[ close ]


Bg1

Spread this message with Digg, Del.icio.us, Reddit, or Stumbleupon, and subscribe to the RSS Feed to track articles

Lugar Paving Way for Job-killing FTA

Published 11/04/09 Dustin Ensinger - Print Article
E-mail - editor@economyincisis.org

Legislation introduced last month in the U.S. Senate could pave the way for yet another job-killing free trade agreement. 

Senate Resolution 311, introduced by Indiana Senator Dick Lugar, would direct U.S. Trade Representative Ron Kirk to negotiate a free trade agreement with the Association of South East Asia Nations (ASEAN).   

“The United States should proceed to develop a comprehensive strategy toward engaging ASEAN in serious FTA discussions,” Lugar said in a press release.   

While Lugar admitted that the negotiations would be difficult, he painted it as an economic imperative given the foothold America’s competitors are gaining in the region.   

“While this endeavor will be complex and have possible challenges to negotiation given the varying levels of economic development and open markets among ASEAN countries, China, India, Australia, New Zealand and South Korea have already finalized FTAs with ASEAN and are sharpening a competitive edge over the U.S. in Southeast Asia,” Lugar said.  

One possible impediment to a free trade agreement with ASEAN is the fact that Burma/Myanmar is a member of the regional partnership.  Due to brutal military rule in the country, the U.S. has virtually no economic relationship with the nation.  However, Lugar said that this should not prevent the U.S. from moving forward with a trade pact, and added that moving forward with negotiations would send a strong signal about America‘s commitment to the region ahead of the president‘s trip there for the Asian Pacific Economic Cooperation forum in mid-November.   

“Ongoing trade restrictions with Burma should not deter U.S. efforts to reach an FTA with the rest of ASEAN,” Lugar said.  “President Obama’s possible meeting with ASEAN leaders while in Singapore will reflect the significance of the U.S. – ASEAN relationship.”  

ASEAN is comprised of the nations of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.   

The U.S. has had a comprehensive trade and investment framework with the trade bloc since August 2006.  Because of legislation introduced by Lugar, the U.S. has had an ambassador to ASEAN since 2006.   

ASEAN is currently America’s fifth largest trading partner, behind Canada, Mexico, China and the European Union.  According to Lugar’s office, two-way trade between the U.S. and ASEAN totals roughly $180 billion per year.   

Yet, of the 10 nations making up ASEAN, the U.S. holds a trade surplus with just three through August 2009.  Overall, the U.S. holds a $29 billion trade deficit with the region.   

 

Click Here For Solutions To America's Economic Problems

Click here to contact your Representative in Congress.

Unless the above article is already copyrighted, this article is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License, EIC grants permission to use this article in whole or in part provided attribution is given, preferably in the form of a link back to EconomyInCrisis.org.

MORE OF TODAY'S NEWS | Comment on this Article | Read Comments


Spread this message with Digg, Del.icio.us, Reddit, or Stumbleupon, and subscribe to the RSS Feed to track articles

Register for newsletter

Bg2

Please Donate to EconomyinCrisis.org today



Please do your part, send a donation of $5, $10, $15 or any amount by PayPal or major credit card.

Bg2

Download our Podcast from iTunes

Itunes

Bg2



Bg2

Follow us on Twitter

Twitter


Download our Podcast from iTunes

Itunes

Bg2

Additional Recommended Articles from the Archives


Bg2

Follow us on Twitter

Twitter

Bg2

Donate Today


Bg2

Comment on this article

Subject

Comment



Bg2

Article Comments From Readers

guest says "ASEAN" on 11/04/09
I'm sure that they will continue with another of these pacts with the largely low wage hordes of Southeast Asia. Seeing that the average income of the Vietnamese, Cambodians, and Laotians is in the mid to low range of the hundreds of dollars a year, its cheap labor for them.

Not to mention that the regimes in Southeast Asia are largely dominated by the military juntas or communist parties of the region. With the exception of Thailand, Malaysia, and Singapore, the rest of the countries are ran by tyrants or a Communist party.

Some way to bring everyone into the fold that way we can decrease the US standard of living, go into debt further, and destroy what's left of our infrastructure.

Interesting that we fought a war in Southeast Asia from 1945 until 1975 either giving weapons to the French colonialists from 1945 to 1954 and then our own forces from 1954 to 1975, all to trade what we have left with Communist regimes in Cambodia, Laos, and Vietnam. So much for the 58,000 lives that were sacrificed in SE Asia as well as the couple thousand MIAs and POWs that were left there without cooperation. Even the Vietnamese Communists had soldiers of ours from the 1960s and 70s left over in Vietnam during the last 3 decades. Yet, we are opening our markets to more foreign made material and products while we have 10 percent unemployment and a weakening economic picture brought on by massive debt.

guest says "Beware of what you wish for" on 11/04/09
I am surprised with the article. Soon when the USD plunged into oblivion, there won't be any free trade or any trade (no one will trade with the US). I guessed the US would be happy then and there will be no deficit to worry about.

guest says "Push for more free trade is about printing money to exchange for real manufactured goods" on 11/04/09
The reason for the push for these protectionist agreements called Free Trade, is that these protectionist agreements will be called Free Trade to confuse people. There will probably be some barrier like that to export in some of these countries a joint venture with local partners will have have to be setup so that the technology can be copied. This barrier will probably be excluded as a barrier to trade and be considered free trade. The reason for the push for more flawed trade agreements is that after a country has exchanged enough manufactured real goods for printed US money, the exporter wants no more printed US money and instead wants real goods, so it tries to buy up whatever manufacturering companies or real goods are left in the US. With some countries having hundreds of billions or even trillions of US dollars they want no more. So the few companies that want to take advantage of the barriers imposed by these so called trade agreements push for more of them with different countries in which they have the expectation that Americans will still buy these foreign goods on credit. For this to go on, they have to move to countries not holding as many US dollars in reserve.

guest says "JOB-KILLING" on 11/04/09
DONT YOU JUST LOVE OUR SENATORS. THEY KILL OFF YOUR JOB THEN COME BACK TO YOU DURING AN ELECTION AND ASK FOR YOUR VOTE.THESE ARE HYPOCRTICAL A-- HOLES.AS LONG AS THEIR TAKEN CARE OFF SCREW THE POPULACE,AND YOU PEOPLE WILL JUST KEEP ELECTING THIS CRAP, THROW THE BASTARDS OUT AT ELECTION TIME, THEY SHOULD BE TRIED FOR TREASON TO THE AMERICAN PEOPLE

biguru says "Vietnam" on 11/04/09
Vietnam is going be be another Korea (South). That is how they are pushing. Since they will be selling and we will be buying cheaper products than the Koreans - we will quickly have trade deficits with that country. The rest will be no different.

How exactly that is going to help us, I am not sure.

Most of the high value products that is traded are engineered products. Yet we do not have engineers running the show. We do not even open the door for financial services that benefits our country - not take Ponzi Schemers there!