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Still Racing to the Bottom

Published 01/01/09 Craig Harrington - Print Article
E-mail - editor@economyincisis.org

January 1, 2009 marks the 15th anniversary of the implementation of the North American Free Trade Agreement. With 15 years of hard evidence before us, we are beyond any point where denial can continue to be pursued. NAFTA has been a failure to the vast majority of Americans (as well as Canadians and Mexicans) and must be either renegotiated or altogether abolished.

Unfortunately, the one man who seemed to be perfectly positioned to take up the charge has fallen considerably far from his anti-NAFTA campaign rhetoric. That man is President-elect Barack Obama. His cabinet choices have been strewn with proponents of “free trade” (not fair trade) and his choice for the United States Trade Representative (USTR) staked his political career on the continuation of NAFTA. Ron Kirk was not Obama’s first choice as USTR, but his very selection implicates that any changes to NAFTA are highly unlikely.

Even on the campaign trail Obama’s convictions against NAFTA began to wane, calling into question his dedication to protecting American jobs. Any remaining doubt that Obama would balk on renegotiation was removed with his choice of Kirk as USTR. Ron Kirk, an attorney and former mayor of Dallas, Texas, was able to climb the political hierarchy through his support of NAFTA, the North American Union and other “free trade” deals. These deals were largely beneficial to Dallas – which is a key NAFTA trading post – but have effectively undermined U.S. manufacturing nationwide.

Ohio Senator Sherrod Brown released a memo just weeks ago noting the 15th anniversary of the signing of NAFTA by President Bill Clinton. In his press release he mentions the need for renegotiation, citing the obvious fact that NAFTA has failed to deliver on its promises to the vast majority of the people in all three affiliated nations. Opposition to NAFTA is nearly universal outside of the small elite group in each country that stand to benefit from this and other “free trade” agreements. Unfortunately for citizens of the United States, Ron Kirk happens to belong to that exclusive club. His political career was launched by the booming merchant business brought to Dallas by NAFTA, regardless of the devastation wrought on U.S. manufacturing centers, immigration control and many service industries.

NAFTA not only cut down the protections given to U.S. companies but it also set the precedent for the massive outsourcing we witness today. First our companies shipped jobs to cheaper markets in Mexico, now many of those jobs have been sent to less expensive targets in East Asia, South America and elsewhere. The destabilizing effect on all involved parties cannot be ignored any longer, and the deal must be rewritten with more guidelines in mind and a fluid amending process. If that cannot be done, then the United States must simply remove itself from this “free trade” deal and pursue a more sensible and sustainable course in the future. We have had plenty of time to collect and observe the evidence, now is the time to act on what we know.

Front Page Photo – carlosedj - Flickr © Some rights reserved and Jasoon - Flickr © Some rights reserved

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