Click amount to donate direct to CounterPunch
  • $25
  • $50
  • $100
  • $500
  • $other
  • use PayPal
Keep CounterPunch ad free. Support our annual fund drive today!

There’s No Place Like CounterPunch

There's no place like CounterPunch, it's just that simple. And as the radical space within the "alternative media"(whatever that means) landscape continues to shrink, sanctuaries such as CounterPunch become all the more crucial for our political, intellectual, and moral survival. Add to that the fact that CounterPunch won't inundate you with ads and corporate propaganda. So it should be clear why CounterPunch needs your support: so it can keep doing what it's been doing for nearly 25 years. As CP Editor, Jeffrey St. Clair, succinctly explained, "We lure you in, and then punch you in the kidneys." Pleasant and true though that may be, the hard-working CP staff is more than just a few grunts greasing the gears of the status quo.

So come on, be a pal, make a tax deductible donation to CounterPunch today to support our annual fund drive, if you have already donated we thank you! If you haven't, do it because you want to. Do it because you know what CounterPunch is worth. Do it because CounterPunch needs you. Every dollar is tax-deductible. (PayPal accepted)

Thank you,
Eric Draitser

CAFTA will Further Depress US Wages


The proposed Central America Free Trade Agreement is generating a political battle over foreign commercial policy that we haven’t seen since the North American Free Trade Agreement was passed more than a decade ago.

As with NAFTA, there is widespread misunderstanding of the economic issues involved. First there is the label ”free trade,” which is not an actual description of these accords but a marketing slogan, like ”Lose the carbs . . . not the taste” or McDonald’s “I’m loving it.”

In reality, CAFTA will increase some barriers to trade while lowering others. One of the barriers that it increases is on patented pharmaceutical drugs. This is the most costly form of protectionism in the world today.

The benefits from free trade in these goods are much appreciated by the millions of Americans who cross the Canadian or Mexican border to get their prescription drugs. But CAFTA will make it more difficult for countries like Guatemala to get access to affordable medicines — even for life-saving drugs like those needed to treat people with HIV/AIDS.

In the United States, labor unions and those who care about working people have made much of the loss of jobs, particularly in manufacturing, that NAFTA and the World Trade Organization have caused and that CAFTA would presumably continue. But the much-bigger effect for most Americans is on wages.

During the last 30 years the typical (median) wage in the United States has hardly grown — only about 9 percent. Productivity — output per employee — has grown by 82 percent over the period.

Normally we would expect wages and salaries to grow with productivity. These trade agreements have helped keep wages from growing here by increasing competition with workers making 60 cents an hour and by making it easier for employers to threaten to move when workers demand their share of rising productivity.

The result is that our society is becoming increasingly divided into the ”two Americas” that Sen. John Edwards made his campaign theme last year in the Democratic presidential primaries.

The Bush administration has appealed to farmers in the United States, saying that CAFTA will help them by opening foreign markets to their products. But this argument makes no economic sense: U.S. farmers can sell all the corn they want at the world market price. The only way that opening foreign markets can help them is if it raises the world price. Markets in CAFTA countries — five Central American countries plus the Dominican Republic — are too small to affect world prices.

In Washington policy circles, CAFTA is being sold as a boost to economic development for our neighbors to the south. But we have now had 25 years of experience with this kind of economic integration, and the results are in: Income per person in Latin America has grown by a meager 12 percent since 1980, as compared to 80 percent the prior 20 years (1960-79). By any economic measure, these reforms — including NAFTA — have failed.

CAFTA countries are being promised access to a growing U.S. import market, but this is about to be reversed. Our trade deficit is now so big that it cannot be sustained even at its present level.

Over the next decade, the dollar will fall further and our trade deficit will shrink. Measured in non-dollar currencies, the value of U.S. imports is expected to decline over the next decade. This means that CAFTA countries are making costly concessions for a prize that most likely won’t be there.

In sum, the economic arguments for CAFTA just don’t hold water. No wonder its proponents rely on slogans, repetition and millions of dollars of lobbying money to make their case.

MARK WEISBROT is co-director of the Center for Economic and Policy Research, in Washington, D.C. He is the author, with Dean Baker, of Social Security: the Phony Crisis. He can be reached at:












Mark Weisbrot is co-director of the Center for Economic and Policy Research, in Washington, D.C. and president of Just Foreign Policy. He is also the author of  Failed: What the “Experts” Got Wrong About the Global Economy (Oxford University Press, 2015).

More articles by:

2016 Fund Drive
Smart. Fierce. Uncompromised. Support CounterPunch Now!

  • cp-store
  • donate paypal

CounterPunch Magazine


October 25, 2016
David Swanson
Halloween Is Coming, Vladimir Putin Isn’t
Hiroyuki Hamada
Fear Laundering: an Elaborate Psychological Diversion and Bid for Power
Priti Gulati Cox
President Obama: Before the Empire Falls, Free Leonard Peltier and Mumia Abu-Jamal
Kathy Deacon
Plus ça Change: Regime Change 1917-1920
Robin Goodman
Appetite for Destruction: America’s War Against Itself
Richard Moser
On Power, Privilege, and Passage: a Letter to My Nephew
Rev. William Alberts
The Epicenter of the Moral Universe is Our Common Humanity, Not Religion
Dan Bacher
Inspector General says Reclamation Wasted $32.2 Million on Klamath irrigators
David Mattson
A Recipe for Killing: the “Trust Us” Argument of State Grizzly Bear Managers
Derek Royden
The Tragedy in Yemen
Ralph Nader
Breaking Through Power: It’s Easier Than We Think
Norman Pollack
Centrist Fascism: Lurching Forward
Guillermo R. Gil
Cell to Cell Communication: On How to Become Governor of Puerto Rico
Mateo Pimentel
You, Me, and the Trolley Make Three
Cathy Breen
“Today Is One of the Heaviest Days of My Life”
October 24, 2016
John Steppling
The Unwoke: Sleepwalking into the Nightmare
Oscar Ortega
Clinton’s Troubling Silence on the Dakota Access Pipeline
Patrick Cockburn
Aleppo vs. Mosul: Media Biases
John Grant
Humanizing Our Militarized Border
Franklin Lamb
US-led Sanctions Targeting Syria Risk Adjudication as War Crimes
Paul Bentley
There Must Be Some Way Out of Here: the Silence of Dylan
Norman Pollack
Militarism: The Elephant in the Room
Patrick Bosold
Dakota Access Oil Pipeline: Invite CEO to Lunch, Go to Jail
Paul Craig Roberts
Was Russia’s Hesitation in Syria a Strategic Mistake?
David Swanson
Of All the Opinions I’ve Heard on Syria
Weekend Edition
October 21, 2016
Friday - Sunday
John Wight
Hillary Clinton and the Brutal Murder of Gaddafi
Diana Johnstone
Hillary Clinton’s Strategic Ambition in a Nutshell
Jeffrey St. Clair
Roaming Charges: Trump’s Naked and Hillary’s Dead
John W. Whitehead
American Psycho: Sex, Lies and Politics Add Up to a Terrifying Election Season
Stephen Cooper
Hell on Earth in Alabama: Inside Holman Prison
Patrick Cockburn
13 Years of War: Mosul’s Frightening and Uncertain Future
Rob Urie
Name the Dangerous Candidate
Pepe Escobar
The Aleppo / Mosul Riddle
David Rosen
The War on Drugs is a Racket
Sami Siegelbaum
Once More, the Value of the Humanities
Cathy Breen
“Today Is One of the Heaviest Days of My Life”
Neve Gordon
Israel’s Boycott Hypocrisy
Mark Hand
Of Pipelines and Protest Pens: When the Press Loses Its Shield
Victor Wallis
On the Stealing of U.S. Elections
Michael Hudson
The Return of the Repressed Critique of Rentiers: Veblen in the 21st century Rentier Capitalism
Brian Cloughley
Drumbeats of Anti-Russia Confrontation From Washington to London
Howard Lisnoff
Still Licking Our Wounds and Hoping for Change
Brian Gruber
Iraq: There Is No State
Peter Lee
Trump: We Wish the Problem Was Fascism
Stanley L. Cohen
Equality and Justice for All, It Seems, But Palestinians