Corporate America Announces Opposition to "Free" Trade; Will Politicians Follow?

During the debate over the Central American Free Trade Agreement (CAFTA), the American public heard Corporate America and the Washington, D.C. Establishment extol the virtues of so-called "free" trade. Even many Democrats who ended up voting against CAFTA were quick to tell us how important the overall concept of "free" trade supposedly is (despite the fact that most of the claims about how such a trade policy creates jobs at home and improves living standards abroad are lies). But now, in a shocking reversal, Corporate America is suddenly arguing vehemently against "free" trade.

The reversal comes as a key case, DaimlerChrysler Corp. v. Cuno, now heads to the U.S. Supreme Court. The case challenged an Ohio tax subsidy to DaimlerChrysler as violating the Constitution's commerce clause in hindering "free" trade (This is a straightforward argument - institutions like the WTO have long said tax subsidies violate "free" trade, and have used that argument to govern its decisions). The Sixth Circuit Court of Appeals agreed with the plaintiff, saying the tax subsidy had the effect of hindering "free trade among the states" - and the ruling thus challenges the $50-billion-a-year industry of government giving away hard-earned taxpayer dollars to already-wealthy corporations (Note to the GOP: looking for spending cuts to pay for Katrina? How about cutting away THIS fat).

Now, as the case moves to the Supreme Court, various major corporations and the U.S. Chamber of Commerce - who have been the most ardent backers of "free" trade legislation in Congress - have filed amicus briefs against the plaintiff, effectively reversing Corporate America's long advocacy of "free" trade in a very public way. Big Business apparently likes "free" trade when it allows them to rip off taxpayers and bilk the middle class, but it doesn't like when "free" trade can be used to protect taxpayers and prevent corporate welfare scams. You can bet that the Big Money interests are banking on the Supreme Court overturning the lower court's ruling (and if you didn't think the John Roberts nomination was fueled by his long career as a corporate shill, think again - this case shows just how important he will be in making sure America's legal system keeps siding with Big Business over everyone else).
Corporate America's "free" trade hypocrisy highlights why, in truth, none of our international "free" trade deals are actually "free" (and why I always put "free" in quotes). Corporate America has made sure that all of the major trade pacts in recent years are "free" of labor/human rights/health/environmental protections, but chock full of restrictive clauses (on issues like patents, copyrights, and others) so as to protect their interests and allow companies to bleed average citizens dry. It is why, for instance, our "free" trade policy allows Big Business to import cheap beef from countries with Mad Cow problems, but doesn't allow Americans to import less expensive, safe, FDA-approved medicines from those same countries.

Now, it is true - corporations are set up to do one thing and one thing only: make money. That's why we shouldn't be shocked at Corporate America's public hypocrisy. Big Business is merely pursuing profit.

The real question that Cuno raises is aimed at lawmakers and the media elite: Is this political Establishment going to continue its mind-numbingly stupid advocacy of a "free" trade policy that isn't really "free?" Or, is the Establishment going to stand up against a policy that is in reality a cruel, hypocritical hoax designed to hurt America's middle class and send taxpayer money to corporate interests that don't need it? Cuno proves the hypocrisy - will the insulated media and the elitist politicians who make policy in our name respond by reevaluating America's trade policy, or by being complicit in the scheme?

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