They say that those who do not learn their history are doomed to repeat it. This certainly seems to be the case with our political leaders who, after two decades of North American Free Trade Agreement (NAFTA), are negotiating more “free trade” agreements. This despite the fact that the lessons to be learned from NAFTA are clear and should steer us away from “free trade”.
Tag Archives: NAFTA
The United States is at a crossroads where serious consideration must be given to what economic road we will go down. Will our leaders drag us down this business-as-usual route, replete with job losses, outsourcing, and sky-rocketing trade deficits? Or will we finally get a change of pace and begin to explore solutions for economic recovery and trade reform?
U.S. restaurants are planning boosting prices 2 percent due to the pressures of rising beef, cheese, and pork prices. However this is causing major declines in sales due to people being price sensitive and not being able to afford higher meal prices. “If you encourage and kind of seed the notion that you can come in for a couple bucks and get some food, and then you can’t do that anymore, there’s bound to be a reaction,” said John Gordon, an adviser to restaurants and franchisees.
As the Trans Pacific Partnership (TPP) and Trade Promotion Authority (TPA) have finally slipped out of the shadows, more and more terrifying information is coming out. If you haven’t heard of the Investor State Dispute Settlement clause (ISDS), it’s because no one is talking about it. It essentially trumps any and all federal, state, and local U.S. regulations that are deemed “a trade barrier” and strips us from the sovereign right to govern our own affairs.
When NAFTA (North American Free Trade Agreement) was passed, many people feared the worst. The results have indeed been disastrous for the U.S. Economy:
- The trade deficit with Mexico has exploded
- Mexican wages remain nearly as low as they were prior to NAFTA and are still a small fraction of our average wages
- Wealth and power has not filtered to the people. Most of Mexico is still controlled by less than 100 corporations in Mexico
- Many of our other trading partners have relocated facilities to Mexico to circumvent other trade agreements with the U.S.
- American manufacturing has lost 1 million jobs in the past 20 years as U.S. companies have also moved to Mexico for lower wages and lax regulation