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NAFTA Is Starving Mexico
Since the North American Free Trade Agreement (NAFTA) became the law of the land, millions of Mexicans have joined the ranks of the hungry. Malnutrition is highest among the country’s farm families, who used to produce enough food to feed the nation.
As the blood-spattered violence of the drug war takes over the headlines, many Mexican men, women, and children confront the slow and silent violence of starvation. The latest reports show that the number of people living in “food poverty” (the inability to purchase the basic food basket) rose from 18 million in 2008 to 20 million by late 2010.
About one-fifth of Mexican children currently suffer from malnutrition. An innovative measurement applied by the National Institute for Nutrition registers a daily count of 728,909 malnourished children under five for October 18, 2011. Government statistics report that 25 percent of the population does not have access to basic food.
Since the 2008 food crisis, there has been a three percent rise in the population without adequate access to food. The number of children with malnutrition is 400,000 kids above the goal for this year. Newborns show the highest indices of malnutrition, indicating that the tragedy begins with maternal health.
The dramatic change in Mexican eating habits since NAFTA is not only reflected in the millions who go to bed hungry. On the other side of the scale, Mexico has in just a decade and a half become second only to the United States worldwide in morbid obesity. Child obesity, overweight, and diabetes now constitute major health problems, alongside the more traditional problem of hunger.
It’s not that the rich are getting too fat and the poor too thin, although inequality plays a role in the erosion of healthy diets for all. Fatness no longer represents abundance. It is the poor who drink cheap Coca Cola when they do not have access to potable water or who give their kids a bag of potato chips when local fresh food is no longer available. The International Journal of Obesity finds that worldwide the spread of what they call “the Western diet” (“high in saturated fats, sugar, and refined foods but low in fiber) has meant that “the burden of obesity is shifting towards the poor.” The NAFTA generation reflects the paradigm so eloquently described by food researcher and activist Raj Patel of “stuffed and starved”.
With another food crisis looming due to rising international prices, Mexico could face food riots as well as the spread of starvation and its consequences over the coming year. Unless the riots turn violent or spark more widespread social upheaval as they did in Arab countries, it’s not likely that the news media will pay any attention.
NAFTA’s Food (In)security Model
Something has gone terribly wrong. The nation that was slated for prosperity when it signed NAFTA has become an international example of severe structural problems in the food chain, from how it produces its food to what and how much (or how little) it consumes.
Mexican malnutrition has its roots in the way NAFTA and other neoliberal programs forced the nation to move away from producing its own basic foods to a “food security” model. “Food security” posits that a country is secure as long as it has sufficient income to import its food. It separates farm employment from food security and ignores unequal access to food within a country.
The idea of food security based on market access comes directly from the main argument behind NAFTA of “comparative advantage.” Simply stated, economic efficiency dictates that each country should devote its productive capacity to what it does best and trade liberalization will guarantee access across borders.
Under the theory of comparative advantage, most of Mexico was deemed unfit to produce its staple food crop, corn, since its yields were way below the average for its northern neighbor and trade partner. Therefore, Mexico should turn to corn imports and devote its land to crops where it supposedly had a comparative advantage, such as counter-seasonal and tropical fruits and vegetables.
Sounds simple. Just pick up three million inefficient corn producers (and their families) and move them into manufacturing or assembly where their cheap labor constitutes a comparative advantage. The cultural and human consequences of declaring entire peasant and indigenous communities obsolete were not a concern in this equation.
Seventeen years after NAFTA, some two million farmers have been forced off their land by low prices and the dismantling of government supports. They did not find jobs in industry. Instead most of them became part of a mass exodus as the number of Mexican migrants to the United States rose to half a million a year. In the first few years of NAFTA, corn imports tripled and the producer price fell by half.
Conversion to other crops turned out to take years in most cases. Prices were volatile and harvests unreliable. It was not feasible at all on many small, often rocky plots where corn guarantees a subsistence diet for farm families. Niche markets failed to grow to much more than 2 percent of total agricultural production.
The corporate takeover of Mexico’s food system has led to the food and health catastrophe.
The areas that adapted successfully to industrial agriculture and agroexport crops are characterized by flagrant violation of the labor rights of migrant farm workers, widespread pollution and water waste, and extreme concentration of land and resources.
For the hungry, this means that prices set on the international market determine who eats and who starves. Mexican consumers now pay more for tortillas and food in general. Price hikes on the international market push basic food out of reach for the millions of poor in the country.
Food Dependency
In post-NAFTA Mexico, 42 percent of the food consumed comes in from abroad. Before NAFTA, the country spent $1.8 billion dollars on food imports. It now spends a whopping $24 billion. In an interview, rural researcher Ernesto Ladrón de Guevara noted that in some basic foods, the dependency on imports is dramatic: 80 percent in rice, 95 percent in soybeans, 33 percent in beans, and 56 percent in wheat. The country is the world's number-one importer in the world of powdered milk. NAFTA decimated Mexico's once-thriving dairy sector, and the market takeover by transnational powdered milk is linked to the crisis in infant malnutrition.
Mexico imports 33 percent of its consumption, a figure that belies the reliance on imports because the sheer volume of consumption is so large. Ladrón de Guevara stated that it has gone from importing around 250,000 tons before NAFTA to 13 million tons. Transnational traders often favor imports over national production because of the attractive credit arrangements offered by the United States, making it “a double business—importing corn and money.”
The U.S. department of agriculture estimates that if current trends continue Mexico will acquire 80 percent of its food from other countries (mostly the United States). The UN's Food and Agriculture Organization calls a country food dependent when the cost of its imports exceeds 25 percent of total exports. Peasant farmer organizations have criticized the definition as ludicrous in an oil-producing country that nonetheless has seen serious erosion in its capacity to feed its people and guarantee access to basic foods for all.
Heads I Win, Tails You Lose
The corporate takeover of Mexico’s food system has led to the food and health catastrophe. Transnational food corporations not only import freely into Mexican food markets, they are now the producers, exporters, and importers all in one, operating inside the country.
Since NAFTA, corporations have gobbled up human and natural resources on an almost unbelievable scale. Livestock production has moved from small farms for local markets to Tyson, Smithfield, and Pilgrims Pride. The massive use and contamination of water and land has led to health and environmental disasters across the country. Millions of jobs have been lost to concentration and industrialized farming methods.
Take the case of Corn Products International (CPI). The transnational filed a NAFTA claim against the Mexican government in 2003, claiming a loss to its business due to a tax levied on high fructose corn syrup in beverages. Mexico’s reason for imposing the tax was to save a sugarcane industry that provided jobs for thousands of citizens and played a crucial economic role in many regions. The government was also frustrated by its failure under NAFTA to access the highly protected U.S. sugar market.
A 2008 NAFTA tribunal ruled that Mexico had to pay $58.4 million to CPI. The government paid up on January 25, 2011. CPI posted $3.7 billion dollars in net sales the year of the decision. The fine paid by the Mexican government could have provided a year’s worth of the basic food basket to more than 50,000 poor families.
CPI’s wholly owned subsidiary Arancia Corn Products is among the most powerful food transnationals operating in the country, along with Maseca/Archers Daniel Midland and Cargill. Large agribusiness companies allegedly played a key role in the 2007 tortilla crisis by hoarding harvest as the international price went up, artificially drying up the national market and selling at nearly double the price they paid for the harvest. That crisis brought tens of thousands of poor Mexicans out into the streets to protest a 50 percent rise in the price of tortillas.
NAFTA and other FTAs give corporations the power to define what we eat, what we buy at the store, who will have a job and who won’t, and whether a village sustained by local food production will survive or witness the end of generations of livelihoods.
Feed the Hungry, Fix the System
Mexican organizations have begun to come together after years of divisions to respond to the food crisis and fix the badly broken system. They recently succeeded in reforming the Mexican constitution to include the right to food. Now the battle is on to adapt the rural budget to make that right a reality.
Small farmer organizations have joined with family farm organizations in the United States and Canada to call for the renegotiation of NAFTA to remove basic foods and agricultural production from the agreement. They recognize, though, that the Obama administration’s about-face in its stated commitments to fair trade reforms has left little political space for change.
Instead, peasant organizations in all three countries are looking to grassroots efforts and movements to fix the food system before the crisis worsens. As Mexican organizations struggle for programs to address threats to food and agriculture, U.S. organizations are seeing an opportunity to join their demands to the Occupy Wall Street movement across the country. One of the grievances listed in the OWS Declaration of the New York City General Assembly reads: “They (large corporations) have poisoned the food supply through negligence, and undermined the farming system through monopolization.” Food activists are now bringing issues of corporate concentration in food, commodity speculation and price hikes, and free trade to the general protests.
Corporate control of the food system locked in by NAFTA not only starves people in Mexico. It locks in a profoundly unhealthy food system for the entire region. No one expects the situation to get better by itself. As the crisis deepens, citizen movements are again heating up and seeking each other out across borders to protect their health, their livelihoods and their rights. In the future, what we eat, how we eat, and if we eat will depend on their efforts.
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17 Comments so far
Show AllMaybe it's incorrect to blame it all on NAFTA, and maybe NAFTA has brought some positive change as well, but the negative change which Carlsen describes is certainly linked to the change in economic conditions brought on by NAFTA and the consequent destruction of both culture and economic arrangements which may not have been prosperous but were at least stable and keeping millions of very poor people fed.
Sure, it's distribution above all, but as Carlsen tells us the changes since NAFTA have only increased maldistribution while cutting the rug out from under poor peasant communities.
Underlying all this is the fact that economic policies with massive impacts on millions of people are being made according to simplistic fundamentalist ideology which just coincidentally happens to favor the interests of the financial and corporate elite, and which entails the surrender of any thought of prioritizing or even identifying and taking into account the specific needs of the people or of protecting the most vulnerable when making national and transnational economic policy.
Your post tries to appear moderate and well-balanced when it's just another right wing attempt to blame the poor. A person with a working heart and soul would NOT mickey-mouse the statistics to talk about who has $ in Mexico City when the fact that so many are going without FOOD is the seminal issue here. The numbers are clear, the loss of the agricultural sector qualifies as a crime against Humanity. Similar circumstances have caused thousands of farmers to kill themselves in India. Nations' own sovereign laws are undermined by the WTO, and it conveniently (as the poster above related) rules in its own favor.
You are providing "industry speak" in favor of these trade agreements, and that stance is amoral, ruthless, and in service to the 1%. Mr. Pinched...
It wasn't a very good deal for Canada either. NAFTA enabled American chain stores to buy out Canadian single proprietorships at 60 cents on the dollar. It's really noticeable in small towns whose entire unique and individualistic hundred, two hundred year old business streets have been entirely replaced by the same cookie cutter clone business cluster of American based chain stores. Pretty much the only way to tell one town from the other is to look for "the big thing", usually some huge fiberglass animal sculpture. What is especially annoying is that now, when the Canadian dollar is at par or near with the American dollar, these businesses are still charging a forty percent surcharge on their cheap and shoddy Chinese imports. Transportation costs you know.
The Mexican economy was extremely difficult 30 years ago, right after the devaluations, but unless that was just a random number, it is an extremely misleading comparison.
And the Mexican economy and Mexican lifestyle are both worse now than they were then, by a wide margin, even though you are quite correct in noting that there are plenty of resources to feed and house the entire country, were people who wished to do so in charge of the country.
The inequality you note is certainly the major factor, but this is endemic to what is called "free trade," "Friedmanism," "neo-liberal economics," "Austrian School Economics," and the rest of such rot.
What has happened in real-world systems that have claimed to apply such principles is that some people do indeed get rich, like buzzards in a drought get fat, but that there is a widening and deepening class of the poor, like in both Mexico and the United States today. This creates a large class of people willing to break laws and do other things for money or to change the system, and one finds oneself with that combination of severely repressive and militaristic governments as we saw in the latter 20th century in Chile, Argentina, Brazil, Peru, Colombia, Panama, and of course the US of A.
As a society, Mexico is now approaching Colombia.
That does indeed give Mexico something in common with society right here in the United States. If someone knows what exceptions might or might not be made for Gringolandia, as the home of the invisible Fed and its fictional Dollars, I would love to hear it..
Meanwhile, the Mexicans have been in similar straits more than Americans and in general know quite a lot more about it. A lot of us ought to be getting some chickens setting up aquaponic tanks in garages, and working out how to house granny or bring food by for the people who are striking.
Ole Slick Willie's NAFTA was not only a bad deal for Mexico, but it help fuel Mexico's Drug Biz & Wars & the US southern immigration 'problem'. Because once it drove Mexico's farmers out of business & they couldn't find sufficient 'legitimate' work in Mexico the only options left were the Drug Biz, or cross into the US to find work [often in the US' agriculture & food processing sectors], OR STarve!
You would think that w Mexico's national security threatened [self sufficiency in food is any nation's number 1 security concern], & w little or No benefits for Mexico- that Mexico would tear-up NAFTA - & tell those international Corps to go to HELL!
The 99% have drafted a Declaration that ought to be published as its own item here at CD so I don't have to spam every article with the URL as I'm now going to do, https://sites.google.com/site/the99percentdeclaration/
Ah the sounds of Capitalism in the morning. The wail of hungry children. The discarding of entire populations as being not "economically viable".
Each and every day PROFIT becomes an uglier world as those profits are gained when everyone else loses. The more losses in the way of hungry children and people sleeping in the streets, the greater that much smaller group profits off that misery.
Capitalism is nothing more then a system wherein profits can be maximized by exploiting the labor of the neediest so as to increase the wealth of the greediest.
"Free trade" is but one of the mechanisms (albeit its most effective) by which this is accomplished because no matter how poor the citizen of the USA or of Mexico
becomes, there is always someone even more destitute against whom they must compete as they race to the bottom and utter misery.
The systems that are cherished and that are worshiped by the populations
and the media and the politicians as being all but divine are utter and complete madness.
Rob-bie! Robbie Reich! Where are you!?
"It separates farm employment from food security"
He's talking about propaganda elites use to push global/industrial farming on Mexicans, and anyone else they can. It's a gargantuan lie that separates farm employment from food security, definitely one of the top crimes against humanity. All of the imperial lies are sold through "Madison Avenue", the marketeering juggernaut in Merka. Most definitely, the most productive policy the people can adopt is a complete opposition to the Merkan status quo. This is because the imperial enterprise has its tentacles into every pie, or has its sights set on it. Complete opposition also simplifies our agenda, and unites us. We the global 99%. Quite an opponent, the Merkan 1% and their international cronies.
i just came back from guerrero not having been there for almost 9 years... i was appalled... yes, it's obvious, walking up and down the aisles of comercial mexicana, that transnationals are in control of the food supply, but what i found most appalling was the intense militarization i saw everywhere, no doubt due to the fevered emphasis of the war on drugs and the atrocities perpetrated by the cartels...
the former resort mecca of acapulco is like a ghost town... sure, there's plenty of traffic but, for the most part, it's all locals scurrying hither and thither trying to make a few pesos... when i first visited there back in 1993, it was already well on the way to becoming principally a mexican resort, it's premier position having been supplanted by cancun and los cabos... however, there were still plenty of gringos - americans, canadians, europeans - and now they're nowhere to be seen... not a lot of mexicans either...
http://takeitpersonally.blogspot.com/
First we hit the Mexicans with NAFTA. Then, when the farmers turn to running drugs instead of spinach, we supply the cartels with military grade weapons through "Operation Fast and Furious." Then, when they start shooting up the place, our media scares the hell out of travelers and advises that they stay away from vacationing there, effectively ruining the tourist trade. Then, when poverty-stricken Mexicans try to sneak across the border to find work, they are treated like criminals. Just who, in fact, are the real criminals?
NAFTA is starving all of us, or sooner or later will be.
Pay reparations to Mexico, and then return Texas to them.