Dear Congressman Buchanan,
As I am sure you are aware from letters to the editors of various publications I have been a strident supporter since you first ran for office. In that venue I wanted to write you a personal letter about a huge mistake that you are becoming invofed in relating to trade.
You should be aware that I was active in the CT/RI DEC [District Export Council] having been appointed by Secretary of Commerce Malcomb Baldridge during the Reagan administration and re-appointed by every Secretary including Ron Brown whose blatant politization of the DEC’s caused me to surrender my appointment. I was the CEO of a small multi-national [Widder Corp.] with working operations in the UK, RSA, Switzerland, Connecticut and California. A full CV may be viewed on www.A2Zpublications.com go to about the author, Adrian Krieg Curriculum Vita.
Beginning with Ron Brown and continuing with all subsequent administrations information provided by the Departments of Labor, Commerce, and offices of the International Trade Representative, relating to trade, have not only become suspect but downright dishonest. Information provided to your author of the article signed by you is in large part government propaganda that may be rightly assumed as false fabrication for the attempted implementation of an agreement not beneficial to the American public. So that you clearly understand these “Free Trade” agreements, which are the “Trojan Horse” of the internationalist cabal that calls itself the Bilderbergers have in effect been the cause of the demise of American manufacturing industries since before1990.
To simplify the issue for you I will only address NAFTA in this letter. NAFTA was instituted as an “Agreement” because it could not pass the requirement of “Treaty Status” in the Senate, (3/4 required to pass) because public opposition at the time of implementation was at 87%. In Fact Clinton (D) implemented it as an agreement by having it published in the Congressional Register, it was in fact passed as an EO. All subsequent attempted and implemented (CAFTA) [passed by Bush (R)] trade agreements are based on the NAFTA model.
NAFTA was published eight month after enactment being backdated to 1992 (actually published in ‘93 long after enactment) NAFTA consists of two volumes (approximately 1,000 un-numbered pages) 8 ½” by 11” in size volume one is 1 ¼ “ thick and volume two is 1” thick. The administration-touted agreement would lower all tariffs by 10% per year between America, Canada, and Mexico, to zero in ten years. If I can express that in 18 words why do you suppose it took the implementers of NAFTA over 1,000 pages? Because this agreement is much more than a simple trade agreement to lower tariffs. It is the platform for all present and future trade deals involving North America and the rest of the world. The first attempted expansion was called FTAA [Free Trade Area of the Americas] and was pushed by the American Foreign Secretary Warren Christopher and later Madeleine Albright of the Clinton Administration in speeches in Santiago, Brasilia, and Asuncion South America under the Clinton administration. FTAA never went anyplace. W. Bush (R) then implemented (with congressional approval) CAFTA.
The resulting catastrophe for America resulting from NAFTA are as follows:
In 1991 America had a trade surplus with Mexico of $ 5.7 billion. Let me be absolutely clear, we sold Mexicans $5.7 billion more goods than we purchased from them. NAFTA was implemented in 1992 by 1993 we had a trade deficit with Mexico that grew every single year for ten years. Today that results in an annual trade deficit with Mexico of $64.6 billion, if you add the previous surplus then the total loss to the American economy is now $70.03 billion annually.
One of the requirements of NAFTA is that the executive shall provide to the American electorate an annual report of the effects of NAFTA. When Clinton saw the deleterious numbers resulting from NAFTA he had the to be issued report in 1995 shredded and no ensuing executives have ever complied with that provision of the agreement. No Republican or Democrat administration ever issued a financial and trade report on NAFTA effects on our economy.
Other unreported effects were; the loss of over 40,000 manufacturing businesses (mine included) and the loss of over 10 million manufacturing jobs, the highest paid blue-collar jobs in America. The detail is that under Free Trade American business, more correctly manufacturing, cannot under any circumstances compete with products produced in the third world. Bureaucrats and there are scores of them, that try to refute these facts frankly don’t know what they are talking about.
Information provided by the ITC is rubbish. When I was in business we had to conclude that a treaty the ITS had negotiated as a trade restriction of steel imports to protect the American steel industry to America with producers in Korea, Japan and the EU did not take into account that there were hundreds of different types of steels, for expediency they lumped all steels into one classification. We needed specialty tool steels (supper High Speed Steels) [HSS] and under the ITC negotiated treaty were prevented for importing it, no domestic producer made it.
The fable produced by the ITC, Commerce and other agencies that American exports will grow with the expansion of free trade is an out and out lie. This is the identical story that was so shamelessly promoted in the Clinton administration, “NAFTA will drastically increase our exports to Mexico” “Mexican laborers will be buying Chevrolets, and wages will dramatically rise in Mexico”. The contradictory facts of NAFTA are; our exports to Mexico had dramatically declined while our imports have risen by over ten fold, Mexican laborers are not even buying used American cars, and the income of the average Mexican laborer has risen from $1.44 per hrs in 1993 to $1.87 per hrs in the last ten years. I should point out that Mexican workers do not get, profit sharing, unemployment compensation, pensions, social security, workmen’s compensational, the right to unionize, Medicare Medicaid, food stamps, and that Mexican manufacturers do not need to pay the excessive costs of product liability insurance. [No attachable assets] (For most American manufacturers about 15% of their overhead)
No domestic manufacturing enterprise can compete with this.
Product moving through port Manatee is almost exclusively bulk, fertilizer export, Orange export, petrochemical imports and shipments from Louisiana and Texas, as well as raw materials like steel and aluminum all of which produce staggering dollar volume orders but almost no labor. The assertion that port Manatee is responsible for 24,000 jobs is the figment of the imagination of some port sales hucksters. I very much doubt that the entire port Manatee employs 500 people.
Expansion of free trade agreements will result in further deterioration of American manufacturing, loss of jobs as demonstrated both in NAFTA as well as CAFTA, and the elimination of the 9% manufacturing that this economy now has. As Thomas Jefferson so aptly put it,” any nation that does not manufacture is the colony of the one that does!”
Dr. A. H. Krieg CMFGE