Trade and Jobs: Can We Trust the Models?
April 2016, David Rosnick and Dean Baker
April 2016, David Rosnick and Dean Baker
The Cipher Brief: There are many lessons from the North American Free Trade Agreement (NAFTA) that are relevant to the current debate over the Trans-Pacific Partnership (TPP).
On January 21, Mexican President Enrique Peña Nieto announced the beginning of a national program called “Mexico with Decent Work” (México con Trabajo Digno), with the stated mission to “promote the respect, protection and guarantee of human rights for workers in Mexico, as well as to ensure decent work is fully in force.” However, only two months later, as Secretary of Labor Alfonso Navarrete boasted that the program was rescuing people working practically in slave conditions, thousands of farmworkers in the San Quintín Valley in the Northeastern state of Baja California went on strike, demanding higher wages and better working conditions from the government and multinational corporations.
Negotiations have yet to move forward. The Mexican government seems unable to respond, perhaps because the organized farmworkers are challenging an alliance between multinational corporations, public officials who also have business in the valley, and corporate unionism– a system that protects the interests of employers.
San Quintín Valley is one of Mexico’s largest export regions, employing tens of thousands of farmworkers, many of them first or second generation indigenous migrants [PDF] originally from Southern Mexico. Each year the region generates more than six billion pesos (about $410 million) worth of agricultural products. It is estimated that there are 80 thousand farmworkers in the San Quintín Valley, and yet in the municipality of Ensenada, which encompasses all of San Quintín, there are less than 24 thousand farm workers registered with the Mexican Institute of Social Security (IMSS). The most important good produced is strawberries, but only a small portion of these are consumed in Mexico. Most are exported to the U.S. market to be sold by fast food chains, or in supermarkets like Wal-Mart, Safeway, or Whole Foods. Around 84 percent of U.S. imports of fresh strawberries come from Mexico, and Baja California leads Mexico’s production and export of strawberries.
Luis Hernández Navarro, Mexican journalist and coordinator of the opinion section of La Jornada, referred to the working conditions this way:
San Quintín’s day farmworkers labour in humiliating conditions on farms that grow produce for export: tomatoes, strawberries, blackberries. In exchange for starvation wages, they work up to 14- hour days without a weekly day of rest, let alone holidays or social security. Foremen sexually abuse the women, and they are forced to take their children to the premises to perform work.
… Many [workers] are indigenous migrants from Oaxaca (Mixtec and Triqui), Guerrero, Puebla and Veracruz, who have made San Quintín into another of their communities. Three generations of Oaxacalifornianos live there. They suffer constant police harassment. They rely on a single hospital [run by the] Mexican Social Security Institute [IMSS].
The kidnapping and disappearance of 43 students from a teacher-training college in Ayotzinapa, Guerrero has sparked renewed attention to the devastating effects of the U.S.-backed drug war in Mexico. More than six months have passed since the students’ disappearance, and while dozens of police officials and local drug gang members have been arrested, the investigations are marred with allegations of coerced confessions, and investigators are accused of covering up the truth by suppressing information.
Currently, a “caravan” of family members of the victims is traveling around the U.S. to bring attention to the terrible consequences of the war against drugs in Mexico. Felipe de la Cruz Sandoval, spokesperson for the group of parents and a member of the Rural Teachers College of Ayotzinapa Guerrero, said the caravan aims “to shed light on the foreign policy of the United States, specifically the Mérida Initiative and its connection with the socioeconomic conditions and violence in Mexico.”
The Mérida Initiative was negotiated behind closed doors between former presidents George W. Bush of the U.S. and Felipe Calderón of Mexico in March 2007, and was inaugurated in December 2008. The former U.S. ambassador to Mexico, Antonio O. Garza, said months before it was approved that it was “the most aggressive undertaking ever to combat Mexican drug cartels.” U.S. funding for judicial processes, forensic services, investigative capacity, and Mexico’s judicial reforms doesn’t seem to have had much impact so far: impunity remains rampant in Mexico, with 98.3 percent of crimes going unpunished. According to a recent U.N. report, Mexican security agents regularly engage in torture. The U.N. Committee on Enforced Disappearances has also found that the problem of disappearances of civilians at the hands of the police and military is worsened by the government inaction.
I recently discussed these issues, by email, with Jesse Franzblau – a policy analyst who has been researching U.S. foreign policy and human rights in Mexico and Latin America since 2006. Franzblau has carried out research and written articles for the National Security Archive, The Nation, Al Jazeera, NACLA, Columbia Human Rights Law Review, the Universidad Nacional Autónoma de México’s Law Review and other outlets. Last year he was nominated, along with Mike Evans of the National Security Archive, and three Mexican journalists Carmen Aristegui, Daniel Lizárraga and Irvin Huerta (all formerly of Mexican news network MVS Noticias), for the 2014 Gabriel García Márquez Award for investigative journalism for their coverage of secret U.S. surveillance programs in Mexico.
Alexander MainThe Hill, March 19, 2015
Rural workers face the destruction of their environment and culture, lack access to basic needs, and rarely have a say in the policymaking processes that affect their lives.
In response to Wednesday’s announcement that the United States would work to restore full diplomatic relations with Cuba, Mexico’s former ambassador to Cuba revealed that his country had pursued a strategy of provoking the Cuban government in order to gain favor with the Bush administration. Ricardo Pascoe, who served as Ambassador from 2000-2002, says that Mexican President Vicente Fox and Foreign Minister Jorge G. Castañeda worked to appease the White House by damaging Mexico’s ties with Cuba, while he fought to maintain the bilateral relationship. Pascoe says his position is now vindicated since Mexico, a natural interlocutor between the U.S. and Cuba, which could have played a large role in the two country’s negotiations, lost out to Canada as host for secret bilateral talks.
“Mexico was in the worst position of all: completely left out,” said Pascoe, also exclaiming: “They didn’t choose Mexican territory for the talks (as would have been natural in other times). But with Fox and Castañeda we lost our historic standing with the island!”
Pascoe explained that the bilateral relationship between Mexico and Cuba could not be repaired under the governments of Felipe Calderón and current President Enrique Peña Nieto. For Pascoe, this not only demonstrates the failure of Mexico’s foreign policy toward Cuba, but more generally the country’s foreign policy toward Latin America.
During a visit to Washington in late July, Honduran President Juan Orlando Hernández and Guatemalan President Otto Pérez Molina jointly called for a regional security initiative modeled on Plan Colombia in response to the rampant violence sweeping their c
On Sunday U.S. Secretary of State John Kerry published an op-ed in the Miami Herald, in which he gave the official Washington view on democracy and economic progress in Latin America.
“Not so long ago, naysayers doubted that the growth of democracy in Mexico and elsewhere across the Americas would translate into better lives for the people who live there,” he writes.
And then the bait and switch: “The last decade has been a story of democracy and economic achievement in Latin America and the Caribbean. The region’s economies grew at a rate of 4 percent a year, trade with the United States nearly tripled, and more than 73 million people were lifted out of poverty.”
Now the part about the regional growth rate is true. But Mexico didn’t share in the recovery:
Figure 1. Mexico and Latin America: Average Annual Real Per-Capita GDP Growth, 1960-2013
The above figure used GDP growth per person, which is a better measure than the overall growth rate that Kerry uses (since population growth doesn’t increase living standards). Note that Latin America and the Caribbean did in fact experience a growth rebound in the past decade. Average annual growth was just 0.4 percent annually from 1980-2000 – a long-term growth failure that is uncommon in the history of capitalism.
The region grew at a vastly better 2.0 percent annual rate from 2000-2013, despite the Great Recession. But not Mexico, which averaged only 0.6 percent annually, slightly worse than during the lost decades. The poverty rate in Mexico in 2012 (52.3 percent) was as bad is it was in 1994 (52.4 percent). So much for “democracy and economic achievement” in Mexico. The U.S. government of course is reluctant to acknowledge this because Mexico has been run by friendly right-wing governments for decades, and NAFTA has been the model for subsequent commercial agreements.
February 2014, Mark Weisbrot, Stephan Lefebvre, and Joseph Sammut