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How Bill Saved Hillary from a Federal Indictment

Here’s the second in Alexander Cockburn and Jeffrey St. Clair’s series as they describe Hillary Clinton’s years in Little Rock and her narrow escape from federal charges that would have destroyed her political career for ever.PLUS KEVIN ALEXANDER GRAY on how Hillary Clinton, Barack Obama and John Edwards are failing Black America even as they hunt for votes in South Carolina’s “Black Primary.” Get your copy today by subscribing online or calling 1-800-840-3683 Remember contributions to CounterPunch are tax--deductible. Click here to make a donation. If you find our site useful please: Subscribe Now

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"Imperial Crusades: a Diary of Three Wars" by Cockburn and St. Clair

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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The Case Against Israel
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Click Here to Order Michael Neumann's Devastating Rebuttal of Alan Dershowitz


Grand Theft Pentagon:
Tales of Greed and Profiteering in the War on Terror

by Jeffrey St. Clair