DeFazio's Fight Against CAFTA
Russell Sadler
Representative Peter DeFazio is fighting a lonely battle.
Oregon’s 4th District Congressman is opposing CAFTA, the Central America Free Trade Agreement. DeFazio’s opposition is viewed as quixotic, even obsolete, by the free trade cognoscenti.
DeFazio is a rare congressman. He actually believes in representing his constituents at a time when most congressmen slavishly dance to the tune of the interest group lobbyists who finance their perpetual campaigns. Most incumbents fear lobbyists will finance primary opponents against them if they don’t toe the line.
The “best minds” now believe “globalization” is an accomplished fact and any further resistance is futile or even counterproductive. DeFazio is unfazed. In his view, NAFTA, the North American Free Trade Agreement, has been a disaster for his constituents and for his country.
NAFTA is responsible for the export of American manufacturing jobs and any benefits for American workers are far outweighed by the losses so far, DeFazio argues.
Supporters of NAFTA predicted the treaty would create 170,000 new U.S. jobs. It turns out that NAFTA has led to a net loss of 880,000 jobs in the U.S. as multinational businesses abandon U.S. manufacturing plants for cheaper labor elsewhere. DeFazio argues that CAFTA will lead to more of the same.
The job losses DeFazio worries about are not abstractions. Many of your Oregon neighbors have lost jobs to what is euphemistically called outsourcing and off-shoring. Some 290 jobs were lost in West Linn when a paper company moved its operations offshore. About 70 jobs were lost when Oremet, the Albany metals company, sent work offshore. PSC Inc., the Eugene pioneer of scanning technology, sent 22 jobs to Asia because their competitors were doing it and the company had to stay competitive.
The number of jobs lost is not as significant as the type of jobs being lost -- family wage jobs with benefits. To the extent they have been replaced, these jobs are replaced by retail and service industry jobs with lower wages and few benefits. Not surprisingly, the substitution of low-wage jobs for higher-wage jobs is precipitating a decline in the American middle class standard of living even as it raises living standards the counties that receive the work. Defazio says his job is protecting his constituents’ standard of living first.
DeFazio, a Democrat, is also acutely aware of the price his party has paid for its support of free trade ideology. Free trade simply eliminated a major portion of the Democrats’ political base as their jobs got shipped overseas. The Democrats are a moribund political party not because they were too liberal, embraced abortion or civil rights, got out of touch with voters, don’t pray in public often enough or any of the other rants of the Republican propaganda machine. The Democrats simply betrayed their traditional constituency of manufacturing workers to embrace free trade. Democrats have found no replacement for them.
Democrats like Peter DeFazio must wonder if CAFTA will have a similar effect on Republican fortunes. CAFTA is more about agriculture than manufacturing. Agriculture is a keystone Republican constituency. The Republicans are about to betray American agriculture like the Democrats betrayed American manufacturing workers.
It has already begun. All the privately-owned food processing plants in Western Oregon are closed or closing. The number of cannery contracts given to Western Oregon farmers is near zero. The major exception is a cooperative freezing plant at Brooks, north of Salem. Virtually all the food processors who operated in Oregon have relocated to Central and South America where they offer cannery contracts to local and corporate farms that have the capital to engage in industrial agriculture. They can and freeze food and import it into the United States. CAFTA will eliminate tariffs and lower the cost of importing the food that competes with what remains of American agriculture.
Under NAFTA, unrestrained fruit imports from Asia and South American began devastating the Northwest apple and pear business. Following the enactment of NAFTA, America’s agricultural trade deficit with Canada and Mexico tripled -- from $5.2 billion to $14.6 billion. DeFazio believes that deficit will rise even more rapidly if CAFTA is enacted.
The more interesting question is whether the Republicans will suffer a similar fate for betraying their agricultural constituency as the Democrats suffered for betraying their manufacturing constituency.
Republicans in Congress are assured by interest group lobbyists that the increasingly sophisticated campaign techniques they finance will render opponents impotent at election time. The success of Republican campaigns over the last decade give credence to these arrogant assurances.
The ultimate question is now long voters will remain gullible and distracted by content-free “cultural” hot button issues that have no real relevance to their economic standard of living. In the meantime, Peter DeFazio continues his lonely vigil on the ramparts of American manufacturing and agriculture.
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connect with blueoregon
9:51 a.m.
Jun 5, '05
Russell, thanks for an interesting piece, which comes at the subject obliquely to the usual angles of vision on it. An aspect I found particularly valuable was your focus on food processing. We might note the parallel to debates over processed vs. raw timber exports a while ago. We might note too that Gordon Smith is on the owner/employer side of that industry, though perhaps in a fairly different way from the real corporate giants that dominate it. I would be very interested to know how you see the conflicts of interest within rural and rurally-tied small to medium sized communities over the divisive and dispossessing aspects of market forces -- which of course have been driving farmers out of operation for a century and a half.
You've offered a rich vein to mine for discussion. One thing I'd like to point out is that DeFazio isn't perhaps quite as alone as you make out. All of Oregon's Democrats have now come out against CAFTA. Earl Blumenauer was the last undecided but came out against a few weeks ago. He probably will come under pressure to change. Those of us in his part of mad, bad Multnomah Co., who also oppose CAFTA ought to let him know we think he made the right choice and encourage others to do so.
But even more than that, I would like to point out that this is an issue which really does not fit the "moderate" = "anti-elitist" and "extreme/ideological" = "latté leftist/liberal elitist" assumptions that apparently beloved by so many BlueOregonians, despite the help in lends Rs by buying into their rhetoric. DeFazio is a member of the Progressive Caucus in the House, the most ideologically leftist organized segment of that body. The fact that DeFazio has strong ideas and principles a.k.a. ideology does not in fact make him a robot, however, in fact the opposite.
And who amongst the Dems was first among equals in promoting NAFTA and the WTO? Who used all his many admired and consummate political skills to get them through, over strong objections within his own party? Why none other than the doyen of New Democrats, the great triangulator, Bill Clinton. To a very large degree, the center-to-center-right wing of the DP, who often are quite immoderately ideological about their centrist, is also the economically neoliberal wing of the party.
Meanwhile, who has been organizing the pressure that brought Earl around, despite the pretty sparkly qualities of abstract market theory if you squint at it the right way and don't get too close to how it actually works? None other than than those terrible latté leftists such as Jobs With Justice and the Nader-originated Public Citizen, with aid from bleeding hearts in the faith-based leftish groups like Jubilee USA, which understands the connections between its anti-debt campaigning, so-called free trade, and the immiseration and exploitation of poor country farmers and workers, and college students in the anti-sweatshop, pro-union and ecology movements.
If we want to take up your question about whether the Rs will pay the price for selling out rural and rural-tied Oregon, and America, and try to see that they do, I'd suggest that one thing we might do is try to see such contrarian connections and figure out how to make others see them too, rather than let ourselves be hypnotized by polls and by the conventional categories that shape them. Perhaps that's the real test we should use for independence of thought, willingness to question the truisms, rather than willingness to posture with sell-out pronouncements and votes on core issues.
Just a thought.
Jun 5, '05
I am all for independence of thought and willing to question truisms, which is why I always look forward to Russell's columns.
Jun 5, '05
I have just read "DeFazio's fight against CAFTA". It is dated June 5, 2005, and written by Russell Sadler seen in Blue Oregon. Bravo to the author, Mr. Sadler - and to the brave media editor who published this excellent journalism. CAFTA is a huge step deeper into an American catastrophe
I am directing my reaction to both Russell Sadler and Representative Peter DeFazio of Oregon.
I refer to the article ... http://www.blueoregon.com/2005/06/defazios_fight_.html
I am a High Tech American who has been unemployed since 9/11. I have more than one college degree and more than one decade of high tech IT experience.
Since 9/11, I have been seeking work. 185 weeks. I am convinced that High Technology IT, as an American profession is going to be dead soon. Exactly as the American television manufacturing industry is today dead. Exactly as the American steel industry of Bethlehem Pennsylvania is today dead. Exactly as the American denim fabric and clothing industry is today dead. The entire American economy is going to be stone cold dead, soon. Just like the economy of Gaza and Somalia.
You (Russell Sadler) should read these 2 very scary items...
http://www.onlinejournal.com/Commentary/041505Mazza/041505mazza.html Deindustrialization
http://www.dissidentvoice.org/Apr05/Whitney0415.htm The Deficit Timebommmb
Some of us are convinced that the American economy is headed to ruin, -- that OFFSHORING is the reason.
Truth is that in Mexico, India, and Communist China people are being paid about $3.00 an hour and are producing work which is worth that amount. The supply curve of people willing to work at that level of remuneration and quality has equaled the demand curve of corporations who will only pay that much remuneration and then only expect that much quality. Those foreigners have been failing to do the job, and it happens very often. Gartner recently published statements that said 50% of all outsourcing projects will fall short of delivering expected value and will be deemed unsuccessful. I am hearing that quality for the so-called successful projects is laughing-stock. http://www.line56.com/articles/default.asp?ArticleID=6456
With civil Aircraft Maintenance OFFSHORED to El Salvador and Singapore, the parts are falling off of the aircraft in flight. I hope the FAA is paying attention to Northwest Airlines. http://magic-city-news.com/article_3580.shtml http://starbulletin.com/2005/04/12/news/story13.html
Pro OFFSHORING pitches typically encountered are rampant with LIES, with False Statistical Assumptions, and with Genuine Manure about such things as advances of India's education system over America's.
Lies - (one example, - the OFFSHORE Call-center talker's variety)
My Name is Tony. I am in Houston Texas. How may I help you ?
Unlike American based call centers, the OFFSHORE type engage in lies. Many lies. Two lies always before the customer has even completed a first sentence. All of the India OFFSHORE Call Center Talker's lies are done under orders from the corporate officers. Company policy is to lie to customers.
Call center talkers in the USA typically spoke English - clean, clear, understandable English. Their expertise was in their brains and it was based on experience, -- not on a script scrolling on a screen, and read into a microphone with an unintelligible Hindi accent. And the Americans did not lie to valued customers.
False Statistical assumptions -
50% of OFFSHORED projects will fail, Gartner says. That is a projection into the future. It is likely false, as the true number is probably double that. http://www.line56.com/articles/default.asp?ArticleID=6456 http://www.theregister.co.uk/2005/04/19/offshoring_savings_sometimes/
Research from Benchmark Portal and from Kelly Services recently has determined that 65% of American consumers would change their purchasing patterns if they believed that a company had offshored its call center operations.
In my opinion, assumption of 65% of American customers fleeing a detected OFFSHORING corporation is an understated statistic. Among the 3,347,100 unemployed High Tech Americans who are victims of OFFSHORING - the number of customers acting as fleeing customers will more likely be near 95%. Among the rest of the not-yet-fired Americans, the number might be a bit less than 95%.
I personally will NOT do business with an OFFSHORING corporation.
Genuine Manure - various panel discussions that frequently spout faulty reasons for OFFSHORING such as . . . .
You can often hire higher-quality, more loyal workers offshore than onshore.
Most agents in offshore sites have college degrees.
Canada, New Zealand, and Northern Ireland have arguably better education systems than the U.S.
As for arguments that say countries have better education systems than the USA - which of those countries have put men on the moon? Was it India ? Ireland ? USSR ? Communist China ? Remember that putting men on the moon and bringing them home alive is 36 year old technology. My country did it multiple times. My company contributed to the national effort, and "we" succeeded.
Which of the OFFSHORED to - and admired countries have built Aircraft Carriers with combined simultaneous landing and takeoff capabilities? Include on board up to 65 aircraft including supersonic types. Include living quarters for 4,000 skilled people. Include non-refueling ship capability, and operate all twelve active aircraft carriers at once. (All of this is 40 year old technology). Has the Philippines accomplished this? How about India with their impressive education system (and their millions of illiterate street beggars sitting at curbs among the cow dung and the flies) ?
Which countries have produced education systems that ultimately resulted in breaking world records? Name a country that has designed and built aircraft which can compete with the triple-sonic SR-71? New Zealand maybe ?
If the USA had not agreed to sell India F-16s recently, India would have to purchase third rate French hardware, or Russian hardware (which crashes in Air Shows). Perhaps India would have no hardware. India is not capable of building anything competitive, itself.
Which countries have landed robots on Mars and kept the multiple Mars vehicles going doing active mobile research plus daily communications, - for a full year?
http://marsrovers.jpl.nasa.gov/home/index.html Has Singapore accomplished that ?
How many countries have nuclear powered submarines (a 50 year old technology) ?
How many of them have suspension bridges (100 year old technology) ?.
Which of them has transCONTINENTAL railroads dating 150 years back?
Tell me what new medical breakthroughs have come from India's medical institutions ? Have they invented pharmaceuticals or simply stolen them ? http://www.businessweek.com/ap/financialnews/D88VEI800.htm?campaign_id=apn_home_down
Which of the admired foreign countries has ever created Battleships capable of heaving 16 inch diameter, 1,900 pound shells for 20 miles and hitting a target accurately, as the USS Iowa has done ? http://www.fas.org/man/dod-101/sys/ship/weaps/bb-61-dnsn8709176_jpg.gif
Japan had one such Battleship, and we sent it to the bottom of the Pacific Ocean.
Germany had one and the British sent theirs to the bottom of the Atlantic Ocean. Argentina purchased a battleship and the British sent it to the bottom of the South Atlantic Ocean.
India impresses me far far less than it impresses Accenture and Convergsys and Yankee Group and Forrester Research and Gartner, and Mckinsey, and Deloitte.
India should try to sweep their streets annually before they brag to me about BPO anticipated in the year 2009 (with 50% failure rates).
India workers who are paid $3.00 an hour are worth every penny of that. Their work shows matching value in their 50% failure rate.
Praising OFFSHORING, despite its huge failure rate is induced by greedy executives who do not care that they are putting my country into crisis. What crisis ? Simply the destruction of my country via the ultimate devaluing of the United States dollar. These vile American (correction - multi-national) businessmen favor the disemboweling of my country, for their own reasons (wealth). The crime which they commit is job STEALING.
OFFSHORING is stealing done at the NATIONAL LEVEL. It should be a federal felony.
It is stealing from my country and my countrymen. Stealing which crosses federal borders. It is the hollowing out and the de-skilling of the (former) superpower known as the United States of America. It is national stealing exactly as if Americans woke up one Thursday morning and discovered that the Statue of Thomas Jefferson has been stolen from inside the Jefferson Memorial on the Washington DC Tidal Basin. Such a crime would generate New York Times half page sized headlines. From my perspective (185 weeks since a paycheck) stealing is criminal behavior whether it promotes the disappearance of 3,347,100 American jobs (including mine), or whether the stealing causes a suddenly empty Thomas Jefferson pedestal.
Jun 6, '05
Mr. Nodleman - All sarcasm aside, I applaud your post. I believe we need to bring to light the fact that business is no patriot. Business has no country, no flag, no loyalty except to itself and making profits. This is the nature of business and it will never change. I don't think business needs to change, but we need to change our attitude towards business and emphasize in bumper sticker fashion how the big companies pledge no allegiance to our flag, or any flag.
When our government is not "of the people, by the people and for the people" it is not American, plain and simple.
Go Peter DeFazio! You da man!
Jun 6, '05
DeFazio has been a light in the darkness on this important issue. I do agree with Chris Lowe that Peter is no longer alone on this. More folks are waking up to the considerable downside of globalism.
As destructive as these trade pacts are to people in both industrialized and developing nations presently, their effect will be downright disastrous if [when, I believe] fossil fuel prices skyrocket because of Peak Oil. We need to be building localized economies, not dismantling them. Barreling down a freeway at high speed while ignoring the brick wall blocking the road ahead is an apt metaphor for our present course.
10:44 p.m.
Jun 6, '05
Tom C. (and Russell S. and others) are right, and I don't mean to take away anything from DeFazio, who is remarkable in any number of ways. He deserves credit for leadership that has helped to keep the administration from bringing CAFTA to a vote for more than a year since Bush signed it.
However, I should have written that all Oregon House Democrats now oppose CAFTA. Earl Blumenauer issued a statement announcing opposition on May 28, 2005.
But Ron Wyden at present is supporting CAFTA.
This matters a great deal because Oregon has an outsized voice right now on whether CAFTA will move to a vote soon or not. At present CAFTA is being considered in the Senate Finance Committee, on which both Wyden and Gordon Smith sit.
Michael Geoghegan of the Oregon Fair Trade Coalition wrote me the following:
---------quote:
On the CAFTA front -- please contact Sen. Ron Wyden's office ASAP!! On Friday, Wyden held townhall meetings in Albany and Philomath where he repeatedly defended CAFTA and made it clear that he plans to support the agreement.
The Finance committee will review CAFTA in a mock mark-up in two weeks time and CAFTA will come back to the finance committee again before it goes to the floor. Both Wyden and Smith could play a crucial role in defeating it. It's appalling to hear Wyden support Bush's CAFTA after Blumenauer, Wu, Hooley, and Defazio have all stated that they'll reject the agreement.
--------end of quote
Both Smith and Wyden should be pressed to oppose CAFTA, but Wyden in particular should be called out on it, for putting "bipartisanship" above his constituents' interests.
For more information on Finance Committee situation see the Americn Friends Service Committee action alert on the topic.
Wyden office phone numbers:
DC: (202) 224-5244 Portland: (503) 326-7525 Salem: (503) 589-4555 Eugene: (541) 431-0229 Medford: (541) 858-5122 Bend: (541) 330-9142 La Grande: (541) 962-7691
Smith office phone & fax numbers
DC: (202) 224-3753; Fax: (202) 228-3997 Portland: (503) 326-3386; Fax: (503) 326-2900 Eugene: (541) 465-6750; Fax: (541) 465-6808 Medford: (541) 608-9102; Fax: (541) 608-9104 Bend: (541) 318-1298; Fax: (541) 318-1396 Pendleton: (541) 278-1129; Fax: (541) 278-4109
(From the senators' respective websites).
Some useful sites for information about problems with neoliberal "free trade" as it currently is being pursued include the Citizen's Trade Campaign, which co-sponsors the Oregon Fair Trade Campaign along with the Alliance for Jobs and the Environment, a group operating in Washington, Oregon and Northern California; Public Citizen's TradeWatch site and its CAFTA page; AFSC's Trade Matters site; and the Stop CAFTA Coalition website.