I’ve Read Obama’s Secret Trade Deal. Elizabeth Warren Is Right to Be Concerned

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By Michael Wessel, ProPublica. Michael Wessel is a cleared liaison to two statutory advisory committees and was a commissioner on the U.S. Trade Deficit Review Commission, as well as the international trade co-chair for the Kerry-Edwards Presidential Campaign.

“You need to tell me what’s wrong with this trade agreement, not one that was passed 25 years ago,” a frustrated President Barack Obama recently complained about criticisms of the Trans Pacific Partnership (TPP). He’s right. The public criticisms of the TPP have been vague. That’s by design—anyone who has read the text of the agreement could be jailed for disclosing its contents. I’ve actually read the TPP text provided to the government’s own advisors, and I’ve given the president an earful about how this trade deal will damage this nation. But I can’t share my criticisms with you.

I can tell you that Elizabeth Warren is right about her criticism of the trade deal. We should be very concerned about what’s hidden in this trade deal—and particularly how the Obama administration is keeping information secret even from those of us who are supposed to provide advice.

So-called “cleared advisors” like me are prohibited from sharing publicly the criticisms we’ve lodged about specific proposals and approaches. The government has created a perfect Catch 22: The law prohibits us from talking about the specifics of what we’ve seen, allowing the president to criticize us for not being specific. Instead of simply admitting that he disagrees with me—and with many other cleared advisors—about the merits of the TPP, the president instead pretends that our specific, pointed criticisms don’t exist.

What I can tell you is that the administration is being unfair to those who are raising proper questions about the harms the TPP would do. To the administration, everyone who questions their approach is branded as a protectionist—or worse—dishonest. They broadly criticize organized labor, despite the fact that unions have been the primary force in America pushing for strong rules to promote opportunity and jobs. And they dismiss individuals like me who believe that, first and foremost, a trade agreement should promote the interests of domestic producers and their employees.

I’ve been deeply involved in trade policy for almost four decades. For 21 years, I worked for former Democratic Leader Richard Gephardt and handled all trade policy issues including “fast track,” the North American Free Trade Agreement and the World Trade Organization’s Uruguay Round, which is the largest trade agreement in history. I am also a consultant to various domestic producers and the United Steelworkers union, for whom I serve as a cleared advisor on two trade advisory committees. To top it off, I was a publicly acknowledged advisor to the Obama campaign in 2008.

Obama may no longer be listening to my advice, but Hillary Clinton and Elizabeth Warren might as well be. Warren, of course, has been perhaps the deal’s most vocal critic, but even the more cautious Clinton has raised the right questions on what a good TPP would look like. Her spokesman, Nick Merrill, said: “She will be watching closely to see what is being done to crack down on currency manipulation, improve labor rights, protect the environment and health, promote transparency and open new opportunities for our small businesses to export overseas. As she warned in her book Hard Choices, we shouldn’t be giving special rights to corporations at the expense of workers and consumers.”

On this count, the current TPP doesn’t measure up. And nothing being considered by Congress right now would ensure that the TPP meets the goal of promoting domestic production and job creation.

The text of the TPP, like all trade deals, is a closely guarded secret. That fact makes a genuine public debate impossible and should make robust debate behind closed doors all the more essential. But the ability of TPP critics like me to point out the deal’s many failings is limited by the government’s surprising and unprecedented refusal to make revisions to the language in the TPP fully available to cleared advisors.

Bill Clinton didn’t operate like this. During the debate on NAFTA, as a cleared advisor for the Democratic leadership, I had a copy of the entire text in a safe next to my desk and regularly was briefed on the specifics of the negotiations, including counterproposals made by Mexico and Canada. During the TPP negotiations, the  United States Trade Representative (USTR) has never shared proposals being advanced by other TPP partners. Today’s consultations are, in many ways, much more restrictive than those under past administrations.

All advisors, and any liaisons, are required to have security clearances, which entail extensive paperwork and background investigations, before they are able to review text and participate in briefings. But, despite clearances, and a statutory duty to provide advice, advisors do not have access to all the materials that a reasonable person would need to do the job. The negotiators provide us with “proposals” but those are merely initial proposals to trading partners. We are not allowed to see counter-proposals from our trading partners. Often, advisors are provided with updates indicating that the final text will balance all appropriate stakeholder interests but we frequently receive few additional details beyond that flimsy assurance.

Those details have enormous repercussions. For instance, rules of origin specify how much of a product must originate within the TPP countries for the resulting product to be eligible for duty-free treatment. These are complex rules that decide where a company will manufacture its products and where is will purchase raw materials. Under the North American Free Trade Agreement (NAFTA), 62.5 percent of a car needed to originate within NAFTA countries. In the US-Australia Free Trade Agreement, it was lowered to 50 percent. It further dropped to 35 percent in the US-Korea Free Trade Agreement (KORUS). In essence, under our agreement with Korea, 65 percent of a car from South Korea could be made from Chinese parts and still qualify for duty-free treatment when exported to the U.S.

That fact is politically toxic, and for that reason, we should expect the TPP agreement to have higher standards. But will it reach the 62.5 percent NAFTA requirement? Or will it be only a slight improvement over KORUS? Without access to the final text of the agreement, it’s impossible to say.

State-owned enterprises may, for the first time, be addressed in the TPP. But, once again, the details are not clear. Will exemptions be provided to countries like Vietnam, Malaysia and Singapore, all of which could be heavily impacted by such a rule? What will be the test to determine what is or is not acceptable behavior? Will injury be required to occur over a substantial period of time, or will individual acts of non-commercial, damaging trade practices be actionable? Again, it’s impossible to say for sure.

Advisors are almost flying blind on these questions and others.

Only portions of the text have been provided, to be read under the watchful eye of a USTR official. Access, up until recently, was provided on secure web sites. But the government-run website does not contain the most-up-to-date information for cleared advisors. To get that information, we have to travel to certain government facilities and sign in to read the materials. Even then, the administration determines what we can and cannot review and, often, they provide carefully edited summaries rather than the actual underlying text, which is critical to really understanding the consequences of the agreement.

Cleared advisors were created by statute to advise our nation’s trade negotiators. There is a hierarchal structure, starting with the USTR’s Advisory Committee on Trade Policy & Negotiations at the top—a committee that includes people like Steelworkers President Leo Gerard, Mastercard CEO Ajay Banga, Etsy CEO Chad Dickerson and Jill Appell, co-owner of Appell’s Pork Farms. Then there are specific Committees covering subjects like labor, the environment and agriculture that make up the next tier. The last tier consists of the Industry Trade Advisory Committees (ITACS), which focus on individual sectors such as steel and aerospace. At last count, there were more than 600 cleared advisors. The vast majority of them represent business interests.

In an effort to diminish criticism, USTR is now letting cleared advisors review summaries of what the negotiators have done. In response to a question about when the full updated text will be made available, we’ve been told, “We are working on making them available as soon as possible.” That’s not the case overseas: Our trading partners have this text, but the government’s own cleared advisors, serving on statutorily-created advisory committees, are kept in the dark.

How can we properly advise, without knowing the details?

Questions pervade virtually every chapter of the proposed agreement, including labor and the environment, investor-state, intellectual property and others. The answers to these questions affect the sourcing and investment decisions of our companies and resulting jobs for our people. Our elected representatives would be abdicating their Constitutional duty if they failed to raise questions.

Senator Warren should be commended for her courage in standing up to the President, and Secretary Clinton for raising a note of caution, and I encourage all elected officials to raise these important questions. Working Americans can’t afford more failed trade agreements and trade policies.

Congress should refuse to pass fast track trade negotiating authority until the partnership between the branches, and the trust of the American people is restored. That will require a lot of fence mending and disclosure of exactly what the TPP will do. That begins by sharing the final text of the TPP with those of us who won’t simply rubber-stamp it. By Michael Wessel, ProPublica.

But not everything is going according to script for the self-anointed architects of the new global order. Read…  The Global Trade Corporatocracy Slams into Local Resistance

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  9 comments for “I’ve Read Obama’s Secret Trade Deal. Elizabeth Warren Is Right to Be Concerned

  1. Vespa P200E
    May 19, 2015 at 10:53 pm

    Hey there labor unions and uber left progressives! This is what your ex-neighborhood organizer/agitator AKA comrade is doing after getting your votes and money, you stupidly sold out for BS Cadillac health insurance and pushed for Obozocare, etc. Your messiah is kowtowing to the “evil” big companies with $$$ for lobby to export what you claim to protect – well paying jobs for proud card carrying sheeples.

    Wait didn’t OBozo claim to be the most transparent POTUS yet one has to why is he hiding the pertinent info?

    • JerryBear
      May 20, 2015 at 4:28 am

      I read at the Socialist websites a lot (nearly all Trotskyites of one flavor or another) and they are unanimous in absolutely condemning both the European and Asian version of the treaties. They quite simply hand over national sovereignity to the multinational corporations and render the will of the people of no account whatsoever, Obama and his crew know this, which is why they are trying to so hard to keep it secret. Why Obama has not been impeached and put on trial for treason I do not know, Ad far as I can tell, there is not one peep from the Republicans because they have been bought off and like the Democrats are far more the party of big finance and big business than they are in any way representatives of the American people.

      Oh well, as the saying goes, “all that is necessary for the triumph of evil is for good men to do nothing”. If the American people do not rise up in outrage over this and stop it, they will end up giving away their own freedom and their children’s future.

      Politicians should fear the wrath of an angry electorate. The reason they dont is because of the awful, soul-sapping apathy of the American people. Past civilizations have fallen for less cause. A people who do not believe in themselves cannot survive! (Confucious)

      • PoppaBear
        May 20, 2015 at 9:27 am

        Jerry, you’re certainly right & it’s clear your heart’s in the right place, but we’ve been doing nothing for years, largely because we don’t know what’s going on, tx to the absence of – impossibility of – a free press in the age of mass media. Look at what’s been happening to habeas corpus over the past 20 yrs; check these 2 websites:

        https://www.rutherford.org/constitutional_corner/habeas_corpus/

        http://ccrjustice.org/learn-more/faqs/faqs%3A-what-habeas-corpus

        And then ask yourself “Isn’t it strange that the US is the only “democracy” in the “free world” that has a president who can order the assassination of its citizens without trial, without stating formal charges, and without leaving said citizen any chance at all to save himself? Obama has been doing that since 2011. The most outrageous of his murders was of a 16 yr old boy, killed by a missile fired from a drone, a missile that also killed 7 bystanders. Blow up a missile to kill a kid in a public park & you’re bound to kill bystanders.

        So people hate us out of envy, the explanation is. Maybe they hate us because we’ve become hateful.

        How many people that you talk to even know it happened? And how many know that in Sep of that year he asked a four-star general to lie to Congress so that he & his friends could make some money on a stock? … Gee! Don’t they read the papers? Watch prime time news? Shucks, musta just missed those stories (and many others).

        Stay awake, young man.

  2. Petunia
    May 20, 2015 at 2:33 am

    I don’t need to read the text of the TPP to know that it legitimizes fascism in America. What is disturbing is the number of American politicians elected and appointed who have read it, know it will destroy America, and still are afraid to do the right thing. A country in collapse can be described as a country that passes laws those content is unknown, America.

  3. Dan Romig
    May 20, 2015 at 6:32 am

    We have a two party status quo that has:
    1) Lied us into wars beginning in 1964 with the Democratic President using the false Gulf of Tonkin Incident to invade Vietnam and murder its citizens. Then we had the Bush/Cheney regime lie us into Iraq with the Democrats in Congress (for the most part) and the Corporate Media supporting this hegemonic act of murderous imperialism.
    2) Republican President Bush ordered Military Intel to torture ‘detainees’. Democratic President Obama gave these war criminals a ‘get out of jail free card’ saying, “We tortured some folks.” But then adding, “We as a nation, need to move on.”
    3) With bipartisan support, the Patriot Act and the NDAA have been created. This nation has turned the Bill of Rights into toilet paper, and given the President the ‘authority’ to kill any human being on planet earth that he declares, in secret, to be a threat to national security. That goes for U. S. citizens also, and anyone can be executed with no trial or rule of law under the NDAA.
    4) Clinton, Bush W and Obama have repealed Glass-Steagall, deregulated Wall Street and allowed the Wall Street criminals to remain scot-free.
    5) Since Nixon took us off the gold standard, the two parties have run up a national debt that can NEVER be repaid. The United States of America is bankrupt, morally and fiscally.

    It should come as no surprise that Obama wants this TPP kept secret. Thank you Mr. Wessel for informing us, to the best of your legal options, of its dangers.

    Vote for any political party but the two in the next election people!

    • leftcoastindependent
      May 20, 2015 at 11:47 am

      Well said Dan. I’ll take your advice.

  4. Bob
    May 20, 2015 at 11:36 am

    Well, if you read the document….?
    There are other ways to get this out to the public.
    YOU, as a journalist know this all to well… so you have been vetted to read this TPP?
    It is your duty to provide this information to the American public…. whats the big secrete? we all know how crooked the white house is…

    “I’ve been deeply involved in trade policy for almost four decades. For 21 years, I worked for former Democratic Leader Richard Gephardt and handled all trade policy issues including “fast track,” the North American Free Trade Agreement and the World Trade Organization’s Uruguay Round, which is the largest trade agreement in history. I am also a consultant to various domestic producers and the United Steelworkers union, for whom I serve as a cleared advisor on two trade advisory committees. To top it off, I was a publicly acknowledged advisor to the Obama campaign in 2008.” So you say?
    Well then my boy do your job… and spill the beans…..

  5. Jerry Bear
    May 20, 2015 at 4:21 pm

    You know, it occurs to me. since when does any treaty trump the Constitution? Could the courts invalidate the more obnoxious parts of the trade deals on that basis. I know the current court is so corrupt that they will pretty much give the NeoLiberals anything they want, but a future court might be willing to do its duty.

    On another note, if you have spent many years acquiring the trust of the powers that be and have insider access, you might not want to endanger this for the sake of a press release however necessary. There are ways to leak such information without it being traced back to you and identifying you as a snitch. Obviously those for whom this point is relevant cannot publicly admit to what they are doing so let us give them a break!

  6. Mark
    May 21, 2015 at 9:17 am

    Come on guys. We all know from the immortal words of that great stateswoman, Nancy Pelosi, “We have to pass it to know what’s in it.”

Comments are closed.