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Working People Need Real Trade Reform, Not Just Rhetoric: AFL-CIO

Posted July 27, 2017

Under Economic Issues, International Trade Issues


(American Federation of Labor and Congress of Industrial Organizations)

For decades, America’s trade agenda has failed working people. Last year, voters in both parties called for change. In the early days of the Trump administration, actions have been initiated on existing trade policies, from assessing the national security impact of steel and aluminum imports to considering reform of the North American Free Trade Agreement and the U.S.-Korea Free Trade Agreement. Updating our nation’s trade deals is vital, but only if the focus is on how to increase and improve the quality of jobs. Much work lies ahead, and the direction and effectiveness of President Trump’s efforts still is unknown.

No task is more pressing than ensuring the administration’s renegotiation of NAFTA results in new rules that reflect the needs and interests of working families, not global corporations. NAFTA has failed working people in Canada, Mexico and the United States. Since NAFTA’s inception in 1994, corporate profits are up, but wages in all three countries are stagnant. Despite increased productivity, workers are not receiving a fair return on their work. There is more trade between the three NAFTA countries, but that trade is unbalanced, with the United States running consistent deficits with Mexico and Canada. The freedom to negotiate together is under attack in all three countries, diminishing the voices of working people and increasing inequality. As with other policy failures, broken trade deals disproportionately have harmed communities of color.

We can do better. NAFTA is not a failure of trade itself, but the result of trade rules rig ged to favor global corporations and the wealthy elites in all three countries. Trade should be a cooperative endeavor that benefits us all. For that to happen, NAFTA must change dramatically. NAFTA and its inequities can’t be fixed with mere tweaks or by substituting language from the failed Trans-Pacific Partnership. Nor should the United States adopt a strategy that pits the working people of North America against each other. We must end the race to the bottom that hurts working families, as it impoverishes our democracy and starves investment in our public infrastructure. We must replace NAFTA’s vicious cycle with a virtuous one — with a set of rules that promote shared prosperity for workers in all three nations. Click here to read more.