Trump
Prepares 'Punch in the Face' for those who trusted him on trade
In yet another broken promise, President Donald
Trump appears to be walking back his campaign rhetoric on the North American
Free Trade Agreement, or NAFTA—preparing to deliver what one critic described
as "a punch in the face" to
those who trusted Trump to make the trade deal better for working people.
According to the Wall Street Journal on
Thursday, a draft proposal being circulated in Congress by the U.S. trade
representative's office "would keep some of NAFTA's most controversial
provisions, including an arbitration panel that lets investors in the three
nations circumvent local courts to resolve civil claims."
Such panels are regarded with suspicion by environmental, labor, public health, and democracy advocates, who say they put corporate welfare above the public interest.
As Friends of the
Earth president Erich Pica said Thursday, "These tribunals
allow corporations to punish governments wishing to enforce sensible
environmental and public interest regulations by imposing massive monetary
damages."
With the leaked
proposal, Pica said, "Trump and members of his administration are proving
that they will always prioritize CEOs over the working men and women who have
suffered from NAFTA's punishing trade policy."
Citing trade scholar
Jeffrey Schott, the Wall Street Journal further reported that
"a number of the proposed negotiating objectives echo provisions in the
Trans-Pacific Partnership [TPP], a 12-nation trade pact among Pacific Rim
countries. Mr. Trump campaigned heavily against the TPP. The president pulled
the U.S. from the deal on his first working day in office."
Lori Wallach, director
of Public Citizen's Global Trade Watch, agreed in her analysis on Thursday:
"For those who trusted Trump's pledge to make NAFTA 'much better' for working people, it's a punch in the face because the proposal describes TPP or any other same-old, same-old trade deal."
She continued:
If this is Trump's plan for renegotiating NAFTA—expanding the investor protections that promote job offshoring plus maintaining the ban on Buy American and the foreign tribunals that can attack U.S. laws—he will have broken his campaign promises to make NAFTA better for working Americans and will have a deal that cannot get a majority in Congress.
This is the sort of corporations-first, not-better-for-working-Americans agenda that results from Trump's decision to keep the same closed-door process and the 500 corporate advisers that got us into the original NAFTA and TPP debacles. Already, the corporate trade advisers have been consulted on the NAFTA agenda in a meeting two weeks ago, while the few labor advisers included in the system were shut out. But for this leaked document, the public and Congress are being left in the dark about negotiating plans and goals.
"Mostly what I
see here is the same corporate wish list and a set of international rules that
work quite well for global corporations," added Celeste Drake, the
AFL-CIO's trade policy specialist, in a comment to Politico.
In his press briefing
on Thursday, White House press secretary Sean Spicer downplayed the proposal, saying it is
"not a statement of administration policy" and "not an accurate
statement of where we are at this time."
But the Los
Angeles Times noted that the draft may reflect lobbying on the part of Trump's
pro-corporate advisors such as former Goldman Sachs president Gary Cohn, who now serves as director of the
president's National Economic Council. "He and others have been seeking to
temper the more protectionist policies articulated during the campaign,"
the LA Times wrote.
On the 2016 campaign
trail, Trump called for killing NAFTA altogether,
winning him support in Rust Belt states that have seen manufacturing jobs
decimated over the last two decades.
As such, "there
are a lot of questions for how this document gets translated out for the very
workers that voted for him in Ohio and Michigan and Pennsylvania," the
AFL-CIO's Drake told Politico. "Of all the things people were
voting for in November, it's clear they were not voting for more of the
same."