Testimony on MA H.341 - the Globalization Impact Bill
Testimony on H.341, Globalization Impact Bill
Before Joint Committee on Economic Development & Emerging Technology
Commonwealth of Massachusetts
9 June 2009
I thank the chairperson [Senator Karen Spilka] for this opportunity to share my views.
My name is David Lewit. I am a social psychologist living in Boston, and come here as an active member of the Boston-Cambridge Alliance for Democracy.
I'm quite sure that the members of this Committee are familiar with the purposes and terms of this Globalization Impact bill H.341-how a citizen trade policy commission may help to protect our laws and people from the excesses of trade agreements negotiated and enforced without our participation or consent. Indeed, the economic reversals which most of our country is experiencing today are in some measure due to financial and trade agreements like WTO and NAFTA.
In these few minutes I would like to offer excerpts from the most recent reports issued by such commissions already established and functioning in our neighboring states of Maine, Vermont, and New Hampshire.
>From the Maine commission, in a letter dated last Wednesday to its US senators and congressmembers.
http://www.maine.gov/legis/opla/CTPCPanamaFTAletter5-28-09.pdf
"Panama is a known tax-haven for corporations including national financial institutions that compete directly with Maine's local banks. Panama's laws create a system of banking secrecy and make it comparatively easy for U.S. companies to create subsidiaries there in order to evade U.S. taxes... The Senate Homeland Security Committee estimated that tax evasion in offshore havens costs U.S. taxpayers $100 billion a year.
"The Panama tax haven creates an uneven playing field for companies in the U.S. that pay taxes and abide by the rules. Maine's local banks are comparatively small and are unlikely to have subsidiaries registered in Panama putting them at a competitive disadvantage with national banking institutions that can avail themselves of Panama's banking laws. We are very concerned that passing a free trade agreement with Panama will make this problem even worse, further weakening our local businesses' and financial institutions' ability to compete locally and nationally...
"Passing the proposed Panama Free Trade Agreement will further compromise our state's sovereignty and the authority of Maine's Legislature to enact laws in the public interest."
From Vermont's commission, in its annual report from last November.
http://www.leg.state.vt.us/WorkGroups/TradeTrade_Commission_Annual_Repor....
pdf
"Commission members would prefer that trade commitments be derived via a process based upon "positive lists" [of specified services to be liberalized] that are based on the affirmative, informed consent from affected state and local entities, rather than upon a system of 'negative list' opt-outs." They go on to discuss the problems created when the WTO tribunal ruled on internet gambling in favor of Antigua & Barbuda and against the US, because the US failed to opt out "either by inadvertence or by lack of knowledge of relevant laws and regulations..."
Regarding its plans for 2009, the Vermont commission expects to take up Panama, Colombia, and South Korea agreements, and the matters of Fast track, and [Displaced] Workforce Assistance. They expect to "help create a strong Northeast regional network of state oversight bodies..."
Finally, from New Hampshire's commission, in its first annual report, last November.
http://www.gencourt.state.nh.us/statstudcomm/committees/1890/reports/200...
"The Commission finds that the decisions to bind the state's procurement policies to the terms of several trade agreements [and they name six] were made by the office of the Governor without public comment and without the approval of General Court. [Vermont's Asst. Attorney General] Elliot Burg explained [in testimony] that procurement rules could prohibit "green purchasing" policies, [could prohibit] limits on off-shoring of state services, [could prohibit] prevailing wage agreements, and [could prohibit] any kind of preferences based on human rights standards...
"The Commission recognizes that impact of imports and exports on the state's economy is significant. We are pleased that New Hampshire businesses have generated business activity and created employment through enterprises that export goods and services. We are distressed that many New Hampshire manufacturers have shut their doors and laid off workers due to outsourcing, off-shoring, and foreign competition."
* * *
Let me conclude by saying that it is high time for the Commonwealth of Massachusetts-the richest state in New England and the cradle of the American revolution against a foreign power-to live up to its obligation to oversee federal law-making, and to recognize and act upon its responsibility to take care of its citizens and their liberties in the face of transnational corporate encroachment.
Thank you.
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Filed on 1/12/2009
The Commonwealth of Massachusetts
Presented by: Byron Rushing
H.341
An act providing for the creation of a special commission relative to the
impact on the Commonwealth of Massachusetts of the international trade and
investment agreements.
Be it enacted by the Senate and House of Representatives in General Court
assembled, and by the authority of the same, as follows:
Chapter 3 of the General Laws is hereby amended by adding the following
section:--
Section 69. A permanent special commission is hereby established
for the purpose of evaluating the continuing impacts on state laws and
regulations by international trade policy and international trade
agreements, examining proposed international trade agreements, maintaining
active communications with any individual or entity, as the commission
determines appropriate, regarding ongoing developments in international
trade agreements and policy; and examining any aspects of international
trade, international economic integration and international trade agreements
that the member of the commission consider appropriate. An "international
trade agreement" is defined as any international trade or investment
agreement or treaty, including but not limited to, the North American Free
Trade Agreement (NAFTA), the Central American Free Trade Agreement (CAFTA),
and agreements concluded by the World Trade Organization (WTO).
Said Commission shall engage in at least one public hearing annually
and shall report on the economic and sovereignty impacts of international
trade agreements on the Commonwealth of Massachusetts. Such report may
include recommendations of support or opposition of revisions in United
States trade policy or commitments, including by not limited to proposed
international trade agreements. This annual report shall be transmitted to
the General Court, the Governor, the Attorney General of the Commonwealth of
Massachusetts; to federal officials, including the United States Trade
Representative and members of the Massachusetts Congressional delegation.
Said Commission shall consist of
3 members of the Senate of the General Court,
3 members of the House of Representatives of the General Court,
the Governor or his designee,
the Attorney General or her designee,
the Treasurer or his designee,
a representative from the Office of International Trade & Investment,
and 9 persons appointed by the Governor,
one of whom shall be a representative of organized labor,
one of whom shall represent small business,
one of whom shall be a representative from a human rights
organization,
one of whom shall represent farmers,
one of whom shall be a representative from an environmental group,
one of whom shall be a representative of the Massachusetts Municipal
Association,
one of whom shall be engaged in the business of exporting goods
internationally,
one of whom shall be a member of a graduate faculty of law, with
expertise in issues of constitutional federalism, of a private university in
the commonwealth, and
one of whom shall be a member of a graduate faculty in economics or
labor studies of the University of Mass
