Let’s move out of the tax-cut frying pan and into the South Korea free trade agreement fire. The Wall Street Journal says that KORUS, which is the nickname the White House has been using for the deal, is picking up support. But the first piece of their article concerns how Max Baucus, the chair of the Senate Finance Committee, is very frustrated by it:
But Sen. Max Baucus (D., Mont), chairman of the Finance Committee that has jurisdiction over trade, has said he is “deeply disappointed” with the deal and will reserve judgment until further progress is made on opening Korea’s market to U.S. beef. The revised pact contains new protections for U.S. auto makers, but didn’t change the original 2007 pact significantly when it came to beef.
Sen. Orrin Hatch (R., Utah), who will take over as the ranking Republican on the Finance Committee next year, also expressed reservations about some aspects of the deal, but said he would support its passage. He shares the concern about South Korea’s restrictions on imports of U.S. beef from cattle older than 30 months, given that beef accounts for nearly half of his state’s agriculture sales.
“Naturally I’d like more done” on beef, Mr. Hatch said Tuesday. “But I think what the president has done is a step in the right direction on Korea.”
Olympia Snowe hasn’t decided to support it yet, either. Baucus is chairing the committee the bill has to go through, and he wants the beef provisions renegotiated, something that South Korea has already said they won’t do. So while ultimately I think there’s more than enough support in the Senate Finance Committee and on the floor to get it done, at least from a first glance, that’s a serious obstacle. And the bigger issue is the House.
Meanwhile, while the President has promised that 70,000 jobs would be “supported” by the trade pact (he’s careful not to say created), the government’s own analysis finds that to be untrue.
In fact, the effect of the agreement on aggregate output and employment in the United States “would likely be negligible,” according to a federal study, largely because the United States economy is so much larger than that of South Korea. Indeed, the study found, the country’s overall trade deficit with the rest of the world is likely to grow slightly as a result of the agreement.
But the deal is likely to be beneficial to particular industries, including the Detroit automakers and manufacturers of industrial and electronic equipment and high-technology products like pharmaceuticals and medical devices, according to that study.
American manufacturers of textiles and clothing could be hurt, however, as relatively high American tariffs on those products are reduced.
I didn’t know there were any American textile manufacturers left. What, will American Apparel go down too from this?
Here’s that government study, and it does contradict any claim to major job creation coming out of this deal. Basically, the deal benefits multinational corporations and not American workers.
We’ll see this come up in the next Congress.




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Funny how the man from Montana is only concerned about this because his state can’t sell more CATTLE to South Korea.
There’s not much left of the textile industry on our fair shores, but there is *some* in exsitence. Hey: screw those workers, too, esp if it means some Oligarch can shovel more money (of whatever denomination… perhaps Chinese Renminbi is the “goer”) into their already packed coffers.
KORUS is just as much bullsh*t as extending the Bush tax cuts to zillionaires and for similar reasons. And yes, I’m very cynical about Max Baucus’ motivations for having a “sadz” over this. Some zillionaire must be tugging on his coat sleeve and offering him some sweet sweet payola. Bacus is certainly not “concerned” for the welfare of the average US worker, of that we can all rest assured.
It’s all posturing. It’s all rigged.
We can’t help Americans but we have trillions of dollars for the rest of the world.
We can’t fuel employment here but the South Koreans will be brimming with corporations making money. Which of them bought Washington?
Mr. Obama. You weren’t elected President of South Korea!!!!!!
Americans are starving but the wealthy pigs in suits complain their chataeubriand is improperly seasoned and they must have golden chargers! “Send for Korean workers,” they whine. “They’ll do right by us or we’ll pull our military support. Screw Americans. Koreans will keep us rich!”
Impeach them all. It’s the kindest thing I can think of to do.
According to opensecrets.org, his number 1 contributor is a Pharmaceutical company. I went looking for meat-packers or large ranches, but didn’t turn anything up.
Piggies.
Well done, sir.
It started playing in my mind as I read the article. I thought I’d share.
Eh – good for you for checking. There *has* to be something in this for Baucus…. or else, it is the inevitable Kabuki show. Baucus hasn’t had a “sadz” for the “small” people in the USA ever ever; he only holds us all in deep contempt.
Yeah: let’s ship all of our top quality beef to the Koreans who are now rolling in our tax dollars & can afford to pay for it.
What’s left for the serfs in the USA? Probably all the mad cow rejects, which the FDA is *prohibited* from looking for.
I like your commentary, as well. Go for it!
The PhrMA contributions are because he was/is chair on the committee that reported out on HCR – remember? Baucus’s staffer, Liz Fowler who came from the Industry wrote the bill.
And remember, his former staffer, Jim Medina, was the POTUS transition guy who nominally hired Rahm, and then became assistant WH Chief of staff – still is.
Future fuckery from Baucus to come, fer sure, regardless of mewling noises on KORUS.
So many “secret meetings’ and “behind closed doors” with this administration. And then, they lie about how “popular this tax idea is with the American people” (polling) I guess it is with the “people” they come in contact with,
I called my rep today and actually got a statement from his aide that he was “very upset” about this tax extensions idea.
Oh, and I don’t think hardly anyone knows that Obama has negotiated this trade agreement. People’s eyes glaze when it mentioned.