| For Immediate Release |
For More Information, Contact: | |
| Monday, Oct. 2, 2000 |
Katie Burnham (202) 454-5102 | |
|
Patrick Woodall (202) 454-5105 |
Investigation Reveals $113 Million Price Tag for
Special Interest Campaign to Overcome Strong Public Opposition and Grant China
PNTR
Lobbying, Advertising and Political Donations
Surpass All Previous Records
WASHINGTON D.C. -- Corporate interests spent more than $113 million in an unprecedented campaign to persuade Congress to grant Permanent Normal Trade Relations (PNTR) to China despite Harris polling showing 79% public opposition from the U.S. public, according to a study released today by Public Citizen's Global Trade Watch.
The study, "Purchasing Power: the Corporate-White House Alliance to Pass the China Trade Bill Over the Will of the American People," documents how key business players in the China PNTR effort spent $113.1 million on lobbying, political donations and advertising. Past corporate cash-fueled lobbying crusades dim in comparison. For instance, proponents of the North American Free Trade Agreement (NAFTA) spent $22.8 million on campaign contributions and $8 million on advertising.
"Globalization and U.S.-China relations are both incredibly important issues, yet instead of a policy debate, Many in Congress tuned out and cashed in," said Lori Wallach, director of Public Citizen's Global Trade Watch. "Congress was marinated in corporate cash, swarmed by corporate lobbyists, stupefied by endless paid PR and advertising repeating the PNTR Big Lie message, and seduced by 'astro-turf' fake grassroots campaigns."
The study examined records of expenditures made public recently in lobbying disclosure forms and Federal Election Commission data. It found that corporations spent many mutiples fighting for PNTR than for NAFTA or against the president's health care plan -- two of the decade's largest corporate priorities.
"The corrosive impact this torrent of money has on the democratic process warps policy debates on the merits into deals by the dollar," Public Citizen President Joan Claybrook said. "This is a case study for the desperate need for comprehensive campaign finance reform. Corporate cash just purchased a bad policy that will hurt us all."
As opponents of PNTR had warned, Congress' headlong rush into PNTR has eliminated U.S. policy leverage with the Chinese government. Indeed, the planned PNTR bill signing was delayed to avoid embarrassing press inquiries about recent difficulties during China's WTO accession talks in Geneva. Among the issues drowned out by the corporate cash deluge was the fact that many details of China WTO's accession issues were never agreed upon. The study's findings include:
- A dozen pro-PNTR corporate interests spent $31.2 million
lobbying Congress during the first half of 2000. Newly released
lobby disclosure reports show that a handful of prominent PNTR boosters,
such as the U.S. Chamber of Commerce, the Business Roundtable, Motorola and
Boeing, spent heavily on PNTR lobbying. For instance, more than half of the
U.S. Chamber of Commerce's 45 registered lobbyists worked on PNTR in the
first half of 2000. In addition, nearly every significant K Street lobbying
shop was hired by the corporations and trade associations aiming their
sizeable in-house capacity on PNTR.
- At least $13.75 million was spent on pro-PNTR advertising.
The Business Roundtable and the U.S. Chamber of Commerce spent at
least $12 million on television, radio and print ads. Motorola alone spent
$1 million on advertising. Companies and trade associations such as Boeing,
ExxonMobil, Microsoft, the Agriculture Trade Coalition and Lucent spent at
least another $750,000 on print and radio ads.
- The China business lobby made $68.2 million in PAC, individual and soft money contributions to members of Congress and the political parties between January 1999 and June 2000. Corporations in the pro-PNTR Business Roundtable donated heavily during the current election cycle to candidates, party PACs and even the party conventions, outspending labor unions by 2 to 1, according to data from the Center for Responsive Politics. The volume of cash rose as the vote neared. In May, members of the Business Roundtable outspent labor 11 to 1, giving $805,000 in soft money to the major parties.
- Corporate interests joined the White House in engaging in highly questionable tactics. According to news reports, corporate lobbyists and CEOs threatened to cut off campaign cash to lawmakers who opposed PNTR and lavished soft money on the two main parties (and millions on their conventions) to fuel active pro-PNTR leadership. Rep. Merrill Cook (R-Utah) reported being offered $200,000 to change his "no" PNTR vote to "yes." Corporations created fronts to funnel more cash to Congress. For instance, a corporate-funded PAC called the New Democratic Network handed out $250,000 to Democrats supporting the pro-corporate managed trade agenda. Companies such as Motorola, Boeing, AOL and Citigroup actively plied undecided or wavering members by organizing or promising special PNTR fund-raisers for pro-PNTR voters. Even the General Accounting Office concluded that the White House's coordination with corporate interests violated federal law forbidding the use of tax dollars for certain lobbying activities.
- Seemingly objective foreign policy experts pushed a PNTR agenda
that benefited their corporate clients. The administration and the
corporate lobby recruited foreign policy experts to speak in favor of PNTR
at White House press events. Experts such as Henry Kissinger, Brent
Scowcroft, Colin Powell and Alexander Haig endorsed PNTR before the captive
White House press corps without disclosing their extensive ties to companies
that would benefit from PNTR. Kissinger and Scowcroft have worked for
companies like Disney, American International Group and Chubb
to help gain access to the Chinese market and to U.S. officials.
- The China business lobby paid former members of Congress and
Clinton administration officials as a revolving door to lobby. At
least six former House members lobbied for PNTR, including former Reps.
Michael Kopetski (D-Ore.), David McCurdy (D-Okla.), Vic Fazio (D-Calif.),
Vin Weber (R-Minn.), Ray McGrath (R-N.Y.) and Rep. (and former Governor)
Carol Campbell (R-S.C.). Former Clinton officials lobbying for the measure
included former U.S. Trade Representative Mickey Kantor. Former GOP National
Committee Chairman Haley Barbour also lobbied on PNTR.
- White House privatized congressional vote-buying to
corporations, avoiding its bad NAFTA reputation on fulfilling pork barrel
deals. The Administration cut deals, made meaningless policy
compromises, and promised to fund pet projects to provide
post-corporate-purchase cover for about a dozen House Members. However,
relative to role and number of deals required to pass NAFTA, government
payments for PNTR votes were reduced, with corporate giving making up the
difference.
"While corporate money can purchase power over the short term, in the longer term the actual outcomes of these bad trade policies, person-to-person education about the results and local political accountability cannot be overcome," said Wallach. "As with the fallout after NAFTA, following PNTR, a new set of Representatives will learn about the perils of pursuing corporate managed trade policy the hard way."
#####
"Purchasing Power: The
Corporate-White House Alliance to Pass the China Trade Bill Over the Will of
the American People," is available in
PDF format or by calling Public Citizen's Global Trade Watch at (202)
546-4996.
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