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Today's
Stories
August
9, 2007
Paul
Craig Roberts
In the Hole to China
William
S. Lind
One Step Forward, Two Back
August
8, 2007
Andy
Worthington
Backing Up Lt. Col. Abraham on
Gitmo Abuse
Jeff
Halper
The Catch in Israel's "Generous
Offers" at Jericho
Greg
Moses
No Light in August for Texas Refugees:
Judge Orders Baby Sent to Palestine
Nurit
Peled-Elhanan
The Murder of Abir Aramin, 9 Years
Old
Sukant
Chandan
British Prisons as Islamic Universities
Robert
Fisk
A Lebanese Surprise
George
H. Strauss
The Military Society
D.K.
Wilson
Bonds, the Haters and 756: Why Bob
Costas Can't be Trusted
Bill
Day
Leonardo DiCaprio's Baggage: the Perils
of Celebrity Environmentalism
Tim
Campbell
Monkey See, Monkey Do Politics
Website
of the Day
Periodic
Table of Visualization Methods
August
7, 2007
Patrick
Cockburn
Why the Surge Has Failed
Andy
Worthington
Why Do We Need the Democrats?:
They Have Failed to Restrain Bush on Gitmo, Iraq and Domestic Spying
Kathy
Kelly
The Little Girl of Hiroshima
Stan
Cox
The Antiwar Majority: Look Quickly, You
Might Miss It
Sonja
Karkar
Israel's Settlement Project
Sen.
Russ Feingold
A License to Wiretap--Anyone
Alan
Farago
Dancing in the Light of Florida
Norman
Solomon
Let Us Now Praise an Infamous Woman
Binoy
Kampmark
Giving Good Face: What Jeremy Bentham
and Facebook Have in Common
Dave
Lindorff
The Gelding Congress
John
Stauber
Coffee with the Troops at Yearly
Kos
Website
of the Day
George Carlin
on Education
August
6, 2007
Bill
Quigley
Fighting for the Right to Learn in
New Orleans
Kathy
Rentenbach
Guatemalan Gold, Guatemalan Bones
Uri
Avnery
White Elephants: Bush's Middle East
Arms Deals
Col.
Dan Smith
Of Time and Iraq
Ralph
Nader
Cruise Ship Blues
James
Neshewat
War? What War?: a Report from the
New SDS Confab in Detroit
D.K.
Wilson
Barry, Bud and 755
Greg
Moses
Safe Passage for Willie Nelson
Fidel
Castro
Hard and Obvious Realities
Mike
Whitney
Judgment Week on Wall Street
August
4 / 5, 2007
Alexander
Cockburn
Rupert Murdoch and the Luck of the
Bancrofts
Peter
Linebaugh
Speaking in Irish Tongues
Saul
Landau
Faith-Based War
Alan
Farago
The Candidates and the Collapsing
Economy
Dave
Zirin
When Domes Attack: Even in Minnesota
Barucha
Calamity Peller
Oaxaca is Not Over
Anthony
DiMaggio
Double Standards in U.S. Aid to
the Middle East
Dave
Lindorff
Spy Power: Bush Demands, Democrats
Deliver--Again and Again and Again
Fred
Gardner
Write Off Your Congressman
Nicola
Nasser
The Iranian Option
Benjamin
Dangl
Privatizing Repression in Paraguay
Rannie
Amiri
Bribe, Divide and Conquer
Daniel
Gross
CSR on Trial: Starbucks Behind the
Brand
Sherwood
Ross
Obama Renounces Use of Nuclear Weapons
Manuel
Garcia, Jr
A Bridge Truth Movement?: From 9/11
to Minneapolis
Missy
Beattie
The First Mannequin and the "Crime
Scene"
Ron
Jacobs
The Outlaw Trip to Mexico: Goin' Down
the Road Feelin' Bad
Website
of the Weekend
Photos: Texas Immigrant
Prison
August
3, 2007
Gabriel
Matthew Schivone
An Interview with Noam Chomsky on
Responsibility, War Guilt and Intellectuals
Jonathan
Cook
Israel's Jewish Problem in Tehran
Patrick
Cockburn
Sunnis Walk Out of Iraq Government
Little
Steven Van Zandt
Die, Greedy Swine! Die! Die!:
How the Record Companies are Killing Rock Music
Christopher
Brauchli
Bush Makes Putin Look Like James
Madison
D.
K. Wilson
Two Sides and a Middle: Michael Vick
Ain't the One to Ask
Linda
Ford and Ira Glunts
Maxwell's Silver Hammer: Syracuse University
Enlists in the Global War on Terror
Kelly
Overton
The Casualties of Green Scare: the
Feds' War on the Animal Rights Mvt.
Monica
Benderman
In Freedom's Name
Manuel
Garcia, Jr.
Minneapolis Bridge Collapse: Was Cheney
at the Scene?
Website
of the Day
A
Cinematic Look at the Police State in Action
August 2, 2007
Paul
Craig Roberts
The Return of the Robber Barons
Stanley Heller
Report from the Land of Apartheid
Eric
Ruder
Fighting PTSD; Fighting the Army
Robert
Fantina
Still Getting It Wrong: the NYT and
Iraq
Alan
Farago
The Toxic Mortgage Waste Crisis
Chris
Floyd
Chertoff, Chiquita and Death Squads
Franklin
Lamb
Lebanon's Crucial Special Elections
Sen.
Russ Feingold
Closing the Book on the Abramoff
Era
Anthony
Papa
Drug Treatment isn't a Silver Bullet
Norman
Solomon
The Big Guns of August
Website
of the Day
Louie, Louie Video Contest
August 1, 2007
Debbie Nathan
More Secret Payments by Former NYT
Reporter to Web Porn Star Surface in Nashville Courtroom
Fred Gardner
Ciao, Michelangelo
Gary
Leupp
Why Iraq's Best-Loved Athlete Can't
Go Home
David
Rosen
America's Top 10 Political Sex Scandals
Winston
Warfield
Is the Tillman Case Still a Coverup?
Daniel
McBride
Lessons from Bomber Harris: If the
US Strikes Pakistan
Glen
Ford
The Corporate Plan to Crush Black Resistance
Thomas
P. Healy
The Toxic Career of Indiana's Environmental
Commissioner
John
V. Whitbeck
The Five Percent Solution
David
Krieger
Nuclear Weapons and the University
of California
Website
of the Day
The Tragic Story of Hisham
Mohammed
July 31, 2007
Kathy
Kelly
Dancing in the Darkness: the Story
of Abu Mahmoud
Clancy Sigal
The Ghosts of Passchendaele
Paul Krassner
Assholes of the Week: From Baby
Doll to Cheney
Joe
DeRaymond
Return to the Republic of Death?
Diane
Christian
"Winning": What Bush
Could Learn from the Shade of Achilles
Chris
Floyd
Good News is No News: Why the Bush
Adm. Buries Accounts of Extremist Recantations
Ramzy
Baroud
Bush's Real Agenda in Palestine
Alan
Farago
Battle for the Soul of Florida
Fidel
Castro
In Spite of Everything: Reflections
on the Pan American Games
Dan
Bacher
The Fish Terminator: Schwarzenegger's
Campaign to Build the Delta Canal and More Dams
July 30, 2007
Marjorie Cohn: Independent Counsel
Time
Patrick Cockburn
Four Million Iraqis on the Run
Peter Quinn
Irish in America
Uri Avnery
A Warning to Tony Blair
John Ross
Zapatista Intergalatica Lands on Earth
Ron
Jacobs
Free the San Francisco 8
David
Vest
Farewell,
Old Friend: Another Legend of the Blues is Gone
Jeffrey
St. Clair
T99 Nelson: Seduced by a Legend of the
Blues
Website
of the Day
Collateral Repair
Project
July
28 / 29, 2007
Alexander
Cockburn
Now the NYT is Selling "Bloodbath"
as a Rationale to Stay in Iraq
Ralph
Nader
Rotten Justice
Robert
Fantina
American Lies and Iraqi Nationalism
Fred
Gardner
Prohibitionists Attack, Reformers
Fundraise
Yves
Engler
Handwashing and the Bottomline
July
27, 2007
John
Ross
Bombing Pemex--or Not?
Arthur
Neslen
Gaza was a Gas for Blair
Dave
Lindorff
Declaring the US a Battlefield: Martial Law is Now a Real
Threat
Julene
Blair
The Environmentalist Within
Christopher
Brauchli
Bush Uses Children as Shock Troops in His War on Socialized Medicine
Jesse
Hagopian
Fund the Wounded, Not the War
Charles
Modiano
Manufacturing a Villain: Sports Illustrated's Vilification of
Barry Bonds
Bill
Day
The Hollow Environmentalism of Leonardo DiCaprio
Walter
Brasch
Leaders Afraid to Lead
M.D.
Mitchell
Farm Based Camps
Website
of the Day
Fighting Sarcoma
July
26, 2007
Kathleen
Christison
The Siren Song of Elliot Abrams
Andy
Worthington
Why the Pentagon's Gitmo Study is a Joke
Clancy
Chassay
How the Bush White House Seeks to Destroy Lebanon
Marjorie
Cohn
Showdown Over Executive Privilege
Susie
Day
Apartheid Americana
David
Price
Tour de Witch Hunt: Drugs, Diaries and Purges
Marie
Trigona
Argentina's "Dirty War" Crimes Trial: The Torturer
Priest
Norman
Solomon
Media Spin on Iraq: We're Leaving (Sort Of)
William
S. Lind
How to Win in Iraq
Natsu
Saito
Ward Churchill and the Regents at the University of Colorado
John
Stauber
Netroots and the Iraq War: Does Ending It Matter to Them Anymore?
Website
of the Day
Sticking It to the Man
July
25, 2007
Andy
Worthington
Gains and Losses at Gitmo
Gary
Leupp
Bush Speechwriter, Michael Gerson, Calls for Attack on Syria
Ray
McGovern
The Sad Decline of John Conyers
Dr.
Susan Block
Bonobo Bashing in the New Yorker
Joshua
Frank
Hillary's Neocon: the Imperial Vision of Richard Holbrooke
Tina
Richards
What Harry Reid Doesn't Know About His Own Bill
Ben
Terrall
Indonesia's Bloody Brand of CounterTerrorism
Farzana
Versey
God Acquitted!: Lessons from the Case of Darwood Ibrahim
Mohammad
Ali Salih
A Bomb in My Briefcase?
Laura
Carlsen
A Strange Homecoming: Reflections on the First US Social Forum
Ron
Jacobs
Come to Kennebunkport!
Sunsara
Taylor
Knocked Up is F**ked Up
Website
of the Day
Wal-Mart's Flip Flops: Feet Killers
July 24, 2007
Saul
Landau
How to Walk in Bushtime
Kathy
Kelly
The Plight of Iraqi Refugees in Jordan
Russell
Mokhiber
The Michael Vick / George Bush Thing
M.
Shahid Alam
Islam Now, China Then
Patrick
Cockburn and Anne Penketh
Meeting in Baghdad
Dave
Lindorff
Overcoming John Conyers
Binoy
Kampmark
You Tube You Can't: Failure of a Medium
Richard
Neville
Murdoch's Transplant: a Warning to the Wall Street Journal
Cindy
Sheehan
We Must Move Beyond Politics as Usual
Evelyn
Pringle
Anti-Depressants and Birth Defects: Why is the CDC Downplaying
the Risks?
Norman
Solomon
Media Corrections We'd Like to See
CP
Newswire
Reading Harry Potter Not Sinful
Website
of the Day
Sea Islands Black Heritage Festival
July
23, 2007
Andy
Worthington
Narcolepsy on Gitmo Detainees
Uri
Avnery
A Trap for Fools
Patrick
Cockburn
Turkish Prime Minister Threatens to Invade Northern Iraq
Sousan
Hammad
The Children Without a Title
John
Walsh
Todd Gitlin's Nader Fixation
Harvey
Wasserman
Spinning Kashiwazaki: PR Flacks Rush to Aid of Crippled Nuke
Martha
Rosenberg
The Life and Times of a Hog-Hanging Farmer
Collin Baber
Here
Come the MRAPs: Resurrecting Apartheid Armor for Iraq
Reza
Fiyouzat
Iran's Forgotten Anti-Nuke Movement
Stephen
Lendman
Saving a President: Scare-Mongering and Executive Orders
Website
of the Day
The Port Huron Project
July
21 / 22, 2007
Alexander
Cockburn
Giuliani and the Dogs of War
Werther
How to Read a National Intelligence
Estimate
Ralph
Nader
Atomic Blowback
David
Keen
Buy Hard: How to Sell an Endless War
Fred
Gardner
Karl Rove, Pothead: When Good Drugs Happen to Bad People
Gary
Leupp
Edelman's Edict: Is Hillary "Reinforcing Enemy Propaganda?"
Robert
Fantina
Fear in Iraq
Saker
The Future of Palestine: an Interview with Jonathan Cook
Rannie
Amiri
Nasrallah in the Crosshairs: How will the Third Lebanon War Start?
Mike
Whitney
The Crisis in Hedgistan
Dr.
Susan Rosenthal, MD
The Hidden Injuries of Powerlessness: Linking Alienation and
Dissociation
Monica
Benderman
Facing the Truth
Dan
Bacher
Deltagate: the Politics of Fish Kills
Michael
Baney
Fujimori's Long Race From Justice
Missy
Beattie
Here, There and Everywhere
Ron
Jacobs
Tremble, Tyrants
Adam
Engel
Radical Language: an Introduction
Thomas
Naylor
California Split: an Open Letter to Schwarzenegger
Poets'
Basement
Landau, Ford and Engel
Website
of the Weekend
Surge in Action
July
20, 2007
Eliza
Szabo
Fatal Neglect: Civilian Casualties
in Afghanistan
Pam
Martens
Doctoring the News: CNN's Sanjay Gupta, Laura Bush and Merck
Alan
Farago
Winners and Losers in the Housing Market Crash
Harvey
Wasserman
Lies and Leaks: The Earthquake That Screamed "No Nukes!"
Marjorie
Cohn
Iraqis will be the Deciders
Dave
Zirin
White Noise and the Black Athlete
Anthony
DiMaggio
American Public Opinion and Israel
Scott
Liebertz
Oaxaca on Edge
Linn
Washington, Jr.
British Cops Assault Rape Allegations
Bill
Piper / Anthony Papa
Flying High?: The Political Junkets of Bush's Drug Czar
Ramzy
Baroud
Bush's War Policy: When Time Heals Nothing
Website
of the Day
The Prankster Art of Mark Jenkins
July
19, 2007
Patrick
Cockburn
The Next Invasion of Iraq
Remi
Kanazi
Is This Ben Gurion or Hell?: a Palestinian Adventure Through
Israel's Largest Airport
Winslow
T. Wheeler
The Surging Costs of the Iraq War
Sharon
Smith
Democrats and Health Care: Behind the Rhetoric
Dave
Lindorff
Killing Cabbies in Iraq
Conn
Hallinan
Have Gun, Will Travel: Mercenaries in Iraq and Afghanistan
D.
K. Wilson
The Michael Vick Case Pulls Back the Veil on Who We Really Are
Joshua
Frank
Democrats as Leviathan: Another Step Toward War with Iran
Norman
Solomon
The Ghost of Wayne Morse
Russell
Hoffman
Rattling the Reactor: Quakes, Fires and Leaks at the World's
Largest Nuke
Ray
McGovern
Bush's Wooden Headedness Kills
Website
of the Day
Protesting Power
July
18, 2007
Brenda
Norrell
Spy Towers on the US Border
Col.
Dan Smith
How the US Could "Lose" Saudi
Arabia
Martha
Rosenberg
Lord of Crookharbour: the Trial of Conrad Black
Conn
Hallinan
Bombing and Spraying Afghanistan
Binoy
Kampmark
The SIM Card Terror Case
Patrick
Bond /
Rehana Dada
Who Killed Sajida Khan?
Tom
Johnson
The Long Road ... to Nowhere
Paul
Craig Roberts
A Free Press or a Ministry of Truth?
Bob
Quellos
Pushing the Poor Out of House and Home
Felice
Pace
Falling for Lieberman's Iran Resolution
Robert
Weissman
National Health Insurance: More Humane and More Efficient
CP
Newswire
Shocking Report Showing Involvement of US Psychologists in Torture
Website
of the Day
Gilad Atzmon Live!
July
17, 2007
Patrick
Cockburn
Just Another Day in Iraq: 100 Fathers,
Mothers and Children Killed
Marjorie
Cohn
Out of Control: Executive Power Plays
Evelyn
Pringle
Inside Bush's FDA
David
Rosen
Moral Hypocrisy on the Hill: the Christian Right, Sexual Scandal
and the Pleasures of the Courtesan
Susan
Miller
Width Matters: Displacement and Israel's Wall
Franklin
Lamb
Did the UN Cave to Israel on Lebanon's Shabaa Farms?
Don
Monkerud
Considering Victory in Iraq
Harvey
Wasserman
Nuclear Surge
Russell
Hoffman
Japan Dodges a Radioactive Bullet
Dave
Lindorff
Feingold Turns to Dross
Dave
Zirin
Reclaiming Sports as True Fiction
Website
of the Day
Che at the UN: 1964
July
16, 2007
Gary
Leupp
Cheney Urges Bush to Strike Iran
Ellen
Cantarow
The Untold Story of Iraqi Women
Paul
Craig Roberts
Impeach Now
Allan
J. Lichtman
The D.C. Madam's Public Service
Dan
Bacher
Cheney and the Klamath: Was the Veep Behind the Nation's Worst
Salmon Kill?
Patrick
Cockburn
The Killing of Khalid W. Hassan
Manuel
Garcia, Jr.
Property is Racism
James
Brooks
AIPAC and Mahmoud Abbas: the Undemocratic Road to Defeat
Liaquat
Ali Khan
The Judicial Crisis in Pakistan
Julie
Flint
Suleiman Jamous in Limbo
Website
of the Day
Free Suleiman Jamous!
July
14 / 15. 2007
Alexander
Cockburn
Support Their Troops?
Andy
Worthington
Gitmo's Tangled Web: Khalid Sheikh Mohammed, Majhid Khan, Dubious
US Convictions and a Dying Man
Ralph
Nader
Lawlessness, Waste and Incompetence
Robert
Fantina
The Illegalities of the Iraq War
Ron
Jacobs
Architecture as Military Strategy
Joshua
Frank
Eat, Fight, Screw, Pray: An Interview with Joe Bageant
Conn
Hallinan
Guns, Foundations and Free Trade: How the Right Targets Africa
Dr.
Susan Rosenthal, MD
War and Dissociation
John
Ross
No En Nuestro Nombre!: a Letter to the Mexican Antiwar Movement
Fred
Gardner
Who's Afraid of Cannabidiol?
Rannie
Amiri
A Primer on Israeli Doublespeak
Charles
Modiano
ESPN's Rap Sheet: Pacman as Black Man
Anthony
DiMaggio
America's Parochial Press
China
Hand
Executive Orders and Coercive Diplomacy
Missy
Comley Beattie
Reprobate Rhetoricians
Dr.
James J. Murtagh, Jr.
Harry Potter Battles Big Brother
Kenneth
Rexroth
On Thomas More's "Utopia"
Poets'
Basement
Engel, Davies and Orloski
Website
of the Weekend
GOP Sex Hypocrites: a Slideshow
| August
9, 2007
NAFTA's
Impact on the Manufactuing Sector
The
Tail End of Free Trade
By JACOB
HILL
In
this, the fourteenth year of the North American Free Trade Agreement
(NAFTA), it is of the utmost importance—in terms of its continued
application in the future—to look back and examine the economic
impact of free trade on the U.S. and Mexico over the last decade
and a half.
A
major component of the exercise will be NAFTA’s impact on
the proliferation of the maquiladora sector, which repeatedly has
resulted in a precipitous drop in manufacturing jobs in the U.S.
and Mexico as well as a reliable precedence for the weakening of
labor standards in much of the third world.
Human
Rights Abuses in Mexican Manufacturing
One
of the most drastic and disturbing results of NAFTA has been a boom
in the Mexican maquiladora sector. In the U.S. and the developed
world, these manufacturing units would deservedly be known as sweatshops.
The maquiladoras operate within Latin America because of the abundance
of cheap labor and the poor conditions being tolerated. Due to the
removal of protective tariffs by free trade pacts, raw components
are imported to the maquiladoras without being taxed.
Additionally,
the machinery involved in the maquiladora process is also allowed
to enter Mexico tariff-free under NAFTA’s terms. Then, Mexican
laborers work to turn the raw goods into finished products, adding
value to the goods. The end products are then exported to developed
nations, with minimal tax levied that is based only on the value
added during production.
Although
one could argue that within the capitalist model, Mexico’s
comparative advantage would be its inexpensive labor, the human
rights abuses often associated with the maquiladora process thus
bring with them a heavy economic disadvantage. The sweatshop problem
has been well known since the inception of NAFTA. In 1995, just
a year after the implementation of the free trade agreement,
The
New York Times reported on the exploitation of Mexican young girls
by the maquiladoras. U.S. companies, often working through third
parties, pay children as young as 14 years of age wages under 40
cents per hour.
Maquiladoras
located within walled and barbed wired free trade zones are not
only exempt from import taxes, but are also exempt from state and
local imposts for up to 10 years. Once a corporation structure is
set up as a free trade zone and secures a manufacturing contract
with a large multinational company, the owner of the facility maximizes
profits by informally sanctioning a number of abuses, including
offering low wages, tolerating dismal safety standards, refusing
to provide health benefits and insisting upon unpaid overtime.
One
of the primary problems with the current system of production is
that the prevailing economic conditions in the countries housing
the maquiladoras are so marginal that the only jobs available are
in such sweatshops. For instance, since the passage of NAFTA, over
one million Mexican corn farmers have lost their jobs. With such
high rates of unemployment, workers are forced to either leave their
homes and villages to migrate to more prosperous countries (hence
the spike in illegal immigration to the U.S. since the establishment
of NAFTA and other bilateral Latin American free trade agreements)
or take low-paying jobs featuring a range of abuses in the maquiladoras.
Many
of the maquiladora workers come from the rural areas of Mexico which,
according to the World Bank, have experienced “stagnation
of growth, lack of competitiveness in the international market,
[and] an increase in poverty” since the advent of NAFTA.
As
a result, sweatshop workers possess almost no leverage to negotiate
improved labor rights. Refusing to work overtime, taking breaks
(in spite of the fact that they are required by un-enforced law),
illness, visits to the doctor, and pregnancy rests have all been
recorded as reasons for job terminations in the maquiladora sector.
There also have been instances of free trade zone managers forcing
workers under their jurisdiction to knowingly deceive representatives
of governmental labor monitoring groups.
Nevertheless,
everyday realities frequently force workers to work under these
abhorrent conditions, as jobs are scarce and employees are extremely
expendable. Tens of thousands of other impoverished laborers are
fully prepared to eagerly occupy any jobs vacated by workers seeking
greater labor and human rights or economic benefits.
Faux
Worker Protection
While
under NAFTA’s side agreements, there are mechanisms in place
to protect workers, they are more often than not simply facades.
Company unions may be required by free trade zone managers in order
to allow such corporations to claim that they are compliant with
regulations allowing for union representation, these, in reality,
are entirely management-controlled and allow only minor shifts in
policy, acting more as a “smoke and mirrors” show than
an actual vehicle for enlightened worker protection. Additionally,
some Latin American countries actually have very strong workers’
rights guarantees.
Some
analysts argue that Nicaragua’s labor rights laws, for example,
are actually stronger than those in effect in the U.S., but they
are rarely enforced. The problem with this situation arises when
one contrasts the advantages of free trade zones for the countries
in question with the disadvantages for both labor and the national
economies that are involved.
As
mentioned above, countless steps are being taken to ensure that
labor costs in the maquiladoras are kept as low as possible. The
philosophy of management is that any intervention by the authorities
in favor of the workers would only cost the corporations more money;
increases in safety monitoring, healthcare, or augmented wages are
all expensive propositions.
If
the governments of Latin America were to press free trade zone operators
to implement these labor standard changes as an act of common equity,
foreign-owned maquiladoras would most likely either leave the Americas
altogether in favor of lower cost locations in Asia, or take the
matter before a NAFTA dispute panel.
Thus,
it is not necessarily in the interest of regional governments to
enforce those labor standards on the books, because they can be
blackmailed with the threat that any attempt to enforce them would
most likely be met with an eventual pullout of foreign investment
from the country. This would not only devastate the effected nations’
economies, but would also leave those presently working in the maquiladoras
unemployed, with few remaining options at hand.
Proliferation
of Maquiladoras
According
to the Economic and Financial Review, there is a direct correlation
between the spread of the maquiladora industry and the inauguration
of NAFTA. During the first six years after the signing of the trade
pact (1994-2000), there was a 110 percent growth in the Mexican
sweatshop industry. Besides the human rights abuses inherent in
the operation of the maquiladoras, the primary problem with this
category of growth is that it is not economically sustainable.
According
to Fidel Aroche, in his article “Vertical Integration and
Comparative Advantages,” although the manufacturing sector
in Mexico has grown, the processes in place will not ensure long-term
growth for Mexico because the industry is based on imported inputs
with hardly any existing connection to the rest of the country’s
productive machinery.
Thus,
the majority of the growth is in unsustainable industries based
on the exploitation of labor and the “race to the bottom”
among wages in developing nations. According to a 2006 report by
the Economic Policy Institute (EPI), the maquiladora industry is
“stuck in a trap of low productivity growth, reduced skills,
and sustained by low wages.”
Moreover,
for better or for worse, Mexico is losing the “race to the
bottom.” The aforementioned report goes on to state that,
in fact, “the number of maquiladora companies has diminished
since 2000, which is the result of various companies leaving the
country to go to other countries with wages even lower than those
in Mexico.”
Manufacturing
in the U.S.
There
is no denying the fact that NAFTA has generated an impressive net
growth regarding exports from the U.S. Since the pact’s inception,
according to the EPI, U.S. outflows to Mexico have increased 114
percent and exports to Canada have risen 60 percent. On the other
hand, imports from Mexico to the U.S. have risen by 274 percent,
while those from Canada have grown by 90 percent. As a result, the
U.S.’s combined $20.6 billion trade deficit to Mexico and
Canada in 1993 has ballooned in the post-NAFTA era by 538 percent
to $110.6 billion in 2004 (figures provided in inflation-adjusted
1996 dollars by the EPI). This deficit is a signal of a growing
U.S. dependence on the health of external economies and has affected
several of the nation’s key historic industries.
According
to David Raney of the Alliance for Responsible Trade, the five major
industrial groups which produce the U.S.’s most important
exports (chemicals, plastics, electrical machinery and equipment,
transportation equipment, and computers/electronic equipment) now
have negative trade balances, which have increased at a staggering
rate since NAFTA’s ordination.
There
is a direct correlation between the growth of the U.S.’s trade
deficit and the rise in unemployment throughout the U.S. manufacturing
sector over the last 13 years. According to international trade
and macroeconomics expert Dr. L. Josh Bivins, growing trade deficits
are responsible for 34 to 58 percent of the decline in manufacturing
unemployment. When one looks at the whole picture, NAFTA is responsible
for a 77 percent increase in jobs supported by domestic exports
and a 147 percent increase in jobs displaced by imports.
During
the first 10 years of NAFTA, 942,459 jobs were created in the U.S.
by the agreement, but 1,956,750 jobs have been nullified by it,
resulting in an overall net loss of more than 1,000,000 jobs. A
report by Public Citizen found that workers in the U.S. who have
lost high-wage jobs with benefits in the manufacturing sector have
only been able to find “new work in service sector positions
that typically pay 23-77 percent less than their previous wages
and offer few or no benefits.”
Among
the hardest hit in the U.S. have been Latino workers. According
to the report by the Labor Council for Latin American Advancement,
47 percent of the total number of workers who received federal assistance
under a program for workers certified as having lost jobs in 1999
as a direct result of NAFTA, were Latino.
In
addition to harming U.S. workers by causing job losses, NAFTA also
has tended to tie the hands of labor unions, resulting in weakened
pay rates and benefits. According to a report by the Hemispheric
Social Alliance, it was clear to many labor organizers from the
initial formation of NAFTA that the trade pact would cripple workers
rights. Predictably, the Clinton administration responded with toothless
side agreements (such as the North American Agreement for Labor
Cooperation) that did almost nothing to effectively bolster labor’s
influence or sense of security.
In
fact, NAFTA has given U.S. employers the opportunity to move their
operations outside of the U.S. with much greater ease. As such,
the threat of moving jobs outside of the country has, on numerous
occasions, been used by management in the U.S. to bargain for lower
wages, poorer conditions as a result of give-backs, and to stave
off union organizing drives. From the signing of NAFTA until 1999,
there was a steady increase in the number of employers using relocation
as a negotiation tactic.
According
to a report filed by NAFTA expert Kate Bronfenbrenner for the U.S.
Trade Deficit Review Commission, at some point during 68 percent
of all union organizing drives in 1999, the threat of closing and/or
moving production out of the U.S. was used by employers as a methodology
to restrict worker’s rights. In 18 percent of such campaigns,
Mexico was specifically cited as the final destination for jobs
being moved outside of the U.S.
Reevaluation
of Policy
As
NAFTA lives on, it is critical to look back and reconsider the free
trade policies that have been relentlessly pursued since the Clinton
White House and the Democratic Leadership Council took on as their
own what essentially was a Republican Party trade posture.
The
evidence is overwhelming: NAFTA has damaged the manufacturing industry
in the U.S. and Mexico. As the maquiladora industry thrives (even
in light of recent whittling) and human rights are continuously
eroded in sweatshops across the globe, it is the responsibility
of the U.S., the world’s most insatiable consumer, to call
attention to this injustice in the manufacturing sector and correct
it through trade policies that affirm human dignity, such as the
fair trade movement and regulations created by the U.S. government
to monitor whether equitable labor rights are being respected, as
well as under what conditions foreign goods and services are being
imported into this country.
Furthermore,
the labor movement that helped make the U.S. into the economic superpower
it is today must be allowed to function without intimidation or
manipulation. Free trade agreements which spawn sweatshops and undermine
the autonomous status of laborers the world over, and compromise
future trade pacts, must make a greater effort to benefit all citizens,
not just the corporate and banking sectors which normally are the
primary beneficiaries of the U.S. economic order.
Jacob Hill is a Research Associate at the Council
on Hemispheric Affairs.
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