Why U.S. and Mexican workers should oppose Free Trade Agreement

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For forums, classes and other activities, contact the Socialist Action Socialist Action SOCIALIST ACTION MAY 1991 19 The U.S. and Mexican governments are pressing ahead in negotiations for a so-called Free Trade Agreement (FTA) between the two countries. Such an historic pact would phase out most, if not all, tariff barriers between Mexico and the United States.

In 1988, the U.S. and Canadian governments signed an FTA. Since then, U.S. exports to Canada have grown by $12.3 billion. Big business hopes for even greater benefits from a pact with the semi-colonial country of Mexico, whose economy is only four percent the size of that of the United States.

Average production wages in Mexico, moreover, are 14 percent to 16 percent of those in the United States (i.e., in many cases less than $1 per hour). There are also few environmental laws to hinder major U.S. corporations from super-polluting Mexico.

AFL-CIO opposes FTA Not surprisingly, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is strongly opposed to the Bush administration's agreement as now written.

The labor leaders are not against an FTA per se. They are for a "fair" deal. Their fire is aimed at eliminating the right of the White House to continue to use "fast-track" negotiations with Mexico.

Fast-track authority allows the U.S. government to negotiate an FTA without any chance for amendments by Congress, which could only vote the agreement up or down. Fast-track authority will automatically be extended for another two years after June 1 unless specifically rejected by Congress.

The labor tops argue that an FTA with Mexico would lead to U.S. companies moving to Mexico to take advantage of low wages. This, they say, will lead to loss of jobs from the relocated plants and from a flood of Mexican-made products forcing other workers to the unemployment line.

In other words, the AFL-CIO officialdom's opposition to the pact is because it supports protectionism— laws limiting "free trade." It falsely argues that U.S. workers can "save" our jobs by preventing big business from building plants abroad. The problem with this analysis is that capitalists (the owners of electronic, auto, and other companies who move to Third World countries and other countries) seek the lowest labor and other costs to maximize their profits.

In the United States, companies are always "relocating" to areas where labor and other costs are lower-from union states to non-union "right-to-work" states, from high-property-tax regions to lowproperty-tax regions, etc.

The maquiladoras The U.S.-Mexico Free Trade Agreement is simply an extension of this everyday policy for the capitalists. The United States and Mexico have a 1900-mile border. U.S. firms already locate plants south of the border, many of them maquiladora assembly-lines, whose products have, in effect, duty-free entry to U.S. markets.

By some estimates, around 500,000 Mexicans now work in these plants. These workers, a large percentage of whom are women, are paid on average 50 percent less than other Mexican production workers. That's super, super exploitation!

The official labor movement claims these factories have led to a loss of U.S. jobs. While it is obviously true that many factories have closed in the United States and been reopened in Mexico, the net result of these geographical shitts nas not been a loss of U.S. jobs.

The rise of the maquiladoras in the 1980s has led to a U.S. trade surplus with Mexico.

This means more U.S. jobs have been created than lost. But there is a catch-the jobs lost are high paying, while those gained tend to be low paying and all non-union.

I'm opposed to the U.S.-Mexico trade agreement. But I reject the AFL-CIO's protectionist arguments. They are not only inaccurate but can also lead to racist attacks on Mexican workers for "taking our jobs." It is the employing class here and in Mexico who are for expanded tariff-free trade with Mexico.

Super-exploitation

I oppose the FTA because it will increase the exploitation of Mexican workers by U.S. companies. These companies are more than willing to hire Mexican capitalists to run their plants at low wages. Mexican capitalists, like their U.S. counterparts, are more than willing to pollute the environment.

The main losers if an FTA is adopted will be Mexican working people. Mexican workers already suffer from unfair trade relations with the U.S. and other advanced countries.

History has shown that advanced (i.e., imperialist) countries don't export their technology to benefit the local people. That's why Latin America and Africa are so underdeveloped. It's why they all have huge unpayable foreign debts.

Mexico has a foreign debt of nearly $100 billion. It pays huge interest costs mainly to U.S. banks. Fair trade is impossible between imperialist and semi-colonial countries.

The more that Mexican workers only Volume One of "Stalin" was are exploited, the less strong U.S. workers will also become. Any new jobs that are created will be poorly paid.

An alternative policy The unions will be weaker too, if they continue to follow their current policies. The challenge facing labor is not stopping "fast-track" negotiations but developing a strategy based on solidarity with Mexican workers, aimed at advancing the interests of U.S. and Mexican working people.

The AFL-CIO and its Baltimore P.O. Box 16005 Baltimore, MD 21218 Boston P.O. Box 1046 GMF Boston, MA 02205 (617) 497-0230 Chicago P.O. Box 578428 Chicago, IL 60657 (312) 327-5752 Cincinnati P.O. Box 21015 Cincinnati, OH 4521 (513) 272-2596 Cleveland P.O. Box 6151 Cleveland, OH 44101 (216) 429-2167 affiliated Detroit P.O. Box 32546 Detroit, MI 48232 Kansas City P.O. Box 32543 westpor slation, Narisas City, MO 64111 Los Angalos P.O. Box 862014 Los Angeles, CA 90086 (213) 660-2891 Forinformation about other areas, contact the national office of Socialist Action at (415) 821-0458. branch in your area! Call (415) 821-0458 Refreshments served unions should use our resources to demand that Washington cancel Mexico's debt immediately. We should support demands by Mexican unions for higher pay for workers in the maquiladoras. We should support strong environmental standards in both countries.

Our policy should be to insist that Washington adopt legislation giving full unemployment compensation and job retraining to workers here whose plants are shut for any reason. We should fight for national healthcare. That's the only effective labor policy to protect our interests.

Minneapolis

P.O. Box 14087 Dinkeytown Station Minneapolis, MN 55414 (612) 430-1476 Now York P.O. Box 20209 Ca. Fin. 693 Columbus Ave.

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By Malik Miah