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Profile: North American Free Trade Agreement

North American Free Trade Agreement was a participant or observer in the following events:

The North American Free Trade Agreement Implementation Act (H.R. 3450) is voted on by the US House of Representatives and passes 234-200. [US Congress, 11/17/1993] It is later estimated that Congresspersons who voted in favor of H.R. 3450 received an average of $8,018 more in corporate PAC contributions than those who voted against. [Francia, 1/2001, pp. 98, 103]

Entity Tags: North American Free Trade Agreement, US Congress

Timeline Tags: Neoliberalism and Globalization

US President Bill Clinton signs the North American Free Trade Agreement (NAFTA), which he says will “tear down trade barriers between” the US, Canada, and Mexico. [US President, 12/8/1993]

Entity Tags: William Jefferson (“Bill”) Clinton, North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

White supremacists, right-wing anti-government organizations, and others, including many members of the so-called “Patriot Movement” (see February 1992) are enraged over the implementation of the North American Free Trade Agreement (NAFTA). According to the Southern Poverty Law Center, they see NAFTA as “reflecting the growing power of a global elite, or New World Order” (see September 11, 1990). [Southern Poverty Law Center, 6/2001]

Entity Tags: Southern Poverty Law Center, North American Free Trade Agreement

Timeline Tags: US Domestic Terrorism

A 15-year period begins during which most trade barriers between the US, Canada, and Mexico will be dismantled in accordance with NAFTA. The New York Times comments: “The government has taken few steps, however, to prepare smaller and medium-sized companies, poor farmers, and inefficient industries for the new competition. Even after a wave of industrial restructuring that cost half a million Mexican jobs, worker re-training programs are almost nonexistent.” [New York Times, 1/1/1994]

Entity Tags: North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

Under NAFTA, Mexico reduces its protection of domestic corn growers. This leads to a massive influx of corn from the US, where its production is heavily subsidized. This has the effect of reducing the price of corn in Mexico by 70 percent and ruining the livelihoods of some 15 million Mexican farmers who depend on the crop for income. [Fanjul and Fraser, 8/2003, pp. 23 pdf file]

Entity Tags: North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

Around 100,000 farm workers march to the main square of Mexico City to protest the removal of duties on farm imports that occurred just weeks earlier (see January 1, 1994). They demand that the government renegotiate NAFTA to better protect Mexican agricultural producers. [Houston Chronicle, 2/1/2003; Fanjul and Fraser, 8/2003, pp. 23 pdf file]

Entity Tags: North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

The Mexican government, after weeks of negotiation with protesting farmers (see January 30, 2003), signs the National Rural Accord (also known as the National Agreement for the Countryside and the Development of Rural Society). The accord announces that the government will make “sweeping changes to rural infrastructure and state farm policy to modernize Mexico’s outdated agricultural system.” As part of the agreement, Mexico will also ask the US and Canada to allow for protection of Mexico’s rural economy, and review the possibility of implementing mechanisms against dumping and unfair competition. [Reuters, 4/28/2003; Fanjul and Fraser, 8/2003, pp. 23 pdf file]

Entity Tags: North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

In response to a suggestion by Mexico that it will put tariffs on corn to protect domestic farmers from subsidized US corn (see April 28, 2003), the Chairman of the US Senate Committee on Finance, Charles Grassley, writes a letter to Mexican officials stating: “Mexico has recently undertaken a number of actions against US agricultural products that undermine the spirit, if not the law, of NAFTA. Mexico’s continued pattern of not meeting its international trade negotiations is unacceptable.” [Fanjul and Fraser, 8/2003, pp. 23 pdf file]

Entity Tags: Charles Grassley, North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

Senator Norm Coleman, chairman of the Foreign Relations Western Hemisphere subcommittee, holds a hearing in which he says that a “tough response” against Mexico would be “warranted” for “unilateral renegotiation of NAFTA.” Present at the hearing are Bush administration officials and leaders of agribusiness interest groups. Jim Quackenbush, board member of the National Pork Producers Council, complains of a Mexican anti-dumping case against US hog exports and claims his goods are often halted at the border for “alleged sanitary concerns.” He calls for the US to “use all available means” to keep Mexico’s market open to US agricultural goods. Allen Johnson, chief agriculture negotiator in the office of the US Trade Representative, says that the US will work to defend its interests and is ready to retaliate if Mexico does not accede to its demands. [US Congress, 5/20/2003 pdf file; Star Tribune, 5/21/2003]

Entity Tags: North American Free Trade Agreement, Senate Foreign Relations Committee

Timeline Tags: Neoliberalism and Globalization

A report by the Carnegie Endowment for International Peace finds that the positive aspects of NAFTA just barely compensate for its negative effects. Among its findings:
bullet The net jobs gain in Mexico has been surprisingly small. In fact, 30 percent of all jobs that have been created in the maquiladora sector (export assembly plants) have been lost as company operations have since moved to lower wage countries such as China.
bullet Despite growth in productivity, real wages in Mexico are lower than they were when NAFTA first took effect. Although this can partially be attributed to the Peso Crisis of 1994-1995. It is also noted that wages in Mexico are “diverging from, rather than converging with, US wages.”
bullet Income disparity has grown drastically, with the top 10 percent of households having increased its share of the national income while the remaining 90 percent has lost its share or has seen no change at all. [Papademetriou et al., 8/2003]

Entity Tags: North American Free Trade Agreement, Carnegie Endowment for International Peace

Timeline Tags: Neoliberalism and Globalization

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