The Nail's in the Coffin: Senate Passes Free Trade Agreements (small business, accounting)

[kinkytoes]

Since the free trade agreements and globalization of the past 20 years (or thereabouts...I believe it actually started in the 70s) has been so Wonderful for companies, the senate just passed FTA's with:
Columbia
Panama
South Korea


I was going to write my congressperson, but the last times I wrote and protested, the elected officials laughed in my (collective) face, and we ended up with foreign war and bailouts and healthcare.

There's a lisping guy from Oregon(?) I'm listening to now on C-SPAN. It is clear he and all the others in support only listen to input from businesses. Of course free trade has been really beneficial for large corporations. Honestly, they're more profitable than ever.

I shouldn't care because I have immediate problems.

Nevertheless, I suspect these agreements are the nail in the coffin for the economy...but what do I know? Maybe the austerity measures we're about to impose will be the nail, and the FTA's are just thumbtacks.

[jimhcom]

Things can only get so bad, and then they have to change. It does show however just how out of touch government is with the will of the people.
At the same time, people all over the country, and all over the world for that matter, are expressing their anger over the incestual relationships between government and multinational corporations, the governments are expanding the policies of enriching the wealthy at the expense of the working people.
The good thing is that when government gets this out of touch with the people, they usually fail to see the growing wave that is forming to wash them out of office.

[GoCUBS1]

Great News! Finally passed those FTA's! Bring on more FTA's and the Trans-Pacific Partnership! This will result in lower tariffs (billions paid by U.S. exporters), more export sales, and more jobs for American workers! I could not be happier! Far from being a nail in the coffin - this is one small step out of the coffin....

Yes, free trade has been beneficial for large corporations. But you fail to point out it is especially beneficial for small businesses in the U.S. Free trade agreements level the playing field and expand opportunities for U.S. small businesses, the leading employers of American workers. Selling U.S. products competitively in a global market results in more profits which provide more Americans with jobs, salaries and benefits. It is futile to try to hold back global commerce!

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- Small businesses make up more than 99.7% of all employers
- Small businesses make up 97 percent of exporters and produce 29 percent of all export value.
- Small businesses create 75 percent of the net new jobs in our economy.

Top Ten Reasons to Love U.S. Small Business

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I am especially happy about the South Korean agreement...

"South Korea, with a $1 trillion economy, is the prize in the deals, which together are touted as potentially creating up to 100,000 jobs. The pacts also are projected to generate a $13 billion increase in U.S. exports. Not only do these trade deals expand opportunities for U.S. workers, but they also present tremendous opportunities for American farmers. It is estimated the Korean deal could increase the price farmers receive for their hogs by $10 per hog," Sen. Charles Grassley of Iowa, a Republican on the Senate Finance Committee, said in a floor speech.

Read more: 3 trade deals' passage would open door to more in future - National Business - MiamiHerald.com (http://www.miamiherald.com/2011/10/12/2451128/3-trade-deals-passage-would-open.html#ixzz1afrdYja8 - broken link)

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According to the U.S. Department of Commerce, small businesses accounted for nearly 97 percent of all U.S. exporters and supported nearly four million U.S. jobs in 2007. E.g. More than 81 percent of U.S. companies that export to Peru are small or medium-sized, accounting for $774 million in exports to Peru.

With the unemployment rate at almost 10% and a struggling economy, there is a need to take advantage of every opportunity that would help small businesses. In addition to their economic benefits, passing free trade agreements would provide increased national security and improve our relationships with foreign governments.
In this globalized world, free trade has become a critical component to small business growth and success. Small businesses rely on exports to increase their sales and strengthen their long-term viability. Small businesses are our job creators and hold the key to solving the country’s long-term unemployment problem. We must remove these burdensome trade barriers and create an economic environment that allows small businesses to flourish.

Read more: Free trade agreements | Congress | Inactivity on trade is leaving American small businesses behind | The Daily Caller

[Mircea]

Originally Posted by kinkytoes

Nevertheless, I suspect these agreements are the nail in the coffin for the economy...but what do I know?

Your options are very limited. You can refuse the FTAs and lose 100% of your jobs or you can go with the FTAs and lose 70% of your jobs. Which is the lesser of two evils?

[kinkytoes]

I wrote a paper for a graduate school class on outsourcing/offshoring. I am not an expert by any means, but Free Trade IMO is not a guarantee for keeping jobs in the US.

I have a small business, and NO free trade doesn't benefit me. Free trade benefits large businesses with the capital to invest in overseas ventures and large scale exporting. Companies who can take advantage of the expanded markets, and who can afford to "set up shop" in the countries where we have agreements. Average small businesses are limited in being able to do this.

As for "opening markets" for businesses...How much money does South Korea have to spend on US goods? Or Columbia? Or Panama? Although South Korea is considered affluent, it has low wages, ENORMOUS expenses and household debts and not enough jobs. Not to mention one of the highest suicide rate in the world. A lot of the highly-educated SKs are underpaid and underemployed and in a lot of credit card debt. I'm sure they're REJOICING at the free trade agreement:
http://en.wikipedia.org/wiki/List_of...y_suicide_rate
http://www.time.com/time/magazine/ar...552170,00.html

South Korea is touted as an asian "tiger" economy, but I worked there with awesome and highly-educated engineers, and life is tough. It is difficult to get a job, hours are long and wages are low. And the price of housing is AstroNomical. The middle class is being squeezed to death there, and I can't see how American-based workers won't lose out if companies can access an English-speaking workforce that's technically skilled and will accept much lower wages...Help me out with that...will ya?


US products are coveted in a lot of countries BECAUSE of the high tariffs. The products are more expensive, like European cars to us Americans, because they're more expensive. DUH live outside the US and you'll see what I mean.

Tariffs are not going to become low enough for the majority of Columbians or Panamanians or Koreans to buy American-made products.

As for food...the trade only benefits BIG BUSINESS Agriculture. I GUESS they need more money, because Agribusiness is Extremely profitable...I guess they need more money to...buy even more pesticides and GMO seeds. Small farmers are NOT going to benefit from "free trade."

If we didn't have PRECEDENT, I would say "oh you may be right.." to some free trade supporters, but Free Trade agreements do not work for the average person. They work GREAT for industries and big business...but those organizations do not share the wealth to those who will be harmed: workers and consumers.

Anyway, I don't have any say in how the country is run...because I am a peon. Just my opinion.

[texdav]

I really don't think that the wars;bailouts orheal;thcare law had anyhtig to do with free trade agreements. The fact is that china and india for example have 1/4 the world's popualtion. other merging countries are also important makets in the future. This isn't like after wwII when we had freedom to domiate pordcution without any real competion. In fact China is now thew world's l;aregest vehicle marlet for automakers.Many american companies make more and lors of their profit from foreigh markets. Certainly with 40% of what consumers bought in thsi sountry beig on credit above their income we are not about to see the domestic market return to that level of consumer sales. We like every country has the future depednig more on more on emrging marlets consumer demand.If their is are nails for the coffin iut is no0t be competitive and continuing spending what we do not eran and governamnt taking more and more from earners to support dependent people that have increased greatly since the mid 60's when welth sharig started. We have invested too much national wealth on investments that are pure consumption and return no natinal wealth dividend.

[BestintheWest]

Anyone here old enough will remember Ross Perot's comment ""giant sucking sound" with free trade agreements, referring to NAFTA.

I guess everything goes full circle eventually.

[RottenChester]

Originally Posted by GoCUBS1

I am especially happy about the South Korean agreement...

"South Korea, with a $1 trillion economy, is the prize in the deals, which together are touted as potentially creating up to 100,000 jobs. The pacts also are projected to generate a $13 billion increase in U.S. exports. Not only do these trade deals expand opportunities for U.S. workers, but they also present tremendous opportunities for American farmers. It is estimated the Korean deal could increase the price farmers receive for their hogs by $10 per hog," Sen. Charles Grassley of Iowa, a Republican on the Senate Finance Committee, said in a floor speech.

Read more: 3 trade deals' passage would open door to more in future - National Business - MiamiHerald.com (http://www.miamiherald.com/2011/10/12/2451128/3-trade-deals-passage-would-open.html#ixzz1afrdYja8 - broken link)

Also mentioned in this link;
"Sen. Max Baucus, D-Mont., the chairman of the committee, which oversees trade pacts, said on the Senate floor that the deals addressed Democratic demands for commitments on labor rights and environmental protection.

"These commitments require our trading partners to uphold internationally recognized labor rights, including the right to organize and bargain collectively," Baucus said."

Hmmm, internationally recognized labor rights including the right to organize and bargain collectively. Like the U.S. is really going to enforce this. Look how well we do so in our own country. Wisconsin comes to mind.

These Free Trade Agreements should really be renamed "Let Corporations Run Amok Globally Agreements."

Ask yourself, are the poor disenfranchised citizens of Colombia, Panama, and South Korea really going to be buying U.S. exports, or is it more likely U.S. corporations will move into these countries, exploit slave-like wages, and sell those products back to U.S. consumers. One needs to look no farther than our southern neighbor, Mexico, to draw a conclusion.

[texdav]

But I thought that so mnay wanted to stop interferrig i other countries rights as they see them. What do they wanted forced paying a fixed union price by americans?Do they also think we should force them to pay higher american price in increasingly important emrging market consumers by force some how. I thnik perhaps what mnay reallt want is to kill sells to other if they don't pay our rate and more companies leave the country.Pretty soon all the work will be individaul skils and services they can sell on their own has is happening now more and more.Yoi can not fix the market to palse one group.Wew have clearly seen what americans have chosen byt the nuber of companies going out of the business.Fived american cost by price fixing in anhter guise is all it reallt is.

[RedJacket]

Agriculture should benefit while factory jobs won't. So we'll probably lose more unionized jobs to cheap labor overseas while gaining more jobs picking crops which will be done by illegals.