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Immigration Flood Unleashed by NAFTA

This is why you cannot fix immigration without fixing trade? Do you think Clinton & Gore with bipartisan lawmakers sold out American workers with NAFTA?

CD-The recent ferment on immigration policy has been so narrow that it has excluded the real issue: family-sustaining wages for workers both north and south of the border. The role of the North American Free Trade Agreement and misnamed ‘free trade’ has been scarcely mentioned in the increasingly bitter debate over the fate of America’s 11 to 12 million illegal aliens.

NAFTA was sold to the American public as the magic formula that would improve the American economy at the same time it would raise up the impoverished Mexican economy. The time has come to look at the failures of this type of trade agreement before we engage in more and lower the economic prospects of all workers affected.

While there has been some media coverage of NAFTA’s ruinous impact on US industrial communities, there has been even less media attention paid to its catastrophic effects in Mexico:

NAFTA, by permitting heavily-subsidized US corn and other agri-business products to compete with small Mexican farmers, has driven the Mexican farmer off the land due to low-priced imports of US corn and other agricultural products. Some 2 million Mexicans have been forced out of agriculture, and many of those that remain are living in desperate poverty. These people are among those that cross the border to feed their families. (Meanwhile, corn-based tortilla prices climbed by 50%. No wonder many so Mexican peasants have called NAFTA their ‘death warrant.’

NAFTA’s service-sector rules allowed big firms like Wal-Mart to enter the Mexican market and, selling low-priced goods made by ultra-cheap labor in China, to displace locally-based shoe, toy, and candy firms. An estimated 28,000 small and medium-sized Mexican businesses have been eliminated.

Wages along the Mexican border have actually been driven down by about 25% since NAFTA, reported a Carnegie Endowment study. An over-supply of workers, combined with the crushing of union organizing drives as government policy, has resulted in sweatshop pay running sweatshops along the border where wages typically run 60 cents to $1 an hour.

So rather than improving living standards, Mexican wages have actually fallen since NAFTA. The initial growth in the number of jobs has leveled off, with China’s even more repressive labor system luring US firms to locate there instead.

READ MORE

38 Responses to “Immigration Flood Unleashed by NAFTA”

  1. Jan Paul Says:

    And it may get worse here and there.

  2. JohnKonop Says:

    Jan

    You are right!!

  3. Mike Says:

    Heres an article about NASCO attempting to persuade Sen. Coleman from Minn.. The best part is this:
    “NASCO has promoted the fact mega-container ships from the Far East and China can unload containers cost-effectively using non-union labor in these Mexican ports rather than relying upon longshoremen in West Coast ports such as Los Angeles and Long Beach.

    Mexican trucks and Mexican trains would transport the containers to the I-35 border crossing at Laredo, Texas, again reducing transportation costs involved in bringing Chinese containers into the heart of the United States by U.S. union railroad workers or by the more expensive U.S. truckers.”

    READ

  4. JohnKonop Says:

    This was on a blog at Townhall!

    How the Democrats helped kill the Teamsters

    TH-It looks as though Mexican long-haul trucks will soon be rolling on U.S. Highways. Back when I was in Law School, I began working on an LL.M (Master of Laws) in International Business & Trade. I took a course on NAFTA, and wrote a paper on the dangers of allowing Mexican long haul trucks to operate on U.S. Highways. As a former UPS Teamster, this was a topic close to my heart. The Teamsters Union agreed with my position, since most U.S. companies would prefer to use cheaper transportation companies from Mexico as opposed to paying Teamster wages.

    Looks like U.S. businesses will get their wish.

    The Bush administration is anticipating a pilot test to allow the first Mexican long haul trucking company to roll on U.S. highways by the end of April, 2007. This is the beginning of the end for the Teamsters, and for any other transportation union with members who drive the big rigs.

    And just how can this be? NAFTA. And who was it that pushed NAFTA in spite of the warnings from labor unions like the Teamsters? Democratic President Bill Clinton. And guess who was also instrumental in getting NAFTA passed into law? That’s right, the Champions of the Working Middle Class - The Democrats.

    102 Democrats voted ‘YES’ on NAFTA. Now we are seeing the fruits of their labor…the slow and steady erosion of organized labor in the United States.

    So if you’re a Teamster and find yourself out of a job, be sure to thank a Democrat. After all, they’re looking out for labor, right?

    Wait…I forgot…it was the Teamsters who endorsed Republican Pete Roskam over Democrat Tammy Duckworth. Maybe the Teamsters have already caught on to the Democrats’ scam. Funny how things change…there are actually Republicans who are siding with organized labor against these ridiculous free trade agreements being pushed by people like the folks at the Democratic Leadership Council. It was the DLC who recommended that the Congress grant President Bush trade promotion authority, or “fast-track” trade authority to conclude the Doha Round.

    Who is a big DLC’er? Why, Hillary Rodham Clinton of course.

    READ MORE

  5. preussow Says:

    John, what I don’t get is the following.

    1. Is US corn selling cheaper in Mexico?
    2. If answer two one is yes, why are prices higher?
    3. Were they not coming over here before the treaty, because most of the country is poor?

    Mexico has vast natural resources that only a few control and own, the rest of the population is poor.

    At least the drug trade in Mexico is not effected by this trade policy.

    The US really needs to address it’s business with China. And maybe give some thought to why China feels like it really needs to beef up it’s army and weapon systems.

  6. preussow Says:

    Mike, why can’t China ship it directly to here? We have lots of cheap illegal labor.

    Trains, planes, and automobiles (or trucks) means we can not only get the goods here quicker and cheaper, but probably more cheaper labor here quicker.

    I think we should go back to the plantation system where we can house the cheaper labor on our own land. I say this after having months long home improvements done on my house by a contractor from Iran who pretty much uses Mexican labor. I probably could save a lot of money if I just house them and feed them. The government will take care of the rest of their social benefit needs.

    God bless America and it’s open heart and open wallet.

  7. JohnKonop Says:

    The U.S. corn prices forced small farmers out of business in Mexico and they flooded here. The same happen to our small farmers who were driven out of business by a race to drive prices down which corporate farmers won! And then prices started going back up!.

    That is why Adam Smith was so against major consolidations ie monopoly. What happens is price drop short term and when they wipe out competition prices go up and service goes down! Look at oil, electric, cable……

    Anti- trust laws started to fall a part during Clinton years and got worse with Bush!

  8. Jan Paul Says:

    # preussow Says:
    June 3rd, 2007 at 4:32 pm

    John, what I don’t get is the following.

    1. Is US corn selling cheaper in Mexico?
    2. If answer two one is yes, why are prices higher?
    =====================

    I think it has something to do with corn being a commodity that is bid on both for current delivery and future delivery. Thus, the corn that is imported by another nation (Mexico in this case) has to pay the bid price or they will sell it to somebody else that will pay that price (ethanol producers for one).

    quote:
    Corn prices in Mexico climbed sharply over the past year following widespread speculation in markets for both locally produced and imported grains because of uncertainty over how much U.S. corn would be shipped to Mexico.

    Mexican purchasing prices for white corn, which is used in the key staple tortillas, have risen about 52% since December and more than 100% from the year-ago level, leading authorities to release new import quotas two months ahead of schedule.

    Prices for both white and yellow corn have come under further pressure from the supply change that has seen U.S. corn diverted from its original export market to newly founded ethanol plants.
    http://ohcorn.ncgapremium.com/index.aspx?ascxID=dowJones&category=1&djid=16665
    ========================

    We are seeing farmers plant more corn and less soybeans and wheat which if supply of corn to demand lowers the price, the lower supply of wheat and soybeans may cause their prices to rise even more for U.S. consumers and nations that import from us.

    Ethanol is causing some huge food chain supply problems for food companies here and in other places apparently.

  9. preussow Says:

    John, you answered the cheap question and probably the “why does it cost more for them now” question.

    Looks like some kind of contract is needed on prices.

    Can we do the same thing to Mexico with drugs? Surely we can subsidized them and drive their drug dealers out of business.

  10. JohnKonop Says:

    The small farmers left Mexico when they went broke and came here! So now it is game between big boys! Because the big guys got the land on the cheap when farmers went broke on both sides!

    Our small farmers did better in many cases due to selling land for homes with cheap tax payer money!

    And that bill may be coming in soon!

  11. caroline Says:

    You’re now quoting what your own party calls “communists”?

  12. JohnKonop Says:

    caroline

    The spin is not working. Try looking at the facts and tell me how they are wrong!

  13. JohnKonop Says:

    caroline

    DEAL WITH FACTS

    FROM NYTIMES

    Nafta Should Have Stopped Illegal Immigration, Right?

    THE North American Free Trade Agreement, enacted by Congress 14 years ago, held out an alluring promise: the agreement would reduce illegal immigration from Mexico. Mexicans, the argument went, would enjoy the prosperity and employment that the trade agreement would undoubtedly generate — and not feel the need to cross the border into the United States.

    READ

    Economist’s View

    NAFTA and Illegal Immigration
    According to this article from the Los Angeles Times, much of the illegal immigration from Mexico in recent years may be explained by the joint effects of NAFTA, U.S. farm subsidies, and abundant cheap labor in other parts of the world:

    READ

  14. Bill Says:

    Mike
    Re: #3. And American truckers will have to compete on private Spanish owned toll roads with Mexican truck drivers. And the Mexican truck drivers are lining up to get A CHIP UNDER THEIR SKIN!!! (You have to monitor people doncha know, terrorism and all) Will this be a requirement?

  15. Jan Paul Says:

    Quote: (From a Canadian source)
    With the proper Radio Frequency Identification Device (RFID) installed, a Mexican truck can load goods from China, or any other country, in southern Mexico, and drive directly to any destination in the United States, without even stopping at the border. To many people, this appears to be an open invitation for friend or foe to bring whatever they wish into the American heartland.

    Most Americans are still unaware of the evolving North American Union. The Mexican truck ruling is only one of the many ways the NAU is eroding national sovereignty and transforming America’s system of government. But people are slowly learning about this disaster. There is a resolution now in Congress to halt the effort, and at least 12 state legislatures have launched resolutions calling on Congress to stop it.
    http://www.canadafreepress.com/2007/lamb042307.htm
    ===================

    Why are 12 states launching resolutions if there is nothing to this? Why are all the sites related to the “community” stating they are NAFTA based in their goals and getting government funding?

    Why are universities now teaching North American Community classes about the advantages of this “community” we are moving to?

    Here is the Arizona State University site on it.
    http://www.asu.edu/clas/nacts/bna/

    Read some of the things for “teaching modules” and you find they are even talking about the AMERO or common currency. Maybe that is why they continue to let our dollar decline. They want a crisis so we will willingly go to a common currency. Hope that isn’t so.

  16. caroline Says:

    John,
    I’m not spinning. I’m stating a fact. You party has called the people who run common dreams “communists”. That’s my point. I don’t know why you don’t ever answer questions.

  17. JohnKonop Says:

    What question?

    BTW do you understand the relationship between NAFTA and immigration?

  18. caroline Says:

    John,
    NAFTA=trade
    Immigration=immigration.

    People have been coming across the border way before NAFTA so blaming NAFTA for immigration is not logical. The immigration problem is simple: There is and was no consequences for coming across the border.

    PS: Bill Clinton had some good immigration legislation put together by Barbara Jordan that Bob Dole and Newt Gingrich killed. That’s why I really kind of laugh when the GOP talks about immigration-they had a much better bill and they shot themselves in the foot because the “hated bill clinton” put forth the bill.

  19. JohnKonop Says:

    So Al Gore was lying when he said NAFTA was to help with illegal immigration?

  20. caroline Says:

    http://transcripts.cnn.com/TRANSCRIPTS/0606/13/lkl.01.html

    Larry King asked him about that and he said that he didn’t anticipate the jobs leaving Mexico and going to China. So quit blaming Gore for everything. Why aren’t you kicking Perots’ butt for being such a sorry defender?

  21. JohnKonop Says:

    caroline

    Gore lied Working class Americans got the shaft!

    NAFTA: Free Trade Bought and Oversold

    By Paul Blustein

    Washington Post Staff Writer
    Monday, September 30, 1996; Page A01

    It was one of Vice President Gore’s most compelling moments in his 1993 televised debate with Ross Perot over the North American Free Trade Agreement.

    Arguing that free trade with Mexico would increase U.S. jobs rather than reduce them, Gore told the story of Norm Cohen, a North Carolina businessman, who years ago had built a textile factory in Mexico to circumvent Mexico’s barriers against imported products.

    “If NAFTA passes,” Gore declared, “Norm Cohen has plans right now to shut that factory in Mexico down and move 150 jobs back to Charlotte, North Carolina.”

    So where’s the factory now? Still in Mexico, it turns out, though NAFTA has been in force since January 1994. And according to Cohen, his company has added only about half a dozen U.S. workers to take advantage of enhanced opportunities in Mexico. Cohen says he remembers telling Gore that his company would benefit from NAFTA, but as for plans to move the factory, “That may have been not quite clear, the way it came across,” he said.

    READ MORE

  22. caroline Says:

    John,
    We’ve been over and over that. Using your logic, if Gore lied then so did Perot. Why aren’t you attacking Perot for lying too then?

  23. Mike Says:

    These Democrats sure are misinformed people. Oh yeah thats right all they have to do is apologize and all is better.

  24. JohnKonop Says:

    The Washington post called Gore a lier!

  25. JohnKonop Says:

    BTW Perot did not make up a company that was building factories here like Gore did!

  26. caroline Says:

    John,
    The same article called Perot a liar too. They even made him sound like a loon. When are you going to hold Perot responsible?

  27. caroline Says:

    Mike,
    As opposed to Bush who never apologizes? Who continues to pile lie upon lie? I guess that’s better-or it’s certainly the conservative way-never take responsibility and blame someone else for your faults.

  28. JohnKonop Says:

    caroline

    You keep changing the topic. Did Al Gore lie or not lie in the key point of the debate to win?

    Did not Al Gore’s lie hurt working class Americans and cause a flood of illegal immigrants?

  29. Mike Says:

    Caroline Get over it and listen.Yes Bush is a hazard to America but we need to find out who out there is going to be worse or another equivalent to him.Who out there will run with the NAU. You bash the Neocons constantly and yet the far Left is as bad as they are.Yes Bush lied but so has Hillary and Gore. Global warming man made? Neptune and Mars are going through the same warming we are on this planet. So tell me is Gore lying for his own capital gain or just confused to the facts? After he takes the public for millions will you be okay with just a sorry?

  30. David O'Rear Says:

    Mr Konop,

    Maybe you were right; here’s someone who says there is evidence of slave labor abroad:

    http://www.iraqslogger.com/index.php/post/3014/Forced_Labor_Building_Baghdad_Embassy

  31. caroline Says:

    Mike,
    Get off the conspiracy sites. Read some science when it comes to global warning then get back to me.

    John,
    I answered you question. I said using your own standard both Gore and Perot lied. Are you going to take Perot to task for lying?

  32. Mike Says:

    Caroline since when is the NASA web site a conspiracy site. LOL

  33. JohnKonop Says:

    David

    Since Obama and Hillary both voted for the Oman trade deal knowing they use slave and child labor. BTW Jordan is about the same.

    Trading on terror to profit a few

    Please read this article and ask yourself if you think the unfair trade deals are helping workers and small business. This is the behavior that both Parties have turned a blind eye to while illegal immigrants’ flood our Country and middle class Americans are left competing with overseas slaves or illegal immigrants. Please tell me why you would vote for any candidate from either Party that supports trade deals like this based on exploiting people for gains of corporate giants? Instead of looking for an apology why would not anyone first speak out about trade deals like this that promote slave labor?

    LATIMES-The factories have engaged in the worst kinds of human rights and worker abuses, including 48-hour shifts without sleep, violent physical and psychological abuse and workers brought from foreign countries with their passports held by employers, often receiving no pay for their work. Wal-Mart also is a member of the U.S.-Middle East Free Trade Coalition.

    American companies seeking cheap, easy labor are not likely to meet much opposition from the Omani government. The State Department has reported Oman for human trafficking and forced labor abuses. Eighty-five percent of the private-sector workforce in Oman is made up of foreign “guest workers” who are granted limited rights. And the U.S.-Oman Free Trade Agreement does not even include the meager labor standards of the Jordan agreement.

    At a moment when people across the Middle East reveal in poll after poll a deep distrust of the United States, and particularly of its actions in the region, it seems ill-advised to advance trade agreements that provide clear rewards to a handful of U.S. corporations but few discernible benefits to either the people of the Middle East or the people of the United States.

    READ MORE

  34. Bill Says:

    NAFTA Superhighway = SHAFTA SUPERS-ITWAY!!!!!!!

  35. caroline Says:

    Mike,
    NASA’s website doesn’t have an official policy on global warming. LOL. They even link to An Incovenient Truth in their Global Warming section:
    http://globalchange.nasa.gov/Resources/pointers/glob_warm.html

    Like I said, get off the conpsiracy sites and actually read some science.

  36. Mike Says:

    Caroline It Was NASA that reported the findings because they are honest about their findings.Like John who digs up facts about both sides.

  37. David O'Rear Says:

    Mr Konop,

    Nice Spin! A real classic!

    Let me know when you want to get back to the subject . . .

  38. David O'Rear Says:

    Did anyone else notice that the so-called ‘evidence’ that Vice President Al Gore lied about jobs and NAFTA was in fact no evidence at all?

    To quote, “If NAFTA passes,” Gore declared, “Norm Cohen has plans right now to shut that factory in Mexico down and move 150 jobs back to Charlotte, North Carolina.”

    —Norm Cohen has plans to . . .
    —Not, Al Gore will . . .

    So, finally after all these debates we can finally declare the myth that Al Gore lied about jobs related to NAFTA to be BUSTED !

    .