trade deals based on government statistics or corporate bottom lines. Instead, we're going to look at the impact of trade deals on hard-working families."

In New Hampshire, the impact of NAFTA and similar free trade deals has meant that the mills that have been the backbone of the North Country economy are closing their doors. The recent closures of the paper mills in Berlin and Groveton have devastated those communities. Some of the only jobs available to those workers now are tearing down the very mills that used to employ them.

To address the devastating impacts that bad trade policies can have on workers and communities, Edwards will insist that our trade deals provide clear and measurable benefits for American workers – considering their impact on prices as well as wages and jobs. Edwards believes that if you give American workers a level playing field, they will succeed in the global economy. Instead of expanding the failed NAFTA model, Edwards will make sure we have a trade policy that puts the interests of America workers and communities at its core. Edwards' plan for smart trade builds on his comprehensive agenda to help American families through universal health care, fairer taxes, stronger unions and investments in innovation and skills.

For more information on Edwards' proposals for smart and safe trade, please see the policy paper included below. Also included below are excerpts from Edwards' remarks as prepared for delivery in Derry, New Hampshire.

Excerpts from Remarks as Prepared for Delivery

December 8, 2007

"Fourteen years ago today, the treaty creating NAFTA was signed into law. NAFTA was sold to the American people with promises that it would grow the economy and create millions of new jobs. But today, we know those promises were empty. NAFTA has actually cost us more than 1 million American jobs. NAFTA has failed Mexico and Canada too. In all three countries, it has hurt workers and families while helping corporate insiders.

"The fingerprints of the big multinationals who lobbied for NAFTA are all over it. You can see them in provisions like Chapter 11, which gives companies the right to sue a government if they think its laws damage their bottom line. Provisions like Chapter 11 threaten our government's ability to carry out its core mission of protecting American citizens, of standing up for their well being, for their jobs, and for our environment. They are un-democratic and when I'm president, I'll make sure they stay out of our trade deals.

"NAFTA also paved the way for a series of unfair trade deals that have helped create an American economy that is not working for American workers and families. Since President Bush took office, more than 5 million jobs have been lost overseas. Roughly twenty percent of all the jobs in our economy today – 25 to 30 million jobs – could potentially be sent offshore over the next decade. The folks in Washington say that trade is good for the economy, even if it hurts a few 'losers.' That's the word they use – 'losers' – and it tells you something about how they see regular American workers and families who are struggling to compete.

"When I'm president, we aren't going to judge trade deals based on government statistics or corporate bottom lines. Instead, we're going to look at the impact of trade deals on hard-working families. Trade deals can create jobs, but they can also cost us jobs. They can bring down prices, but they can also hold down wages. The question I will ask about each trade deal is simple: all things considered, does it make most regular families better off or not? ...

"The truth is that fixing our nation's trade policies is not going to be easy. Powerful corporations like things the way they are. But we cannot continue down the path we're on now. American families and workers deserve better.... As president, I will wake up every day fighting for America's workers and families. For every one of you in this room. Because I know that together, we can rise to the challenges we face, we can pass the test in front of us, and together, we can build a better America."

Smarter Trade that Puts Workers First

"Trade has become a bad word for working Americans for a simple reason: our trade policy has been bad for working Americans. We need new trade policies that put workers, wages and families first." -- John Edwards

After growing up in Carolina mill towns, John Edwards understands the devastating impact that bad trade policies can have on workers and communities. Even when jobs are not moved offshore, competition from cheap labor overseas holds down wages and benefits in the United States. And with Washington dominated by powerful special interests, it the benefits of our economic and trade policies are enjoyed by increasingly few individuals and multinational corporations. Over the last 20 years, American incomes have grown apart: 40 percent of the income growth in the 1980s and 1990s went the top 1 percent. If all Americans shared in prosperity to the same extent they did 30 years ago, families in the bottom 80 percent would be earning $7,000 more a year. [EPI, 2006; Summers, Furman and Bordoff, 2007]

Today, John Edwards described his "smart and safe trade" policies. Edwards believes that if you give American workers a level playing field, American workers will succeed in the global economy. He will make trade policies help workers as well as corporations, lift up families around the world, and build on other efforts to help American families such as universal health care, fairer taxes, stronger unions, and investments in innovation and skills. First and foremost, he will insist that the gains of any new trade deal be broadly shared, benefiting most families after considering its impact on jobs, wages, and prices.

Smart and Safe Trade

Be a Tough Negotiator, Unafraid to Reject Bad Deals: The American position in trade negotiations has been formulated behind closed doors with help from corporate lobbyists. Under the "fast track" procedure, Congress could not amend the resulting deals. Not surprisingly, trade agreements include special privileges for corporations, such as strong remedies for commercial rights and unprecedented rights to challenge environmental and health laws, but failed to protect workers. As president, Edwards will pursue trade deals that:

• Make most families better off, considering its impact on jobs, wages, and prices.
• Enforce labor rights -- including the right to organize and bargain collectively and prohibitions against forced labor, child labor, and discrimination – to prevent a global race to the bottom and help build a global middle class.
• Protect the environment, preventing the exploitation of weak or poorly enforced laws and greenhouse gas commitments if necessary.
• Clearly prohibit currency manipulation that puts American businesses at a disadvantage.

Demand a Level Playing Field for Trade: The U.S. Trade Representative is currently responsible for trade enforcement, but often neglects trade deals as soon as the ink dries. As a result, trade violations like subsidies are overlooked, unsafe products enter the country, intellectual property is pirated, and goods are counterfeited. Edwards will assign top prosecutors at the U.S. Department of Justice to the job of enforcing trade laws, including the stronger labor and environment standards he will negotiate. He will also go after illegal trade subsidies and insist that China and other countries move toward ending manipulation of their currencies, seeking WTO sanctions if necessary.

Eliminate Tax Incentives to Move Offshore: The U.S. tax code encourages multinational corporations to invest overseas by allowing them to indefinitely defer taxation on their foreign profits. In some cases corporations actually receive subsidies to invest overseas through a "negative tax." Edwards will eliminate the benefit of deferral in low-tax countries, ensuring that American companies' profits are taxed when earned at either the U.S. rate or by a foreign country at a comparable rate. [Grubert and Mutti, 2002; Altshuler and Grubert, 2001; Treasury, 2000]

Revamp Trade Assistance and the Safety Net to Help Dislocated Workers and Communities: Americans today are more likely to lose their jobs and less likely to receive unemployment benefits. For too long, the federal government has stood by while plant closings devastate entire towns. Edwards will fight for these workers and their communities, by modernizing unemployment insurance to cover 500,000 more workers a year and creating a new "Training Works" initiative tied to high-wage jobs. He will help communities recover quickly from mass layoffs with better advance warning and more resources to shore up the local tax base, plans for attracting family-sustaining jobs, and help for local businesses. [EPI, 2003; NELP, 2007]

Ensure the Safety of Imported Food, Drugs and Toys: Food imports more than doubled in the last decade and Americans eat 260 pounds of imported foods a year. Nearly 80 percent of children's toys are made in China, and recently Fisher-Price recalled almost 19 million toys made with high amounts of lead and dangerous magnets. India and China now supply the United States with more than 40 percent of the active ingredients for pills made here. [AP, 4/16/07; NY Times, 4/30/07; Toy Industry Association, 2007; CPSC, 2007; Washington Post, 6/17/07]

• Enforce mandatory country-of-origin labeling on all food, increase inspections of imported food, and require the Food and Drug Administration to assess foreign nation's food safety systems.
• Raise penalties for toy safety violations, require independent testing, authorize border detention and inspection of toys in high-risk categories and ensure the independence of the Consumer Product Safety Commission.
• Mandate the pharmaceutical industry to quickly implement non-forgeable electronic "track-and-trace pedigrees" to ensure that drugs stay safe at every step in the supply chain -- from factory to store and require sellers to prove that their drugs came from an authorized distributor.