Thanks for the stat's.

Darryl



----- Original Message -----
From: mcandreb <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Saturday, December 27, 2003 2:05 PM
Subject: [Futurework] FWD: NAFTA: North American Deal Dismal After a Decade


>
> Anybody surprised? And ten years from now? I'm with Michael Gurstein on
> this New Years' prediction.
>
> Brian McAndrews
>
> -----------------------------------
>
>
>
>
> Published on Saturday, December 27, 2003 by the Inter Press Service
> NAFTA: North American Deal Dismal After a Decade
> by Emad Mekay
>
> WASHINGTON - After 10 years a deal that all sides say transformed trade
> and investment rules in North America has still produced far fewer
> positive results than originally promised, according to its critics.
>
> "Had they (original promises) come true, NAFTA would have been an
> enormous boom and we would all be cracking champagne," said Lori
> Wallach, director of the global trade watch program at Washington-based
> Public Citizen, a consumer rights group.
>
> "But instead we have got the 10-year record and it's pretty damn grim."
>
> When NAFTA (the North American Free Trade Agreement) was being sold to
> the U.S. Congress and the public in Canada, Mexico and the United States
> in the early 1990s, its promoters promised the deal would create
> hundreds of thousands of high-wage U.S. jobs, raise living standards in
> all three countries and improve environmental conditions and transform
> Mexico from a poor developing country into a booming economy.
>
> But NAFTA's real-life damage to jobs, wages and the environment after 10
> years has made many people in North America furious about the trade
> policies the deal was built upon (policies that provide the foundation
> for subsequent agreements such as the forthcoming Free Trade Area of the
> Americas, FTAA).
>
> "NAFTA's 10-year record demonstrates that under the NAFTA model most
> people in the three countries were losers, while only a few of the
> largest corporations who helped write NAFTA were the major winners,"
> Wallach said.
>
> Thanks to the deal, which celebrates its anniversary Jan. 1, major
> companies -- like auto makers General Motors, Ford and Chrysler -- can
> set up shop in Mexico, employ cheap labor in that country and then
> export the finished products to Canada and the United States.
>
> NAFTA rules also limit each country's domestic policies to deal with
> issues ranging from environmental health and food safety to banking and
> truck safety regulation.
>
> Under the unprecedented investor rights sewn into the deal, investors
> are allowed to demand compensation for "indirect expropriation", which
> has been interpreted to mean any government act -- including those
> directed at public health and the environment -- that diminishes the
> value of a foreign investment.
>
> Following one such suit, the Mexican government was ordered in August
> 2000 to pay nearly 17 million dollars to a California firm that was
> denied a permit from a Mexican municipality to operate a hazardous waste
> treatment facility in an environmentally sensitive location.
>
> U.S. workers were promised 170,000 additional jobs in each of NAFTA's
> first 10 years, based on the deal increasing the trade surplus with
> Mexico and lowering the pre-NAFTA trade deficit with Canada.
>
> But instead of the surplus, the United States now runs an average
> 37-billion-dollar annual deficit with Mexico, and has lost close to
> three million manufacturing jobs.
>
> Under one government program for displaced workers, the NAFTA Trade
> Adjustment System -- for which only a relatively small number of the
> deal's potential victims could qualify -- 525,000 U.S. workers were
> certified as NAFTA casualties because their jobs were transferred to
> Mexico.
>
> According to Public Citizen, despite the economic growth of the 1990s,
> U.S. real wages are still below 1972 levels, while income inequality has
> skyrocketed because of the shift from manufacturing jobs to employment
> in services, where wages are far less.
>
> According to the Institute of Policy Studies, NAFTA has also had a
> detrimental impact on the ability of U.S. workers to fight for better
> wages and working conditions. U.S. employers now often threaten to move
> to Mexico and other low-wage countries in order to fight unions and
> restrain wages.
>
> The use of such threats in union organizing drives increased from about
> 50 percent in the early 1990s to 62 percent in 1998 and 68 percent in
> 1999, says the Washington-based institute.
>
> The U.S. government points to different figures to buttress its pro
> free-trade arguments. According to data from the U.S. Trade
> Representative office, total trade among the NAFTA countries more than
> doubled between 1993 and 2002.
>
> It says foreign direct investment by NAFTA partners in the three
> countries jumped from 136.9 billion dollars in 1993 to 299.2 billion
> dollars in 2000.
>
> Last week, the World Bank also said NAFTA was, overall, a positive deal,
> especially for Mexico. For example, it triggered productivity growth, as
> the country needed only about one-half the time to adopt foreign
> technology during the span of the deal than it did before.
>
> But according to a recent report by the Global Resource Action Center
> for the Environment (GRACE), NAFTA has displaced 1.75 million Mexican
> farmers from their land, forcing them to migrate to the cities or the
> United States.
>
> According to Lauren Carlsen, director of the Americas program of the
> Inter-hemispheric Resource Center, an advocacy group based in Mexico
> City, farm prices -- especially for maize -- have plummeted during the
> deal's lifetime in the face of heftily subsidized imports from the
> United States.
>
> Incomes in Mexico have also nose-dived. According to the Center for
> Economic and Policy Research (CEPR) in Washington, in 10 years income
> per person has grown by only nine percent in Mexico, about one-fifth of
> the growth in the 1960s and 1970s.
>
> "No economist can honestly call that a success," said Mark Weisbrot
> co-director of the CEPR.
>
> NAFTA was also promoted as a route to good jobs and improved living
> conditions, especially via maquiladoras, companies that are permitted to
> operate duty-free in nations that provide them with cheap labor -- in
> the NAFTA case, U.S. firms setting up in Mexico.
>
> "Instead, we got low wages, sexual harassment, environmental destruction
> and birth defects," said Marth Ojeda, director of the Coalition for
> Justice in the Maquiladoras, herself a maquiladora worker.
>
> "Most maquiladora workers are very young, between 16 and 25, because
> their eyes, backs and hands haven't given out yet -- their hours are so
> long that their youth passes without seeing the sun," added Ojeda.
>
> Workers and government services in Canada, the third NAFTA partner, did
> not fare any better.
>
> Canada's former prime minister Brian Mulroney called the deal a "cold
> shower" at its inception, something the country needed to go from a
> so-called welfare state to one primed to compete in the international
> sphere.
>
> But 10 years later, many critics say the business community has actually
> exploited the deal to push for cuts in social programs, arguing they
> were necessary to compete with the lower costs faced by U.S. businesses,
> operating in a nation with generally lower levels of worker protection.
>
> The clearest example of that, critics say, is the impact is the scaling
> back of Canada's unemployment insurance.
>
> According to the Canadian Center for Policy Alternatives, the percentage
> of unemployed workers who qualified for this scheme (now known as
> "employment insurance") dropped from 87 percent in 1989 to only 39
> percent in 2001.
>
> "We have lowered social spending so much that we have moved from being
> first in the world in the United Nations human development index to
> number eight last year," said Maude Barlow, chairperson of the Council
> of Canadians, the country's largest public advocacy organization.
>
> "And three target groups have been hit the worst: the unemployed,
> low-income earners and the elderly," she added. "It's pretty well time
> we stopped thinking that we are a kinder and gentler nation."
>
> If there is one major lesson of NAFTA that many analysts from all three
> countries agree on, says the Institute of Policy Studies, it is that
> "there is no guaranteed link between trade and investment liberalization
> and improvements for workers or the environment".
>
> 2003 � IPS
>
> ###
>
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