This week thousands of demonstrators will fill Miami streets, in a show of
opposition to free trade unseen (at least in this country) since the battles in
Seattle four years ago. Opponents plan to hit the proposal for a Free Trade Area
of the Americas with the same one-two punch that forced trade ministers to end
talks in Cancun in October with no new agreement. While a sea of grassroots opponents
lay siege in the streets to the Miami hall where ministers meet once again, inside
the meeting itself the new leftwing governments of Latin America - Brazil, Ecuador,
Argentina and Venezuela - have already formed an implacable opposition.
As
demonstration and debate unfold, in the eye of the storm is the one free trade
agreement that already provides an idea of what the Americas can expect from the
Bush free trade plan. In just a few short weeks, the North American Free Trade
Agreement will be ten years old. And for FTAA's opponents, that ten-year history
of devastation, wreaked in Mexico and the US both, will be the key argument in
stopping its extension to the rest of Latin America.
The communities of working
people and the poor, on both sides of the border, have paid the price for trade
liberalization, while the benefits have been reaped by the tiny clique who promoted
NAFTA ten years ago.
In one of life's ironies, successive Secretaries of the
US Department of Labor - among NAFTA's most ardent supporters - have kept close
track of the treaty's high cost in US jobs. By 2002, the department had certified
that 408,000 workers qualified for extensions of unemployment benefits, because
their employers had moved their jobs south of the border.
Most observers believe
this is a vast undercount. According to NAFTA At Seven, a report by the Economic
Policy Institute, "NAFTA eliminated 766,030 actual and potential U.S. jobs between
1994 and 2000 because of the rapid growth in the net U.S. export deficit with
Mexico and Canada."
While the job picture for US workers was grim, NAFTA's
impact on Mexican jobs was devastating. Before leaving office (and Mexico itself,
pursued by charges of corruption), President Carlos Salinas de Gortari promised
Mexicans they would gain the jobs the US lost. And on tours to the US to promote
the treaty, he promised that this job gain, although painful for US workers, would
halt the northward flow of Mexican job seekers.
NAFTA's first year saw instead
the loss of over a million jobs all across Mexico, in the wake of economic crisis.
To attract investment, NAFTA-related reforms required the privatization of factories,
railroads, airlines and other large enterprises. This led to further huge waves
of layoffs. And because unemployment and economic desperation in Mexico increased,
immigration to the US has been the only hope for survival for millions of Mexicans.
For a while, however, it seemed that the growth of maquiladora factories along
the border would make up for at least part of the job loss. By 2001, over 1,300,000
workers were employed in over 2000 border plants, according to the Maquiladora
Industry Association. But tying the jobs of so many Mexicans to the US market,
for which the plants were producing, proved a disaster as well. When US consumers
stopped buying as the recession hit in 2001, maquiladoras also began shedding
workers. The Mexican government estimates that over 400,000 jobs disappeared in
the process -- as the saying goes on the border, when the US economy catches cold,
Mexico gets pneumonia. A two-year PR campaign by the association and the Mexican
government to blame the loss in border jobs on Chinese competition then sought
to obscure the obvious fact that the plants produced far more goods than a recession-plagued
market in the US could absorb.
But the most serious consequence of NAFTA has
been its failure to protect the rights of workers as promised by its supporters.
To attract investment to the maquiladoras, Mexican government authorities cooperated
with investors and compliant official unions in maintaining a low-wage economy,
reinforced with a system of labor control.
According to Martha Ojeda, director
of the Coalition for Justice in the Maquiladoras, the government-mandated minimum
wage for workers on the border is about $4.20. She estimates that a majority of
maquiladora workers earn close to this wage.
A study by the Center for Reflection,
Education and Action, a religious research group, found that at the minimum wage,
it took a maquiladora worker in Juarez almost an hour to earn enough money to
buy a kilo (2.2 pounds) of rice, and a worker in Tijuana an hour and a half. And
yet another study by the Economics Faculty of the National Autonomous University
in Mexico City says Mexican wages have lost 81% of their buying power in the last
two decades.
To enforce this system, maquiladora workers are required to belong
to unions that have no intention of raising those low wages or helping them end
exhausting and dangerous working conditions. Throughout NAFTA's ten-year history,
workers have sought to break free in a long labor war waged from plant to plant
along the border. They have organized independent unions, willing to fight for
a larger share of the enormous wealth the factories produce. But these efforts
have been met with firings, plant closures, and even physical violence.
Ten
years of hearings held under NAFTA's labor sideagreement have documented extensive
violations of labor rights. In those few instances in which workers have successfully
formed independent unions, as they did at Tijuana's Han Young plant in 1998-9,
their strikes were broken, despite guarantees under Mexico's Constitution and
Federal Labor Law.
NAFTA's sponsors promised that the treaty's labor sideagreement
would protect workers, even though the treaty itself was intended to demolish
all barriers to foreign investment. The sideagreement proved toothleess. In ten
years not one fired worker has been returned to his or her job, and not one independent
union has gained legal status and a contract as a result of the NAFTA process.
Instead, the historical labor protections built into Mexico's legal system
have been systematically undermined and eliminated as obstacles to investment.
Even when Mexican judges held that strikes were legal, as did Maria Lourdes Villagomez
Guillon of the Federal 5th District in 1998, and Pedro Fernandez Reyes Colin of
the First Collegial Court of the Fifteenth District (Baja California's highest
judicial authority) in 1999, their decisions were defied with impunity by government
authorities. Under NAFTA, breaking strikes and unions on the border has become
an integral part of economic development, and legal protections for workers have
been swept away.
Four years ago, at the height of the protests against the
World Trade Organization, Zwelenzima Vavi, the head of the South African Congress
of Trade Unions, described the alternative to NAFTA and the free trade philosophy
underpinning it. "In the pursuit of profit," he said, "governments are told to
remove worker protections, and then use that as an inducement for investment.
But development is a wider concept. It includes social development, and the living
conditions of the people. Development can't exist with mass unemployment and poverty."
As the opposition gathers in Miami, these are the words that critics of NAFTA
and FTAA will put before the world.
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