More Job Outsourcing, More Income Inequality

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Negotiated in secret with hundreds of industry advisors, corporate-driven trade deals like the North American Free Trade Agreement (NAFTA) include protections for corporations to outsource American jobs, pushing down wages for everyone in the U.S. After the 2000 U.S. trade deal with China, millions of middle-class jobs were outsourced. The result is lower wages for all of us, not just manufacturing workers. Contrary to the theory of free trade, broad losses in income caused by our trade policies outweigh the gains consumers get from cheaper imported products.

Today’s “trade” agreements include investor protections that eliminate many of the usual risks that make firms think twice about moving to low-wage countries.

These incentives to outsource jobs have contributed to the net loss of nearly 50,000 American manufacturing facilities and nearly 4.5 million U.S. manufacturing jobs – one out of every four – during the era of corporate-rigged international trade and investment deals.

The U.S. Department of Labor lists more than 3 million workers as specifically losing their jobs to outsourcing and competition from imported goods – and that is under just one narrow program that excludes many people whose job loss is trade-related.

Studies estimate that the U.S. economy could have supported millions more manufacturing jobs if not for our massive, persistent trade deficits. When trade agreements include incentives to offshore jobs, U.S. firms shift production to low wage countries and then goods with U.S. brand names are imported back for sale here, exploding our trade deficit. Effectively, the trade deficit is a measure of how much more we buy from other countries versus sell to other countries.

Featured Resources

• Trump Still Has Nothing But Platitudes For American Workers (January 31, 2018)
• Measuring Stick on NAFTA: Replacing NAFTA With a Deal That Delivers Broad Benefits (January 26, 2018)
• Small Business Leaders to Trump: End Advantage for Multinationals Over U.S. Small Businesses in NAFTA (July 12, 2017)
• NAFTA’s Legacy: Lost Jobs, Lower Wages, Increased Inequality (February 27, 2017)
• Studies Reveal Consensus: Trade Flows During “Free Trade” Era Have Exacerbated U.S. Income Inequality (January 15, 2017)
• Resource Guide: How to Track Trade-Related Job Loss in Your State/District
• Prosperity Undermined: Fast-Tracked Trade Agreements’ 20-Year Record of Massive U.S. Trade Deficits, American Job Loss and Wage Suppression (August 01, 2015)
• Studies Reveal Consensus: Trade Flows during “Free Trade” Era Have Exacerbated U.S. Income Inequality
• AFL-CIO Factsheet: TPP and Workers of Color
• Find out more on the blog: Read the latest on trade and inequality on Eyes on Trade

Reports and Memos  |  Press Room  |  Congress Speaks Out  |  Civil Society Speaks Out

Public Citizen Factsheets, Reports & Memos

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• NAFTA Proponents Use Flawed Methods to Try to Hide Large NAFTA Trade Deficit (December 2017)
• Federal Contracting With Corporate Offshorers Continues (April 25, 2017)
• FTA Penalty: Job-Killing Trade Deficits Surge under FTAs: U.S. Trade Deficits Grow 462% with FTA Countries, but Decline 7% with Non-FTA Countries (March 2017)
• How Overreaching “Trade” Pact Rules Can Undermine Buy American and Other Domestic Preference Procurement Policies (March 1, 2017)
• NAFTA’s Legacy: Lost Jobs, Lower Wages, Increased Inequality (February 27, 2017)
• Updated Factsheet:Job-Killing Trade Deficits Surge under FTAs: U.S. Trade Deficits Grow 418% with FTA Countries, but Decline 6% with Non-FTA Countries (March 9, 2016)
• Studies Reveal Consensus: Trade Flows during “Free Trade” Era Have Exacerbated U.S. Income Inequality (August 20, 2015)
• Prosperity Undermined: Fast-Tracked Trade Agreements’ 20-Year Record of Massive U.S. Trade Deficits, American Job Loss and Wage Suppression (August 20, 2015)
• The TPP: More Job Offshoring and Lower Wages (August 20, 2015)
• Resource Guide: How to Track Trade-Related Job Loss in Your State/District (August 20, 2015)
• Factsheet: Job-Killing Trade Deficits Surge under FTAs: U.S. Trade Deficits Grow More Than 425% with FTA Countries, but Decline 11% with Non-FTA Countries (February 25, 2015)
• Infographic: Obama vs. Obama (January 21, 2015)
• 2014 Trade Data Reveal Surging U.S. Trade Deficits Under Korea FTA and NAFTA, and a Dramatic Failure to Meet Obama’s Export-Doubling Goal, Dealing Further Blows to the Administration’s Push for Fast Track (January 10, 2015)
• Infographic: NAFTA Terms Replicated in TPP (January 9, 2015)
• USTR’s Omissions and Data Distortions Aimed at Hiding the Dismal Realities of the Korea Free Trade Agreement (December 20, 2014)
• Release of Two Years of Korea FTA Data Throws More Cold Water on Obama TPP and Fast Track Efforts After Asia Trip Fails to Change Dynamic (May 9, 2014)
• Korea FTA Outcomes on the Pact’s Second Anniversary: U.S. Exports to Korea Are Down, Imports from Korea Are Up, Auto and Meat Sectors Hit Particularly Hard (March 12, 2014)
• NAFTA’s 20-Year Legacy and the Trans-Pacific Partnership (February 13, 2014)
• Study: “Trade” Deal Would Mean a Pay Cut for 90% of U.S. Workers (September 12, 2013)
• Election 2012: U.S. Polling Shows NAFTA-style Trade Deals Becoming Even More Unpopular (January 24, 2013)
• Public Interest Analysis of Leaked Trans-Pacific Partnership (TPP) Investment Text (June 13, 2012)

Public Citizen Press Releases & Statements

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• NAFTA Plan Does Not Describe Promised Transformation of NAFTA to Prioritize Working People (July 17, 2017)
• President Trump’s Executive Orders Formally Bury TPP’s Corpse, but What About TTIP, TISA, China BIT? (January 23, 2017)
• The Burial of the Zombie TPP: Statement from GTW Director Lori Wallach on President-Elect Trump’s Statement on Withdrawing the U.S. From Being a TPP Signatory (November 22)
• TPP RIP: Statement from GTW Director Lori Wallach on the Demise of the Trans-Pacific Partnership in the Lame-Duck Session of Congress (November 15, 2016)
• Contrary to Obama Speech, Trans-Pacific Partnership Text Reveals Pact Would Double Down on Past Bad Trade Pact Pro-Offshoring, Weak Labor Provisions (May 8, 2015)
• Nike Saying It Might Create “Up To” 10,000 U.S. Jobs Is Small Consolation for TPP’s Threat to Offshore Massive Number of American Jobs, Lower Wages Across the Economy (May 8, 2015)
• Third Year of Korea FTA Data Released, Show Failure of Obama’s Last ‘More Exports, More Jobs’ Trade Pact Promises, Further Burdening Fast Track Prospects (May 5, 2015)
• Reporters’ Memo: President’s Annual March 1 Trade Report and Agenda (February 27, 2015)
• Corrected Trade Data Confirm Ballooning Trade Deficit Under Korea FTA and More Than Twice the Trade Deficit With NAFTA Partners (February 10, 2015)
• Statement of Lori Wallach: 2014 Trade Data Details Growing Trade Deficits under Korea FTA and NAFTA (February 5, 2015)
• Reporters’ Memo: Analysis of 2014 Annual Trade Data (February 4, 2015)
• Obama’s Legacy: Middle-Class Jobs, Affordable Medicine and Financial Stability, or Fast-Tracked Trade Agreements – But Not Both (January 15, 2015)
• At Export Council, Obama Expected to Urge Corporate Interests to Help Him Obtain New Fast Track Powers to Expand the Status Quo U.S. Free Trade Pact Model That Congressional Democrats, Obama’s Base Oppose (December 11, 2014)
• Release of Two Years of Korea FTA Data Throws More Cold Water on Obama TPP and Fast Track Efforts After Asia Trip Fails to Change Dynamic (May 9, 2014)
• Transcript: Press Call on President’s Trip to Asia – Rep. DeLauro, Rep. Slaughter, Rep. Ellison, and Clyde Prestowitz. Recording here (April 16, 2014)
• Obama Mexico Visit Spotlights 20-Year Legacy of Job Loss from NAFTA, the Pact on Which Obama’s Trans-Pacific Partnership Is Modeled (February 13, 2014)
• Deeper Dig Into 2013 Trade Data: USITC Corrections of Last Week’s Census Data Show Why Obama’s TPP, Fast Track Quest Is in Trouble (February 10, 2014)
• Major Drop in U.S. Exports to Korea Since Obama’s Free Trade Pact, Zero Growth in U.S. Goods Exports Revealed in Today’s 2013 Year-End Trade Data Another Blow to Obama Push for Fast Track and TPP (February 6, 2014)
• Elected, Labor and Business Leaders Detail TPP Trade Pact Problems as Obama Considers Heading to Asian Trade Summit (October 3, 2013)
• As President’s Export Council Meets, No Chance to Meet Obama’s Export Doubling Goal; Exports Fall Under Free Trade Agreements (September 19, 2013)
• While Obama Criticizes Job Offshoring and Touts Transparency, His Trade Officials Will Be Negotiating a Secretive Deal That Would Send More U.S. Jobs Offshore (August 31, 2012)
• Growing Attention to Obama Trans-Pacific Trade Pact Threatens to Undermine Offshoring Attack on Romney (July 10, 2012)
• U.S. Abandons Final Pretense of Transparency or Inclusion of Consumer, Health, Environmental, Labor Perspective in TPP Talks (April 10, 2012)

Members of Congress Speak Out

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• DeLauro, Levin, Pascrell Led Letter from 183 Members of Congress Urging The Trump Administration to End Outsourcing (January 23, 2018)
• Democratic Freshmen Insist NAFTA’s Renegotiation Prioritize Jobs, Wages and the Environment (November 21, 2017)
• Rep. Keith Ellison Statement on Chinese Currency Manipulation (September 25, 2015)
• Rep. Levin Statement on China’s Currency Devaluation (August 11, 2015)
• Sen. Brown Statement on China’s Devaluation of Its Currency (August 11, 2015)
• Sen. Portman Statement on China Again Lowering Value of its Currency (August 11, 2015)
• Sen. Grassley on China’s Latest Currency Devaluation (August 11, 2015)
• Rep. Levin Statement on ILRF Complaint that Peru Labor Practices in Violation of Free Trade Agreement (July 23, 2015)
• Sens. Brown, Portman Continue Push for Stronger Currency Manipulation Enforcement in Ongoing Trade Negotiations (July 16, 2015)
• Rep. Ellison: Trans-Pacific Partnership a Bad Deal for Working Americans (June 25, 2015)
• Sens. Portman and Brown’s Bill to Strengthen Trade Enforcement for Ohio Steel Workers Headed to the President’s Desk (June 25, 2015)
• Rep. Garamendi Expresses Strong Opposition to Fast-Track Trade Bill and the Trans-Pacific Partnership “Free Trade Agreement” (June 10, 2015)
• Congresswoman Lee: “We Cannot Allow Another Bad Trade Deal To Jeopardize More Jobs” (June 10, 2015)
• Rep. Sewell Urges House Leaders to Include Enforceability Provisions in Any Trade Deal (June 9, 2015)
• Rep. Dingell, Local Workers Speak Out Against Fast Track Trade Plan (June 5, 2015)
• Rep. Gallego Stands with American Workers and Against Fast Track and TPP (June 3, 2015)
• Sen. Sanders: Fighting for American Workers – Video (June 3, 2015)
• Rep. Levin: TPA Not Now – The Obama Administration’s Missed Opportunity to Get TPP Right (June 1, 2015)
• Sen. Sanders Statement on Senate Vote on Job-Killing Trade Bill (May 23, 2015)
• Senator Warren Releases Report Highlighting Decades of Broken Promises and Failures to Enforce Labor Standards in Trade Agreements (May 18, 2015)
• Sen. Sanders: No to Job-Killing Trade Bill (May 14, 2015)
• Following News of Path Forward for Trade Deal, Sen. Brown Calls on President to Veto Fast Track Bill Unless He Signs Enforcement Bill First (May 13, 2015)
• Sen. Udall Joins Senate Coalition Calling for Strong Labor Standards in Trans-Pacific Partnership and Implementation of Standards in TPP Countries (May 11, 2015)
• Sens. Markey, Brown, Cardin, Schumer, Stabenow, Casey, Franken, Baldwin, Peters, Udall, Blumenthal, Schatz, Merkley, And Warren Call For Strong Labor Standards In Trans-Pacific Partnership And Implementation Of Standards In TPP Countries (May 11, 2015)
• Sen. Franken Says Labor Standards in Trans-Pacific Partnership Too Weak, Calls for Improved Protections for Workers (May 11, 2015)
• Sen. Brown Statement Following President’s Visit to Nike Facility (May 9, 2015)
• Sen. Sanders Statement on Obama at Nike HQ (May 8, 2015)
• Sen. Casey, Erie Workers Detail How “Fast Tracking” Emerging Trade Deal Could Cost Northwestern PA Jobs, Harm Wages (May 8, 2015)
• Sen. Sanders: Just Don’t Do It (May 7, 2015)
• Sen. Schumer: Without Improvements to Trade Deal, Significant Number of Manufacturing Jobs Would Go Overseas; Schumer Urges Senate to Support Bipartisan Bill to Crack Down on China Currency Manipulation & Other Predatory Practices; China’s Trade Practices Over the Past Decade, Including Currency Manipulation – Has Erased Nearly 180,000 NY Jobs (May 6, 2015)
• As Congress Begins Debate on Fast Track for More Trade Deals, Sen. Brown Joins Workers in Cleveland to Stand Against More NAFTA-Style Trade Deals (May 4, 2015)
• Rep. Casey, Pittsburgh Workers Detail How “Fast Tracking” Emerging Trade Deal Could Cost Western PA Jobs, Harm Wages (May 1, 2015)
• Michigan Delegation Freshmen Urge Administration to Address Currency Manipulation (May 1, 2015)
• Progressive Caucus Statement on Prime Minister Abe’s Address (April 29, 2015)
• Rep. Kaptur Calls Out Japan for Unfair Trade Policies, Currency Manipulation (April 29, 2015)
• As Trade Talks Continue, Sen. Brown Joins Workers in Toledo to Stand Against More NAFTA-Style Fast-Tracked Trade Deals (March 30, 2015)
• Members Of Congress To USTR: Stop Making False Claims On The Trade Deficit (March 19, 2015)
• Reps. Ryan, Kaptur To USTR: “Check Your Math On Trade Deficits” (March 19, 2015)
• Sens. Baldwin, Merkley Introduce Trade Legislation to Level the Playing Field for American Manufacturing (March 12, 2015)
• Reps. DeLauro, Slaughter Issue Statement On US-Korea Trade Deficit Numbers (March 6, 2015)
• DeFazio Urges Defeat of Controversial Trade Deal (March 4, 2015)
• Workday Minnesota: Labor urges Congress to pump the brakes on fast track (March 3, 2015)
• Standing Up for Workers Hit by Unfair Trade Deals (March 2, 2015)
• Video: Trade Talks Continue, Baldwin Speaks Out on U.S. Trade Policy (February 26, 2015)
• Democrats Introduce Legislation to Extend Trade Adjustment Assistance and Renew Vital Expansion to the Program (February 26, 2015)
• Bipartisan Group Introduces Legislation to Crack Down on Currency Manipulation (February 10, 2015)
• Congressman Dan Kildee: Failure to Address Currency Manipulation in New Trade Deal Would Hurt American Competitiveness, Risk U.S. Jobs (February 10, 2015)
• Sanders: New Trade Deal Would Hurt American Workers (February 6, 2015)
• Reps. Aguilar, Moulton and Torres Express Concerns with Fast Track and the TPP (January 27, 2015)
• Rep. Adams Writes to Pres. Obama to Voice Conerns with Fast Track for the TPP (January 26, 2015)
• Rep. Ruben Gallego Leads Freshman Members in Calling for a Greater Role for Congress to Ensure a New American Trade Policy Creates Middle Class Jobs (January 21, 2015)
• Following Call for Fast Track Authority During State of The Union Address, Sen. Brown Urges Administration to Stand Up for American Workers and Businesses (January 20, 2015)
• Rep. DeLauro Statement On Trans-Pacific Partnership Negotiations (January 9, 2015)
• Congresswoman Lee Speaks Out Against Fast Track for Trans-Pacific Partnership (January 8, 2015)
• Congressman Kildee Expresses “Grave Concern” Over President Obama’s Push for Fast-Tracking TPP Trade Deal (January 7, 2015)
• 153 House Democrats to USTR Froman: Protect Workers’ Rights in TPP Negotiations (May 29, 2014)
• Sixty Senators Urge Administration to Crack Down on Currency Manipulation in Trans-Pacific Partnership Talks (September 24, 2013)
• 36 Freshmen in the House of Representatives Call for Increased Transparency in in Trans-Pacific Partnership (TPP) Negotiations, Express Concerns with TPP and Oppose Fast Track in Letter to Ways and Means Chairman Sander Levin (June 11, 2013)
• 230 Members of the House of Representatives Send Letter to President Obama Calling for the TPP to Address Currency Manipulation (June 6, 2013)
• 24 Senators Send a Letter to President Obama Laying Out Guidelines and Calling for Congressional Consultation for the TPP (November 30, 2012)
• Democratic Ways and Means Committee Members’ Letter to USTR Kirk on TPP Negotiating Objectives (December 2010)
• Letter from Four Senators to USTR Kirk Expressing Concerns with Transparency and Labor, Human Rights in the TPP (March 12, 2010)
• House Trade Working Group Letter to USTR Kirk on TPP (January 20, 2010)

Civil Society Organizations Speak Out

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• Small Business Leaders to Trump: End Advantage for Multinationals Over U.S. Small Businesses in NAFTA (July 12, 2017)
• United Auto Workers President Bob King Expresses Concern about the TPP, Urges Rejection of Fast Track (January 16, 2014)
• AFL-CIO Resolution 12: America and the World Need a New Approach to Trade and Globalization (September 11, 2013)
• Joint Statement by Labor Federations of TPP Countries on Trans-Pacific Partnership Negotiations (November 1, 2011)
• Citizens Trade Campaign Letter to President Obama on the TPP (January 25, 2010)
• AFL-CIO Comments on the Proposed Trans-Pacific Partnership Trade Negotiation (January 25, 2010)
• International Brotherhood of Teamsters’ Comments on the Proposed Trans-Pacific Partnership Trade Negotiation (January 25, 2010)
• House Trade Working Group Letter to USTR Kirk on TPP (January 20, 2010)