May 8, 2009

Free Trade For Who?

One of the primary catalysts for immigration from Mexico in the last decade has been the implementation of the North American Free Trade Agreement (NAFTA). NAFTA established a, "Preferential access for U.S. products." Meaning Mexico's local economy, especially small scale farmers, had to compete with U.S. imports from subsidized US producers. Despite the farmer's protests the Mexican government does nothing, since they do not want to upset the U.S. This influx of goods, largely corn, lead to two thirds of Mexican farmers reporting that their wages decreased. U.S. taxpayer subsidized agriculture flooded the market. Many Mexican farmers lost their land and found themselves out of work. NAFTA also took its toll on manufacturing jobs as companies streamlined their production in order to compete on the global market. In 1995, one year after NAFTA was implemented, one million Mexican workers lost their jobs. Therefore, is it any great mystery why immigration levels peaked in the mid 90s? In contrast to the perpetually rising rate of immigration some voices would have us believe the immigration rate rose, peaked, and declined. A drastic alteration of an economy will result in some equally noticeable ramifications. One of which was a lot of displaced workers trying to find a livelihood further North. In truth, the pattern of movement we see from Mexico into the U.S. in the 1990's and 2000's might be more accurately labeled 'forced migration'.

To complicate matters it was not just Mexican workers who were losing their jobs. NAFTA policies have also been detrimental to U.S. workers. Unfortunately, yet predictably, the finger was pointed at immigrants, and the claim was job theft. A functioning red herring was thus created to keep the working class from noticing that NAFTA only benefits the corporations, governments, and the wealthy. While the U.S. tries to maintain that NAFTA is benefiting Mexico it only looks that way on paper. Unemployment levels look lower than they are because statistics count someone as employed if they have worked at least one hour in the week prior to the survey. In addition, job quality has declined. People may be working but for lower wages. Workers everywhere are feeling the negative impact of NAFTA, whether they realize the source or not. However, many companies are benefiting from NAFTA. For example, in order to get around the tariffs in the past the Kellogg company would need production sites in Canada, the U.S., and Mexico. Now that NAFTA eliminated the tariffs they were able to close the extra plants and export without added fees.

Free trade agreements put downward pressure on U.S. wages and allow for the constant threat of 'Outsourcing'. These agreements flood the primarily agrarian population of Mexico (and other nations) with U.S. subsidized crops, sweatshops, and disposable goods. There is a clash of displaced workers in subject nations and an enticing story of the land of plenty right across the border. Hunger, desperation and hope of a better life for their families moves people to cross deathly deserts to come to the U.S. This combination of American fear and Mexican poverty is played on by both corporations that profit from this relationship and nativists that use it to embolden racists movements. Working class white folks against working class immigrants always means that we lose -- we lose power, we lose resources and we certainly lose our dignity. As long as immigration is viewed as a matter of ethnicity, a clash of nations, or more drastic accusations we've all heard the root causes are ignored, and the upper class keeps all the profit. Once we ask ourselves who benefits when the workers vilify each other, instead of concentrating on the real crooks, we begin to see how xenophobia can be a valuable tool of the upper class.

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