1. NAFTA Ms. Almaraz-De Santiago Ethnic Studies

2. 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

3. 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

4. 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 Billion in 2003

5. 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

6. 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.”

7. 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%
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

8. 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

9. 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

10. 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!

11. 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.”

12. Objections to NAFTA?
On January 2nd 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

13. Subcomandante Marcos
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14. 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?