By: Juan Reynoso, WTP - activist – firstname.lastname@example.org
Free trade-Globalization and Neo-Liberalism are the policies for human exploitation, the Donald Trump policy can be the opportunity to secure the economic and welfare of the Mexican people.
For some three decades’ neoliberalism, has dominated the economic policymaking in the US and the UK. The strong supporters and advocates of Neoliberalism are the multinational corporations in the U.S, Western Europe and Japan, but substantial popular resistance limited its influence and expansion in some of Latin American countries; but despite the resistance, the U.S. impose neoliberal policies on much of Latin America.
The US with the support of the IMF and World Bank, through bribery, intimidation and overthrowing legitimate elected governments; has been successful in dictating neoliberal policies in Latin America and much of the world. Their main objective is privatization of government public service, natural resources and the exploitation of labor for the manufacturing of goods for the U.S and the E.U market.
In Mexico, NAFTA “El tratado de Libre Comercio” is the root of worker’s exploitation, the privatization of public service, the mining, the oil reserves, the Highways and the demise of the eco-system of the Mexico. This ill policy only benefit the U.S, Transnational corporations, the corrupt Mexican government and the U.S government.
The Donald Trump election, can be the great opportunity for Mexico to regain control of their sovereignty and work on an economic system that will promote jobs for their people and secure the economic and welfare of the Mexican people.
This is what NAFTA is all about and the impact of this ill policy that fail Mexico and the U.S.
1. U.S. Jobs Were Lost
Since labor is cheaper in Mexico, many manufacturing industries moved part of their production to Mexico. Between 1994 and 2016, the U.S. trade deficits in 2016 with Mexico totaled $ 58,798.6 million Dollars, displacing thousands of U.S. jobs.
Nearly 80% of the losses were in manufacturing. The hardest-hit states were California, New York, Michigan and Texas. They had high concentrations of the industries that moved plants to Mexico. These industries included motor vehicles, textiles, computers, and electrical appliances.
2. U.S. Wages Were Suppressed
Many U.S. corporations used the threat of moving to Mexico during union organizing drives. When it became a choice between joining the union or losing the factory, workers chose the plant. Without union support, the workers had little bargaining power. That suppressed wage growth. Over 70 percent of all companies in the industries that were moving to Mexico used the threat of closing the factory to pay lower wages to American employees.
3. Mexico's Farmers Were Put Out of Business
Thanks to NAFTA, Mexico lost 1.3 million farm jobs. The 2002 Farm Bill subsidized U.S. agribusiness by as much as 40% of net farm income. When NAFTA removed trade tariffs, U.S. farm corporations exported corn and other grains to Mexico below cost; Rural Mexican farmers could not compete and this put Mexican farmers out of business. At the same time, Mexico reduced its subsidies to farmers from 33.2 percent of total farm income in 1990 to 13.2% in 2001 and most of those subsidies went to Mexico's large farms corporations. (Source: "Exposing the Myth of Free Trade," International Forum on Globalization, February 25, 2003. "Tariffs and Tortillas," The Economist, January 24, 2008.)
4. Maquiladora Workers Were Exploited
NAFTA expanded the maquiladora program by removing tariffs. That's where U.S.-owned companies employed Mexican workers near the border. They cheaply assembled products for export back into the United States. The program grew to employ 30 percent of Mexico's labor force.
The workers had "no labor rights or health protections," according to Continental Social Alliance. In addition, the “workdays stretch out 12 hours or more, and if you are a woman, you could be forced to take a pregnancy test when applying for a job,”. (Source: "Lessons of NAFTA," Worldpress.org, April 20, 2001.)
5. Mexico's Environment Deteriorated
In response to NAFTA competitive pressure, Mexico agribusiness used more fertilizers and other chemicals, costing $36 billion per year in pollution. Rural farmers expanded into marginal land, resulting in deforestation at a rate of 630,000 hectares per year. (Source: "NAFTA's Promise and Reality," Carnegie Endowment, 2004.)
6. NAFTA Called for Free U.S. Access for Mexican Trucks
Another agreement within NAFTA was never implemented. NAFTA would have allowed trucks from Mexico to travel within the United States beyond the current 20-mile commercial zone limit. A demonstration project by the Department of Transportation (DoT) was set up to review the practicality of this. In 2008, the House of Representatives terminated this project. It prohibited the DoT from implementing it without Congressional approval.
Congress worried that Mexican trucks would have presented a road hazard. They are not subject to the same safety standards as U.S. trucks. U.S. truckers' organizations and companies opposed it. Otherwise, they would have lost business. Currently, Mexican trucks must stop at the 20-mile limit and have their goods transferred to U.S. trucks.
There was also a question of reciprocity. The NAFTA agreement would have allowed unlimited access for U.S. vehicles throughout Mexico. A similar arrangement works well between the other NAFTA partner, Canada. But U.S. trucks are larger and carry heavier loads. That violates size and weight restrictions imposed by the Mexican government.
7-Mexican cities most affected by NAFTA that are being promote to transnational corporations.
The origin of NAFTA dates back to 1990 as a trade pact among the three nations. Three leaders, American President George H. W. Bush, Canadian Prime Minister Brian Mulroney and Mexican President Carlos Salinas were each responsible for spearheading and promoting the agreement in their home countries and each participated in ceremonial signing in their respective capitals on December 17, 1992. Bill Clinton was sworn in as the 42nd President thirty-four days after George H.W. Bush signed the NAFTA trade pact.
The Lies Behind 'Free Trade.
After 25 Years, NAFTA Leaves Mexico’s Economy in Ruins
NAFTA Failed Mexico
The U.S. Economy History