Well, the Republican Majority has finally left DC for another one of those extended vacations that most of them like to impugn when French workers take them. They didn’t go home nearly soon enough though.
CAFTA will increase some barriers to trade while lowering others. One of the barriers it increases is on patented pharmaceutical drugs. This is the most costly form of protectionism in the world today. The benefits from free trade in these goods are much appreciated by the millions of Americans who cross the Canadian or Mexican border to get their prescription drugs. But CAFTA will make it more difficult for countries like Guatemala to get access to affordable medicines…Over the last 30 years the typical (median) wage in the United States has hardly grown — only about 9 percent. Productivity — output per employee — has grown by 82 percent over the same period…Over the next decade, the dollar will fall further and our trade deficit will shrink. Measured in non-dollar currencies, the value of U.S. imports is expected to decline over the next decade. This means that CAFTA countries are making costly concessions for a prize that most likely won’t be there.
House Democrats did a much better job of bucking the “Washington Consensus” than their counterparts in the Senate, a quarter of whom backed the bill. That only fifteen House Democrats voted with Thomas Friedman on a “free trade” bill is a hopeful sign of how much that consensus has fractured in the past decade. Those fifteen votes, sadly, seem to have made all the difference Wednesday. David Sirota provides a helpful list of the eleven Democrats in Congress who voted not just for CAFTA but for the Bankruptcy and “Class Action Fairness” bills as well, and some much-needed skepticism about claims that they acted out of electoral necessity.
As if CAFTA wasn’t bad enough, yesterday the Senate passed up a bill protecting detainees’ human rights and passed a bill curtailing victims’ rights to a day in court against the gun industry. And an Energy Bill which, as John Podesta observes,
gives away our tax dollars to energy companies already making record profits. The challenges we face in moving to more secure and sustainable energy use are large. We need a bold energy policy for the United States. Sadly, even the modest commitment to increase the use of renewable sources for electricity or language acknowledging the danger of climate change did not survive in the final bill. We must continue to challenge the Bush administration and Congress to get serious about decreasing the oil consumption of the United States and combating global warming. The energy bill the Senate will vote on today ignores those challenges.
Although the ACLU was unable to endorse the final bill, it contains some provisions mindful of the Bill of Rights, and does not include such broad and unnecessary powers like administrative subpoenas.