There is a lot of angst in the U.S. corporate world. They are quite concerned that the renegotiation talks between the United States, Canada and Mexico (the three participants in the North American Free Trade Agreement, or NAFTA) may not deliver a new agreement that is as lucrative as the old NAFTA.
NAFTA has been in place since 1994. It is one of those classic neoliberal trade deals that essayist George Scialabba describes as “investor rights agreements masquerading as ‘free trade’ and constraining the rights of governments to protect their own workers, environments, and currencies.” As such, it has served corporate interests well.
U.S. corporations counted on NAFTA and other trade agreements to keep wages low by the threat of, or actual movement of, manufacturing jobs to wherever it was easiest to exploit workers and the environment.
A renegotiated NAFTA, would, if U.S. negotiating positions were accepted, force Canada to scrap the price protections that give their dairy farmers a fair price for their milk. In Mexico, U.S. corporate interests would hope to prevent Andrés Manuel López Obrador, if elected president, from trying to bring Mexican farmers out of poverty. Obrador calls for expanding the country’s dairy industry and rebuilding its native corn production. (American agribusiness destroyed Mexican family farm corn production by dumping cheaper corn on the Mexican market—hence the spike in illegal emigration to the United States after NAFTA went into force.)
Protectionist policies on the part of Canada and Mexico? Yes, but what is the function of government if not to protect its citizens? Trump says “America first” but it goes both ways. Presumably, our government was not founded with the intent of protecting corporate interests. In fact, as Thomas Jefferson noted:
“The end of our democracy ... will occur when government falls into the hands of lending institutions and moneyed incorporations.”
Looks like we’re there.