Yesterday the White House took the last step to owning all three leftover Bush NAFTA-expansion deals with Korea, Colombia and Panama by announcing that they would send them to Congress imminently. The Economic Policy Institute estimates that we’ll lose 159,000 jobs with the Korea deal alone.
At a time of high unemployment, it’s difficult to fathom why the President would be fighting to increase our trade deficit and ship tens of thousands of jobs overseas.
Even more stunning, however, is the loophole in the Obama deal that will hand billions over to North Korea to spend on their nuclear weapons program (PDF).
Under the terms of NAFTA, goods have to have 50% domestic-made content in order to qualify for inclusion. However under KORUS, goods with up to 65% non-South-Korean content qualify, as long as final assembly off goods happens in South Korea. That means 65% of all parts can be made China, Vietnam, wherever — giving rise to fears that the South Korea deal will be a back-door extension of NAFTA for China.
But surely, somebody thought to exclude North Korean content from the deal, right? I mean, with all the huffing and puffing about the need for increased sanctions against North Korea to keep them from funding their nuclear program. At the very least, somebody must have included language in KORUS that makes an exception for US sanctions against North Korea, which would otherwise violate NAFTA’s ban on import licenses.
Well if that’s what you thought, you would be wrong.
Every day, 44,000 North Koreans are marched into a North Korea border sweat shop zone called Kaesong to work for 28 center per hour — of which the Kim regime keeps 55%. In 2007 Ambassador Jay Lefkowitz, the U.S. Special Envoy for Human Rights in North Korea, wrote that Kaesong was one of the only sources of cold hard currency North Korea had to fund its nuclear program:
Because the North Korean government takes a major portion of workers’ salaries, these arrangements provide material support for a rogue government, its nuclear ambitions, and its human rights atrocities.
According to research done by Public Citizen, Obama’s NAFTA-Korea deal not only fails to exclude North Korean content, it allows for a massive expansion of the Kaesong district — and the profits that North Korea will reap (PDF):
The U.S. government estimates that the North Korean government currently collects $3 million to $4 million a month from the Kaesong operations now, prior to a massive planned expansion of the border sweatshop zone. South Korea cut off most trade with North Korea after attacks last year, but left Kaesong trade open. There was $1.9 billion in total trade between the two Koreas in 2009, about half of which was through production by South Korean firms in Kaesong. While $1.9 billion is not a lot of money relative to the U.S. or South Korean economy, it constitutes more than a third of North Korea’s total external trade. Given the Department of Defense estimates that North Korea’s nuclear program cost the regime as little as $200 million to develop, the hard currency generated by North Korean trade flows is sufficient to finance the North’s nuclear proliferation regime several times over.
The North Korean government is projected to receive $9.55 billion in economic gains from Kaesong over nine years under a planned major expansion. This is equivalent to 36 percent of North Korea’s estimated national income. Hyundai and the Korea Land Corporation, the principal developers of Kaesong, plan to enlarge the complex from its current 800 acres to a more than 6,000-acre complex (or nine square miles), where 1,500 South Korean and other foreign firms will employ 350,000 North Korean workers. This would make the complex more than half the size of Alexandria, Virginia.
Is this an accident? Hardly. Members of Congress like Brad Sherman have been waving red flags about the dangers of the Kaesong provisions in KORUS. The Chamber is pushing this deal hard, however, and there’s a lot of money to be made in Kaesong. And as we all know, what the Chamber wants, the Chamber gets.
But let’s do the math here. The US government estimates that the North Koreans are 5 years and $200 million away from having nuclear capacity. I understand why KORUS would benefit the mega corporations that use the Chamber of Commerce as their front, the ones that hope to profiteer off of “slave labor” in Kaesong. But how exactly is it good for the American people to allow North Korea access to US markets? I just don’t see the upside to offshoring jobs, increasing the trade deficit and writing a check to North Korea to spend on nukes.
But then, few people do. Poll after poll shows that the vast majority of the American public – across stunningly diverse demographics – oppose these NAFTA-style trade deals. It’s an issue that has oddly united union members and Tea Partiers, progressives and conservatives, Democrats and Republicans in opposition. The AFL-CIO, Carpenters, Teamsters, CWA, Machinists, IBEW, Steelworkers, Painters, Boilermakers, the Sierra Club, Public Citizen and the National Farmers Union all oppose the deal., as do Republicans like Walter Jones, Ron Paul, and the Campaign for Liberty.
Earlier this month, even White House Chief of Staff Bill Daley (whose job is to sell these trade deals and who helped former President Bill Clinton sell NAFTA to a skeptical Congress) said that workers “lose from these agreements” and implied that campaigning against these NAFTA-style trade agreements could even be an electoral advantage.
But if we’ve learned one thing over the past few years, it’s that broad popular opposition is meaningless when it comes to Chamber’s ability to bribe impose its will on our elected officials. If KORUS passes, the hawks will soon be banging the war drums and warning us all that the smoking gun of North Korea has become a mushroom cloud, now is the time to act.
Because three wars are just not enough, I guess.





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Well, if you can’t beat The Axis of Evil, join it, eh? ; )
Freudian?
Jane:
This link didn’t work for me: will hand billions over to North Korea to spend on their nuclear weapons program.
High Noon with a dishonest sheriff who rides with those that fund the outlaws.
And our media will not point out “Obama Loves N Korea Nukes – gives money to fund nukes in new trade treaty that kills 160,000 American jobs”.
*bangsheadondesk*
Make no mistake, these trade deals will cost hundreds of thousands of American jobs – and Mr. Obama is backing their passage to the hilt. That’s an albatross we should be happy to remind the public he obligingly put round his own neck to appease his Republican opponents. Mr. Obama agrees with them on every other economic issue, why not this one?
Some day, we may have another Democrat in the White House. We certainly do not have one now.
Ain’t it the truth…IIRC…this is the same leader who is very crazy & maybe dangerous…..Right?
Then we should go out and find one…
You mean Obama?
Absolutely!!!
*G*
x2 w. Kelly, also.
What madness, thanks for the info Mz. Hamsher.
Ah, sorry. Public Citizen has a problem with their PDF. I uploaded onto our servers, so you should be able to get it now.
Daley doesn’t need a hose to beat Congress in selling out our Citizens in favor or more money in their IRA’s. Well at least Congress, Obama LLC and the MOTU will bleat in ecstasy over the continued diminution of the middle class. What I don’t understand is why the MOTU care so little about us peons and the long term effect on their actions causing them to move to enclaves guarded by Xe Services and being ‘coptered over the hoi polloi to the next enclave.
Considering that we have a narcissistic, Fascist flim-flam, ass-clown who looks good and talks good in the White House, this is not a surprise at all.
This is completely asinine…! Par for the course, tho…! *gah*
So does that mean that Hyundai cars will infiltrate even more into the US markets while our bailed out US car companies compete over there, at the same time they have shipped the largest part of manufacturing to Asia?
I keep falling behind on this chess game. I can’t figure out the rules and I certainly can’t determine which Pawns are about to be knocked out.
Surely somebody will get thru the gates before they realize what happened.
You must be describing our very own Benito!
I fail to understand why Big Bidness still despises Obama. What possible benefit do they hope to attain under a GOP successor that Obama hasn’t handed to them on a silver platter?
I think they just say they despise him for the scare factor. I think what they want is to take over the government and all the tax revenue for themselves. Seriously, is there anything in our government that they don’t have tentacles in sucking out our money?
Just when you think Obama can’t sell out the middle class any worse, he pulls another stunt…..
This isn’t chess. It’s Calvinball.
Wait we are still pretending that free trade agreements destroy jobs? Wow I thought this was 2011.
Most of those Hyundai’s are assembled in Alabama out of imported and domestic parts. Non-union labor, of course, but it’s high tech compared to the Asian sweat shops discussed here. But probably not for long.
Thanks.
Why is it that the same characters keep showing up in important positions in American government, despite the fact that policies they pushed, were harmful to the USA?
NAFTA …. disaster for Americans, and Mexicans. yet,
It isn’t possible to be too cynical, when you look at the way things are run.
idiotic.
Agreed.
The more they despise him, the more he does for them, Teddy :-)
Because a N. Korea that has money to spend on it’s nuclear program gives the U.S. and the private contractors a reason for a foothold near China, and to operate warships in the China Sea?
I just learned about mainland Chinese business activities include buying up land in southern Cambodia for the oil reserves underneath them. Vietnam is already an avenue for doing business in Cambodia. In the meanwhile the Philippines come up on the radar again.
Battle for control.
http://www.businessinsider.com/oil-chokepoints-suez-canal-2011-1#1-the-strait-of-hormuz-1
Yes! The Chinese have been on a buying expedition around the globe. They like real estate in the US as well.
Here’s the video the Obama’s press conference ”pushing the GOP on deficit deal’. Among the reports on it at the NYT, WaPo, and TPM, the differences are almost comical.
http://www.washingtonpost.com/politics/obama-pushes-gop-on-deficit-deal/2011/06/29/AG4GqpqH_video.html?hpid=z1
I’ll pull a couple bits from TPM:
“There are a number of steps that my administration is taking, but there are a number of steps that Congress could take,” he said. “Many of these ideas have been tied up in Congress for some time.”
They included passing a number of pending free trade agreements, a move popular with many GOP lawmakers, but also renewing temporary tax breaks negotiated with Republicans as part of the deal extending the Bush tax cuts last year. Democrats have recently used the GOP’s refusal to extend the payroll tax cut to imply Republicans are deliberately tanking the economy, since tax breaks for businesses typically enjoy broad support from the party. Obama did not go that far, but his explicit call on Congress to take action lends weight to the Democrats’ pressure and could be a preview of his 2012 campaign message.
(the ‘tough part’, IMO)
“Before we ask our seniors to pay more for Medicare, before we cut our children’s schools, we should ask corporate jet owners to pay more,” he said. “I don’t think that’s real radical. I think the majority of Americans agree with that.”
On NLRB v. Boeing:
Obama declined to weigh in on a legal dispute between the National Labor Relations Board and Boeing over whether a manufacturing line they opened in South Carolina is illegal retaliation against the company’s union workers in Washington State.
“It’s an independent agency, it’s going before a judge, so I don’t want to get into the details of the case,” he said. He added that “we can’t afford to have labor and management fighting all the time at a time we’re competing against Germany, China, and other companies that want to sell goods all around the world.”
Does that mean what I think it means???
Here’s the rest:
http://tpmdc.talkingpointsmemo.com/2011/06/president-obama-demands-action-from-house-gop-on-jobs-taxes.php
“
1
Obama attacks the Middle Class and Unions
2
Rahm attacks the Middle Class and Unions
http://www.huffingtonpost.com/2011/06/29/emanuel-unions-set-for-cl_n_887076.html
3
Gov. Walker attacks the Middle Class and Unions
4
FDR turns over in his GRAVE
Clinton tried to convert NAFTA to fair trade via the two extra laws – but WTO rules made those laws toothless (environment and labor rights). We need to get out of the WTO. And before 2004 and Paul Samuelson’s paper it was standard econ theory that trade agreements always helped both countries – and indeed the EU structures their agreements so that there is a near zero trade deficit or surplus in aggregate. Paul showed in 2004 that it was easy to transfer ones competitive edge in a trade agreement and that this was a disaster.
But it took GWBush to get the total sell out of competitive advantage for cheap Chinese labor as the standard US Trade pack – and to get Obama on board as a salesperson for these unfair trade agreements that cost us jobs.
It means Obama endorses cheap labor and the race to the bottom and the destruction of unions – but we knew that. It also means he will not tell us bluntly the truth of his beliefs but will cover them over with a plea to be nice to each other.
two words
FUCK OBAMA!!!!
“At a time of high unemployment, it’s difficult to fathom why the President would be fighting to increase our trade deficit and ship tens of thousands of jobs overseas.”
Lower wages abroad equals greater profit while high domestic unemployment is not without its advantages. But we know all that.
Lack of allegiance to the nation state is perhaps the one point where US-style Corporatism/Neoconservativism deviates from traditional Fascism. But if the nation state is irrelevant to those with serious power and money, at least in terms of how it has been imagined over the last 200 years, then such a distinction doesn’t matter.
“But surely, somebody thought to exclude North Korean content from the deal, right?”
Perhaps the plan is to defeat a member of the Axis of Evil by bringing them within the fold? Can’t have any loose ends lying about in the context of Globalization. And if NK is going to get nukes eventually anyway, well . . .
Lol Obama is straight out of a horror movie.
I’m going to call him Jason from now on.
I’m sure Obama totally supports North Korea’s nuclear weapons program and that this post’s headline isn’t anything near brainless sensationalism.
“During the Democratic primary battle, Barack Obama repeatedly criticized the North American Free Trade Agreement as bad for America, noting that “we can’t keep passing unfair trade deals like NAFTA that put special interests over workers’ interests.”"
http://www.cbsnews.com/stories/2008/06/20/politics/main4198107.shtml
The first rule of political speech in a nation where the primary function of the President is to look good on TV and con the public while promoting the interests of those who provided the money to get him the job is that whatever he says, the opposite is true. This happens with such predictable regularity that it should perhaps be called the Iron Rule.
Why not continue to make it seem like Big Business despises Obama? The guise will just get you more rewards. And more benefits.
The Administration caves in to the shock troops of Big Business, the GOP, every single time.
“They stopped printing money and started printing oil (SPR is QE3)” (by Ashraf Laidi, June 24, 2011)
We already know how Facebook plays into this (compare to BitCoin)
Today’s graphics.
I’m going to point again to this great video:
“RSA Animate – Crises of Capitalism” (posted on June 29, 2011 by maxkeiser)
Hence why many folks are saying “Stop The Machine.”
Kabuki, Teddy, kabuki. The illusion of choice.
Hey look at the bright side free trade with Columbia! Maybe we can now get them to stop putting that drug in to cut their coke with that spreads flesh eating bacteria.
Footnote: “Darrel Issa Stocked Up on Goldman Sachs Bonds While Blocking Its Investigation” (OBRag.org, by Source, June 29, 2011)
Pretty seamless transition from Bush to Obama isn’t it? One can hardly tell the difference.
Thanks Jane. Good report. Good editorial. You rock.
These deals are the base reason that I hate Bill Clinton and every president since. I bolted the party over NAFTA. The North Korean slave labor is what the Chamber has in mind for us. No really. The Fascists really, honestly intend to impoverish and enslave us and they own the government complete with the U.S. military. How should I react to people who are out to put me in chains? Should I be civil? Reasonable? Patient?
Sorry earl. The comment was not meant for you.
The difference is that Bush told you what he wanted and he always got it. Obama pleads helplessness because the Republicans are mean.
Until you realize that Obama is, far from being an affront to the values of the Democratic Party, the perfect embodiment of them, you have yet to reach enlightenment.
But he DID take sides with that comment! The Oaf!
The end game is an Indian-like system with codified corruption and a codified slave cast.
We have no govt that really listens or cares except the rich and mega corps my guess is GE is pushing this crap…interesting execpt what I saw on the DR show the news media is MIA on this issue and is declaring Obama is back..I am getting really down about the future
It’s a three-ring Barnum and Bailey Corruption Circus.
I drive American iron, always have and always will. Fuch Hyundi.
The money still goes to Korea ,no.