September 2, 2017 - No. 26
Supplement
For Your
Information
NAFTA
Renegotiations
• Where
Matters Stand
• U.S. Push
to
Extend and Expand Fortress North America
- Enver Villamizar -
• Canada's Position
• What's at Stake for Food, Farmers
and the Land?
- Institute for Agriculture and Trade Policy -
For Your Information -- NAFTA
Renegotiations
Where Matters Stand
The first round of negotiations over the North American
Free Trade Agreement (NAFTA) began August 16-20 in Washington,
DC. Negotiators will reconvene in Mexico for a second round of
talks September 1-5. This will be followed by talks in
Ottawa starting September 24. Thus far the schedule includes
seven rounds of talks by the end of 2017 and reports indicate
that there is a push to have them completed by July 2018 when the
election for President of Mexico begins.
The first round consisted of five full days of meetings
by a
team of subject-matter experts covering more than two dozen
different negotiation topics. The Council of Canadians provides
the following summary of major developments in the first round
based on news reports:
1. Auto
"On auto parts, the U.S. surprised its allies on Day 1
by
hinting it might favour a Made In America-style content quota.
The statement on that from U.S. trade czar Robert Lighthizer was
vague and, according to sources, was not followed up by any
specific numbers being tabled by the U.S. side in the initial
round. However, the idea was swiftly opposed by Canada, Mexico
and the auto industry."
2. Pharmaceuticals
"On pharmaceuticals, the U.S. has also proposed a
12-year
patent-style protection for cutting-edge biologics medicines,
sources say. This is significantly higher than the protections in
Canada and Mexico, would drive up prices, and could be an
irritant if the U.S. sticks to it."
3. Labour
"A report in Inside U.S. Trade said Canada has
also
presented demands on labour rights that would force the U.S. to
sign all the International Labour Organization conventions.
That's generally been a non-starter for the U.S."
4. Climate change
"A Canadian government official speaking on background
told
the Star ... that the U.S. and Canada are at loggerheads
over the inclusion of climate change measures in a new NAFTA
agreement, which is a stated priority of the Liberal government.
The official added, however, that the Americans haven't said
anything to indicate the disagreement is irreconcilable at this
point."
5. Procurement, Chapter 19
"Other areas of
divergence include an American push to create Buy American rules
for government contracts in the U.S., while opening up these bids
to U.S. companies in Canada and Mexico, and remove the
state-to-state dispute resolution mechanism, which Canada
strongly favours, from the agreement. "
A trilateral statement issued following round one
states: "The
scope
and volume of proposals during the first round of the negotiation
reflects a commitment from all three countries to an ambitious
outcome and reaffirms the importance of updating the rules
governing the world's largest free trade area."
It hides the undemocratic and
illegitimate
nature of the negotiations over the fate of the peoples of all
three countries: "In addition to the negotiations,
officials from all three countries continued to engage a wide
range of stakeholders, including representatives of the private
sector; industry associations; civil society, including labor
groups; legislative representatives; and state/provincial
officials."
The three countries signed an agreement at the level of
the
executives to keep confidential the proposals of other countries.
Governments can "share" info they receive from other negotiating
parties with their own government bodies (cabinet) and those they
are consulting but not ouside of that.
Following the meetings, U.S. President Donald Trump
issued
warnings publicly that there would likely be no agreement on
re-negotiation and termination was a likely outcome. This has
been widely used to re-enforce the notion that Canada should push
to ensure a deal is done, or prepare for a possible exit from
NAFTA.
U.S. Push to Extend and Expand
Fortress North America
- Enver Villamizar -
On July 17, leading up to the first round of
renegotiations, the office
of the U.S. Trade Representative, an executive office of the U.S.
President, issued a summary of the U.S. Executive's objectives. In the
introduction to its summary it states:
"The new NAFTA must continue to break down barriers to
American
exports. This includes the elimination of unfair subsidies,
market-distorting practices by state owned enterprises, and burdensome
restrictions of intellectual property. The new NAFTA will be modernized
to reflect 21st century standards and will reflect a fairer deal,
addressing America's persistent trade imbalances in North America. It
will ensure that the United States obtains more open, equitable,
secure, and reciprocal market access, and that our trade agreement with
our two largest export markets is effectively implemented and enforced."
In this way it gives the impression the issue is about
expanding the
access of U.S. monopolies to the markets of NAFTA partners as well as
providing "fairness" in the form of preventing other NAFTA countries
from "restricting" U.S. national interests. However, one of the main
features of the priorities is in fact to demand that the Canadian and
Mexican governments submit much more completely to U.S. jurisdiction
and authority overall on all matters, while at the same time
strengthening the U.S. government's exemption from various provisions
claiming national security. In order to understand the actual scope of
these renegotiations of NAFTA, it is necessary to remember that the
main agenda of the North American Free Trade Agreement between Canada,
the U.S. and Mexico -- in force since January 1, 1994 -- is the
integration of trade, energy, transportation and security corridors
under the command and control of U.S. imperialism and the U.S.
military’s Northern Command.[1]
One of the ways the U.S. seeks to extend its authority
by imposing
private interests in its service over national political bodies is by
demanding what is called "transparency" in decision-making in Canada
and Mexico over the making of laws and regulations on any and all
matters coming under the NAFTA agreement, which are essentially all
aspects of life of the three countries. By transparency is meant
ensuring that national and sub-national political bodies in Canada and
Mexico must provide the monopolies a direct say in decision-making.
This includes alerting the monopolies to any laws or regulations that
may affect their private interests and limit their ability to maximize
their profits. In addition, any changes in laws or regulations are to
be made consistent with those in the U.S., or to be crafted jointly
with the monopolies in their interests and then to be made the "North
American standard," policed and enforced by supranational bodies.
Under the broad heading of "Transparency," the
objectives state that
the U.S. intends to: "Commit each Party to provide levels of
transparency, participation, and accountability in the development of
regulations and other government decisions that are comparable to those
under U.S. law with respect to federal statutes and regulations." In
particular, the U.S. seeks commitments by each Party:
- to promptly publish laws, regulations, administrative
rulings of
general application, and other procedures that affect trade and
investment;
- to provide adequate opportunities for stakeholder
comment on measures
before they are adopted and finalized; and
- to provide a sufficient period of time between final
publication of
measures and their entry into force.
Under objectives for rules covering investment, the
objectives state:
"Secure for U.S. investors in the NAFTA countries
important rights
consistent with U.S. legal principles and practice, while ensuring that
NAFTA country investors in the United States are not accorded greater
substantive rights than domestic investors."
The demand for submission to this definition of
transparency, as well
as demands for "regulatory cooperation" to bring everything to U.S.
levels appear throughout the various areas where the U.S. is seeking
benefits for what it defines as its national interest.
In addition, there are demands to limit the ability of
the national
governments of Canada and Mexico to have any control over anything
which the U.S. may want to control itself. For example, in the banking
and financial services sector the U.S. is demanding that companies not
be required to establish "local" computing facilities in Canada or
Mexico.
The objectives seek to: "Ensure that the NAFTA countries
refrain from
imposing measures in the financial services sector that restrict
cross-border data flows or that require the use or installation of
local computing facilities."
Further on it adds: "Establish rules to ensure that
NAFTA countries do
not impose measures that restrict cross-border data flows and do not
require the use or installation of local computing facilities."
An aspect of this objective means that the U.S. does not
want any
restrictions on its control over data on Canadians and Mexicans. It
does not want any privacy, taxation or other laws of Mexico and Canada
blocking U.S. control of the data, in addition to eliminating the added
costs of having such facilities in each country.
The Objectives also include a section which demands that
governments
adopt new measures to criminalize "government corruption" -- left
undefined in the Objectives. A section entitled "Anti-corruption" seeks
to: "Secure provisions committing each Party to criminalize government
corruption, to take steps to discourage corruption, and to provide
adequate penalties and enforcement tools in the event of prosecution of
persons suspected of engaging in corrupt activities."
What is defined as corruption by the U.S. imperialists
is
very different to how the working class and people define
corruption. For example, the theft of workers' pensions through
the use of insolvency courts and fraudulent restructuring
procedures -- a form of legalized theft -- is corruption of the
first order but considered totally legitimate by the forces that
have usurped power in the U.S., Canada and Mexico.
The U.S. demand to have the labour and environment
provisions
-- currently outside of the formal NAFTA agreement -- is not only a
farce but plays the role of diversion. The U.S. position is that
"recognized core labor standards as recognized in the ILO
Declaration" be included in the "core of the agreement." This
includes:
"Freedom of association and the effective recognition
of the
right to collective bargaining;
"Elimination of all forms of forced or compulsory labor;
"Effective abolition of child labor and a prohibition
on the
worst forms of child labor; and
"Elimination of discrimination in respect of employment
and
occupation."
The U.S. position includes demands that NAFTA countries
"do
not waive or derogate" from their labour laws implementing
"internationally recognized core labor standards," in a manner
affecting trade or investment between the parties.
They also seek to "[e]nsure that these labor
obligations are
subject to the same dispute settlement mechanism that applies to
other enforceable obligations of the Agreement."
In terms of the environment, the U.S. has similar
language
seeking to "Establish rules that will ensure that NAFTA countries
do not fail to effectively enforce their environment laws through
a sustained or recurring course of action or inaction, in a
manner affecting trade or investment between the parties."
In other words, first make sure that all laws accord
with the
U.S. national interest and then make sure they are enforced. No
laws should affect U.S. trade or investment, all subject to what
is called the formal dispute resolution measures.
Canada has the same demands to have "labour and the
environment" included in the core agreement. It is not just "a
show," but a means to use the laws and regulations to further the
integration into one Fortress North America.
Note
1. Export data record the extent to
which Canada and Mexico are integrated with U.S. imperialism
within Fortress North America under the control of the dominant
oligopolies. According to data released by TD Securities and
Bloomberg, Mexican 2015 exports to the U.S. are equal in value
to 27 per cent of Mexico's total value of production calculated
as Gross Domestic Product (GDP). Canada's value of exports to the
U.S. as a percentage of GDP is not much less, at 22 per cent.
Exports to the U.S. as a percentage of total exports are 81 per
cent for Mexico and 77 per cent for Canada. Total exports as a
percentage of the country's GDP equal 33 per cent for Mexico and
26 per cent for Canada.
Canada's Position
Canada's Minister of Foreign Affairs Chrystia Freeland
has
been given responsibility for U.S. Trade and is thus overseeing the
NAFTA renegotiations. Freeland in her remarks
about NAFTA is desperate that Canadians not discuss the
actual situation of the Canadian economy and its reality, trying to
herd
them instead into discussing how to "improve" NAFTA.
She claims essentially that Canadians all support NAFTA and cites
as proof the make-up of an advisory committee she established
made up of representatives of the monopolies, the Canadian Labour
Congress (CLC) and First
Nations. This is supposed to provide evidence of Canadian
consensus.[1]
In a speech on August 14 at
the University of Ottawa Freeland
stated: "It wasn't obvious to anyone back in 1987, when the
Canada-U.S. Free Trade Agreement was first reached, that this was
a good idea.
"The Liberal party of that era, then in opposition, was
against it. My own beloved mother, who ran for the NDP in
Edmonton-Strathcona in 1988, was against it. Prime Minister Brian
Mulroney, to give credit where due, staked his prime-ministership
on getting free trade passed. And he was right.
"Two decades on, in our country, that debate is settled
because the results are plain. The North American Free Trade area
is now the biggest economic zone in the world. Canada, the U.S.
and Mexico together account for a quarter of the world's GDP,
with seven percent of its population. Since 1994, trade among the
NAFTA partners has roughly tripled, making this a
$19 trillion dollar regional market, with 470 million consumers.
Canada's economy is 2.5 per cent larger every year than it
otherwise would be, thanks to NAFTA. (It is as if Canada has been
receiving a $20 billion cheque each year since NAFTA was
ratified.)"
Freeland's claim of the annual $20 billion cheque, begs
the
question
of where that $20 billion goes! She should also say that under
Chretien billions were removed from the public purse by cutting
the Canada Health and Social Transfer to the provinces. Under the
IMF restructuring program these funds were handed over to the
banks. Where did those funds go?
Freeland refuses to address
the destruction of Canada's manufacturing base since neo-liberal
free trade was enacted. Instead she cites two examples of
Canadian monopolies that have "gone global" and an American
company that has entered Canada. Her examples serve to divert
from the reality. The claim that because some particular
monopolies employ Canadians, this equates to NAFTA being a
success is infantile to say the least.
Freeland gushed in her August 14 speech of the wonders
of today’s monopolies and their power of control and freedom to operate
without restrictions across borders. Civil society at one time
considered such unbridled private power of the rich over sovereign
countries and their economies as illegal trusts with too much social
wealth and power concentrated in the hands of a few.
Freeland says, "Consider a leading Ontario company like
Magna, as the
PM
noted in a speech last month to U.S. governors, which employs
62,000 Americans, 22,000 Mexicans, and 20,000 Canadians, building
auto parts and components that rely on supply chains that
crisscross the borders.
"Or, consider Alberta-based Precision Drilling, among
the
foremost providers of oil drilling services in the world, with a
thriving business across Canada, the U.S. and Mexico. It started
with three rigs in 1984. It now has more than 240 worldwide, with
9,000 employees across North America. For them, a thin border for
trade matters a lot.
"Consider an American company like Pratt & Whitney,
a global
leader in making aircraft engines. It's headquartered in
Connecticut but has thousands of employees in Canada, through its
Canadian subsidiary. Just like Magna, Pratt & Whitney's success
is built on cross-border supply chains. For an engine part, there
is no border....
"My point is that NAFTA has been an extraordinary
success
story. And, Canadians today largely agree with me in that
assessment. A Pew Research poll in May found that 74 per cent of
those surveyed think NAFTA has been good for Canada...
"This is a remarkable consensus. It extends across the
political spectrum. It is reflected in the high caliber of the
people who recently joined our NAFTA Council, people such as Rona
Ambrose, Brian Topp and James Moore. These people set partisan
politics aside to work to pursue the national interest.
"As of today, the government had sought and received
more
than 21,000 submissions of Canadians' views and concerns about
NAFTA. That includes contributions from 16 academics and think
tanks, 158 associations, and 55 businesses and corporations.
"Preparing for these negotiations has already united us
as a
country. I have been astounded and moved by the extremely high
level of support and collaboration I and my team have received
from business, from labour, from civil society, from every level
of government, and, from opposition politicians. Time and again
people have told me how proud they are to be Canadian, and how
committed they are to doing everything they can to help. Our
top-notch bi-partisan NAFTA Council is evidence of this."
Fraudulent Consultations
In line with the government's attempts to create the
appearance that there is no opposition to NAFTA with claims of a
fake consensus, the government held an online consultation, that
began March 14 and closed July 28. Like other
government consultations, this one was aimed at imposing a
pre-determined
outcome. The questionnaire started from the standpoint that
NAFTA has been a benefit to Canada and the issue is how to
strengthen it.
The questions posed in the consultation were:
- In your view, what should be a priority for the
Government
of Canada in the renegotiation of NAFTA (e.g. trade areas,
practices, issues)?
- Are there elements of NAFTA that are working well and
should be preserved or improved upon?
- Are you aware of any trade practices, laws or
regulations
in the United States, and/or in Mexico, that undermine or could
undermine meaningful market access for Canadian goods and
services?
- Are there any new issues that you believe should be
incorporated into NAFTA, or are there issues that you believe
should be expanded upon to reflect advancements since NAFTA was
originally negotiated?
NAFTA Advisory Council
While the government "consultation" with
Canadians is
trivial and non-serious, sources informed the Workers' Centre
that members of the government's "advisory council" had to sign a
confidentiality agreement that they would keep everything
secret. The un-elected council is made up of representatives of
the Canadian ruling elite and Canadians who are directly
entrenched in the United States of the North American Monopolies.
(See members below)
The terms of reference for members are: "provide your
unfiltered opinion to the Minister of Foreign Affairs for her
consideration in advance of and during the course of negotiations
with NAFTA partners Mexico and the United States, based on your
expertise and experience. This feedback, which may from
time-to-time be provided directly to the Minister as well as
during meetings and conference calls with the other participants,
will ensure that the Minister and Canada's negotiating team are
able to avail themselves of a broad range of perspectives from
across Canada."
Canada's Priorities
The following are the main government priorities
Freeland outlined in her August 14 speech. These priorities essentially
demand that all power be placed in the hands of the dominant companies
in each sector in North America and their representatives in the state
institutions. According to Freeland, the oligarchs and their political
representatives must have absolute power over the economies of the
three countries and the right to decide and dictate what the actual
producers, the working class, need and think and what workers’ rights
may or may not be.
To be progressive for Freeland means to block the working class from
resolving its contradiction with the owners of social wealth and thus
deprive the oligarchs of the power to deprive the working class of its
right to its own nation-building project. A working class
nation-building project would vest sovereignty in the people and
unleash the full potential of the modern productive forces to guarantee
the well-being of all without crises and war, and contribute globally
in preparing social conditions to eliminate class privilege and class
society for all humanity.
1) Modernize NAFTA. Freeland writes: "The global, North American, and
Canadian
economies have been transformed in that time by the technology
revolution. NAFTA needs to address this, in a way that ensures we
continue to have a vibrant and internationally competitive
technology sector and that all sectors of our economy can reap
the full benefits of the digital revolution."
2) NAFTA should be made more "progressive." This is to
be
done by: "bringing strong labour safeguards into the core of the
agreement; second by integrating enhanced environmental
provisions [...] adding a new chapter on gender rights, [...]
adding an Indigenous chapter; and [...]reforming the
Investor-State Dispute Settlement process, "to ensure that
governments have an unassailable right to regulate in the public
interest." Concerning labour provisions Freeland adds: "Canadians
broadly support free trade. But their enthusiasm wavers when
trade agreements put our workers at an unfair disadvantage
because of the high standards that we rightly demand. Instead, we
must pursue progressive trade agreements that are win-win,
helping workers both at home and abroad to enjoy higher wages and
better conditions."
3) "cutting red tape and harmonizing regulations. We
share
this US administration's desire to liberate our companies from
needless bureaucracy, and this negotiation is a welcome chance to
act on that goal."
4) "a freer market for government procurement [...]
Local-content provisions for major government contracts are
political junk-food, superficially appetizing, but unhealthy in
the long run. Procurement liberalization can go hand-in-hand with
further regulatory harmonization."
5) make the movement of professionals easier. NAFTA's
Chapter
16, which addresses temporary entry for businesspeople, should be
reviewed and expanded to reflect the needs of our businesses.
6) uphold and preserve the elements in NAFTA that
Canadians
deem key to our national interest -- including a process to ensure
anti-dumping and countervailing duties are only applied fairly
when truly warranted; the exception in the agreement to preserve
Canadian culture; and Canada's system of supply management."
"One reason that these progressive elements,
particularly on
the environment and labour, are so important is that they are how
we guarantee that the modernized NAFTA will not only be an
exemplary free trade deal, it will also be a fair trade
deal."
Note
1. Members of the non-elected Advisory Council on NAFTA
are:
William Downe --
CEO of BMO Financial Group. He
is a
member of the Economic Club of Chicago and Past President of the
U.S. Federal Reserve Board's Federal Advisory Council made up of
representatives of the U.S. banking industry to advise the
Reserve Board.
Linda Hasenfratz -- CEO of the global automotive
firm
Linamar Corp based in Guelph, Ontario and Co-Chair of Council of
Women Entrepreneurs established by Prime Minister Justin Trudeau
and U.S. president Donald Trump.
Annette Verschuren -- Former President of The
Home
Depot Canada and The Home Depot Asia. Reportedly overseeing the
aggressive entry into Canada of the U.S. monopoly, growing the
company's Canadian operations from 19 to 179 stores between 1996
and 2011. (This was also the period when Home Depot entrenched
itself and substantially took over the Canadian market from
Canadian-based Rona.) She also led The Home Depot's entry into
China. Ms. Verschuren is currently chair and CEO of NRStor Inc.,
an "energy storage development company."
Phyllis Yaffe --
Chair of Cineplex Entertainment
and
CEO of Alliance Atlantis. Currently serving as Canada's consul
general in New York City.
Sophie Brochu --
President and CEO of Quebec's
Gaz
Metro for the past decade. Gaz Metro, with more than $7 billion
in assets, is the largest natural gas distribution company in
Quebec, involved in the distribution of natural gas in Quebec and
Vermont. In Vermont it has more than 310,000 customers through
its subsidiaries Green Mountain Power and Vermont Gas
Systems.
Rana Sarkar -- Appointed Canada's consul
general
in
San Francisco. Formerly, director for high growth markets at KPMG
Canada, president and CEO of the Canada-India Business
Council, and Co-chairman of the advisory board and a senior fellow at
the University of Toronto's Munk School of Global Affairs.
Unsuccessful candidate for the Liberal Party in the riding of
Scarborough--Rouge River.
Rona Ambrose --
Former Harper government
Minister and
interim leader of the Conservative Party following the resignation of
Stephen Harper.
James Moore -- Former Harper Conservative
Cabinet
Minister from BC. Former Minister of Industry, currently a "senior
business adviser" at law firm Dentons and adviser at the global
firm Edelman.
Marc-André Blanchard -- Former chair and
CEO of
McCarthy Tétrault law firm and Canada's ambassador and permanent
representative to the United Nations.
Perry Bellegarde -- National Chief of the
Assembly of
First Nations since 2014.
Hassan Yussuff --
President of the Canadian
Labour
Congress.
Brian Topp --
Former candidate for leader of the
NDP.
Served as chief of staff to Roy Romanow in the Saskatchewan
provincial government and most recently as chief of staff to the
Premier of Alberta Rachel Notely. Former Director of Information
Services at the Alliance of Canadian Cinema, Television
and Radio Artists (ACTRA) and the Executive Director and CEO of ACTRA
Toronto.
Marcel Groleau --
President of the Union des
producteurs agricoles in Quebec.
What's at Stake for Food, Farmers and the Land?
- Institute for Agriculture and Trade
Policy -
Overview
The renegotiation of the North American Free Trade
Agreement (NAFTA) between the U.S., Mexico and Canada begins on
August 16, and there is much at stake for farmers and rural
communities in all three countries. Despite promised gains for
farmers, NAFTA's benefits over the last 23 years have gone
primarily to multinational agribusiness firms. NAFTA is about
much more than trade. It set rules on investment, farm exports,
food safety, access to seeds, and markets. NAFTA, combined with
the formation of the World Trade Organization (WTO) and the 1996
Farm Bill, led the charge to greater consolidation among
agribusiness firms, the loss of many small and mid-sized farms
and independent ranchers, the rapid growth of confined animal
feeding operations (CAFOs) and further corporate control of
animal production through often unfair, restrictive contracts
with producers. The Trump administration's negotiating objectives
reflect relatively small tweaks to NAFTA, while adopting
deregulatory elements of the defeated Trans-Pacific Partnership
(TPP).
Family farm groups have called for the existing NAFTA
to be
scrapped and propose a fundamentally new agreement with a goal of
improving the lives of family farmers and rural communities in
all three countries.
What Is NAFTA?
NAFTA was
agreed
to by the U.S., Mexico and Canada in 1992, ratified by the U.S.
Congress in 1993, and became enforceable in 1994. The Agreement
has 22 chapters, grouped into eight sections.[1]
Those sections
cover trade rules on a variety of goods, including textiles,
agriculture and food safety, and energy; technical standards for
traded goods; government procurement; protection for investors
and trade in services; intellectual property; notification of new
laws and how to handle trade disputes.
NAFTA was the first of its kind in several ways: the
first
trade agreement among countries at very different levels of
economic development; the first to include controversial private
arbitration panels that allow foreign corporations to sue
governments to challenge actions that impede their potential
future profits; and the first trade agreement to include side
agreements on labor and environment. It was the template for the
U.S.-Central America Free Trade Agreement (CAFTA), the U.S.-Korea
Free Trade Agreement, and the defeated Trans-Pacific Partnership
(TPP), among others, as well as dozens of other agreements
negotiated by Canada and Mexico. Each of the trade deals that
followed included additional elements that strengthened
corporations' ability to move production and investments in all
participating countries.
What Promises Were Made to Farmers?
During the NAFTA debate in the early 1990s, U.S.
farmers and
ranchers were promised that they would export their way to
prosperity but that didn't happen. A U.S. Department of
Agriculture fact sheet at the time pledged that NAFTA would
"boost incomes in Mexico and increase demand for a greater volume
and variety of food and feed products" from U.S. farmers.[2] The
USDA fact sheet vowed that U.S. farmers would gain from "higher
agricultural export prices" among other benefits. An
International Trade Commission analysis advising Congress in 1993
downplayed the impact NAFTA would have on agriculture, predicting
only "a minimal effect on overall U.S. agricultural production
and employment," aside from some increases in grain and meat
exports, and a slight increase in fruit and vegetable imports.[3]
The same ITC report predicted that U.S. Midwest soy and corn
farmers would benefit from increased exports to Mexico.
The General Accounting Office (now Government
Accountability
Office) concluded that NAFTA would "reduce unauthorized Mexican
migration to the United States in the long run..."[4] President
Bill Clinton made a similar argument at the time stating: "By
raising the incomes of Mexicans, which this (NAFTA) will do,
they'll be able to buy more of our products and there will be
much less pressure on them to come to this country in the form of
illegal immigration."[5]
Conservative think tanks like the Peterson
Institute for International Economics joined in the NAFTA
cheerleading through opinion pieces in the media that exclaimed
"Everybody Wins," and predicted strong long-term growth in
Mexico's per capita income with associated declines in
immigration to the U.S.[6]
These false promises, supported by a compliant media,
gave
Congressional backers the fuel they needed to narrowly pass NAFTA
in 1993. Whether economic gains for farmers or reduced migration
from Mexico, NAFTA's promises of prosperity have proven to be
empty ones.
What Parts of NAFTA Relate to Food and Agriculture?
Phasing out of tariffs
NAFTA's Chapter 3 on National Treatment and Market
Access
set a schedule to phase out tariffs on most agricultural goods
traded among the three countries, finally coming into full force
in 2008. Tariffs on some goods, such as imports of corn and
soybeans to Mexico, were phased out over 15 years -- although
Mexico accelerated that timetable under pressure from the U.S.[7]
(Previously, Mexico had charged an average tariff of 11 percent
on imports of agricultural goods.) U.S. agricultural tariffs were
for the most part already low. Many Mexican farm goods entered
the U.S. duty-free prior to NAFTA under the Generalized System of
Preferences, which gives tariff preferences to developing
countries. Tariffs on U.S.-Canada trade for most agricultural
goods had already been eliminated under the U.S.-Canada Free
Trade Agreement, which formally came into force in 1989.[8]
Some exceptions to the free flow of agricultural goods
were
established under NAFTA. Canada retained the right to maintain
its dairy, poultry and egg supply management programs, which
support fair prices for Canadian producers and consumers. These
programs include some limits on imports and high tariffs for
those products. NAFTA also includes a side agreement that expands
the volume of Mexican sugar imports into the U.S., while still
protecting the U.S. sugar program, which also functions
essentially as a supply management program.
Food safety
The Agriculture and Sanitary and Phytosanitary (SPS)
Chapter
of NAFTA (Chapter 7) sets broad rules for domestic support,
eliminates export subsidies, and establishes a mechanism to
handle trade disputes. The second part of the chapter focuses on
food safety rules, and ensuring that those rules will not act as
a barrier to trade. Equivalency agreements between the three
countries streamlined inspections of foods crossing borders, and
put pressure on inspectors and food safety agencies to facilitate
trade. NAFTA also established an ongoing food safety standards
committee to settle disputes between the three countries.
Special rights for foreign corporations
NAFTA was the first free trade agreement to establish
special
legal rights for foreign corporations. NAFTA's Chapter 11
established the Investor State Dispute Settlement (ISDS), which
grants foreign investors the right to sue local or national
governments over measures that affect their real or potential
profits on existing or planned investments.[9]
This ground-breaking
corporate privilege provision has been replicated in nearly every
ensuing U.S. trade deal. There have been only a few agricultural
ISDS disputes under NAFTA. Cargill, Archer Daniels Midland and
Corn Products International have all successfully sued Mexico and
won multimillion dollar settlements, for the country's tariffs on
high fructose corn syrup.
Intellectual property
NAFTA's Chapter 17 was the first free trade chapter to
include meaningful rules on intellectual property rights (IPR)
for seeds and other biological resources. NAFTA built upon
on-going international negotiations that ultimately created the
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
agreement in the WTO. The NAFTA IPR chapter references the
International Convention for the Protection of New Varieties of
Plants 1978 (UPOV Convention 1978), and the International
Convention for the Protection of New Varieties of Plants 1991
(UPOV Convention 1991) -- which place restrictions on farmers'
and researchers' rights to save and share seeds.[10] While all
NAFTA parties were expected to either be part of these
Conventions, or join the Conventions soon after, Mexico never did
join UPOV 1991 -- an issue that re-surfaced during the TPP
negotiations, and will likely be raised again during NAFTA
renegotiations. During the negotiation of Chapter 17, IATP was
part of a coalition that criticized the legal and economic
disruption by patent holders of traditional agricultural
practices, such as the planting of saved seeds and cross-breeding
of shared seeds.[11]
What Is the Relationship Between NAFTA, the
World Trade
Organization and the Farm Bill?
The rules set in NAFTA (1994), the WTO (1995) and the
1996
Farm Bill are mutually reinforcing. The WTO set a foundation of
international trade rules for more than 160 countries. The WTO's
Agreement on Agriculture set international trade rules on
agriculture policy, including the types of farm programs that are
allowed (non-trade distorting), tariff levels on agricultural
goods and how those tariffs may be applied. If NAFTA were
eliminated, the trade rules set at the WTO would be the
fallback.
The 1996 Farm Bill passed by Congress was designed to
comply
with trade rules agreed to in NAFTA and the WTO. It stripped away
the final remnants of U.S. supply management programs (with sugar
the exception), which had intentionally limited production for
the purpose of ensuring fair prices to farmers. The 1996 bill was
given a slick market-friendly name, "Freedom to Farm" and its
elimination of supply management was sold to farmers as necessary
for expanding U.S. export markets. That expanded access, the
bill's supporters claimed, would itself ensure fair prices to
farmers. This did not turn out to be the case. "Freedom to Farm
has really positioned the U.S. very well to take advantage of the
opportunities in the world market," said a Cargill executive
shortly after the bill was passed.[12]
Shortly following the passage of the 1996 Farm Bill,
U.S.
farm prices predictably plunged following the expanded
production -- and tens of millions of dollars of emergency
payments were needed to prevent many farmers from losing their
farms.[13] Those low prices,
coupled with NAFTA's and the WTO's
requirements to lower tariffs, facilitated the rapid growth of
agricultural export dumping (exporting below the cost of
production) by U.S. agribusiness over the next decade.[14] Many
Mexican farmers who were particularly hard hit by a flood of U.S.
corn exports eventually emigrated to the U.S. to work on farms
and in meat packing plants. In 2002, the Farm Bill took steps to
convert the emergency payments for farmers into commodity program
farm subsidies. These programs, further adapted in ensuing Farm
Bills, support farmers when prices drop due to over-production,
and continue today in the form of revenue-insurance programs.
What Are the Outcomes of NAFTA?
Because NAFTA entered into force around the same time
as the
formation of the WTO and the 1996 Farm Bill -- not to mention
the series of free trade agreements that followed -- it is
difficult to tie precise outcomes in the agriculture sector to
NAFTA. But the trends in agriculture post-NAFTA very clearly show
the loss of small and medium sized farms, the rapid expansion of
CAFOs and contract production in the meat and poultry sector, and
the growing power of multinational agribusiness firms across the
North American market. Below we explore outcomes and trends in
agriculture and food following the passage of NAFTA.
Agricultural trade
NAFTA has dramatically
contributed to the integration of North American agricultural
markets, according to the USDA.[15]
Integration is when formerly
separate markets have combined to form a single market. Final
food products, like beef, experience integrated markets as well
as raw materials like animal feed.
Agriculture trade among the three countries has
expanded
considerably, though the U.S. agricultural trade balance with
NAFTA partners has fallen with both partners, according to an
analysis of government data by the University of Tennessee's
Agricultural Policy Analysis Center (APAC). APAC found that from
1997 through 2014, U.S. overall agricultural trade balance with
Canada was a negative $30.4 billion and with Mexico a negative
$9.6 billion.[16]
The top U.S. agricultural exports to Mexico are animal
products, grains, oilseeds and sugar, which together made up 79
percent of exports in 2015. Mexico is the top market for U.S.
pork, chicken and corn. U.S. corn exports to Mexico more than
quadrupled in volume compared to the decade prior to NAFTA.[17]
Mexico bought about 28 percent of all corn exported from the
U.S., $2.5 billion worth, in 2015-16.[18]
Mexican exports of fruits and vegetables and some
animal
products to the U.S. also expanded under NAFTA. In the year
before NAFTA, the U.S. was largely a net fruit and vegetable
exporter, and now is a net importer by a wide margin. Mexico's
annual exports of fruit and vegetables to the U.S. more than
tripled by 2013. Mexico and Canada are the largest foreign
suppliers of U.S. fruits and vegetables.[19]
The integration of the North American market is perhaps
best
understood through meat and poultry production. Between 1993 and
2013, trade between the three countries in animal products
increased more than three-fold from $4.6 billion to $15.5
billion.[20] U.S. beef exports
rose 78 percent by volume since
1993, with Mexico being the number one importer and Canada number
four.[21] The export of animal
feed from the U.S. to Mexico's pork
and poultry industries rose in correlation with increases in
Mexican pork and poultry production.
Beef and pork production itself has become much more
integrated between the three countries. The U.S. now imports live
cattle from Mexico and Canada to finish and process. Mexico has
averaged about 1.2 million head of cattle exported to the U.S.
for fattening and processing each year since 2000.[22] These
imports of live cattle have allowed the beef industry to depress
the market price for U.S. raised cattle. The result is the
reduction of the U.S. cattle herd and loss of U.S. cattle
ranchers. According to the Ranchers-Cattlemen Action Legal Fund
(R-CALF), the U.S. has lost 147,000 live cattle producers from
1996-2009.[23] Because Mexico
and Canada brought a successful case
at the WTO to challenge the U.S. mandatory Country of Origin
Labeling (COOL) rule for beef, consumers in the U.S. do not know
where their beef was born and raised.
Canadian hogs are also brought to the U.S. for
slaughter. In
2014, the U.S. imported 3.9 million Canadian feeder pigs.[24] These
pigs, birthed on Canadian farms, were finished and slaughtered in
U.S. The pig products are consumed in the U.S. or exported, often
to Canada or Mexico.
It is not just animal production that has cross-border
integration as part of its business model. For example, cotton is
produced in the U.S. and sent to Mexico to be turned into jeans
and imported back into the U.S.[25]
Much of U.S. seed is developed
in the U.S. and then sent to Mexico to be "multiplied" or grown
in sufficient quantities for sale to U.S. farmers.[26]
Farmers and ranchers
The integration of
agricultural markets has led to a decline in the number of
farmers in all three countries. The USDA does not monitor
agricultural trade related job loss, and there is no NAFTA Trade
Adjustment Assistance program for farmers as there is for some
classes of industrial workers. However, USDA data shows a
dramatic increase in the number of very large farms and a sharp
drop in the number of mid-sized farmers after NAFTA.
From 1992 through 2012 the U.S. lost 245,288, or 22
percent,
of small-scale farmers (under $350,000 annual gross farm income)
and 6,123, or 5 percent of mid-sized farmers (under $999,999
annual gross farm income). As farmland ownership consolidated in
the U.S., large-scale farms ($1 million and over annual gross
farm income) increased by 35,066, or 107 percent.[27] The number of
farms responsible for 50 percent of U.S. agricultural production
was cut in half from 1987 through 2012.[28]
The loss of many U.S. farms during this period, linked
to low
commodity prices, is also connected to major changes in meat
production. The CAFO model depends on cheap animal feed, often
sold below the cost of production. In effect, cheap corn and soy,
aided by the 1996 Farm Bill, served as a subsidy for CAFO
production, according to research by Tufts University's Global
Development and Environment Institute.[29]
The expansion of factory
farms, particularly in poultry and hog production, has led to
most of U.S. meat production coming from fewer, big operations.
The growth in CAFOs has coincided with the disappearance of
independent poultry and pork producers -- now nearly all under
contract with multinational meat companies like Smithfield and
Tyson. Contract farming has been highly criticized for being
unfair to producers, burdening them with up front costs,
associated debt, and other financial risks, while not paying fair
prices to cover those costs.
The dairy industry has also followed the CAFO model.
Smaller
dairies have been pushed out by lower prices, driven largely by
over-production from increasingly large dairy CAFOs.[30] One of the
driving motivations behind the dairy industry's active engagement
in the TPP, and now NAFTA, is to tear down Canada's supply
management program in an effort to absorb excess milk production
from U.S. dairy CAFOs.
Farmers and ranchers in Mexico and Canada have also
been hurt
by NAFTA. Based on Mexican Census data, Tufts University
researcher Tim Wise estimates that more than two million Mexicans
left agriculture in the wake of NAFTA's flood of imports, or as
many as one-quarter of the farming population.[31] And over the
last 30 years, Canada has lost one-third of its farm families.
Today, there are just under 200,000 Canadian farmers.[32]
Food system workers
The U.S. food system is deeply
dependent on immigrant labor -- particularly fruit, vegetable
and dairy production and meat processing. According to the Farm
Bureau, U.S. agriculture relies on an estimated 1.5 to two
million farm workers, with 50 to 70 percent of those
unauthorized.[33]
While proponents of NAFTA argued that it would improve
the
economic conditions in Mexico and reduce the movement of
immigrants from Mexico to the U.S., the exact opposite occurred
(as critics like IATP predicted).[34]
Mexico's poverty rate in 2014
was higher than its poverty rate in 1994, and real
(inflation-adjusted) wages were almost the same in 2014 as in
1994.[35] From 1994 through
2009, Mexican emigration to the U.S.
more than doubled. Since 2009 (directly following the financial
crisis), that trend has started to reverse with more Mexicans
returning to Mexico from the U.S. than entering the U.S.[36]
The reduction of the U.S. cattle herd has also led to
the
loss of beef processing jobs since NAFTA. According to the United
Food and Commercial Workers Union, 50 plants have closed since
taking out 52,695 in daily cattle kill capacity after the passage
of NAFTA.[37] Meat processing in
the U.S. had already begun a major
reorganization in the 1970s and 1980s, transitioning to fewer,
much larger meat packing plants, and moving those packing plants
to rural areas where union organizing was more difficult.
Simultaneously, poultry processing took off largely in anti-union
southern states -- creating low-cost competition for the beef
and pork industries. The availability of immigrant labor,
including from Mexico, aided in the meat industry's efforts to
break the unions and keep labor costs low.
U.S. factory farms, particularly dairy CAFOs, are
deeply
reliant on new immigrant labor, often from Mexico.[38] Working
conditions are often difficult and new immigrants, often
undocumented, have few legal protections. Latino immigrant
workers in the New York dairy industry released a report this
summer documenting poor treatment, including on-the-job injuries,
intimidation, poor housing and long hours for low pay.[39]
The Trump Administration's aggressive anti-immigrant
policies, from advocating for a wall along the U.S.-Mexico border
to making it more difficult for temporary agricultural workers to
enter the U.S., are causing disruptions in agricultural
operations across the country. A growing number of U.S. farm
operations (primarily fruit, vegetable and dairy) face worker
shortages due to the immigration crackdown.[40]
The fruit and
vegetable industry has testified before Congress calling for
action to allow the entry of more workers.[41]
The dairy industry
is particularly concerned with the Trump Administration's
aggressive anti-immigrant policies, warning that the price of
milk could skyrocket without low cost, immigrant workers.[42]
While immigration rules are not explicitly included in
NAFTA,
there is little disagreement that the trade agreement contributed
to rising immigration, and that U.S. agribusiness has benefitted
greatly from that development.
Agribusiness market share
Since NAFTA, there has
been a dramatic increase in agribusiness market share
concentration in nearly all sectors including seeds, fertilizer,
meat and crop production. Agribusiness concentration levels in
U.S. agriculture are high and rising -- and as competition
declines, farmers and ranchers are vulnerable to agribusiness
efforts to depress prices, according to a recent USDA report.[43]
In addition, it can be difficult for farmers and ranchers to
gather market information, i.e., price transparency and price
discovery -- in highly concentrated markets.
"One of the major consequences of NAFTA was the
consolidation
and restructuring of the agri-food system on the continent,"
writes Dr. William Heffernan of the University of Missouri. "This
has led to profound impacts on firms, employees and communities
even in the United States."[44]
The top 10 companies exporting foodstuffs from the U.S.
to
Mexico include grain companies Bartlett Grain, ADM, Cargill and
CHS, as well as meat companies such as Tyson Foods and JBS,
according to Panjiva, a trade data company. The top 10 companies
shipping north include Driscoll's, a berry grower; Grupo Viz, a
Mexican meat supplier; Mondelez, the U.S. snacks company; and
Mission Produce, an avocado producer.[45]
Many of the global meat giants have operations
throughout
North America. For example, Smithfield has pork production joint
ventures in Mexico with Granjas Carroll de Mexico and Norson.
Brazillian-owned JBS's poultry division, Pilgrim's De Mexico, has
multiple locations throughout Mexico. JBS, currently embroiled in
a major bribery and food safety scandal, is also deeply invested
in beef processing in Canada. Cargill, the meat and animal feed
giant, has 30 facilities in 13 Mexican states and extensive meat
and grain investments in Canada.
Smithfield, the world's largest pork producer now owned
by
the Chinese WH Group, benefited in particular from NAFTA. An
analysis by Tufts University's Global Development and Environment
Institute concluded that a glut of cheap animal feed resulting
from the 1996 Farm Bill, allowed Smithfield to export pork to
NAFTA countries at below the cost of production prices. The
company then benefited from NAFTA's investment rules to expand
its Mexican operations. The diminishing number of farmers in
Mexico caused by NAFTA also provided access to cheap labor.[46]
When President Trump threatened to pull out of NAFTA,
it
immediately kicked their lobbying into high gear to reach the
White House with their concerns. At the sole NAFTA public hearing
held by the U.S. Trade Representative (USTR), Cargill emphasized a
cautionary approach "We appreciate the Administration's guiding
principle of ‘do no harm' for the NAFTA renegotiations."[47]
In comments to the USTR, JBS USA also urged the USTR to "first,
preserve current market access and the conditions that support
integrated value chains, including all tariff and duty
preferences and rules that allow U.S. businesses to compete in
the North American market."[48]
And the U.S. Meat Export Federation
warned, "any erosion in the market access terms contained in the
existing NAFTA agreement would be highly detrimental for farmers,
feedlots, meatpacking plants, and exporters."[49]
Food safety
Just as trade agreements have shaped
U.S. farm policy to benefit agribusiness, so have trade deals
contributed to the weakening of U.S. food safety rules to benefit
food companies. The food safety, plant and animal disease
provisions in NAFTA, known as Sanitary and Phytosanitary Measures
(SPS), and soon thereafter the establishment of the WTO SPS
rules, helped usher in a new era of food safety de-regulation.
NAFTA established that Mexico and Canada food safety regulations
did not have to be "equal" (or the same as) to U.S. regulations,
but rather the more difficult to interpret and verify
"equivalent." The definition of "equivalence" was not part of
NAFTA -- nor was the requirement that independent government
inspectors, rather than meat company staff, do the actual
inspecting.
Not only did NAFTA establish a food safety template for
future trade deals in which trade concerns were given priority
over consumer health, it also helped propel efforts to deregulate
and privatize food safety inspection in the U.S.
As food safety expert and former IATP board member Rod
Leonard has written, rules set at NAFTA and at the international
standards body Codex, were used in 1996 to push U.S. food safety
standards, particularly for meat and poultry, toward greater
company controlled inspection. "As the global norm in food
safety, 'equivalence' was intended to start the race to the
bottom of food safety standards globally," Leonard wrote.[50]
Earlier this year, USDA auditors found that the meat
inspection system for most meat processing plants (including JBS
and Cargill beef operations) in Canada was not "equivalent" to
U.S. standards. Canada has moved toward a privatized inspection
system, with the companies taking on more responsibility,
according to Food and Water Watch.[51]
The rise of food imports under NAFTA has increased
pressure
on food safety inspectors at the Food and Drug Administration and
the USDA. According to Public Citizen, the FDA physically
inspects only 1.8 percent of food imports it regulates
(vegetables, fruit, seafood, grain, dairy and animal feed); and
the USDA only 8.5 percent of beef, pork and chicken that is
imported.[52]
The need for greater oversight of food imports has been
severely undermined by inadequate funding of food safety
inspection programs. In 2011, President Obama signed into law the
Food Safety Modernization Act, but earlier in 2017, Congress
appropriated only about half the resources needed to implement
the law. A GAO report found that the FDA could not meet the Food
Safety Modernization Act (FSMA) mandate for inspections of
foreign importers due to lack of resources.[53]
According to food
safety expert Bill Marler, "FDA is inspecting only about 2,500
foreign food suppliers today. The FDA should be inspecting nearly
20,000."[54]
NAFTA also allowed for the regionalization of food
safety
standards to facilitate trade in meat. This regionalization was
particularly important in cases of animal disease outbreaks. For
example, when localized outbreaks of Avian influenza hit specific
counties in specific U.S. states, poultry trade with Mexico was
allowed to continue uninterrupted, with the exception of those
states.[55]
NAFTA's SPS rules have been tested in recent years with
the
development of animal diseases in multiple NAFTA countries. These
diseases may be linked to high levels of market integration. In
2009, a new flu strain (a mixture of swine, human and avian
flues) emerged out of the state of Vera Cruz Mexico, an area
heavily populated by hog CAFOs, later spreading into parts of the
U.S. There is some evidence that the initial strains of the flu
emerged from North Carolina -- home to a high density of hog
CAFOs -- leaving pathogen expert Rob Wallace to dub it the
"NAFTA flu."[56] In 2014, a
deadly porcine epidemic diarrhea virus
(PEDv) in piglets hit both U.S. and Mexico pork production,[57] and
this year the virus hit Canada.[58]
As the U.S. has struggled with
outbreaks of various strains of avian flu in confined poultry
facilities throughout the country, so has Mexico in Veracruz,
Puebla and Jalisco states, as has Ontario, Canada.[59, 60]
Health
The adverse health effects of rising obesity
rates have been well documented in the U.S.[61]
Similar rising
obesity rates in both Mexico and Canada have been linked to
NAFTA. In the case of Mexico, increases in imports of sweeteners,
processed foods and meats have translated into increased
consumption of snack foods, processed dairy products and soft
drinks.[62] Research published
this year from Canada reached
similar conclusions.[63]
Aside from increased imports, NAFTA's investment
provisions
helped facilitate the investment of U.S. processed food companies
in both Mexico and Canada. Food sales associated with U.S.
investment in Canada and Mexico are now substantial. In 2012,
majority owned affiliates of U.S. multinational food companies
had sales of $32.4 billion in Canada and $13.8 billion in
Mexico -- these sales were 90 percent larger than the value of
U.S. processed food exports to Canada and Mexico.[64]
Climate change
While greenhouse gas (GHG) emissions
overall increased in all three countries during the NAFTA years,
GHGs specifically tied to agriculture varied. In the U.S.,
agriculture-related GHGs increased from 1990 to 2015 by eight
percent. The Environmental Protection Agency has identified the
increase in CAFOs as a primary cause: "One driver for this
increase has been the 64 percent growth in combined CH4 and N2O
emissions from livestock manure management systems."[65]
Agriculture-related GHGs increased slightly in Mexico from 1990
to 2015, also tied to the livestock industry.[66]
Agriculture-related emissions have remained largely flat over the
last decade in Canada.[67]
What Is the Process for Renegotiating NAFTA?
The President and the executive branch have the
authority to
negotiate with foreign countries, but Congress must ratify those
agreements. The Trump administration must first give Congress a
90-day notice that it will begin NAFTA renegotiation. As part of
that notice, the administration must outline its negotiating
objectives. Those objectives must also be consistent with trade
objectives outlined by Congress in Trade Promotion Authority
legislation (also known as Fast Track), which is in effect until
July 1, 2021.
In July 2017, President Trump announced his negotiating
objectives for NAFTA. The objectives were quite vague, and
followed very closely the trade objectives previously outlined
under the Trade Promotion Authority legislation. For agriculture,
the objectives emphasize the need to "maintain existing
reciprocal duty free market access," expand market access by
reducing any remaining tariffs, and promote "greater regulatory
compatibility."[68] There has
been little explanation from the
Trump Administration on how it would achieve these goals.
The first round of NAFTA negotiations will begin on
August
16, 2017 in Washington, D.C. Again, the President and the
executive branch can negotiate and come to an agreement with
trade partners, and by the letter of the law are meant to consult
with Congress throughout, and present the new agreement to
Congress for an up-or-down vote -- no amendments to the
agreement are allowed. Trade negotiations typically take years,
although the Trump administration has said it hopes to finish
NAFTA by the end of 2017 or early 2018.
The Trump administration has threatened to pull out of
NAFTA
if it cannot reach a satisfactory deal with Canada and Mexico. In
that case, the U.S. would have to provide Canada and Mexico a
six-month notification of its intention to withdraw. In the case
of withdrawal, trade would not come to a screeching halt between
the countries. Mexico would shift toward most-favored nation
status accorded all WTO members with the U.S., while it is likely
that the 1989 U.S.-Canada Free Trade Agreement, which also
eliminated most tariffs between the two countries, would govern
trade with Canada. Canada and Mexico could continue under the
terms of NAFTA in trade between the two countries if they so
choose.
Aside from the technical process for renegotiation, the
lack
of transparency and public input into trade policy has been one
of the major targets of criticism of past trade deals, including
the TPP. Past trade deals have been negotiated largely in
private, with a selected delegation of mostly corporate advisors
at the negotiating table. Members of Congress are allowed to read
the draft negotiating texts only in a secure room with a guard
posted. Neither electronic devices nor expert advisors may
accompany the Member of Congress, as they try to understand
hundreds of pages of rules and thousands of pages of tariff
schedules. The Trump Administration gave citizens only a small
window for public input on NAFTA and less than a month public
comment period (but nevertheless received more than 50,000
comments). The Administration held only a single public hearing
on the agreement over three days in Washington, D.C.
The Trump Administration has largely abandoned existing
trade
advisory committees set up through the U.S. Trade Representative
and other government agencies by the Federal Advisory Committee
Act. The White House instead has created new avenues of corporate
involvement in government broadly -- relying heavily on
private interests to staff the administration from firms like
Goldman Sachs and Exxon/Mobil. But the Trump Administration has
also established an influential Business Council, chaired by the
CEO of the agrochemical giant Dow Chemical, and including
representatives from companies like Walmart, PepsiCo, and JP
Morgan, among others.[69] [...]
To read the complete report click here.
Endnotes
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American
Free
Trade
Agreement,
Secretariat. Accessed: August 8, 2017.
2. U.S. Department of
Agriculture. The North American
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3. U.S.
International Trade Commission. Potential Impact of
the North American Free Trade Agreement on Selected Industries.
January 1, 1993.
4. U.S.
General Accounting Office. North American Free Trade
Agreement: Assessment of Major Issues, Volume 1. September 1993.
5. Bradsher, Keith. "Last
Call
to
Arms
on
the
Trade
Pact." New
York Times.
August 23, 1993.
6. Hufbauer, Gary, Jeffrey
Schott. "North
America
Free
Trade
Agreement:
Everybody
Wins." USA
Today. September 1, 1993..
7. Suppan, Steve. Mexican
Corn,
NAFTA
and
Hunger. Institute
for Agriculture and Trade Policy. May 1996.
8. M. Angeles Villareal and Ian
F. Fergusson, The North
American Free Trade Agreement, Congressional Research Service,
February 22, 2017.
9. Stop
Investor
State Dispute Settlement. NAFTA. Accessed
August 8, 2017.
10. North
American
Free
Trade
Agreement, Secretariat.
Accessed: August 8, 2017.
11. Dawkins, Kristen, Steve
Suppan. Sterile
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the
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and
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Institute for Agriculture and Trade Policy. November 1996.
12. Lilliston, Benjamin, Niel
Ritchie. "Freedom
to
Fail:
How
U.S.
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helped
Agribusiness
and
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Monitor. July/August 2000.
13. Ray, Daryll and Harwood
Schaffer. The 1996
"Freedom to
Farm" Farm Bill. Agriculture Policy Analysis Center. University
of Tennessee. January 17, 2014.
14. Murphy, Sophia, Ben
Lilliston, Mary Beth Lake. WTO
Agreement on Agriculture: A Decade of Dumping. Institute for
Agriculture and Trade Policy. February 2005.
15. Zahniser, Steven, Sahar
Angadjivand, Thomas Hertz,
Lindsay Kuberka, and Alexandra Santos. NAFTA
at
20:
North
America's
Free
Trade
Area
and
its
Impact
on
Agriculture. Economic
Research Service. U.S. Department of Agriculture. February 2015.
16. Schaffer, Harwood, Daryll
Ray. Trade Deals
and U.S.
Agriculture. Agriculture Policy Analysis Center. University of
Tennessee. December 18, 2015.
17. Zahniser, Steven, Sahar
Angadjivand, Thomas Hertz,
Lindsay Kuberka, and Alexandra Santos. NAFTA
at
20:
North
America's
Free
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Area
and
its
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on
Agriculture. Economic
Research Service. U.S. Department of Agriculture. February 2015.
18. Clayton, Chris. "U.S.
Corn
Exports
to
Mexico
Could
be
at
Risk." DTN. February 14, 2017.
19. Johnson, Renee. The U.S. Trade
Situation for Fruit and
Vegetable Products. Congressional Research Service. December 1,
2016.
20. Zahniser, Steven, Sahar
Angadjivand, Thomas Hertz,
Lindsay Kuberka, and Alexandra Santos. NAFTA
at
20:
North
America's
Free
Trade
Area
and
its
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