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NAFTA increases poverty in Mexico while the rich profit

By Bobby Gomez

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Published: Monday, August 31, 2009

Updated: Wednesday, September 9, 2009

Bobby

Bobby Gomez

“We don’t need illegals,” screamed a man outside a town hall meeting in New Hampshire, as reported in The Washington Independent. “Send ‘em all back. Send ‘em back with a bullet in the head the second time.” The man continues with, “Read what Jefferson said about the Tree of Liberty: It’s coming, baby.”

Thomas Jefferson proclaimed, “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.”

But why are so many Mexican and Latin American immigrants risking their lives and freedoms to travel to the United States?

The answer for most would be because they are poor and see opportunity in the United States. But this answer neglects the question because poverty is an adjective to an individual’s status quo, not a cause itself.

In the early 1990s, Mexican President Carlos Salinas de Gortari (1988-1994) declared he would help make Mexico a “first world” country. He had hoped to do this by signing the North American Free Trade Agreement. NAFTA is an agreement between the United States, Canada and Mexico to reduce tariff and nontariff barriers to trade and investment. The agreement took effect in January 1994.

In order to ratify NAFTA, Mexico had to remove Article 27 of its constitution. Article 27 promised the right of land to poor farmers by establishing ejidos [eh-HEE-dohs]. In ejidos, the community owns the land, and it can never be taken from the community. There were 45 million acres of ejidos. Article 27 also prohibited foreign ownership of land. Mexican politician Cuauhtémoc Cárdenas warned that removing Article 27 allowed businesses to take the land from the farmers, displacing approximately eight to 10 million people, most of which will migrate to the United States.

In addition, NAFTA has only created profits for the rich, increasing production of merchandise while wages in Mexico have declined by 20 percent and minimum wage has fallen by 50 percent, according to the Instituto Nacional de Estadística Geografía e Informática and the Mexican Agricultural Ministry.

One of the most controversial sections of NAFTA is Chapter 11. According to the Institute for Policy Studies, “Foreign investors can sue NAFTA governments directly to demand compensation over any governmental act, including public interest laws that diminish the value of an investment.”

The documentary film “Trading Democracy” tells the story of a toxic waste dump in the state of San Luis Potosí. The dump contributed to a cancer epidemic in the region so it was closed by the local and state government. The U.S. corporation Metaclad wanted to use the land, so it sued the government under Chapter 11, citing that the corporation was being denied future profits. The Mexican government was forced to pay Metaclad more than $16.7 million.

The United States was also involved in a $970 million suit where the Canadian corporation Methanex cited that the state of California eliminated future profits by phasing out the cancer-causing gas additive MTBE because it was found in drinking water. A NAFTA panel ruled against Methanex protecting the citizens of California, unlike those of San Luis Potosí.

The effects of NAFTA have led to problems with immigration and poverty while making the rich richer. One goal of NAFTA was to stabilize and spread democracy. This is an unreachable goal if we continue to cater to large businesses, who only look after their interest in profits and neglect to care for those in need. We must place greater emphasis on socially conscious policies, and stand firm that the value of a human life and the “pursuit of happiness” are more important than the interest of business. Only then do I believe we can begin to solve the problems with our borders.


Bobby Gomez is a senior in elementary education. Please send comments to opinion@spub.ksu.edu.

Comments

9 comments
cargocult
Sat Sep 5 2009 13:36
Nice work. Go read "Bad Samaritans: The Myth of Free Trade" and then you'll have no problem silencing those who claim to have special economic knowledge. For example, consider the corn issue - the U.S. subsidizes corn production with billions of dollars, leading to surplus production. Under NAFTA, that subsidized corn can be dumped on Mexican markets at below-cost - thus, driving the small farmers out of business and allowing large corporations to buy up their land on the cheap.

Once those large corporations had cornered the market and made Mexico dependent on U.S. imports, they did what any unethical greedy corporation would do - they jacked up the prices and made huge profits, which eventually led to massive street protests in Mexico - and to top it all off, the conglomerates tried to blame it all on ethanol.

Stan
Tue Sep 1 2009 19:32
lol, I really like this article nice work, Bobby Gomez. Imagine real information for a change.

Libray!

the KHAN!
Tue Sep 1 2009 01:15
Mike calls us Gringo's then speaks out about OUR racism?

Good one.

Emily
Mon Aug 31 2009 21:55
Great article, Bobby. Well researched and explained.
mark
Mon Aug 31 2009 21:37
So to be a humanitarian is the ultimate end of human existence? but if i don't look out for myself then how could i ever begin to help anyone else? furthermore, if i did have the means, and the desire to help someone, why would I need a government to do so?

I say to mexicans, come on up and work as much as they want. its great for everyone so long as the US govt doesnt do the same things the mexican govt did to drive them north in the first place. unfortunately the US govt, with it's massive social handout systems can't afford the citizens, much less any immigrant that argues for claims. that's where most of the resentment comes from. But no matter, the govt will tax the evil corporations to pay for it all - suffocating the opportunities for anyone who comes to America for a better life.

big govt is at the root of the problem. and behind that big govt problem are little people whose only goals are control over other people's money, and the power over other people's lives. they are the little people that would never have the courage to leave a terrible country and start from nothing and make something for themselves in a country that actually allows them to do so - but how long will it be before the little minds destroy the liberties that make it all possible?

Your name
Mon Aug 31 2009 19:07
We have a winner! Mike whips out the race card. Telling other nation's to get their act together and not viewing America as the world's milch cow is "racism." Good job, Mike. Your professors must be proud.
Mike
Mon Aug 31 2009 17:59
This goes to show how racism is still part of our society and how much hatred can be expressed towards another country or another race. The Gringos still don't understand the big picture of being humanitarians and not only look out for themselves.
Your name
Mon Aug 31 2009 16:53
Standard rubbish of blaming Mexico's numerous, self-inflicted problems on the Gringo. Things will never improve until the Mexican people decide to take responsibility for their situation and make the necessary changes in their country. Sniveling about what poor wuddle victims we are is the quick road to loserdom.
Heywood Jablowme
Mon Aug 31 2009 12:23
Are you an economist? Oh, your an elementary ed major. STFU!






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