Statement on the U.S.-Oman Free Trade Agreement

Date: July 20, 2006
Location: Washington, DC
Issues: Trade


Statement on the U.S.-Oman Free Trade Agreement (7/20/06)

"We need a new trade policy that recognizes today's realities of the global economy by promoting worker rights, environmental protection and access to health care. This Oman deal fails to meet that test."

—U.S. Representative Tom Allen issued the following statement expressing his opposition to the U.S.-Oman Free Trade Agreement under consideration today in the House:

"I rise in opposition to the U.S.-Oman Free Trade Agreement (FTA). We need a new trade policy that recognizes today's realities of the global economy by promoting worker rights, environmental protection and access to health care. This Oman deal fails to meet that test.

"Expanding trade opportunities can lead to job growth and economic vitality in Maine and around the country. Trade policy should reflect all our important societal values, not just commercial concerns, in order to create a stronger and more competitive America, encourage broader prosperity at home and abroad, and create a better, healthier future for ourselves and our children.

"Inevitably, trade agreements create winners and losers within the U.S. economy. No trade deal can be considered independently of other policies designed to help those who will be shortchanged. Unfortunately, recent U.S. economic policies will make matters worse. The President's budget, adopted by the majority in Congress, cuts programs vital to helping Americans displaced by new trade agreements: job training, vocational education, adult education, community development, and small business aid. It is irresponsible and immoral to inflict a double blow on our most economically vulnerable citizens.

"If we do not reverse the disturbing disappearance of manufacturing and information technology jobs, the American economy will suffer even greater job losses and long-term damage.

"The U.S.-Oman FTA falls short in the area of worker rights. Its only enforceable labor obligation is a requirement that Oman enforce its own labor laws, even though Oman's laws fail to comply with basic international standards in 10 specific areas. We should mandate Oman abide by core labor rules, to be fair to their own workers and keep trade on a level playing field.

"The Oman pact continues a dangerous trend of using trade policy to extend anti-competitive protections for the highly profitable brand name drug industry. Although generic drugs lower prices and therefore improve public health, the intellectual property provisions inserted by the Bush Administration would delay entry of generic prescription drugs by imposing restrictive rules on the developing countries covered by the agreements.

"I fear these provisions could come back to hurt Americans, as Congress' ability to legislate on health care could be restricted by international trade obligations. In essence, the Administration is giving powerful drug makers legal standing to challenge domestic U.S. health care laws through trade dispute mechanisms.

"We see the double standard. The Administration champions international trade standards when they protect pharmaceutical industry profits, but reject them when they protect workers' rights.

"I voted against the fast track/Trade Promotion Authority bill, in part because I believed that it ceded too much authority to the Executive Branch. The experience with this Oman deal validates my concern. In June, the Senate Finance Committee approved an amendment to the pact stipulating that goods made in Oman with forced labor may not benefit from the trade agreement. When the White House later submitted the agreement to Congress, it left the forced labor provision out. The Administration has ignored the will of Congress. The blank check permitted by this fast track authority is a clear case where bad process leads to bad policy.

"I urge my colleagues to reject the U.S.-Oman Free Trade Agreement, and insist on a new, balanced trade policy guided by consensus, not ideology."

http://tomallen.house.gov/article.asp?id=702

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