Transcript F.T.A.A.
F.T.A.A.
Free Trade Area of the
Americas
Nicole Anello
Kara Breissinger
Neena Dreslin
Nicholas Lee
NAFTA- Objectives
Reduce trade barriers between parties
Promote conditions of fair competition
Increase investment opportunities
Protection of intellectual property
rights
Overall, to benefit all members
through increased and fairer trade
practices
NAFTA
PROS
Created jobs in
Mexico
Increased trade
between all
partners
Reduced tariffs
and non-tariff
barriers
CONS
Pollution at the
Mexican border
Very low wages
Poor labor
standards in
Mexico
U.S. jobs lost
Objectives vs. Reality
U.S. companies
want to take
advantage of low
cost labor
They want to get
away from unions
Hoped to build
lucrative markets in
Northern Mexico
The low cost labor
is preventing
Mexicans from
improving their
standard of living
No unions=unfair
working conditions
Crime is increasing,
native work force is
being exhausted
What is going on today??
The facts show that Mexico has been
harmed in many ways
U.S. blue-collar jobs have decreased
on the whole
The net impact of immigration should
be that it will decrease
Cultural identity is being lost
Sweatshops & Human Rights
Proponents of NAFTA Push:
More Jobs (US, Mexico, and Canada)
Higher Wages
Better Deals on Goods and Services
Effects
US workers lost hundreds of thousands of
jobs
Mexican workers encountered low wages
and unfair labor practices
Claim Against Washington State
Apple Industry
Failure of US Labor Law to Protect
Workers’ Rights
Inadequacy and Failure of US Labor Law
Mary Mendez (worked 7 years in apple
industry)
Difficulty Forming Union (armed guards)
Threatened with Immigration
Unfair Wage Reductions if in Union
Anti-union Propaganda and Threats
In Addition…
Illegal Chemical Hazards
Fired and Overworked Injured People
“Anglos” had lighter jobs and are
better paid
May take up to two years for Labor Law
Violations to Reach Arbitration
Chapter 11
Purpose
To ensure that US investors abroad receive
the same type of protection that foreign
investors get in the US with or without a
treaty
Reality
May lead to a fundamentally different
world in the degree of power corporations
hold on democratic governments
-Dan Seligman, Director of the Sierra Club’s Trading
Program
Chapter 11 in Practice
California Case: Methanex v. the US
Methanex, a Canadian Company
Produces Gasoline Additive MTBE
Caused cancer in lab animals
Gov. Gray Davis authorized its phase out
Filed a suit for $970 million in compensation
Behind closed doors
Questions our own sovereignty
Is it our decision or an un-elected body’s
decision?
NAFTA denies tribunals the power to overrule
state law
History of the FTAA
Free Trade Area of the Americas
First Summit of the Americas: Miami, 1994
Declaration of Principles
34 heads of state
addressed common issues and sought solutions to
shared problems
defined the goals of the FTAA
12 working groups established
negotiate for the FTAA
lead to a committed initiation of FTAA
negotiations in 1998
What Does it Mean for the US in the
future?
Possible free trade with all countries of
North, Central, and South America
Increased competition and standards
for US made goods and services
Further integration; similar to the
modern day European Union
Creation of a single currency and
common market
General Objectives
To promote prosperity through
increased economic integration and
free trade among the countries of our
hemisphere.
To establish a Free Trade Area,
concluding negotiations by 2005.
To maximize market openness through
high levels of disciplines.
General Objectives
To provide opportunities to facilitate
the integration of the smaller
economies in the FTAA.
To strive to make our trade
liberalization and environmental
policies mutually supportive.
To secure observance and promotion of
workers rights.
PROS & CONS
Free trade region
Benefits of further
integration
Increased
competition
Promote prosperity
Congress not
involved
NGOs denied
participation
Extreme power
given to
corporations
“Deepen negative
effects of NAFTA”
Possible Negative Effects
Ability of corporations to bypass
environmental and worker protection
laws
Services will be liberalized
Exacerbation of environmental
destruction
Negative expansion of IPR
Increase use of GMOs
Human Rights
Largest
fear
FTAA
values corporate profits over
human costs
increase
of poverty and inequality
QUESTIONS?