Posts Tagged ‘Steelworkers’

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USTR throws a bone to the Steelworkers

January 3, 2011

By petitioning the U.S. government to sue China at the WTO for its “unfair” clean energy subsidies, the Steelworkers gave the Obama administration the perfect opportunity to appear labor-friendly without actually having to be progressive at all, or challenge any entrenched domestic economic interests. I wrote about this impending disaster a few months ago, and late last month it came to fruition.

The United States on Wednesday accused China of illegally subsidizing the production of wind power equipment and asked for talks at the World Trade Organization, the first step in filing a trade case.

“Import substitution subsidies are particularly harmful and inherently trade distorting, which is why they are expressly prohibited under WTO rules,” Trade Representative Ron Kirk said in a statement. “These subsidies effectively operate as a barrier to U.S. exports to China.”

So not only is this an attack on efforts to move the world towards a greener economy, it’s also a broad attack on industrial policy in general (the sort of broad attack, of course, that is part of what the WTO is designed to do). Even more, it’s a political win for the centrists in the Obama administration, who can now point toward this as a supposedly pro-labor move while they simultaneously push heavy-handedly anti-labor policies like lobbying for the South Korea-U.S. Free Trade Agreement.

Great move, USW!

Flying Whale

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Steelworkers FTW WTF

October 14, 2010

I was in the middle of a busy period of life when a month ago, the Steelworkers submitted a 5,800-page petition urging the Obama administration to file a WTO case again Chinese subsidies for green technologies. I just found out about it today. I got really pissed off.

The way USW is going about this is completely backwards. They’re accusing China of engaging in “illegal practices that stimulate and protect its domestic producers of green technology, ranging from wind and solar energy products to advanced batteries and energy-efficient vehicles.” This is a double whammy. Not only does it reinforce the frame that domestic industrial policy is bad and legitimizes the use of the WTO to attack such policy (and why the hell would USW want to advance that frame?!), it also is a slap in the face for climate activists who would probably like nothing more than to see China, the world’s leading greenhouse gas emitter, invest in developing cleaner technologies.

To add insult to injury, this is all also completely hypocritical, since USW, as a founding member of the Blue-Green Alliance, would love to see massive U.S. investment in the domestic green economy. It’s a classic case of kicking away the ladder: denying developing countries the policy tools we want to be able to use ourselves.

What’s interesting is the Blue-Green Alliance statement on the USW petition. It’s decidedly lukewarm and avoids condemning China as an enemy engaging in “unfair practices.” I wonder what the politics behind the scenes here must have been like. In any case, I suspect this is a more useful position for progressives to adopt:

Today’s Section 301 petition filed by the United Steelworkers underscores the importance that the United States act quickly to take advantage of the job-creating opportunities of the clean energy economy. Every day America delays action is another day that China capitalizes on jobs created in the production of clean energy technologies that could and should be developed, manufactured, and installed in the United States.

This looks pretty different from USW’s condemnation of China using legitimate policy tools to promote their industries. There’s still the requisite vaguely nativist language, but instead of blaming China for doing what we should be doing, it puts the onus on U.S. policymakers to create our own industrial policy for the green economy – WTO legality be damned. This is a useful frame that USW has undermined: instead of thinking about what is and isn’t legal under the messed up WTO rules, we should be thinking about what policy goals we want to work towards, and if the WTO rules need to be changed to allow them, we should campaign for WTO reform.

(As an aside, interestingly, this week the Brookings/AEI green economy proposal came out, and even if it’s not something progressives can get behind, as Dani Rodrik pointed out, if this isn’t an industrial policy proposal, nothing is. And this coming from AEI!)

USW’s is exactly the kind of stance organized labor needs to not be taking in a modern world characterized by increasing interconnectedness and potentially imminent environmental catastrophe. We need a less provincial labor movement and more of a global working class consciousness in order to get anything done. Somewhere, Frances Fox Piven is saying, “I told you so.”