Requires department of economic development to prepare report relating to international trade agreements

1 Co-sponsor

• Diane J. Savino

BILL NUMBER:S1072B

Title of bill

An act to amend the economic development law, in relation to requiring the department of economic development to prepare a report relating to international trade agreements

Purpose or general idea of bill

To promote understanding of the impact an international trade agreement will have on the welfare of New York state business, industry, commerce, job market, laws and regulatory authority.

Summary of specific provisions

Section 1 describes the legislative intent.

§ 2 amends subdivision 47 of section 100 of the economic development law, requiring the Department of Economic Development to produce a report on an international trade agreement. The report shall provide an analysis of the impact the international trade agreement will have on New York State business, industry, commerce, job market, laws and regulatory authority, and an estimate of how much it may cost the state to enforce.

Justification

In 2011 Congress passed three new Free Trade Agreements (FTAs) with South Korea, Panama, and Colombia, with little or no input from state governments. These agreements were wrought with controversy and drew substantial opposition. The International Trade Commission stated that the FTA with South Korea would most likely increase the U.S. trade deficit, and kill more jobs than it aims to create. The non-partisan Economic Policy Institute released figures in 2010 which tied the loss of 682,900 U.S. jobs to the passage of NAFTA.

The FTA with South Korea is the most significant since NAFTA and will basically give South Korean companies a "hunting license" to go after NYS laws they feel are a barrier to market access. The FTA gives more rights to foreign companies to challenge our laws than our own domestic businesses. At this moment in time the European Union (EU) is pushing the U.S. to eliminate carve outs for Minority and Women-owned Business Enterprises (MWBE) and demanding stringent enforcement of provisions contained in the WTO's Government Procurement Agreement (GPA) with state governments.

The Legislature must do everything it its power to preserve the state's constitutional authority under the Tenth Amendment, and ensure that the public is informed and involved in the process. Transparency in trade policy is crucial to protecting the lives and livelihoods of New York State's citizens and keeping our economy strong.

Prior legislative history

2011-12: A.708C S.2398C/Labor 2011:A.708/Labor, S.2398/Labor 2009-10: A.1268/Labor, S.3350/Labor 2008:A.8567A/Rules, S.4786A/Passed

2007:A.8567A/Rules, S.4788A/Passed

Fiscal implications

Negligible.

Effective date

This act shall take effect immediately.