Lindsey Graham on Free Trade
Republican Sr Senator; previously Representative (SC-3)
GRAHAM: I see China's hands all over this. We are in a fight with China. We buy $500 billion worth of goods from the Chinese. They buy $100 billion from us. They cheat and President Trump wants to change the economic relationship with China. So, if I were President Trump, I would not let China use North Korea to back me off of the trade dispute. We've got more bullets than they do when it comes to trade. We sell them $100 billion; they sell us $500 billion; we can hurt them more than they will hurt us. And all we're looking for is for them to stop cheating when it comes to trade. There's no doubt in my mind that it's the Chinese pulling a North Koreans back. And to our North Korean friends, can't say the word friend yet.
GRAHAM: We're trying to get China to act better and if you get into a contest with China, you're going to have to see this thing through. The Chinese buy a lot of American soybeans and pork, they've got 1.2 billion people to feed. I'd tell these people to go to the Rust Belt and see what's happened in that part of America due to Chinese unfair trade practices. I support President Trump pushing back against commodity dumping, intellectual property theft, currency manipulation, and we've got to see this thing through. We're trying to protect the American steel industry from Chinese dumping, we're trying to protect the American high tech community from Chinese intellectual property theft. And one of the ways they can fight back is to hit us in the agricultural sector. So there is no way for us to address China without absorbing some pain here.
An amendment opponent, Sen. Orrin Hatch (R-UT) called it "far too risky" because it would derail prospects for signing the Trans-Pacific Partnership with Asian countries, subject US monetary policies to the threat of sanctions from overseas, and discourage currency exchange rate transparency by countries that export goods to the U.S. The vote, on May 22, was 48 yeas to 51 nays.
NAYS: Sen. Tim Scott R-SC
YEAS: Sen. Lindsey Graham R-SC
When that customer bailed at the last minute, I was stuck with a $15,000-per-month lease in a market flooded with the empty warehouses of once thriving textile businesses. I had made a decision based on the expectation of growing with that customer, but I had been wrong.
By 2006, I continued to see a steady drop as more of my customers were being driven out of business. This left us with over $300,000 of unrecoverable accounts receivable. Although not yet readily apparent to the general public, the American economy was slipping into severe recession. But, of course, the Federal government is always there to help, right?
Proponents support voting YES because:
Rep. RANGEL: It's absolutely ridiculous to believe that we can create jobs without trade. I had the opportunity to travel to Peru recently. I saw firsthand how important this agreement is to Peru and how this agreement will strengthen an important ally of ours in that region. Peru is resisting the efforts of Venezuela's authoritarian President Hugo Chavez to wage a war of words and ideas in Latin America against the US. Congress should acknowledge the support of the people of Peru and pass this legislation by a strong margin.
Opponents recommend voting NO because:
Rep. WU: I regret that I cannot vote for this bill tonight because it does not put human rights on an equal footing with environmental and labor protections.
Rep. KILDEE: All trade agreements suffer from the same fundamental flaw: They are not self-enforcing. Trade agreements depend upon vigorous enforcement, which requires official complaints be made when violations occur. I have no faith in President Bush to show any enthusiasm to enforce this agreement. Congress should not hand this administration yet another trade agreement because past agreements have been more efficient at exporting jobs than goods and services. I appeal to all Members of Congress to vote NO on this. But I appeal especially to my fellow Democrats not to turn their backs on those American workers who suffer from the export of their jobs. They want a paycheck, not an unemployment check.
The mission of the Cato Institute Center for Trade Policy Studies is to increase public understanding of the benefits of free trade and the costs of protectionism.
The Cato Trade Center focuses not only on U.S. protectionism, but also on trade barriers around the world. Cato scholars examine how the negotiation of multilateral, regional, and bilateral trade agreements can reduce trade barriers and provide institutional support for open markets. Not all trade agreements, however, lead to genuine liberalization. In this regard, Trade Center studies scrutinize whether purportedly market-opening accords actually seek to dictate marketplace results, or increase bureaucratic interference in the economy as a condition of market access.
Studies by Cato Trade Center scholars show that the United States is most effective in encouraging open markets abroad when it leads by example. The relative openness and consequent strength of the U.S. economy already lend powerful support to the worldwide trend toward embracing open markets. Consistent adherence by the United States to free trade principles would give this trend even greater momentum. Thus, Cato scholars have found that unilateral liberalization supports rather than undermines productive trade negotiations.
Scholars at the Cato Trade Center aim at nothing less than changing the terms of the trade policy debate: away from the current mercantilist preoccupation with trade balances, and toward a recognition that open markets are their own reward.
The following ratings are based on the votes the organization considered most important; the numbers reflect the percentage of time the representative voted the organization's preferred position.
OFFICIAL CONGRESSIONAL SUMMARY: To authorize the extension of nondiscriminatory treatment (normal trade relations treatment) to the products of Ukraine.
SPONSOR'S INTRODUCTORY REMARKS: Sen. McCAIN: The recent Orange Revolution in Ukraine marked a huge victory for the advancement of democracy in the world. The Ukrainian people made clear that they would not stand idle as a corrupt regime sought to deny them their democratic rights. Now that the people of Ukraine have seized control of their destiny, the US must stand ready to assist them as they do the hard work of consolidating democracy.
The purpose of the amendment is to terminate the Jackson-Vanik amendment, with respect to Ukraine. Beyond any benefits to our bilateral trading relationship, lifting Jackson-Vanik for Ukraine constitutes an important symbol of Ukraine's new democracy and its relationship with the US. Tomorrow, Ukrainian President Yushchenko will address a joint session of Congress, an honor which we bestow on few foreign leaders. As we have the privilege of welcoming this true hero of democracy, I can think of no better gesture than terminating the anachronistic & inappropriate Jackson-Vanik restrictions on Ukraine.
EXCERPTS OF AMENDMENT:
LEGISLATIVE OUTCOME:Considered by Senate on 4/6/2005; never came to a vote.
Excerpts from Letter from 31 Senators to the Secretary of Commerce: We write to you regarding countervailing duty and antidumping investigations being conducted by the Department of Commerce on imports of steel reinforcing bar (rebar) from Turkey and Mexico.
Rebar is one of the largest volume steel products produced in the US, employing more than 10,000 workers in over 30 states. With nearly 7 million tons of domestic production, a healthy rebar industry is critical to a strong economy. However, it is our understanding that imports from Turkey and Mexico are surging into the US, nearly doubling from 2011 to 2013.
The ITC recently found that Mexican and Turkish rebar producers are consistently underselling US producers, resulting in substantial lost sales and depressed; [plus] a preliminary finding that the Government of Turkey bestows energy subsidies to its rebar industry, but that such subsidies are only de minimis in value. This seems surprising given the inherently energy-intensive nature of steel production.
Opposing argument: (Heritage Foundation, "Guide to Antidumping Laws", July 21, 1992) One of the pillars of the "fair trade" approach is a set of so-called antidumping and countervailing duty laws. Antidumping laws seek to prevent products manufactured overseas from being sold by foreign firms in the U.S. at "less than fair value." Countervailing duties seek to offset subsidies provided by foreign governments by imposing duties at the U.S. border.
The antidumping laws are confusing and arbitrary, and in many instances merely allow American firms to secure punitive tariffs against competing importers where no unfair trade practices are involved. Worse, these laws drive up the costs of imported components used by other American enterprises, making their products less competitive in world markets. As a result, American consumers pay higher prices for both imported and domestically produced goods.
Heritage Action summary of vote# S206: The Senate voted to table (kill) an amendment by Sen. Kirk to reauthorize the Export-Import Bank. Sen. Kirk recommends voting NO. Heritage Foundation recommends voting YES because the "Ex-Im Bank is little more than a $140 billion slush fund for corporate welfare."
OnTheIssues explanation: Voting NO would allow a vote on reauthorization of the Ex-Im Bank. Voting YES would kill the bill for reauthorizing the Ex-Im Bank.
Cato Institute reason for voting YES to kill the bill:The Ex-Im Bank's reauthorization buffs contend that Ex-Im fills a void left by private sector lenders unwilling to provide financing for certain transactions. Ex-Im's critics [say that] by effectively superseding risk-based decision-making with the choices of a handful of bureaucrats pursuing political objectives, Ex-Im risks taxpayer dollars. It turns out that for nearly every Ex-Im financing authorization that might advance the fortunes of a single US company, there is at least one US industry whose firms are put at a competitive disadvantage. These are the unseen consequences of Ex-Im's mission.
Summary from Congressional Record and Wikipedia:Vote to amend the North American Free Trade Agreement (NAFTA) and establish the United States-Mexico-Canada Agreement (USMCA). Rather than a wholly new agreement, it has been characterized as "NAFTA 2.0"; final terms were negotiated on September 30, 2018 by each country. The agreement is scheduled to come into effect on July 1, 2020.
Case for voting YES by Rep. Charlie Crist (D-FL); (Dec. 19, 2019)The USMCA includes stronger protections for American workers and enforceable labor standards, as well as environmental protections. It eliminates the Trump Administration's threat that the US could walk away entirely from the trade agreement with Canada and Mexico, which would devastate US jobs and our economy.
Case for voting NO by Jared Huffman (D-CA); (Dec. 19, 2019) Democratic negotiators did a lot to improve Donald Trump's weak trade deal, especially in terms of labor standards and enforcement, but the final deal did not reach the high standard that I had hoped for. The NAFTA renegotiations were a once-in-a-generation opportunity to lift labor and environmental standards across the continent--to lock in serious climate commitments with two of our largest trading partners and dramatically improve labor standards and enforcement to slow the rise of outsourcing.
Legislative outcome: Bill Passed (Senate) (89-10-1) - Jan. 16, 2020; bill Passed (House) (385-41-5) - Dec. 19, 2019; signed at the G20 Summit simultaneously by President Trump, Mexican President Enrique Nieto, and Canadian Prime Minister Justin Trudeau, Nov. 30, 2018
Ratings by USA*Engage indicate support for trade engagement or trade sanctions. The organization's self-description: "USA*Engage is concerned about the proliferation of unilateral foreign policy sanctions at the federal, state and local level. Despite the fact that broad trade-based unilateral sanctions rarely achieve our foreign policy goals, they continue to have political appeal. Unilateral sanctions give the impression that the United States is 'doing something,' while American workers, farmers and businesses absorb the costs."
VoteMatch scoring for the USA*Engage ratings is as follows :
|Other candidates on Free Trade:||Lindsey Graham on other issues:|
James Emerson Smith
Gloria Bromell Tinubu
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