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- NATION, Page 24THE POLITICAL INTEREST The Free-Trade Hypocrisy
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- By Michael Kramer
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- Few political mantras are incanted as reverentially as "free
- trade" -- and few are ignored as hypocritically in practice.
- The latest folly involves the Caribbean Basin Initiative, a
- program begun in 1983 to assist 28 Caribbean and Latin American
- nations. By most measures, the CBI has failed. Its intelligent
- premise -- trade, not aid -- has never been fully realized.
- Pro-protection interests have consistently crippled Latin
- attempts to sell products in the U.S. on a cost-effective
- basis. Now Oregon Senator Bob Packwood is leading a charge on
- behalf of the region's apparand footwear industries, an effort
- most everyone believes will be killed by domestic union
- opposition.
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- What's worse, unless George Bush changes course and breathes
- life into his free-trade rhetoric by assaulting the U.S.'s
- insane sugar program, Latin America's economy will deteriorate
- even further -- and the $800 million assistance package the
- President plans for Nicaragua and Panama will have little or
- no long-term benefit.
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- Unlike most farm programs, the sugar quotas guarantee all
- U.S. producers a profit by inflating prices to double the
- worldwide level while severely restricting imports. The big
- winners are the nation's 12,600 sugar producers, who are
- enriched by about $260,000 a year apiece in excess profits. The
- big losers are U.S. consumers: the sugar program amounts to a
- hidden sales tax of more than $3 billion a year.
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- Not only are sugar quotas bad consumer policy, they are also
- bad trade policy. The international group concerned with such
- matters calls the U.S. sugar scheme an unfair trade practice,
- an ironic finding given Washington's pique at other nations.
- As foreign policy, the sugar program is an unmitigated
- disaster. In the CBI nations, where sugar is the most important
- export commodity after coffee, more than 400,000 jobs have been
- lost since 1982 because of sugar protectionism, and the CBI's
- few positive effects have been wiped out.
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- None of this has gone unnoticed. In 1988, with trade
- representative Clayton Yeutter screaming loudest, the Reagan
- Administration declared U.S. sugar policy an abomination and
- tried unsuccessfully to change it. As Bush's Agriculture
- Secretary, Yeutter has apparently flipped. The Administration's
- proposed farm-proreforms leave sugar policy intact.
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- Why? "Because the sugar lobby is too powerful," concedes an
- Administration official. "Too powerful" is putting it mildly.
- Public Voice, a Washington consumer watchdog group, will soon
- release a survey showing that between 1985 and 1989, even
- liberal Democrats took significant sums from Big Sugar's
- political-action committees -- men like House Speaker Tom Foley
- ($26,500), House Democratic whip Bill Gray ($14,500) and
- Senators Al Gore ($13,500) and Paul Simon ($15,250). All have
- voted with Big Sugar in the past and will probably do so again
- when New Jersey Senator Bill Bradley's reform bill comes to the
- floor later this spring.
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- "It's like this," says Louisiana Senator Bennett Johnston,
- whose state is the nation's second largest sugarcane producer.
- "I see reform as a job-for-job loss to Latin America. You say
- I have a vested interest? You're damn right I do." Says a Bush
- aide: "Fact is, we need the support of Democrats like Bennett,
- which makes sugar the lowest of low priorities." An honest
- explanation. And a rotten one too.
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