March 2009 Newsletter

It is becoming more likely that President Obama will ask Congress to approve the Panama "free trade agreement" (FTA). The bill was negotiated during the recent Bush administration, but has not yet been introduced in Congress. This is in part because of political tensions regarding a man accused of killing a US soldier who was in the country's parliament; now that he has left office, this impediment has been removed.

A key issue is that Panama acts as a tax haven for companies that offshore jobs and also evade US taxes. A Government Accountability Office study identified Panama as one of eight countries – and the only current or prospective FTA partner – that was listed on all of the major tax-haven watchdog lists. The Senate Homeland Security Committee estimates tax evasion in offshore havens like in Panama costs the US tax payer $100 billion a year.

More than 50 house members have sent a letter to Obama last week, urging him to discard the pending FTA with Panama, as well as those with Colombia and South Korea. Lori Wallach, of Global Trade Watch warned that a vote on the FTA would provoke “huge political unpleasantness”. Citizens Trade Campaign has recently put out a statement of opposition to the Panama FTA, with lots of information on the problems with the pending bill. http://www.citizenstrade.org/

The Obama Administration indicated that they will conduct “outreach and discourse” with the public on whether the treaty advances the public interest. However as concerned citizens, we must be ready to fight this one. The Panama FTA not only reproduces the NAFTA model of harmful trade agreements, but also exacerbates tax fraud, which is something we cannot tolerate especially in the current economic conditions. Stay tuned – a battle may come up soon.

The Trade Reform, Accountability, Development and Employment or TRADE Act – the first example of a fair trade bill! - is expected to be reintroduced within the next few months. It is expected to resemble the 2008 version, with some tweaks to make it more politically palatable to enable even more Congress members to sign on this time around.

The TRADE Act addresses the content of trade agreements, stipulating what must and must not be included in fair trade policy. This includes issues like enforcement of ILO conventions on core labor standards, adherence to international environmental treaties, and reduced powers for foreign investors. The bill also addresses certain process issues, and would require a full review of all previous trade agreements to assess their true impact, as well as advocating for increased Congressional input into writing any new agreements.

Any groups who are interested in getting involved in promoting the TRADE Act can contact Stephanie Celt for more information – 206.227.3079

Ron Kirk, mayor of Dallas, is the President's nominee for the United States Trade Representative (USTR). The hearing for his appointment is currently in progress, but despite concern over issues of back taxes, most people expect that he will be approved. That is not to say, though, that it will be welcomed by fair traders. He has previously pledged to push hard for fair trade and more NAFTA-style FTAs – although comments during his hearing indicate that he thinks at least the Korea FTA is problematic.

In other news, Gary Locke, former Governor of Washington State, has been nominated to be Commerce Secretary. Locke is seen as a pro-business, pro-China candidate, and as such is not a natural supporter of a fair trade agenda

During his time as Governor, Locke actually signed up our state to national trade procurement policies, which effectively meant voluntarily giving up state autonomy on procurement policy. However, he did send a follow up letter to the USTR reinforcing the need for building exceptions into these policies to protect issues like human rights, the environment, and community development. This letter came in the wake of pressure from the State Legislature and community groups – so it hopefully means that he can be made to respond to pressure on important issues!

Coalition news: Employee Free Choice Act, Sweatfree WA, new member organization

The Washington Fair Trade Coalition recently voted to endorse the Employee Free Choice Act. The WFTC, in furthering the objectives of a fair trade trading system, decided to support the Act. The right for workers to organize is clearly linked to our mission to create a fair global trading system in which core workers' rights, community values, and our environment are safeguarded.

Please check this AFL-CIO site for more information about the Employee Free Choice Act and why it should be supported.

The Sweatfree Washington campaign has had many successes recently. After presentations by Sweatfree WA members, the Martin Luther King Jr County Labor Council voted to endorse a Sweatfree resolution in support of local sweatfree procurement efforts. In addition, representatives from the group were invited to present at a recent meeting of the State House's Commerce and Labor Committee on issues related to sweatshops and the possibility of the state of Washington signing on to the Sweatfree consortium. These are great steps forward!

Also, we are happy to announce a new member organization – Marigold Fair Trade! Welcome to the Washington Fair Trade Coalition – our 42^nd member organization.

2009 Economic Stimulus Worker Tour in Seattle on March 31^st, organized by SweatFree Communities and Sweatfree Washington. This tour will feature garment workers from the U.S. and Latin American who make uniforms and other clothing for our local and state governments, funded by our tax dollars. Location to be announced, but mark your calendars now for this great opportunity to learn more about the conditions in which people work to make garments bought by Washington State and other public bodies.

Also, the Seattle Green Festival will take place March 28-29 at the Washington State Convention and Trade Center. This will be filled with great information and presentations all weekend long – see the Green Festival website for more information. There will be a presentation by Stephanie Celt on fair trade issues on Saturday the 28th at 3pm.

"Panama a poster child for tax evasion" – Panama Star paper.

"House Members send Letter to Obama Reaffirming Fair Trade Campaign Commitments"

Ways and Means Plans Busy Trade Agenda During 111th Congress

Washington Fair Trade Coalition * 606 Maynard Ave S, Suite 252 * Seattle, WA 98104 * Phone: (206) 227-3079 * www.washingtonfairtrade.org