General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums"NAFTA has been good for the U.S." The Fuck it has.
or at least it wasn't all that bad. FTAs are good for the other countries involved. Don't we want to see wages raised in countries like Vietnam?
Actually, NAFTA has decidedly NOT been good for most people in this country. It's been horrendous for us and worse for Mexico.
No, sorry FTAs over the past 20 years have objectively been far more damaging to the middle class and working poor than beneficial.
I know what the answer is, but it doesn't seem to be the FTA template we've been employing over the past 2 decades.
Nafta Lowered Wages, as It Was Supposed to Do
http://www.nytimes.com/roomfordebate/2013/11/24/what-weve-learned-from-nafta/nafta-lowered-wages-as-it-was-supposed-to-do
Nafta Successfully Undermined Regulations
http://www.nytimes.com/roomfordebate/2013/11/24/what-weve-learned-from-nafta/nafta-successfully-undermined-regulations
http://epi.3cdn.net/fdade52b876e04793b_7fm6ivz2y.pdf
http://www.nytimes.com/roomfordebate/2013/11/24/what-weve-learned-from-nafta/under-nafta-mexico-suffered-and-the-united-states-felt-its-pain
orpupilofnature57
(15,472 posts)blkmusclmachine
(16,149 posts)n2doc
(47,953 posts)cali
(114,904 posts)Ask Bob King, the UAW's current president, about NAFTA at 20 and you'll get a blunt answer. "It's been a disaster to me," he says.
"Unions like the UAW, like the steelworkers, like the Teamsters, were really undermined in our collective bargaining power by NAFTA," he says. "Because now, we go in and we bargain with [car] parts supplier companies and they say, 'Well, we can go to Mexico and make this cheaper.' "
And King has a response for those who point to millions of jobs added to the U.S. economy since NAFTA:
"We are not growing good, middle-class jobs in America," he says. "I'd like to know, where are the jobs? What are they talking about, Wal-Mart? They're talking about all these temporary, part-time jobs?"
snip
http://www.npr.org/2013/12/17/251945882/what-has-nafta-meant-for-workers-that-debates-still-raging
daleanime
(17,796 posts)pampango
(24,692 posts)than American workers are paid and their unions are stronger than out unions.
Poor countries are not the cause of our problems. We are the cause of our problems with our 'right-to-work' laws weakening unions, our regressive taxes and weak minimum wage laws, terrible safety nets, etc. (All of which republican politicians tend to be quite proud of.) Mexico is not forcing us to do any of those things.
Obama might agree. If he thought the previous 'FTA template' was working, he should have left NAFTA and the FTA's with Australia, Chile, Peru and Singapore alone and just new, similar FTA's with new countries like Japan, New Zealand, Malaysia, Vietnam, etc.
cali
(114,904 posts)but I'm not saying NAFTA or other FTAs are the sole culprit behind such things as weakened unions, job loss and poor paying service jobs.
pampango
(24,692 posts)cali
(114,904 posts)but I don't know enough about this to comment intelligently. In any case, I'm not suggesting that NAFTA is the sole factor. I am saying, that it's clearly a factor. Read the articles at link. This is an interesting review:
http://www.citizen.org/documents/NAFTAs-Broken-Promises.pdf
TreasonousBastard
(43,049 posts)failings doesn't help anyone.
Mexico was making cheap stuff long before NAFTA.
cali
(114,904 posts)at least read the articles I linked to and then comment on the claims in them.
TreasonousBastard
(43,049 posts)analytical. Much opinion, but very little data.
Every agreement is going to have a downside, some will have many downsides, but trade agreements don't initialize the downward spiral of world wages. That will happen with or without agreements, and if there are no agreements controlling worker conditions it will be much worse than it is.
rhett o rick
(55,981 posts)for our goods. In fact the loses to American workers didn't go to Mexican workers, it went directly into the pockets of the 1%. Frack NAFTA and those that brought it.
DefenseLawyer
(11,101 posts)The real value of "free trade" is that it allows American companies to ship jobs to low wage countries with no costly safety or environmental regulations and then ship the goods back here without penalty. It's funny that you try to use Germany as an example (of what I'm not exactly sure). Germany has some of the highest tariffs in the world. Google "import turnover tax" or "TARIC". Germany companies have far less incentive to ship jobs to the third world, because they can't then simply ship their cheap labor produced goods back without penalty. Stop kidding yourself. Free trade has nothing to do with trade and everything to do with cheap labor and pollution.
1StrongBlackMan
(31,849 posts)The US' Negotiating Objectives include establishing enhanced wage (and workplace) protections (And the right to collective bargaining) and environmental regulation.
DefenseLawyer
(11,101 posts)Oh wait, this time it's different because they really mean it this time. No kidding around. We're series!!!
1StrongBlackMan
(31,849 posts)NAFTA did NOT contain such provisions.
http://www.epi.org/publication/briefingpapers_bp147/
Speaking it, even with authority or wit, doth not make it so.
DefenseLawyer
(11,101 posts)There were such protections promised, it was called The North American Agreement on Environmental Cooperation" Google it. Yet at the end of the day, at the "core" of the agreement, they were unenforceable (as if anyone was seeking to enforce them in the first place). To assume that such protections will be enforced in this agreement is delusional, particularly since the agreement appears to give the authority to enforce every aspect of agreement to the corporations themselves. But hey, you may be right. Maybe this time, everybody is just going to do the right thing.
1StrongBlackMan
(31,849 posts)DefenseLawyer
(11,101 posts)You're argument is probably not very persuasive. All of these so called protections in the TPP were part of the same bill of goods sold to us with NAFTA; if you seriously believe that simply incorporating the "side agreements" into the "core" of the agreement makes some substantial difference in the outcome, you should seriously avoid investing in wetlands real estate and historic bridges.
1StrongBlackMan
(31,849 posts)incorporating "side agreements" into the "core" of the agreement makes a substantial difference. And it's NOT semantics, when one condemns something, (in this case, NAFTA) for not enforcing what is not in the agreement.
That's like saying that Banking regulations are ineffective because they don't prevent arson.
And, this is a strange line of argument from an (presumed, from your screen-name) attorney ... well ... not really!
DefenseLawyer
(11,101 posts)With particular emphasis on the enforcement provisions of the TPP. I'm eager to learn.
1StrongBlackMan
(31,849 posts)How would you defend a client charged with arson, under Sarbanes-Oxley? Wouldn't your strategy include pointing out that arson was not contained in Sarbanes-Oxley?
It's a complete failure of logic to attempt compare the environmental/labor force results of a NAFTA that lacks the environmental/labor force provisions, with any TPP agreement (might) include such provisions.
DefenseLawyer
(11,101 posts)I'm just a caveman. I understand that have said that wage and environmental protections written into the "core" ( to use your term) of the TPP keep it from being flawed like NAFTA, which had such provisions in so called side agreements, and that this is a substantive difference. I don't see why that will be the case. I'll ask you again to explain why the difference is substantive and exactly why you think that difference will lead to actual enforcement of these "protections". I'm not asking for a critique of my logic or anything like that. If you can't that's fine, but that's what I'm asking.
1StrongBlackMan
(31,849 posts)The failure of NAFTA, prevent environmental/labor disruption cannot be attributed to NAFTA, because NAFTA did not include environmental/labor provisions.
The substantive difference with including them in TPP is that it would be a part of the trade agreement, rather than a relatively unknown side agreement.
pampango
(24,692 posts)Since the VAT increases the cost of goods produced and sold in Germany, they impose a TARIC on imported goods equal to that of the VAT on domestically-produced goods. That way neither is favored over the other.
Goods imported into Germany from a non-European-Union country are also subject to value-added tax, but value-added tax on imports is called import turnover tax (Einfuhrumsatzsteuer).
The tax rate for imported goods is the same as it is for turnovers within the country.
http://www.steuerliches-info-center.de/EN/SteuerrechtFuerInvestoren/Unternehmen_Inland/Umsatzsteuer/Einfuhrumsatzsteuer/einfuhrumsatzsteuer_node.html
If they US wanted to impose an "import turnover tax" of say 20% on imports, all we have to do is enact a VAT of 20%. The main issue with that is that raise the cost of domestically-produced goods by the same amount as the 'tariff' (the 'import turnover tax') increases the cost of imports.
Imports represent 30% of the German economy. Imports are 14% of the US economy. That is also good evidence that Germany does not have "some of the highest tariffs in the world". They import twice as much as we do.
brentspeak
(18,290 posts)Germany's TARIC tariff is one of the many things that nation has done to maintain a healthy net positive balance of trade.
The U.S.'s "free trade" deals and lack of tariffs have resulted in a devastating trade deficit.
Still persisting with the "let me parrot US Chamber of Commerce free trade talking points while hiding behind an FDR avatar", I see.
pampango
(24,692 posts)If there were no TARIC, domestically-made goods would be at a disadvantage because they would be more expensive due to the VAT than imports. (International trading rules allow countries with a VAT to have a TARIC of an equal rate so that neither imports or domestic goods are favored.)
If there were no VAT, just a TARIC or other tariff, then imports would be at a disadvantage because they would be more expensive due to the tariff than German-made goods.
With the VAT and the TARIC being equal, neither is advantaged compared to the other.
Yeah, that's me. You'd be surprised at the reaction I get at Chamber meeting when I tell them:
We are the cause of our problems with our 'right-to-work' laws weakening unions, our regressive taxes and weak minimum wage laws, terrible safety nets, etc.
http://www.democraticunderground.com/10026531095#post6
It's not the positive reception that you might expect for someone "parrot US Chamber of Commerce free trade talking points while hiding behind an FDR avatar"".
brentspeak
(18,290 posts)which, in turn, makes it completely impossible to prevent the influx of those right-to-work laws you claim to be opposed to, it makes sense to offer up a few progressive-sounding talking points to make it seem as you're an actual progressive here.
pampango
(24,692 posts)Why has 'free trade' caused the decline of American unions, but has not had that effect in Germany. Could it be that domestic legislation and popular attitudes have more to do with it than the level of trade a country engages in?
Germany has no 'right-to-work' laws. Quite the opposite. But we cannot have strong union as in Germany, despite the fact that Germany trades 3 times more than the US does? If trade kills unions, Germany's unions should be deader than American ones. They are not.
Are you contending that the devastation caused by 'right-to-work' laws, regressive taxes, low minimum wages and shredded safety nets are just "a few progressive-sounding talking points". They are not really significant progressive issues? Gotcha.
brentspeak
(18,290 posts)pampango
(24,692 posts)brentspeak
(18,290 posts)Germany, up to now, has not allowed its markets to be inundated with cheap imports from sweatshop nations. That is the key difference with the U.S.
And something you conveniently failed to point out on this thread: German citizens are increasingly opposed to the TPP.
pampango
(24,692 posts)than the US, I'm not sure how Germany "has not allowed its markets to be inundated with cheap imports from sweatshop nations."
I'm not sure if you consider China to be a 'sweatshop nation' (is that the same as a poor country? A liberal sure would not want to trade with poor people) but here's the information on imports from China:
Imports from China are 3.1% of the US economy. They are 2.9% of Germany's economy.
http://en.wikipedia.org/wiki/Economy_of_the_United_States
http://en.wikipedia.org/wiki/Economy_of_Germany
If that means to you that Germany "has not allowed its markets to be inundated with cheap imports fro sweatshop nations", you are welcome to your definitions.
Also the EU (including Germany, of course) has been negotiating a 'free trade' deal with India for years. Something that the US has not been doing. India and China are the 2 big poor countries (or 'sweatshop nations" if we want to use a pejorative.)
The article you linked to has nothing to do with Germans being opposed to the TPP.
brentspeak
(18,290 posts)You can stop with the "liberal" and "progressive" buzzwords. You haven't fooled anyone here.
Note to Pampango's employers: Sorry, fellas, but you're not getting your money's worth!
Enthusiast
(50,983 posts)joshcryer
(62,270 posts)Shameful.
DefenseLawyer
(11,101 posts)But at a higher cost. So much for your Milton Friedman bullshit "fact" that high tariffs restrict imports. The tariffs don't restrict imports of needed goods and materials, but they do discourage companies from outsourcing to cheap labor countries those goods and materials that can be produced in Germany or the EU instead. If you are seriously arguing that tariffs in Germany are on par with those in America then you are just making it up as you go along.
pampango
(24,692 posts)argue for higher tariffs for exactly that reason. Historically, countries have raised tariffs precisely to reduce and restrict imports and give an advantage to domestically produced goods.
"If you are seriously arguing that tariffs in Germany are on par with those in America then you are just making it up as you go along."
http://data.worldbank.org/indicator/TM.TAX.MRCH.WM.AR.ZS
Tariff rate, applied, simple mean, all products (%) in Germany was 1.53 as of 2011.
http://www.indexmundi.com/facts/united-states/tariff-rate#TM.TAX.MRCH.SM.AR.ZS
http://www.indexmundi.com/facts/germany/tariff-rate#TM.TAX.MRCH.SM.AR.ZS
I am not making stuff up as I go along.
DefenseLawyer
(11,101 posts)Doesn't that make your "weighted mean" a bit skewed? And no, tariffs don't hinder imports, only their profitability. If something is needed and has value it will be imported. Tariffs do prevent imports of items that are only imported because they are profitable, i.e. produced by 3rd world oppressed labor.
pampango
(24,692 posts)DefenseLawyer
(11,101 posts)I understand your position quite well. Anything that doesn't maximize profit is a hinderance.
pampango
(24,692 posts)If Germany or Japan is exporting a $20,000 car to the US and we put a 20% tariff on it, it will cost the American consumer $24,000. For many of us that extra $4,000 would be a deal breaker. It would not just reduce the profitability of the German or Japanese auto company of selling a $20,000 car in the US it would mean not selling it at all. Tariffs do indeed 'hinder imports'; they don't just affect profitability. As I said that is a point made by many here who favor higher US tariffs for just that reason.
GoneFishin
(5,217 posts)It is a complete sham.
appalachiablue
(41,131 posts)2banon
(7,321 posts)http://www.heritage.org/research/reports/1993/11/em371-the-north-american-free-trade-agreement
NAFTA is, was, and will forever be a 1% NEO CON wet dream. the idea of it was hatched up and crafted by the likes of John Negreponte et. al. before and during Reagan and Poppy Bush's cadre of 1 per-centers, chief intelligentsia etc just to name a few and quite naturally supported by every right wing think tank, front group and center/organizations/foundation etc.
Seriously, isn't that fact alone enough to tell you what you need to know and understand about NAFTA/GAT TPP, etc?
pampango
(24,692 posts)to their workers and have stronger unions than in the US. Nowhere at the link does the HF say that progressive countries trade with poor countries more than the US does. Nowhere at the HF link does it say that our problems are caused by 'right-to-work' laws, regressive taxes systems and weak minimum wage laws, terrible safety nets, etc.
So ... no I am not supporting the Heritage Foundation's egregious claims.
joshcryer
(62,270 posts)And yet I think America is a bit too wary of following it. A lot of worker protections need to be in place. And we simply don't have the votes for those protections yet.
Thank you for the Post, it is spot on and just wanted to thank you for seeing the truth.
cali
(114,904 posts)and that there's rarely one truth in any debate, but I do like to post things with facts and arrive at what I believe is the truth in a given debate.
donnasgirl
(656 posts)Jesus Malverde
(10,274 posts)Good for few, terrible for most.
It's irrelevant to some extent the robotic revolution is gonna replace most jobs anyway.
pampango
(24,692 posts)It has been good for many ... and for the few at the top. I would think we can tax and regulate the exorbitant gains of the 1% and use the proceeds to benefit the Western middle class (the 80th - 90th global income percentiles) without derailing the income benefits that the poorest 70% have received.
Global income equality is better today than it was 25 years ago. National income inequality within the US is worse. To liberals, income inequality is a bad thing. (Conservatives do not seem to share that opinion.) We should push to continue its improvement on the global level while working to reverse the growing inequality within our country.
paleotn
(17,913 posts)over that 20 year period wages have risen roughly 70% for the lowest 65% of workers. 70% on what?! Most of those people make less than $1 US per day. Oooooooo...now they're making a buck seventy per day after 20 years, while workers in the west have seen their incomes stagnate or decline and the American middle class is all but destroyed. Real progress there.
Now lets look at the other end of the spectrum. What's a 60% increase on hundreds of thousands to millions of dollars per year? And lets not even mention the environmental degradation in developing countries and the fact their workers are treated as virtual slaves. But hey! Their wages have increased in the last 20 years so we should all be happy!
pampango
(24,692 posts)our consideration. They make so little that, while gains in their standard of living may be meaningful to them, they are still so poor as to not deserve our consideration in terms of how to address our own problems.
If you have a system in mind that will jump the incomes of the world's poorest people from abject poverty to, say $15/hour, overnight, I am all ears. To me it makes sense that for the poorest of the poor to eventually climb out of the direst poverty, they need to go from $1/hour to $1.70/hour then continue the journey over years and even generations.
As I say if you have a system in mind that will accelerate their ascent beyond the 70% over a generation, I am all ears. I agree that the improvement is too slow.
If we attack the outrageous income gains of the 1% there will be plenty to spend on mitigating and improving the lives of the American middle class. We don't have help our middle class by taking it out of the hides of the global poor when we could more easily take in out of the hides of the 1%.
treestar
(82,383 posts)When that is brought up. It would follow they are supposed to stay poor so America can be middle class. They know that's a wrong thing to think/say, so off to the next rant about the corporatists.
Populist_Prole
(5,364 posts)Paleotn nailed the issue squarely. The modest gains made to the 3rd world are NOT worth the decimation of the middle class.
Sacrifice your own self in pursuit of globalist gobbledygook instead of asking the lumpen proletariat here to.
treestar
(82,383 posts)So you are willing to out and out say the Third World's gains are not worth it (though I don't agree they "decimate the middle class."
Ask some Third Worlders if they feel that way about it. To them the gain may not be so "modest."
paleotn
(17,913 posts)...to have your own wages decline so that workers in developing countries can get paid $2 per day vs. $1? I didn't think so. In real terms, workers in the developing world are STILL in abject poverty! Just not as abject as it was before. Oooooo...progress. Can't you see it's a race towards the bottom? Their wages increase by a ridiculously little amount in real terms, while workers in the west see their wages crushed. Eventually we're all in the same economic serfdom as Vietnam and Bangladesh.
Then again, maybe you profit from such and are thus willing to defend it.
pampango
(24,692 posts)The obscene gains of the 1% had nothing to do with it? Blaming the "gains of the 3rd world" for our problems rather than the global 1% seems to be letting the latter off the hook.
I would think that progressives would be better suited to find common cause with the poorest in the world in order to fight the richest rather than pitting our middle class against the global poor. Pitting our middle class against the global poor seems to be a 1%'s dream with the rest of us blaming each other for our problems.
paleotn
(17,913 posts)...of multinational corporations searching for the lowest wages possible. No one's blaming workers in developing countries. And the pittance they're getting may make them happy, but is in real terms pathetic beyond words compared to the profits multinationals receive by manufacturing in ultra low wage countries.
Enthusiast
(50,983 posts)Bluenorthwest
(45,319 posts)Nt
1StrongBlackMan
(31,849 posts)cui bono
(19,926 posts)If you peruse the TPP threads I'm sure you will find a post that says something to that effect.
zeemike
(18,998 posts)Is what's good for the USA.
PADemD
(4,482 posts)In his speech about TTP, President Obama mentioned selling American made goods (autos, in particular) to other countries. What is manufactured in America anymore? Certainly not textiles, clothing, or appliances.
paleotn
(17,913 posts)...that developing countries don't posses the expertise to produce. They're importing those things from us anyways, so no big win there. Unless TPP eliminates both explicit, but more importantly implicit trade restrictions in places like South Korea, there will be no win at all for US workers. Though many Asian nation's trade laws look liberal on paper, they are most certainly NOT in practice. And THAT Is what's killing US manufacturing. Implicit trade restrictions slapped on US companies every single day.
Now Chinese companies are reversing engineering much of the technology coming from the US, Canada and Europe, so that won't be much of an advantage in the very near future.
Populist_Prole
(5,364 posts)The "export" meme, and the ridiculous notion they'll increase to the point we'll reverse the trade deficit is just a bait & switch to pacify. The real goal, was/is/will be rent seeking by US multinational corporations.
Thespian2
(2,741 posts)"The result is one thing that almost everybody who studies trade now agrees upon. Whatever else they have wroughtmore jobs, fewer jobs, more or less povertyglobalized trade and production coincide with greater inequality both within and between countries. The reasons for this are complexglobalization weakens unions, strengthens multinationals, and increases competition and insecurity all aroundbut the data are clear. Markets do not distribute wealth equitably."
Ellen Frank teaches economics at Emmanuel College and is a member of the Dollars & Sense collective.
Another thought from someone who studies trade agreements.
valerief
(53,235 posts)PatrynXX
(5,668 posts)So DVD's and Blu Rays are made in Mexico but discs sold in Canada are made in the USA WTF?
fadedrose
(10,044 posts)Without links. All you have to do is travel along Rt. 30 in PA and see all the places closed that manufactured all kinds of quality stuff now coming in from China. Multiply that with all the other main routes in the US and what they've lost. And even poor Mexico has suffered.
This was a Republican bill that Clinton signed. If this is Clintons' example of crossing the aisle to make friends, screw that. Best to stop making enemies because of personal blunders causing pain, and then using the balm of giveaway programs to ease the pain.
This is another example of not expecting the "perfect" in bills that are signed. Why in the hell not?
appalachiablue
(41,131 posts)Enthusiast
(50,983 posts)Not good.
fredamae
(4,458 posts)nationalize the fed
(2,169 posts)Skip to 18:18
Hillary: "NAFTA WAS A MISTAKE"
Remember NAFTA-GATE?
cui bono
(19,926 posts)I do not believe Hillary has come out against the TPP, has she? What does she have to say about the Korean trade agreement?
Enthusiast
(50,983 posts)Every single candidate admitted that NAFTA did terrible damage and needed a major rework, at the very least.
Answers by HRC and BO in that film damage the assertions by poster pampango. All of these candidates acknowledge the problems in these trade deals.
Cleita
(75,480 posts)to entice the disillusioned and skeptical to come back and drink more of the Kool Aid these trade agreement cheerleaders are serving up. The fact is that only a little light Googling is needed to disprove all those claims.
Elwood P Dowd
(11,443 posts)even here on DU. Some of these pro TPP people here sound identical to CATO and Heritage hacks.
Enthusiast
(50,983 posts)I suppose it's a nice full time job if you are not concerned about ethics.
Enthusiast
(50,983 posts)hrmjustin
(71,265 posts)hifiguy
(33,688 posts)was absolutely and totally right about NAFTA.
Jack Rabbit
(45,984 posts)A liar or a fool?
cui bono
(19,926 posts)"The TPP is going to fix what NAFTA did wrong."
Yes I've seen those words posted on DU.
Populist_Prole
(5,364 posts)Is that the same group that pushed the meme "The TPP is going to fix what NAFTA did wrong." are the same mooks that, when pressed, will claim NAFTA was a positive.
Such glibness.