Tuesday, February 5, 2008

More on NAFTA and Corn: Destroying Mexico

By David Seth Michaels from The Dream Antilles



Mexican Corn Field


Last month, both the US and Mexican officials were publicly praising NAFTA while Mexican farmers begged for help.

According to Reuters:

U.S. officials trumpeted an end to farm trade restrictions under NAFTA, the controversial North American trade deal, on Friday, while Mexican farmers vowed to take to the streets to protest liberalization they fear will run them into the ground. /snip

Mark Keenum, U.S. undersecretary for farm and foreign agriculture, said the agreement had been a win for farmers in both countries, "creating not only dramatic growth in two-way agricultural trade, but providing our farmers, ranchers and processors with the potential (for) new export opportunities."

This is some kind of a malicious joke. NAFTA is no "win win". It's really a disaster for Mexican subsistence farmers, US immigration policy, and bio diversity. The only winner is US agribusiness.

Mexican Farmers And Immigration
Mexican farmers cannot see NAFTA as a win. Not by a long shot. They recognize it as a disaster.

[T]he changes [brought by NAFTA] are deeply unpopular in Mexico, where farmers fear unrestricted imports will depress prices and stir competition in producing white corn, which has been grown since the Aztec times.

Most of Mexico's three million corn producers and half a million bean producers make a living on small farms that are a far cry from the sweeping, industrialized operations that characterize U.S. agriculture.

Corn tariffs have gradually been phased out since the trade deal was implemented, and imports of U.S. yellow corn to Mexico, mostly used in animal feed, have skyrocketed. They now account for close to 35 percent of Mexican consumption.

Some background:
*At the start of the year Mexico lifted 14 years of protection for corn, beans, milk and sugar under the North American Free Trade Agreement (NAFTA) that took effect in 1994. The regional trade pact groups Mexico, the United States and Canada.

* Mexican lawmakers demanded [on 1/4/08 that] President Felipe Calderon consider renegotiating the North American Free Trade Agreement and meet with farmers, who fear a flood of cheap U.S. imports.

* "This is a national security issue," said Samuel Aguilar, of the opposition Institutional Revolutionary Party, in a speech before the Congress. "The agricultural chapter of NAFTA could generate a social conflict." /snip

Mexico may lose as many as 350,000 farm jobs this year because of competition from the U.S.

* Some Mexican farmers say competing against highly subsidized U.S. goods could put thousands out of work on top of about 2 million Mexican farm jobs lost over the last decade.


NAFTA is a recipe for complete disaster in Mexico:

Timothy Wise, a professor at Tufts University in Massachusetts, calls unblunted liberalization in those sensitive goods a "recipe for disaster" for those who depend on Mexico's vulnerable farm sector.

"Just as the U.S. became the largest supplier of animal feed, it has the capacity to become a dominant supplier of dry beans and white corn, undermining markets in Mexico and creating a dependence on external sources for the two very clear main staple foods," he said.


Of course, this economic disaster will lead directly to the displacement of small, Mexican farmers, and act as an incentive to those farmers' forced migration to the US. In short: NAFTA's destroying Mexican subsistence farmers and forcing them through economic pressure to leave failing, subsistence farms and enter the US. I've discussed this before here and here.

A Bio-diversity Disaster
But there are additional, heavy costs. NAFTA will have a gigantic, negative biodiversity impact. There are two primary kinds of corn grown in the US, white and yellow. Yellow is mostly animal food. And in the US, unlike Mexico, corn is a genetically modified crop. "In the US, by 2006 89% of the planted area of soybeans, 83 percent of cotton, and 61 percent maize was genetically modified varieties." source. Even before the end of NAFTA, genetically modified corn presented a problem in Mexico:
Rural and urban activists throughout the Americas are calling on grain exporters, the biotech industry, and the US and Canadian governments to stop dumping untested and unlabeled genetically engineered corn on Mexico and other nations, where irreplaceable corn varieties are being damaged by "genetic pollution." In Mexico researchers have detected widespread contamination of traditional varieties of corn, caused by surreptitious imports of genetically engineered corn into Mexico by grain export giants such as Archer Daniels Midland and Cargill
source

And now, there is even greater reason to be concerned:
Those who want to introduce bioengineered corn in Mexico appear to be gaining an upper hand.

A law to allow experimental planting of GMO strains in northern Mexico was passed two years ago but was never signed. Agriculture Minister Alberto Cardenas said this week the law could go into effect in a matter of weeks.

"We don’t want to be behind. We have to start testing now," said Catalino Flores, a geneticist working with Salazar’s organization in San Salvador El Seco.

Corn yields in the United States can be more than three times those in Mexico, according to Mexican growers.

"There will be drought resistant corn in 5 to 10 years. If you don’t plant something like that when everyone else is, you’ll be down the drain," Flores said.

About half of U.S. yellow corn sent to Mexico comes from genetically modified seeds. Mexico’s agriculture minister reckons GMO seeds smuggled in from the United States are already being planted in northern Mexican states.


So what's the big deal? It's fairly simple: GMO corn threatens non-GMO corn species, undermining bio-diversity.
[S]some farmers worry that introducing GMO seeds could contaminate hundreds of wild blue, red and multicolored corn varieties planted for centuries in Mexico.

"The farmers who want to plant transgenic corn are irresponsible, they don’t care if the are putting the genetic heritage of Mexico at risk," said Victor Suarez head of a small farmers’ group that wants keep trade protections for corn and beans.

The ancient Maya, who lived in southern Mexico over 1,000 years ago, believed the gods made men from maize. The plant was adopted over 500 years ago by Spanish conquerors and spread to the rest of the world.
source.

So to make a long story short, not only will NAFTA destroy Mexican subsistence farming and contribute to migration from Mexico to the US for former subsistence farmers, it also will endanger the bio diversity of corn in Mexico (if not the entire hemisphere).

NAFTA is an unmitigated disaster for Mexico. In the US, we don't discuss its impact on Mexico, we only discuss how it opened the market in Mexico for US corn and other products. There will be huge profits to agribusiness in the US from new markets. But hidden from view in the traditional media, there will be economic devastation for small farmers in Mexico, displacement of families from their farms, and ecological destruction.

2 comments:

John Wallace said...

AMERICAN SOVEREIGNTY AND THE NORTH AMERICAN UNION

The term ‘Free Trade’ is usually defined as the absence of tariffs, quotas, or other governmental barriers to international trade. There is no doubt that some recent free trade agreements have not been very good for the American worker. On the other hand, the agreements have been great for the large multinational corporations, particularly those that have moved their manufacturing plants from the United States to China, Mexico and other low-wage countries where they can hire people there for a few dollars a week. These corporations can now produce their products without worrying about the costs of meeting OSHA requirements, providing employee health care or pensions for its workers and then they can bring their products back into the USA to sell. These products oftentimes are not made to the same quality standards as when they were produced in America and as recents incidents involving Chineese imports have shown, these products can pose health hazards to Americans as well.

The supporters of many free trade agreements, particularly the North American Free Trade Agreement (NAFTA), have always promised increased exports, better jobs and better wages. Under many of these free trade agreements, however, just the opposite has occurred. Under NAFTA, for example, the U.S. trade deficit has soared and now averages $55-65 Billion dollars per month; the U.S. has lost over a million manufacturing jobs and real wages in both the U.S. and Mexico have fallen significantly. In short, NAFTA has not been a friend to the citizenry of either the United States or Mexico.

In 2005, a new mechanism was created to speed the further expansion of the NAFTA free trade agreement into a North American Union. It is called the Strategic and Prosperity Partnership of North America (SPP)’ The SPP is designed to facilitate the establishment of a North America Union through the “economic integration” of the US, Mexico and Canada. The most important feature of the SPP is that it does not require congressional ratification or the passage of any federal legislation by the congress of the United States. This design places the negotiation fully within the authority of the executive branch in the United States. How else would Mexican truckers be able to begin operating in the USA over the objections of Congress, American truckers and most of the American people?

The people and their elected representatives in congress no longer seem to have a voice when it comes to international trade. This is definitely a national sovereignty issue. International trade issues that affect 300+ million Americans should be made by the people’s representatives in Congress, not by a handful of government bureaucrats and corporate elites who use their government connections to bypass congress and ignore our Constitution, which expressly grants Congress the sole authority to regulate international trade.
The goal of these international trade elite is to create an integrated North American Union, complete with a currency, a cross-national bureaucracy, and virtually borderless travel within the proposed Union. Like the European Union, a North American Union would represent another step toward the destruction of our national sovereignty. A free America, with limited, constitutional government, would just be a memory.

Not all free trade agreements are bad, but I believe that the United States of America must withdraw from any international agreements that infringe upon the freedom, sovereignty and independence of the American people.

By:
JOHN W. WALLACE
Candidate for Congress
New York’s 20th Congressional District
www.johnwallaceforcongress.com

Publius said...

Just as the US has had to adjust to trade with China, with its attendant loss of manufacturing jobs, Mexico will have to stand on its own as a world competitor. If Mexico insists in competing in the production of corn, it will remain a loser, just as US industries are with manufactured goods. If Mexico continues with outdated labor intensive farming techniques, it will never be competitive with modern farms in the US. Much of Mexico's problems arise from its unwillingness to accept investment from the outside and the reluctance of its millionaire plutocracy to invest in their country's future.