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Sheldon Whitehouse on Free Trade Democratic Jr Senator, previously attorney general

Opposes NAFTA and CAFTA; supports fair trade

A: I would have opposed NAFTA and CAFTA, and was disappointed in Senator Chafee’s vote for CAFTA. I believe in free trade if it’s fair trade, and our trade policy should enforce tough environmental, ethics, and labor standards to prevent a race to the botto

Voted NO on promoting free trade with Peru.

• enforcement of textile and apparel rules of origin;
• certain textile and apparel safeguard measures; and
• enforcement of export laws governing trade of timber products from Peru.

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.

Extend trade restrictions on Burma to promote democracy.

A joint resolution approving the renewal of import restrictions contained in the Burmese Freedom and Democracy Act of 2003. The original act sanctioned the ruling military junta, and recognized the National League of Democracy as the legitimate representative of the Burmese people.

Legislative Outcome: Related bills: H.J.RES.44, H.J.RES.93, S.J.RES.41; became Public Law 110-52.

Review free trade agreements biennially for rights violation.

Trade Reform, Accountability, Development, and Employment Act or the TRADE Act:
1. review biennially certain free trade agreements (including Uruguay Round Agreements) between the US and foreign countries to evaluate their economic, environmental, national security, health, safety, and other effects; and
2. report on them to the Congressional Trade Agreement Review Committee (established by this Act), including analyses of specified aspects of each agreement and certain information about agreement parties, such as whether the country has a democratic form of government, respects certain core labor rights and fundamental human rights, protects intellectual property rights, and enforces environmental laws.

Declares that implementing bills of new trade agreements shall not be subject to expedited consideration or special procedures limiting amendment, unless such agreements include certain standards with respect to:
1. labor;
2. human rights;
3. environment and public safety;
4. food and product health and safety;
5. provision of services;
6. investment;
7. procurement;
8. intellectual property;
9. agriculture;
10. trade remedies and safeguards;
11. dispute resolution and enforcement;
12. technical assistance;
13. national security; and
14. taxation.

Impose tariffs against countries which manipulate currency.

• Amends the Tariff Act of 1930 to include as a "countervailable subsidy" requiring action under a countervailing duty or antidumping duty proceeding the benefit conferred on merchandise imported into the US from foreign countries with fundamentally undervalued currency.
• Defines "benefit conferred" as the difference between:
  1. the amount of currency provided by a foreign country in which the subject merchandise is produced; and
  2. the amount of currency such country would have provided if the real effective exchange rate of its currency were not fundamentally undervalued.
• Determines that the currency of a foreign country is fundamentally undervalued if for an 18-month period:
  1. the government of the country engages in protracted, large-scale intervention in one or more foreign exchange markets
  2. the country's real effective exchange rate is undervalued by at least 5%
  3. the country has experienced significant and persistent global current account surpluses; and
  4. the country's government has foreign asset reserves exceeding the amount necessary to repay all its debt obligations.

[Explanatory note from Wikipedia.com "Exchange Rate"]:

Between 1994 and 2005, the Chinese yuan renminbi was pegged to the US dollar at RMB 8.28 to $1. Countries may gain an advantage in international trade if they manipulate the value of their currency by artificially keeping its value low. It is argued that China has succeeded in doing this over a long period of time. However, a 2005 appreciation of the Yuan by 22% was followed by a 39% increase in Chinese imports to the US. In 2010, other nations, including Japan & Brazil, attempted to devalue their currency in the hopes of subsidizing cheap exports and bolstering their ailing economies. A low exchange rate lowers the price of a country's goods for consumers in other countries but raises the price of imported goods for consumers in the manipulating country.

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