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Want to Know if the TPP Will Be a Disaster? Just Look at the Korean Trade Deal
Last edited Thu May 12, 2016, 11:27 AM - Edit history (1)
U.S. exports to Korea have been flat since the deal.By Leo Gerard / AlterNet May 10, 2016
On the fourth anniversary of the Korean trade deal, its lofty promises have been revealed as putrid pie in the sky: More jobs lost. No exports gained.
Just like NAFTA, just like China’s entry into the World Trade Organization (WTO), free traders swore that the Korean deal would shower jobs and economic prosperity down on America.
It didn’t happen. Actually, the exact opposite did. In all three cases, the schemes enticed corporations to close American factories and offshore work. That enriched CEOs and shareholders. But it impoverished millions of American workers and bankrupted communities.
Just like NAFTA, just like China’s entry into the World Trade Organization (WTO), free traders swore that the Korean deal would shower jobs and economic prosperity down on America.
It didn’t happen. Actually, the exact opposite did. In all three cases, the schemes enticed corporations to close American factories and offshore work. That enriched CEOs and shareholders. But it impoverished millions of American workers and bankrupted communities.
The deal with Korea is the most recent example of just how badly free traders hurt American workers and communities. The promise from free trade promoters was that the Korean deal would expand U.S. business opportunities and “support” 70,000 American jobs. The U.S. International Trade Commission estimated exports to Korea would rise by at least $10 billion.
None of that happened. U.S. exports to Korea have been flat for the entire four years. Meanwhile, imports from Korea rose 26.8 percent. As a result, the U.S. trade deficit with Korea more than doubled in just four years.
That means American workers lost jobs. Instead of Americans manufacturing commodities, Koreans did. Then the goods were shipped to the United States duty free under the deal that was supposed to be so great for American workers.
Robert E. Scott, senior economist and director of trade and manufacturing policy research at the Economic Policy Institute, calculated that in just four years, that trade deficit with Korea cost 95,000 Americans their jobs, mostly in manufacturing.
Free traders bragged at the time the Korean deal was signed that it would finally give American car and parts manufacturers access to the Korean market. And if an increase of less than $1 billion worth of vehicle and parts exports to Korea over four years is access, then it’s a success. By contrast, imports of Korean cars and parts to the United States increased by $10.6 billion over the same period. Frankly, that’s ten times more successful. For Korea.
That’s not the kind of news that devastated former car and car part manufacturing towns like Flint and Ypsilanti, Mich., want to hear after that 70,000-job promise made by those Korean free trade deal pushers. It’s certainly not good news either to devastated steel towns like Duquesne and Monessen, Pa., where the metal for cars and car parts was once forged.
None of that happened. U.S. exports to Korea have been flat for the entire four years. Meanwhile, imports from Korea rose 26.8 percent. As a result, the U.S. trade deficit with Korea more than doubled in just four years.
That means American workers lost jobs. Instead of Americans manufacturing commodities, Koreans did. Then the goods were shipped to the United States duty free under the deal that was supposed to be so great for American workers.
Robert E. Scott, senior economist and director of trade and manufacturing policy research at the Economic Policy Institute, calculated that in just four years, that trade deficit with Korea cost 95,000 Americans their jobs, mostly in manufacturing.
Free traders bragged at the time the Korean deal was signed that it would finally give American car and parts manufacturers access to the Korean market. And if an increase of less than $1 billion worth of vehicle and parts exports to Korea over four years is access, then it’s a success. By contrast, imports of Korean cars and parts to the United States increased by $10.6 billion over the same period. Frankly, that’s ten times more successful. For Korea.
That’s not the kind of news that devastated former car and car part manufacturing towns like Flint and Ypsilanti, Mich., want to hear after that 70,000-job promise made by those Korean free trade deal pushers. It’s certainly not good news either to devastated steel towns like Duquesne and Monessen, Pa., where the metal for cars and car parts was once forged.
Full article: http://www.alternet.org/labor/want-know-if-tpp-will-be-disaster-just-look-korean-trade-deal?akid=14248.44541.WLqwsA&rd=1&src=newsletter1056345&t=22
(bbm)
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