Despite decades of nearly identical promises of TPP, the US repeatedly fails to enforce or adopts unenforceable LABOUR STANDARDS in

Trade Agreements.

25 years too late: -- the US is finally attacking CURRENCY MANIPULATION         Here's the relevant clip http://www.c-span.org/video/?c4535863/schumer-amendment Video & Transcript of full meeting ( see below for transcript of Schumer Amendment)  http://www.c-span.org/video/?325525-1/committee-markup-foreign-trade-legislation this video is an eye-opener of the positive legislation in the TPP. Text of the TPA: http://waysandmeans.house.gov/uploadedfiles/tpa_bill_text.pdf Elizabeth Warren fires back at Obama

Committee meeting on Trade Legislation Markup, TPP, TPA*, TAA & Customs

*TPA is the ability to fast-track future Trade Agreements under the Trans-Pacific Partnership (TPP)
 

TRANSCRIPT of SCHUMER AMENDMENT

I HAVE SAID ALL ALONG THAT I THINK THIS AMENDMENT IS IMPORTANT ON ITS OWN. IT WORKED OUT AN AGREEMENT WITH CHAIRMAN HATCH, FOR WHICH I SEE THANK YOU, TO OFFER THIS AMENDMENT. BE ASKING FOR A VOTE -- WE WILL NOT BE ASKING FOR A VOTE. I DISCUSSED IN RECENT WEEKS AND FOR YEARS NOW I BELIEVE CURRENCY MANIPULATION IS A MOST SIGNIFICANT EMERGING TRADE CHALLENGE THIS COUNTRY FACES.

ACCORDING TO THE PETERSON INSTITUTE FOR NATIONAL ECONOMICS, MORE THAN 20 COUNTRIES HAVE INCREASED THEIR FOREIGN EXCHANGE RESERVES BY AN ANNUAL AVERAGE OF $1 TRILLION IN RECENT YEARS. THE BUILDUP KEEPS THE CURRENCY SIGNIFICANTLY UNDERVALUED AND INCREASING THEIR TRADE SURPLUS. THAT HAS RESULTED IN DEFICITS GOING UP FROM ABOUT 200 BILLION TO $500 BILLION A YEAR. CORRESPONDING U.S. JOB LOSSES IN THE MILLIONS. WHEN CURRENCIES MANIPULATED, IT HURTS BOTH EXPORTS, THEY ARE MORE EXPENSIVE OVERSEAS, AND OUR PRODUCTS ARE UNDULY LOWER-PRICED HERE.

CHINA IS THE MOST -- THEY HAVE PERFECTED CURRENTLY MANIPULATION TO A FINE ART. THEY ARE AT THE FRONT OF THE LINE WHEN IT COMES TO THIS ACTIVITY. THIS ADMINISTRATION SEES IT AS A GEOPOLITICAL NECESSITY TO ENSURE THAT THE UNITED STATES DOESN'T SEE GROUNDS FOR CHINA IN THAT REGION OF THE WORLD. IF THE GOAL IS TO LURE COUNTRIES AWAY, IT MAKES PERFECT SENSE THAT AS PART OF THE OVERALL EFFORT, WE ALSO SHOULD DEAL WITH CHINA HEAD ON TO SHOW THEM WE WILL NOT CONTINUE BUSINESS AS USUAL IN OUR RELATIONS WITH THEM.

WHILE I'M SKEPTICAL OF IT AS A WHOLE, I DO NOT DISPUTE THAT IT WILL GROW THE GDP OR CORPORATE PRODUCTS FOR MANY MULTINATIONALS. THE TRADE AGREEMENT OF THE LOAN WILL NOT PROVIDE THE TOOLS WE NEED TO COMBAT THE SPECIFIC CHALLENGE OF CURRENCY MANIPULATION, WHICH HAS SUCH A TANGIBLE A DETRIMENTAL IMPACT ON MIDDLE-CLASS JOBS AT HOME.

IF WE DO NOT DO IT NOW, WHEN? WE HAVE WAITED A LONG TIME. WE HAVE BROAD BIPARTISAN SUPPORT. THIS BILL WILL RIDE ALONGSIDE IN NOT IN IT. MANY OF YOU KNOW I HAVE LONG BEEN AN ADVOCATE ON THIS ISSUE AND WORK TO FIND SOLUTIONS FROM MANY DIFFERENT ANGLES. I HAVE BEGGED AND PLEADED WITH ADMINISTRATION AFTER ADMINISTRATION. I HAVE NEGOTIATED WITH FIVE FOR DIFFERENT TREASURY SECRETARIES BEGINNING WITH SECRETARY SNELL -- SNOW. IT IS NOT DIFFERENT. DO SOMETHING ON CURRENCY. YOU HAVE TAKEN THE POSITION THAT COUNTRY NEGOTIATIONS IS APPROPRIATE TO ON THE NOTHING GETS DONE.

OTHER COUNTRY JUST RESISTS CHINA PARTICULAR. THE IS CURRENCY MANIPULATIONS AS A DIPLOMATIC TOOL TO GET SOMETHING ELSE RATHER THAN FORCE EXISTING LAWS TO PROTECT THE AMERICAN WORKERS, WHICH TO ME IS -- I'VE COME TO THE EXCLUSION IF YOU WANT TO PROTECT AMERICAN WORKERS FROM CHINA, DIFFERENT THAN THESE COUNTRIES, WE NEED TO PASS THIS AMENDMENT.

WHERE TO STRENGTHEN THE MECHANISM FOR THE TOOLS THAT ARE IN PLACE BUT ARE NOT CURRENTLY GETTING USED. MANY OF YOU HAVE SUPPORTED IN THE PAST AND ARE FAMILIAR WITH IT. OVER 60 VOTES ON THE FLOOR OF THE SENATE SEVERAL YEARS AGO. OH IS BIPARTISAN.

THE COMMERCE DEPARTMENT FINDS THAT SUBSIDIZED IMPORTS ARE CAUSING ECONOMIC HARM TO AMERICAN MANUFACTURERS AND WORKERS, THE MINISTRATION MOST IMPOSE DUTIES TO COUNTER BILL THE AND IF IT INFERRED ON FOREIGN PRODUCERS AND EXPORTERS BY THE SUBSIDIES. RATHER THAN ENFORCE EXISTING LAW, ADMINISTRATION AND THE PREVIOUS ONE, PREFERRED TO USE THE THREAT OF CURRENT COMMUNICATION MEASURES AS A DIPLOMATIC TOOL TO ACHIEVE OTHER NONECONOMIC GEOPOLITICAL GOALS. AS A RESULT, THEY HAVE TO FIND WHAT QUALIFIES AS AN EXPORT SUBSIDY. THE HAVE EXCLUDED CURRENCY MANIPULATION EVEN THAT IT IS AS PLAIN AS THE NOSE ON YOUR FACE. THAT IS WHY IT IS DONE.

 OUR AMENDMENT WOULD REQUIRE THE COMMERCE DEPARTMENT TO INVESTIGATE WHETHER CURRENCY UNDER EVALUATION BY GOVERNMENT PROVIDES THE DOUBLE SUBSIDY IN THE U.S. REQUESTED SUCH AN INVESTIGATION. IT DOES THIS BY PUTTING IN PLACE A NEW RULE IS SIMPLY SAYS EXPORT SUBSIDY MAY EXIST THROUGH CURRENCY MANIPULATION AND SHOULD BE INVESTIGATED. PERIOD.

WE HAVE WORKED LABORIOUSLY. IT IS COMPLIANT. WE'RE USING EXISTING MECHANISMS AND MAKING SURE THAT THEY APPLY TO CURRENCY, THE SAME MECHANISM PEOPLE HAVE USED ON OTHER ISSUES . WE'RE MAKING SURE THAT HAPPENS WITH CURRENCY. THIS IS THE ENFORCEABLE MECHANISM.

WE MUST SHOW CHINA WE'RE NOT MISSING AROUND AND GET SOMETHING DONE.

MEMBERS OF THIS COMMITTEE, I HOPE YOU FEEL AN OBLIGATION AS I DO, ESPECIALLY OUR OVERSIGHT ROLE. WE HAVE AN OBLIGATION TO ENSURE TOOLS ARE IN PLACE TO PROTECT AMERICAN WORKERS AND THAT THEY ARE BEING USED APPROPRIATELY. TO MY CAUSE OF HISTORY WORK ON THIS ISSUE AND SUPPORT FOR THIS PROPOSAL, THIS IS OUR BEST OPPORTUNITY FOR THE MOST APPROPRIATE OPPORTUNITY TO SHOW THAT WE ARE SERIOUS ABOUT COMBATING THE TRADE. YOU KEPT THIS BIPARTISAN.

THE ORIGINAL BILL WITH SENATOR GRAMS AND COLLINS AND SESSIONS AND MYSELF. SENATOR GRASSLEY HAS BEEN A VOCAL COMPONENT OF THIS ISSUE IN THE PAST. SENATOR ISAKSON AND CARVER HAVE VOTED AND ARE SUPPORTIVE OF IMPROVEMENTS IN THIS SPACE. I KNOW I'M FORGETTING SOME OTHERS. FORGIVE ME.

CHINA'S TRADE ECONOMIC POLICY OF UNDERMINING THE GLOBAL MARKET PLACE WHICH MAJOR CEOS QUIETLY ADMIT TO EVERYONE OF US THEY CANNOT SAY IT PUBLICLY, BUT THEY KNOW WHAT IS GOING ON.

THE APPROPRIATE TIME IS NOW. I URGE MY COLLEAGUES TO SUPPORT THIS 14TH AMENDMENT. >>

ORRIN HATCH

THANK YOU. I UNDERSTAND HIS SEAL HERE -- ZEAL HERE. DETERMINE WHETHER SOME CURRENCY MISALIGNMENT IS EFFECTIVELY A SUBSIDY EITHER DIRECTLY OR INDIRECTLY TO A COUNTRY'S EXPORTS. IF SO, THE SANCTIONS CAN FOLLOW. I ACTUALLY ASKED MY COLLEAGUES TO VOTE AGAINST THIS AMENDMENT. IT COULD BE BASED ON PRESUMPTIONS WITHOUT SUPPORT.

CURRENCY FUNDAMENTALS. AN AMENDMENT WOULD ALLOW SO MANY FREEDOMS AND ARRIVING AT A DETERMINATION INCLUDING INDIRECT SUBSIDIES RAISED ON SOME MEASURE OF UNDER EVALUATION THAT IT WOULD PROVE ENTIRELY INEFFECTIVE . AT LEAST THAT IS MY VIEW. EITHER IT COULD OR WOULD NOT BE MADE. IT COULD LEAD TO TRADE DISPUTES. I'M CONCERNED ABOUT IT. I UNDERSTAND MY COLLEAGUES SINCERITY ON THIS. WITH THAT, ANYONE ELSE CARE TO COMMENT? >>

SOMEBODY ELSE & OTHERS

I WANT TO COMMEND SENATOR SHUMAN FOR ADVANCING THIS SOLUTION TO THE ISSUE OF CURRENCY MANIPULATION. I THINK IT IS PRETTY CLEAR. THERE IS NO ISSUE THAT HAS CONSUMED MORE TIME THAN THESE DEBATES IN CURRENCY MANIPULATION . IT IS A SENSITIVE ISSUE. A GHOST OF THE HOW -- HEART OF -- IT GOES TO THE HEART OF HOW WE GROW AND PROTECT AMERICAN JOBS. IT REFLECTS DISCUSSION WITH RESPECT OF HOW THIS IS GOING TO AFFECT FEDERAL RESERVE PRACTICES AND THE LIKE. I THINK SENATOR SCHUMER HAS FIGURED OUT HOW TO INGEST THE KEY QUESTION, WHICH IS TO DEAL WITH CHINA, WHICH CLEARLY MANIPULATED IN PAST AND GETS AN UNFAIR ADVANTAGE. THIS LEVELED THE PLAYING FIELD FOR AMERICAN INDUSTRY AND A PRACTICAL FACTION. I HOPE MY COLLEAGUES WILL SUPPORT THE AMENDMENT. I APPRECIATE MY SEATMATE ALL THESE YEARS WORKING WITH SO MANY OF YOU ON BOTH SIDES OF THE AISLE TO COME UP WITH A PRACTICAL APPROACH AT THIS POINT. >> ANY FURTHER COMMENTS? >>

 I CAN TO OFFER AN AMENDMENT THAN THE TRADE PROMOTION AUTHORITY TO THE. THIS'LL BE NARROWLY TARGETED TOWARD ANY OBJECTIVE. I'M A COSPONSOR. I VOTED FOR IT IN 2011. SCF THE SINGLE ONE OF THE COMMITTEE MEETINGS. HE HAD MORE HAIR THANEN. HE ASKED ABOUT CURRENCY MANIPULATION. I THINK IT AFFECTS TRADE. FRANKLY, IT WAS SOMETHING THE OFFICE TYPICALLY HANDLES. IT IS SOMETHING DONE BY TREASURY. IT SHOULD AND CAN BE ADDRESSED. IT IS A NARROW OBJECTIVE. WE'RE TALKING ABOUT INTERVENTION. SOME OF YOU FOLLOW THEIR WORK. INCREASE U.S. TRADE DEFICIT EACH YEAR. THE DEAL TRADE IS TO BE -- WE SELL PRODUCTS TO OTHER COUNTRIES. THE HOPE IS WE USE THAT MONEY TO BUY THEIR PRODUCT AND VICE VERSA . THAT IS BALANCED TRADE. WHEN A COUNTRY IS AN EXAMPLE AND ENCOURAGES THE DEPRECIATION OF THEIR CURRENCY, YOU HAVE THIS IMBALANCE. WE SEE THIS IN TERMS OF THE TRADE DEFICIT. IT IS DRIVEN BY ENERGY AND CHINA. A LOT OF THIS GOES TO THE MANIPULATION WE HAD SEEN. GOT TO ADDRESS IT AND DO IT IN A THOUGHTFUL WAY AND DO IT IN A WAY TO AVOID DISPUTES THAT THE CHAIRMAN TALKED ABOUT. I CAN TO SUPPORT THAT AMENDMENT. >>

I UNDERSTAND THE SENATOR'S POSITION. >> WE HAVE APPLIED DIPLOMATIC PRESSURE. DIALOGUE AFTER DIALOGUE. OFTEN CHINA TAKES ONE STEP FORWARD AND TWO STEPS BACKWARD. IF THEY PETITIONER REQUEST AN INVESTIGATION, IT DOESN'T PRESUPPOSE AN OUTCOME. I THINK IT IS CONTRIBUTED BEST CURRENCY IS CONTRIBUTED TO SOMETHING ALMOST UNKNOWN A GENERATION AGO. PUTTING TOGETHER THEIR BUSINESS PLAN AND SHUTTING DOWN PRODUCTION IN DAYTON, OHIO OR ASHEVILLE, NORTH CAROLINA AND MOVING IT OVERSEAS. CURRENCY CONTRIBUTES TO THAT STRUCTURE AND BUSINESS PLAN. THIS IS A CHANCE TO TAKE AWAY ONE OF THOSE INCENTIVES FOR COMPANIES TO FOLLOW THAT ROUTE. >> MR. CHAIRMAN?

 I WANT TO SPEAK IN FAVOR VERY BRIEFLY. >> SURE. >> AS THE SENATOR KNOWS BECAUSE HE WAS TRADE REPRESENTATIVE, THERE'S A BILL TO ILLUMINATE THE U.S. TRADE REPRESENTATIVE. HE LEARNED THAT ONE DAY WHEN IN THE OFFICE OF THE TRADE REPRESENTATIVE. YOU DO NOT GET A TRADE DEAL -- YOU FAILED. THE INCENTIVE IS TO GET A DEAL AT ANY COST. NO DEAL IS PERFECT. IT REQUIRES CONGRESS TO GO BACK AND TAKE WHAT WE HAVE LEARNED AND TO OCCASIONALLY MODIFIED WHAT THE AGREEMENT WAS. THERE'S ONE THING I THINK WE ALL KNOW HERE -- THE CHINESE MANIPULATE CURRENCY. THE QUESTION IS, ARE WE GOING TO DO SOMETHING ABOUT IT? ARE WE GOING TO CHANGE? IF YOU THINK THIS APPROACH IS FAIR, THEN SUPPORTED. THIS IS NOT THE ONLY THING THAT WE COULD LOOK AT. THIS IS WHAT WE NEGOTIATED. NOW WE KNOW THIS, THEREFORE WE SHOULD CHANGE THAT. LET'S CHANGE THAT. I ENCOURAGE MEMBERS TO SUPPORT IT. >>

I STRONGLY SUPPORT THIS AMENDMENT, I THINK. I THINK IT IS VERY CLEAR WHEN YOU HAVE -- WE'RE TALKING ABOUT A LEVEL PLAYING FIELD. IT IS ONE THING TO HAVE MONETARY POLICY. IT IS ANOTHER TOP GOVERNMENTAL POLICY TO MAKE YOUR CURRENCY SO YOU GET A COMPETITIVE ADVANTAGE. IT GIVES YOU A 20% ADVANTAGE OVER MANUFACTURERS OR FARMERS. THAT IS NOT A LEVEL PLAYING FIELD. WHAT THEY'RE AMENDMENT DOES IS ALLOW US TO BE ABLE TO DETERMINE IF THAT IS WHAT THE CURRENCY POLICY IS DOING IN ORDER TO GET THAT 10 OR 15 OR 20% ADVANTAGE. AS SENATOR PORTMAN SAID, WE ARE FOR A LEVEL PLAYING FIELD. WHEN YOU FIX YOUR CURRENCY VALUE SO THAT YOUR MANUFACTURERS AND PRODUCERS AND FARMERS HAVE AN ADVANTAGE, THAT IS WRONG. I THANK YOU FOR BRINGING IT FORWARD. >>

I WILL BE BRIEF. I KNOW WE HAVE A LOT TO DO. I WOULD TO JOIN IN SUPPORT OF THE AMENDMENT. AND AN WANT TO SIMPLY EXPRESSED FRUSTRATION. I THINK IT IS EVIDENT WHAT HAS HAPPENED OVER A LONG PERIOD OF TIME ON A WHOLE RANGE OF FACT THIS IS THAT CHINA, FOR EXAMPLE, IS ENGAGED IN. WHEN CHINA CHEATS, WE LOSE JOBS. VERY SIMPLE. WHEN THEY CHEAT ON CURRENCY, PURPOSELY UNDERVALUE IT AS A PERNICIOUS AND DESTRUCTIVE IMPACT, I REMEMBER SITTING WITH SECRETARY GEITHNER IN MY OFFICE AND RAISING THIS ISSUE. IT SEEMS THAT OVER THE OVER, ADMINISTRATION HAS SAID THAT THEY UNDERSTAND THE PROBLEM. THE WANT TO DO SOMETHING ABOUT THE PROBLEM. I APPRECIATE THAT. I THINK THE TIME FOR RAISING IT AND PUSHING IT AND TAKING IT IN SMALLER STEPS IS OVER. I THINK WE NEED TO TAKE A MORE DECISIVE AND DETERMINED ACTION TO GET THE RESULT WHICH AMERICANS EXPECT AS TO. THEY DO NOT EXPECT US TO CREATE SOME MAGIC WAND. THEY DO EXPECT US TO TAKE EFFECTIVE STEPS TO REMOVE A PROBLEM. I THINK THIS IS HURTING OUR WORKERS AND LITERALLY COSTING US JOBS. >>

ADMINISTRATION REPRESENTATIVE

 I DON'T DISAGREE THIS IS A PROBLEM. I JUST DO NOT THINK THIS IS THE RIGHT SOLUTION. WE HAVE YOUR VIEWPOINT ON THIS. >> THANK YOU. >>  WE SHARE THE CONCERNS OF MANY IN CONGRESS REGARDING CURRENCY PRACTICES. WE HEAR YOUR CONCERNS ABOUT THE CURRENCY PRACTICES. UNFAIR CURRENCY PRACTICES HURT OUR WORKERS AND OUR FIRM. THAT IS WHY THIS ADMINISTRATION HAS TAKEN GREAT LENGTHS AND MEASURES IN TERMS OF ENGAGING WITH PARTNERS AND A NUMBER OF OTHERS, INCLUDING THE G7 AND IMF, TO PRESS THIS ISSUE.

THERE HAVE BEEN REAL PROGRESS WHICH AFFECT CURRENCY. IT HAS DEPRECIATED BY OVER 30% ON A REAL EFFECTIVE BASIS SINCE 2010. JAPAN HAS NOT INTERVENED SINCE 2011. THERE HAS BEEN MEASURABLE PROGRESS.

 WITH RESPECT TO THE AMENDMENT, WE ARE OPPOSED TO THE LEGISLATION. FIRST OF ALL, IT RAISES QUESTIONS OF A CONSISTENCY WITH OUR INTERNATIONAL OBLIGATIONS. I THINK THERE ARE OTHER COUNTRIES THAT COULD MIMIC OUR PROVISIONS, BUT AT THE SAME TIME, TARGET OUR COMPANIES AND WORKERS. THAT WOULD PRESENT A REAL CONCERN. THEY COULD DESIGN PROVISIONS THAT USE A DIFFERENT STANDARD. THERE'S NO SINGLE UNIVERSAL STANDARD THAT APPLIES TO CURRENCY VALUATION. UNILATERAL MEASURES WILL BE PERCEIVED AS BEING  COUNTERPRODUCTIVE AND ALL THE PROGRESS WE HAVE MADE. IT WILL IMPEDE AND IMPAIR OUR MULTILATERAL AND BILATERAL EFFORTS. WE ARE CONCERNED THAT UNILATERAL MEASURES WILL IMPAIR OUR ABILITY TO MAKE PROGRESS IN THE CONTEXT OF -- A CURRENCY OBJECTIVE. I THINK OUR PARTNERS WILL BE CONCERNED ABOUT NEGOTIATING SOME SORT OF CURRENCY PROVISION GIVEN THAT THEY MAY SEE UNILATERAL MEASURES AS WELL. >>

THANK YOU SO MUCH FOR YOUR OPINION. >> I WANT TO SAY THANK YOU TO SENATOR SHUMER FOR HIS LEADERSHIP. WE HAVE HEARD OVER AND OVER AGAIN ABOUT CHINA TAKING BABY STEPS. WE'RE AT A POINT NOW WHERE WE ARE FULLY ENGAGED IN A GLOBAL ECONOMY. IT IS JUST NOT ENOUGH. WITH ALL DUE RESPECT ON WHAT IS COMING. WE WANT OUR TRADING PARTNERS. WE WANT JAPAN TO KNOW THAT IT IS NOT OK TO MANIPULATE CURRENCIES. PEOPLE LOOK AT CHINESE PRODUCTS AND SEE A LOWER PRICE AND DO NOT UNDERSTAND A GOOD CHUNK OF THAT IS BECAUSE THEY CHEAT. THIS IS ANOTHER TO INTEGRATE A WAY TO DO SOMETHING ABOUT IT. I THINK IT IS LONG OVERDUE. I URGE A STRONG BIPARTISAN VOTE. >>

 WITH ALL DUE RESPECT, WE HAVE TRIED THE DIPLOMATIC ROUTE OVER AND OVER AGAIN FOR 10 YEARS. WE TOOK A TRIP TO CHINA ALONG WITH SENATOR COBURN 10 YEARS AGO AN EFFORT TO GET SOMETHING DONE. THIS HAVE TO DO SOMETHING THAT MIGHT ACTUALLY SOLVE THIS PROBLEM. I HAVE LOST FAITH IN THE DIPLOMATIC BACK AND FORTH.

I ASKED FOR THE A'S IN EA'S -- AYES AND NAYS. [ROLL CALL VOTE] >> AYE. >> NO. >> NO BY PROXY. >> AYE. >> NO. >> NO. >> AYE. >> AYE. >> AYE. >> AYE. >> NO. >> AYE. >> AYE. >> AYE BY PROXY. >> AYE. >> AYE. >> AYE BY PROXY. >> NO. >> MR. CHAIRMAN, I'D LIKE TO -- >> I MEANT TO GO NO. TALLY UP THE VOTE. 18 AYES, 8 NAYS. >>

Hatch: YOU KNOW HOW TO SMOTHER ME. [LAUGHTER] >> Schumer: WITH LOVE, MR. CHAIRMAN. >> IS THAT THE NEW YORK TYPE OF LOVE? [LAUGHTER]