NAFTA Ms. Almaraz-De Santiago Ethnic Studies

NAFTA NAFTA The North American Free Trade Agreement (NAFTA) took effect on January 1st, 1994 It is an agreement between US, Canada, and Mexico- open borders on goods (imports and exports) Free Trade! Reduce tax barriers on imports and exports Cheap Labor, land, and warm weather Promoters promised: that jobs would be created in all 3 countries Consumer prices would decrease

NAFTA in Mexico Mexican President, Carlos Salinas de Gortari promised that NAFTA would make Mexico a 1st world country Since NAFTA, Mexico: Has led to a dramatic rise in exports and imports US investment in Mexico is UP Worker productivity is UP US and Mexican economies are linked more than ever before

Total Trade Among NAFTA Partners 1993-$306 Billion 2002-$621 Billion In 2008-The US exported more than $412 Billion worth of goods to Canada and Mexico Mexican exports to the US increased from $49.4 Billion in 1994-138.8 Billion in 2003

NAFTA in Mexico Minimum wage is DOWN Average manufacturing wages are DOWN Number of Mexicans fleeing poverty is UP Prices paid to poor farmers is DOWN Industry related pollution is UP

NAFTA in Mexico Cheap imported corn from US has devastated poor farmers By early 2000’s, people in US lost jobs because production moved to Mexico or Canada According to Mexican scholars and researchers, “NAFTA is an agreement that was designed BY and FOR the transnational corporations and investors. It has been a success for big companies and rich people.”

How has Mexico changed since NAFTA Minimum wage plunged 50% US Corn exports to Mexico increased 14% in a year after NAFTA Corn prices in NAFTA went down 45% 2001-2004 Local farms and small businesses in Mexico were replaced by TRUE SIGNS OF PROGRESS-Walmart and McDonald’s In the model of free trade-trade grows enormously and everyone benefits

Changes Free Trade Unleashed in Mexico Mexican Constitution 1917 Article 27-limits the amount of land that any one landholder can own. It promises poor people that they can take over and occupy unused government land and use it to farm, or they can occupy land of wealthy landholders and farm it Article 27 established a system of ejidos (community owned land that that can never be sold or taken) Article 27 also states that foreigners can’t own land

Repealing Article 27 Amended in 1992, two years before NAFTA Cuahutemoc Cardenas, progressive Mexican politician , stated that repealing of this amendment would most likely displace two million rural families (8- 10 million people) who are more than likely going to immigrate to the US

NAFTA’s Chapter 11 Goes further than any other agreement in the world to protect of investors Allows foreign investors to sue NAFTA governments directly if they pass laws that hurt investments Restricts the ability of governments to protect the environment, and public welfare of its people!

NAFTA-Fine Print NAFTA has no significant provisions on labor or the environment NAFTA encourages and protects the free movement of of capital and goods from country to country but NOT the free movement of people Countries can restrict immigration in any manner they choose US has a history of not liking collectively owned land-Dawes Act of 1887 gave 180 acres of Native American land to white farmers. Idea was to abolish what Senator Henry Dawes called, “Indian Communism in favor of individualism.” “They (Cherokee) own their land in common…There is no selfishness, which is at the bottom of civilization.”

Objections to NAFTA? On January 2nd 1994-The EZLN publically began their rebellion, just 2 days after NAFTA took effect. (EZLN) Zapatista National Liberation Army, made up of Mayan Indians Leader, Subcomandante Marcos-Sub Commander (He answers to the Maya of Chiapas) Mestizo-college professor, speaks 3 languages

Subcomandante Marcos http://www.youtube.com/watc h?v=WYQAeTF_Sk8

NAFTA as a CAUSE of IMMIGRATION Questions to Consider- Is poverty a process? Is it created or has it always existed? What role did the US play in impoverishing Mexico? What role did Mexico play in impoverishing Mexico?