NAFTA Is 20 Years Old – Here Are 20 Facts That Show How It Is Destroying The Economy

Michael Snyder

Back in the early 1990s, the North American Free Trade Agreement was one of the hottest political issues in the country.  When he was running for president in 1992, Bill Clinton promised that NAFTA would result in an increase in the number of high quality jobs for Americans and that it would reduce illegal immigration.

Ross Perot warned that just the opposite would happen.  He warned that if NAFTA was implemented there would be a "giant sucking sound" as thousands of businesses and millions of jobs left this country. Most Americans chose to believe Bill Clinton. Well, it is 20 years later and it turns out that Perot was right and Clinton was dead wrong. But now history is repeating itself, and most Americans don't even realize that it is happening.

As you will read about at the end of this article, Barack Obama has been negotiating a secret trade treaty that is being called "NAFTA on steroids", and if Congress adopts it we could lose millions more good paying jobs.

Using the Trans-Pacific Partnership to Expand NAFTA and Strip National Sovereignty

Dana Gabriel, Contributor
Activist Post

Both Canada and Mexico have been invited to join the U.S., along with other countries already engaged in negotiations which will deepen trade and economic ties within the Asia-Pacific region. Such a deal would surpass NAFTA in size and scope.

The U.S. led talks which have been criticized for their secretive nature, could be used to update aspects of existing trade pacts among member nations. This would provide the perfect opportunity for a backdoor renegotiation of NAFTA without officially having to open it back up.

After expressing interest in joining trade talks back in November 2011, NAFTA partners have been invited to join the U.S. backed Trans-Pacific Partnership (TPP) which also includes Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. U.S. Trade Representative Ron Kirk welcomed both Mexico and Canada into the TPP fold.

The Push for a Single Unified North American Regulatory Regime

Dana Gabriel
Be Your Own Leader

It was surprising that bilateral relations with the U.S. did not play a more prominent role during the recent Canadian election considering that both countries are pursuing a trade and security agreement. In fact, the issue did not really surface until the dying days of the campaign. After winning a much coveted majority government, Stephen Harper’s Conservatives are moving ahead quickly with perimeter security and regulatory harmonization negotiations. NAFTA and the defunct Security and Prosperity Partnership (SPP) both addressed issues such as regulatory cooperation. The push for a single unified North American business-friendly regulatory regime continues on different fronts. 

In the final week of the Canadian election campaign, consumer advocate and four-time candidate for President of the United States, Ralph Nader warned about Canada-U.S. deep integration. In an open letter to Prime Minister Stephen Harper, he raised concerns over the lack of transparency regarding talks between the two countries on a trade and border security deal. Nader cautioned that a, “North American Security Perimeter Agreement will wrap many Canadian concerns — your Arctic, water, energy, anti-monopoly and foreign investment reviews — in a bi-national security blanket.” He added, “The corporatist lobbies and what President Eisenhower warned Americans about in his farewell address 50 years ago — ‘the military-industrial complex’ — will favour this lucrative and anti-democratic initiative.” Nader also explained in his letter to Harper, that, “Canada’s prudent bank regulation prevented a Wall Street style collapse of your economy.” North American deep integration is a corporate-led agenda designed to foster privatization and deregulation. 

WikiLeaks Exposes North American Integration Plot

Wiki Commons

Alex Newman
The New American

As early as January of 2005, high-ranking officials were discussing the best way to sell the idea of North American “integration” to the public and policymakers while getting around national constitutions. The prospect of creating a monetary union to replace national currencies was a hot topic as well. Some details of the schemes were exposed in a secret 2005 U.S. embassy cable from Ottawa signed by then-Ambassador Paul Cellucci. The document was released by WikiLeaks on April 28. But so far, it has barely attracted any attention in the United States, Canada, or Mexico beyond a few mentions in some liberty-minded Internet forums.

Numerous topics are discussed in the leaked document — borders, currency, labor, regulation, and more. How to push the integration agenda features particularly prominently.

Under the subject line “Placing a new North American Initiative in its economic policy context,” American diplomatic personnel in Canada said they believed an “incremental” path toward North American integration would probably gain the most support from policymakers. Apparently Canadian economists agreed.

The cable also touts the supposed benefits of merging the three countries and even mentioned what elements to “stress” in future “efforts to promote further integration.” It lists what it claims is a summary of the “consensus” among Canadian economists about the issues, too.

Bad U.S.-Latin American Policy Fuels Unauthorized Immigration

© AFP/File Hector Mata

By Catherine A. Traywick
Media Consortium

Too often, the immigration debate in this country ignores the role U.S. foreign policy plays in fueling unauthorized immigration. But as the Obama administration continues to stall on immigration reform in the United States—all the while moving forward with two contentious trade agreements with Colombia and Panama—the connections between the two are worth examining.

CAFTA impoverished Salvadoran famers
During President Obama’s tour of Latin America last month, ongoing mass protests underscored the U.S. government’s own hand in stimulating unauthorized immigration to its borders. Reporting on the president’s visit to El Salvador, for example, Juan Gonzales of Democracy Now! notes that hundreds of Salvadorans gathered to demand the renegotiation of the Central American Free Trade Agreement (CAFTA), which devastated the country’s agricultural sector, impoverishing and displacing farmers. Considered alongside the country’s tragic history of U.S.-backed military repression (which Democracy Now! explores in greater detail), it should be no surprise that El Salvador is the second largest source of undocumented immigrants to the United States.

NAFTA displaces one million Mexican farmers
The first, of course, is Mexico—which has its own sordid history of U.S. involvement. As Michelle Chen at Colorlines.com explains, “the deregulation of agriculture under [the North American Free Trade Agreement in the 1990s] coincided with the devastation of Mexico’s farm sector, displacing some one million farmers and driving many northward across the border in search of work.”

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More Free Trade Agreements? When NAFTA Failed?

Ian Fletcher

Activist Post

With the Republicans and the Obama administration attempting to rush headlong into a new trade agreements with Korea, and possibly also with Panama and Colombia, it is incumbent on Americans to apply a bit of empiricism.  How have our past trade agreements worked out?  Above all, how’s the grand-daddy of them all, NAFTA, doing?

Unfortunately, NAFTA is a veritable case study in failure. 

This is all the more damning because this treaty was created, and is administered, by the very Washington elite that is loudest in proclaiming free trade’s virtues. So there is no room for excuses about incompetent implementation, the standard alibi for free trade’s failures in the developing world.
So if free trade was going to work anywhere, it should have been here. 

Instead, what happened? NAFTA was sold as a policy that would reduce America’s trade deficit. But our trade balance actually worsened against both Canada and Mexico. 

Expanding U.S.-Mexico Economic and Security Cooperation

image source: Be Your Own Leader

Dana Gabriel
Be Your Own Leader

There were growing concerns over drug violence prior to the recent U.S.-Mexico summit, along with other issues which have been a source of friction between the two countries. Despite any perceived tension, both leaders showcased their bilateral partnership and vowed to enhance collaboration. They focused on immigration, along with economic issues and took steps to end the long-standing dispute over cross-border trucking. The leaders also agreed to further deepen their cooperation in combating drug cartels.

During a Joint Press Conference following their bilateral meeting, President Barack Obama praised Mexico as a valued partner and thanked President Felipe Calderon for, “being here today to deepen the cooperation that is so essential to the prosperity and security of both of our countries.” He noted, “we’re moving ahead with plans for a 21st century border so people and goods can cross securely and efficiently. We’re working to coordinate and streamline regulations and get rid of unnecessary trade barriers to make it easier to do business together.” Obama also announced, “we finally have found a clear path to resolving the dispute over trucking between our two countries.” He added, “I look forward to consulting with Congress and moving forward in a way that strengthens the safety of cross-border trucking, lifts tariffs on billions of dollars of U.S. goods, (and) expands our exports to Mexico.” Under NAFTA, the border was to be opened to Mexican trucks, but safety concerns blocked the provision’s implementation. In the coming months, negotiators are expected to table an agreement that will include a phased-in program to settle the issue.