NAFTA overview for Pax Christi (September 14, 2008)
Short Definition
NAFTA (North American Free Trade Agreement) is a comprehensive trade agreement limited to Canada, US, and Mexico in a free trade sphere (since ‘94).
It immediately ended tariffs on some goods, on other goods tariffs were scheduled to be eliminated over a period of years.
No supranational government bodies are involved (as the European Union) or any body superior to any national law. It is similar to a treaty. Under US law it is a congressional-executive agreement.
Goal
NAFTA aims to be a continent wide custom free zone with a common approach to trade, energy, immigration, law enforcement, security. It also envisions the opening up
of most borders to the relatively free passage of goods and services.
NAFTA’s effect on politics & economies (broadly speaking)
NAFTA is only one entity that is responsible for recent economic and political changes in the US, Mexico, and Canada. Other factors include individual country economic policies
worldwide, actions and policies of the World Bank and World Trade Organization, and global and local economic indicators (as recessions). No country or group of countries is an island!
It is unfair at times to blame NAFTA for every economic disappointment in the last 10 years. It is always challenging, if not impossible to “tease out” any one variable in any social study.
Everything is interrelated. (Related examples might be the state of our local education and health care).
Pro NAFTA points
• For the US, NAFTA has always been more about foreign policy than domestic economy.
Mexico has changed from a centralized protective economy to decentralized democratic capitalism. For example, Vincente Fox became president, endin 75 years of dominance by the PRI political party.Mexico no longer is a boom/bust economy with high inflation and debt. Mexico and Chile are the two most stable major economies in Latin America.
• In the US, NAFTA has allowed jobs to be shifted to those with better efficiency. Manufacturing output has risen 30% since 1994.
• In the US, unemployment fell between 1993 and 2000 (6,9% to 4%) Real wages have risen.
• NAFTA is not responsible for lost jobs. Unemployment increases are a result of the East Asia economy, recession, and increases in manufacturing productivity.
Con NAFTA points
• In Mexico, hog farming and other farming is disappearing. Farmers cannot compete with the dumping of our grains and corns. NAFTA has ended tariffs on these products that Mexico had imposed. However, These farm products are subsidized by our government.While relatively cheap for US farmers to grow and for Mexicans to buy, Mexicans cannot afford to buy these same products grown in Mexico. So, many farmers are crossing into our country (short and long term) to gain employment.
• NAFTA has a “hands off” policy to intellectual copyright (including patents). For example genetically engineered corn is patented. This means that when a farmer grows genetically grown corn, he or she is not allowed to use the seed to grow next year’s crop. To do so is stealing in the eyes of the law, and the farmer can be prosecuted. Furthermore, if such seed blows in from a neighboring farm and grows, the “receiving” farmer can be prosecuted even though some would call this an act of nature or act of God (think insurance and lightening).
• NAFTA lacks common policy. Each country is still free to negotiate independently with countries inside and outside of NAFTA.
• NAFTA has only 5 members on its dispute resolution panel for arbitration purposes. Proceedings are not public.
• NAFTA does address the free flow of products and capital (money). However, it does not address the “free flow” of people. Each country has its own immigration laws.
• NAFTA does not seem to address humane/spiritual values (see especially the first two points above).
Christian responses (to ponder)
Rethink personal lives
Think about material goods, what is actually needed, what to buy, where made. Think about life beyond cars, housing, owning land. Think about good stewardship.
Consider actions
Ask stores where they get their products, either in person or through letter writing. Express concern for the working conditions of those who grew, manufactured, or shipped the product.
Consider buying more Fair Trade products (in which the farmer gets a larger share of the profits). Although the annual global volume of Fair Trade products would only fill one very large supermarket, it is a start However, consider that not buying from companies or stores with goods from “sweat shops” may be hurting the workers. Due to conditions where they live, it may be the only work possible without emigrating. (Think those who work in the flower industry under poor conditions in countries as Colombia).
Consider prayer
Perhaps incorporating actions and rethinking personal lives into a vow of nonviolence
Pray to make wise purchasing decisions
Pray that for better listening skills, especially to those living under different economic, social, and political situations.
Closing thought
God gives us all we need (materially, spiritually, etc). However, these gifts very often are through others (God’s instruments). So, for lack of a better word, it behooves us to listen and be grateful for the words, works, and deeds of others. I am thinking of a student from my Peace Corps days in Liberia, West Africa. He asked me if Americans would be interested if he came to the US and taught Mano. Maybe he was voicing something larger, Americans came over to teach, they also had much to offer us.
Sources
The North American Free Trade Agreement. (Headline Series- Foreign Policy Association) George Grayson. 1993
Free Trade (The Reference Shelf). Lynn Messina. 1995
US, Mexican and Canadian Farmers and Agriculture. Public Citizen (NAFTA at Ten Series). 2003. http://www.citizen.org/documents/NAFTA_10_ag.pdf
The Mexican Economy, Agriculture and Environment. Public Citizen (NAFTA at Ten Series). 2003. http://www.citizen.org/documents/NAFTA_10_mexico.pdf
