Koch Industries Spent Up To $40 Million Lobbying On Pacific Trade Deal

Dark Money Ad Propping Up Portman Connected to Outsourcing

COLUMBUS – As U.S. Sen. Rob Portman welcomes the notorious Koch brothers to Ohio this week, research uncovers the billionaires have spent up to $40 million lobbying on the free trade deal known as the Trans-Pacific Partnership (TPP).

“We knew the Koch brothers were desperate to buy this Senate seat for Rob Portman and now we know why,” said Ohio Democratic Party spokeswoman Jennifer Donohue. “Millionaire Rob Portman looks after the billionaires in the Senate, they look after him on the campaign trail, and meanwhile no one is looking out for working people in Ohio.”

  • Koch industries have outsourced American jobs, with as many at 3,000 Koch workers losing their jobs to outsourcing or negative effects of trade.

  • In fact, just one month after buying one company, the Kochs laid off 175 American workers and sent their jobs to Mexico – which is part of the NAFTA free trade deal Portman championed.

Portman is scheduled to speak at the Kochs’ summit in Columbus, Ohio, Saturday.

The Koch brothers spent $1.4 million this week on misleading attack ads against former Ohio Governor Ted Strickland, who leads Portman in the latest public polling. Portman has taken $12,000 from the Koch brothers and their PAC.

Koch Industries Has Spent Up To $42.9 Million Lobbying On The Trans-Pacific Partnership

KOCH INDUSTRIES HAS SPENT YEARS AND UP TO $42.9 MILLION LOBBYING ON THE TRANS-PACIFIC PARTNERSHIP

2013-15: Koch Industries Reported Spending Up To $42.9 Million Lobbying On The Trans-Pacific Partnership. From 2013 to 2015, a Koch Industries subsidiary spent $42.9 million lobbying the U.S. Senate on issues including the Trans-Pacific Partnership. This finding is detailed in the table below:

Registrant Name

Filing Type

Amount Reported

Date Posted

Filing Year

Koch Companies Public Sector, LLC

FIRST QUARTER REPORT

$2,800,000

4/17/2015

2015

Koch Companies Public Sector, LLC

FIRST QUARTER AMENDMENT

$2,800,000

7/17/2015

2015

Koch Companies Public Sector, LLC

SECOND QUARTER REPORT

$2,740,000

7/17/2015

2015

Koch Companies Public Sector, LLC

FOURTH QUARTER REPORT

$4,340,000

1/16/2015

2014

Koch Companies Public Sector, LLC

FIRST QUARTER REPORT

$2,700,000

4/18/2014

2014

Koch Companies Public Sector, LLC

FIRST QUARTER AMENDMENT

$2,670,000

7/17/2015

2014

Koch Companies Public Sector, LLC

FOURTH QUARTER AMENDMENT

$4,320,000

7/17/2015

2014

Koch Companies Public Sector, LLC

SECOND QUARTER AMENDMENT

$2,700,000

7/17/2015

2014

Koch Companies Public Sector, LLC

THIRD QUARTER AMENDMENT

$4,010,000

7/17/2015

2014

Koch Companies Public Sector, LLC

SECOND QUARTER REPORT

$2,730,000

7/18/2014

2014

Koch Companies Public Sector, LLC

THIRD QUARTER REPORT

$4,030,000

10/17/2014

2014

Koch Companies Public Sector, LLC

FOURTH QUARTER REPORT

$2,460,000

1/17/2014

2013

Koch Companies Public Sector, LLC

FOURTH QUARTER AMENDMENT

$2,460,000

4/18/2014

2013

Koch Companies Public Sector, LLC

THIRD QUARTER REPORT

$2,140,000

10/18/2013

2013

Total:

$42,900,000

[U.S. Senate Lobbying Disclosure Database, Client: “Koch,” Issue: “Trans-Pacific Partnership,” Accessed 8/18/15]

KOCH BROTHERS COMPANIES HAVE OUTSOURCED U.S. JOBS OVERSEAS

Bloomberg: “About 3,000 U.S. Jobs Lost At Koch Industries-Owned Companies Over The Past Decade Can Be Attributed To Offshoring Or Competition From Imports.” “About 3,000 U.S. jobs lost at Koch Industries-owned companies over the past decade can be attributed to offshoring or competition from imports. That’s according to a Bloomberg News tally based on an analysis of Department of Labor documents provided by American Bridge 21st Century, a group allied with Democrats. It includes 342 at an Invista plant in Waynesboro, Virginia, and about 258 at Georgia-Pacific facilities in Green Bay, Wisconsin, and Halsey, Oregon.” [Bloomberg, 9/2/14]

SPOTLIGHT: KOCH INDUSTRIES LAID OFF 175 WORKERS ONE MONTH AFTER BUYING COMPANY, SENDING JOBS TO MEXICO

April 2004: Koch Industries Bought Textile Manufacturer Invista. “The Waynesboro plant was a DuPont facility until earlier this year. DuPont created a subsidiary, called Invista, last year for much of its textiles products. Invista was sold to Koch Industries in April for $4.4 billion.” [Staunton Daily News Leader, 11/7/04]

May 2004: Invista Announced Layoffs At Tennessee Plant One Month After Koch Industries’ Purchase. “About 175 of the 700 employees at the Hixson plant of nylon and Lycra maker Invista will lose their jobs in a cutback of nylon production. The plant in Chattanooga was operated by DuPont for 55 years until it was purchased April 30 by Wichita, Kan.” [Associated Press, 5/20/04]

The U.S. Court Of International Trade Said The Invista Layoffs Were Due To A “Shift In Production To Mexico.” “The 2004 shift in production to Mexico led to widespread layoffs of production workers and support personnel at the Chattanooga plant. Invista management filed a petition for TAA and ATAA benefits on behalf of the terminated workers, which the Labor Department granted.” [Memorandum Opinion, U.S. Court of International Trade, Case No. 1:07-cv-00160, Former Employees of Invista, S.A.R.L. v. United States Department of Labor, Filed 10/09/09]

In 2004, The Department Of Labor Certified That The Workers Who Were Fired Between June 7, 2003, And August 20, 2006, Were Eligible For Trade Adjustment Assistance. “Workers of Invista, S.A.R.L., formerly doing business as Invista Dupont, Nylon Division, a subsidiary of Koch Industries, including on-site leased workers from Chattanooga General Services, Inc., and Stratus, Inc., 4501 North Access Road, Chattanooga, Tennessee, engaged in employment related to the production of nylon filament fibers, type-32, type-74 and type-95, who became totally or partially separated from employment on or after June 7, 2003, through two years from the date of certification are eligible to apply for adjustment assistance under Section 223 of the Trade Act of 1974, and are also eligible to apply for alternative trade adjustment assistance under Section 246 of the Trade Act of 1974.” [U.S. Department of Labor, TAA Decision 55055, 8/20/04]

  • The Department Of Labor Determined That The Workers Lost Their Jobs Due To A “Shift In Production” To Mexico. “After careful review of the facts obtained in the investigation, I determine that there was a shift in production of nylon filament fibers type-32, type-74 and type-95 from the workers’ firm or subdivision to Mexico of articles that are like or directly competitive with those produced by the subject firm or subdivision.” [U.S. Department of Labor, TAA Decision 55055, 8/20/04]

THE KOCH BROTHERS HAVE HEAVILY SUPPORTED PORTMAN’S CAMPAIGN

August 2015: Americans For Prosperity, A Koch Brothers Organization, Spent $1.4 Million Against Strickland. [Washington Post, 8/18/15]

Portman’s Campaign Has Taken $12,000 From The Koch Brothers And Their PAC. From April to June 2015, Portman took $3,900 from Charles G. Koch and the Koch Industries PAC. In this election cycle, Portman has taken $12,400 from those two entities. These contributions are detailed in the table below:

Contributor

Date

Amount

Cycle-To-Date

Charles G. Koch

4/10/2015

$200

$5,400

Charles G. Koch

4/10/2015

$2,700

$5,400

Koch Industries Inc. PAC

6/2/2015

$1,000

$7,000

Total:

$3,900

$12,400

[Federal Elections Commission, Portman For Senate, Filed 7/15/15]

PORTMAN RECIPROCATED, ATTENDING A KOCH BROTHERS RALLY AND VOTING TO FAST-TRACK TPP WITHOUT READING IT

Portman Is Scheduled To Speak At August 2015 Koch Brothers Event In Columbus, Ohio. “The Americans for Prosperity ad will begin airing Friday as the organization kicks off a two-day conference in Columbus. Several GOP candidates for president, including Jeb Bush, Ted Cruz and Marco Rubio, will attend. Portman is scheduled to speak Saturday.” [Cleveland Plain Dealer, 8/18/15]

2015: Portman Voted To Fast-Track TPP Without Reading It. “Though he hasn’t read the TPP proposal, Portman voted June 24 with the majority in a 60-38 vote to approve fast-track authority. Fast track is a key step in the trade process. It allows the president to give such deals to Congress for only yes-or-no votes without the power for the legislative body to amend them.” [Youngstown Vindicator, 8/3/15; H.R. 2146, Vote 219, 6/24/15]

Portman Took $119,700 From The Corporate Members Of The US Business Coalition For TPP In Advance Of The Fast-Track Vote. “Using data from the Federal Election Commission, this chart shows all donations that corporate members of the US Business Coalition for TPP made to US Senate campaigns between January and March 2015, when fast-tracking the TPP was being debated in the Senate: […] He received $119,700 from 14 different corporations between January and March, most of which comes from donations from Goldman Sachs ($70,600), Pfizer ($15,700), and Procter & Gamble ($12,900).” [The Guardian, 5/27/15]

The Guardian Headline: “Here’s How Much Corporations Paid US Senators To Fast-Track The TPP Bill.” [The Guardian, 5/27/15]

RECKLESS TRADE DEALS HAVE COST OHIO OVER 300,000 NET MANUFACTURING JOBS

Public Citizen: “Ohio Has Endured A Net Loss Of More Than 323,000 Manufacturing Jobs – One Out Of Every Three – Since The 1994 NAFTA And The World Trade Organization Agreements Took Effect.” “Ohio has endured a net loss of more than 323,000 manufacturing jobs – one out of every three – since the 1994 NAFTA and the World Trade Organization agreements took effect. Nearly five million manufacturing jobs have been lost nationwide. U.S. manufacturing workers who lose jobs to trade and find reemployment are typically forced to take pay cuts. Three of every five who were rehired in 2014 took home smaller paychecks, and one in three lost greater than 20 percent, according to Department of Labor data.” [Public Citizen, Accessed 4/24/15]

Ohio Lost 4th Highest Percentage Of Total State Employment Through NAFTA, More Than 30,000 Jobs. “Ohio lost 34,900 jobs — 0.6 percent of its total state employment — through NAFTA, concludes the report by the Economic Policy Institute, a research and policy group in Washington, D.C. That placed Ohio fourth among all states, the District of Columbia and Puerto Rico in terms of percentage of total jobs lost to NAFTA.” [Cleveland Plain Dealer, 5/3/11; Economic Policy Institute, 5/3/11]

The U.S. Trade Deficit In The Top Ohio Exports To NAFTA Countries Rose 476 Percent In The Last 17 Years. “The U.S. trade deficit with NAFTA partners Mexico and Canada in the top 10 products that Ohio exports to those countries has more than quintupled in the last 17 years, rising 476 percent.” [Public Citizen, Accessed 4/24/15]

Ohio Has a $10 Million Agricultural Trade Deficit With NAFTA Partner Countries, But A $1.8 Billion Agricultural Trade Surplus With The Rest Of The World. “Ohio has a $10 million trade deficit in agricultural products with NAFTA partners Mexico and Canada, but a $1.8 billion agricultural trade surplus with the rest of the world. The disparity owes largely to the fact that Ohio’s agricultural exports to NAFTA partners actually have fallen $4 million, or 3 percent, in the last five years, while the state’s agricultural exports to the rest of the world have risen $1.5 billion, or 452 percent.” [Public Citizen, Accessed 4/24/15]

More Than 12,000 Ohio Small-Scale Farms, Or 17 Percent, Disappeared In The First 21 Years After NAFTA’s Passage. “Small-scale U.S. family farms have been hardest hit by rising agricultural imports and declining agricultural trade balances under FTAs. Since NAFTA took effect, more than 12,000, or 17 percent, of Ohio’s smaller-scale farms have disappeared. Nationwide, nearly 180,000 small U.S. farms have gone under since NAFTA and NAFTA expansion pacts have taken effect.” [Public Citizen, Accessed 4/24/15]

###