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Citizen Trade Policy Commission Friday January 25, 2008 Room 206, Cross State Office Building

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Citizen Trade Policy Commission Friday January 25, 2008 Room 206, Cross State Office Building Citizen Trade Policy Commission Friday January 25, 2008 Room 206, Cross State Office Building 9:00 A.M. Commission Business Meeting Meeting Summary Members present: Sen. Margaret Rotundo, Senate Chair, Rep. John Patrick, House Chair, Sen. Kevin Raye, Sen. Bruce Bryant, , Rep. Jeffery Gifford, Elise Flemings, Michael Burson , John Palmer, Leslie Manning, Wade Merritt, Sarah Bigney, Malcolm Burson, Paul Volckhausen, Wade Merritt, and John Palmer Guest Speakers: Peter Riggs, Forum on Democracy & Trade; and Kaye Wilkie, Chair, Intergovernmental Policy Advisory Committee, and as Director of International Policy, New York State, Department of Economic Development Staff present: Curtis Bentley, Legislative Analyst and Judy Gopaul. I. Colombia Free Trade Agreement – Peter Riggs discussed the politics, pros and cons of the Colombia FTA. (See Attachment). Mr. Riggs thought that the president would send the bill to Congress sometime in March, however, he felt that there was not much support for the agreement. Kay Wilkie gave a brief history of IGPAC, her role in the IGPAC. She also spoke about the Antigua internet-gambling case. Ms. Wilkie also gave her view on the agreement, that the majority of the provisions in the Colombia FTA were similar to NAFTA – not a fair agreement. She suggested that states should engage in the free trade policy process, think proactively about how states can build capacity to influence federal policy. II. Action to be taken: The Commission agreed to delay their decision and vote on the Colombia FTA until they had an opportunity to hear testimony from Maine citizens at the public hearing on February 21st, 2008. It was agreed that the commission would meet after the public hearing to discuss and vote on what action should be taken – whether to send a letter with the commission’s and Maine citizen concerns to the Maine delegates and Governor Baldacci. III. Legislative Document 2096 – After discussion, the commission decided that it could not make a decision on the support the bill in its present from, further discussion was needed. The commission asked that Representative Patrick clarify that the bill was being introduced by him and not from the commission. IV. Subcommittees – Time did not permit for a discussion on this matter. V. Public Hearing - Confirmation on the February 21, 2008 public hearing. Venue would be South Portland Community Center, 21 Nelson Street, So. Portland, ME. Page 3 of 3 Commencing at 6:00 p.m. Invitations will be sent to the Maine Congressional delegation, Maine senate and house members, business owners, and experts in international trade, NAFTA and Latin American Trade and the media. VI. Next Meeting - A request was made to hold future CTPC general meeting on the third Friday of every month. The meeting is to commence at 9:00 a.m. when the legislature is in session and at 10:00 a.m. when not in session. VII. Adjournment. The commission adjourned its meeting at approximately 2:00PM. Prepared by Office of Policy and Legal Analysis Page 2 of 3 Forum on Democracy & Trade: Pros and Cons of the Colombia FTA Provision Pros Cons Agriculture The U.S. will achieve significant new market access for its The great majority of Colombian farmers are subsistence or near- exports due to a reduction in most tariffs. Colombia has some subsistence levels, and may not be able to compete with the import of specialized product niches, such as in cut flowers, tropical and cheaper, and in many cases subsidized, U.S. grains and meats. The subtropical fruits, and some seafood and livestock products, elimination of the agricultural price band will cause hardship for rural and this will secure their access to the U.S. market, with Colombians. This could lead to further impoverishment and possibly both benefits for Maine consumers. outmigration and an increase in the production of narcotics--with indirect impacts on Maine. Intellectual High levels of intellectual property protection significantly Intellectual property provisions on Pharmaceuticals go beyond what are Property help Maine industries abroad. required in the WTO, and may limit the access of Colombians to essential medicines. While the agreement doesn't impact Mainers' access to medicines, it's not 'fair' at a global level, where poorer countries have less purchasing power. Services The United States runs an international surplus in terms of The United States runs an international surplus in terms of service exports service exports and it's the key area of our economy. Maine is and it's the key area of our economy. Maine is seeking to expand its export seeking to expand its export of services, particularly in the of services, particularly in the financial and high-tech sectors. financial and high-tech sectors. Investments U.S. investors, particularly in the extractive industry sectors, Maine and the National Conference of State Legislatures are both 'on record' should have protections against expropriation, and a means to as opposing the extension of 'investor-state' dispute resolution to new Free litigate their concerns outside of Colombia's overburdened Trade Agreements. Investment chapters in Free Trade Agreements have judiciary. been used to bring claims against U.S. state and municipal actions, and these cases are very burdensome to defend against. Labor The Uribe government is doing whatever it can to address the The Uribe government is NOT doing whatever it can, and anyway the effort problem of violence against trade unionists. will evaporate once the agreement is signed. The United States shouldn't sign an FTA with a country that has such an egregious labor and human rights record. There isn't enough in the agreement to compel serious changes. The Global War Colombia has been a staunch ally in South America, during a It's never been made clear how the Free Trade Agreement relates to 'Plan on Terror Issues turbulent time, and we should reward the Colombian Colombia' goals, particularly if the agriculture chapter may end up government for its support, and acknowledge President Uribe's undermining anti-narcotic 'crop substitution' programs in the countryside. leadership. Page 3 of 3 Citizen Trade Policy Commission Friday March 21, 2008 Room 206, Cross State Office Building 9:00 A.M. Commission Business Meeting Meeting Summary Members Present: Chair, Rep. John Patrick, House Chair, Sen. Kevin Raye, Sen. Bruce Bryant, Rep. Jeffery Gifford, Rep. Sharon Treat, Elise Flemings, Michael Burson , John Palmer, Wade Merritt, Sarah Bigney, Malcolm Burson, Linda Pistner, Paul Volckhausen, Wade Merritt, Peter Connell, and John Palmer. Staff present: Curtis Bentley, Legislative Analyst and Judy Gopaul, Policy Assistant. I. Colombia Free Trade Agreement – A letter was drafted for review and comments were obtained from the commission prior to this meeting. However, during the meeting some concerns were voiced regarding certain “inflammatory” words/phrases contained in the letter. Wade Merritt agreed to revise the letter; after which the letter would be sent to the commission members for final review and approval. Note: The approved letter was sent to the Maine Congressional delegation on March 24, 2008. II. Lead in Toys: The Maryland bill was discussed regarding the lead in toys and consumer products from China. Sarah Bigney distributed additional information on this topic. Ms. Bigney wanted the commission to consider the effects on the workers who manufactured these products. The commission members were concerned about the implications that this type of action, by a foreign nation, would have on the ability of as a sovereign sate to legislate the safety and protection of its citizens. Attached is a summary of the analysis by Forum on Democracy & Trade. The analysis focused on the Maryland bill because it is where the World Trade Organization’s (WTO) complaint was directed. Maine has introduced a similar bill (“lead in consumer products”) in legislative documents 2048 and 2218. III. Motion: A motion was made by Rep. Sharon Treat for the commission to send a letter to U.S. Trade Representative (USTR) requesting information on: 1) what agency/entity within the U.S. federal government is responsible for notifying WTO member nations of state legislation; 2) how often or how routinely such notification occurs; 3) what mechanism or process is used to monitor state legislation; and 4) why the WTO was notified of impending state legislation. Note: The approved letter was sent on April 23, 2008, response from USTR is expected around the middle of May, 2008. Senator Bryant seconded the motion. Vote: unanimous. IV. Legislative Document 2096 – The bill died. Rep. Patrick suggested that the bill, with amendments and a mechanism for including states rights in the state process, could be introduce again during the 2008-2009 legislative session. V. Public Hearing – Testimonial summaries of the public hearing, held on February 21, 2008, in South Portland, were uploaded to the commission’s website VI. Discussion: Atlantica: The International Northeast Economic Region (AINER). Atlantica is the name given to a proposed “border-free” plan that would create an integrated cross-border economic region that encompasses (Newfoundland, P.E.I., Nova Scotia and New Brunswick), eastern Quebec, and the New England states of Maine, New Hampshire, Vermont, and of Northern New York. Atlantica is part of the Security and Prosperity Partnership of North America, which aims to create a common market to integrate the Canada's East Coast with the northeastern United States. Proponents say that "the removal of barriers and harmonization of regulations" will provide corporations with more privileges than those they already enjoy with NAFTA (the North American Free Trade Agreement). The plan would erase border restrictions and regulations and create a huge transportation corridor to send Asian goods and energy resources to the United States. Matt Schlobohm and Wade Merritt agreed to provide the commission with information on Atlantica and to suggest names of guest speakers (for and against) who would be willing to make a presentation to the commission.
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