World News Report: Next week, the George W. Bush Institute, the public policy arm of the former president’s library in Dallas, will launch a North America Scorecard with an assessment that the North American Free Trade Agreement has been a boon to the United States, Canada and Mexico.
Gerardo Esquivel offers up a slightly different point of view, specifically that Mexico has not done as well as the other nations.
The MexicoBlog of the CIP Americas Program monitors and analyzes international press on Mexico with a focus on the US-backed War on Drugs in Mexico and the struggle in Mexico to strengthen the rule of law, justice and protection of human rights. Relevant political developments in both countries are also covered.
Showing posts with label globalization - free trade. Show all posts
Showing posts with label globalization - free trade. Show all posts
Nov 3, 2015
Jul 18, 2014
Mexico overtakes Brazil as top car manufacturer in Latin America
El País: Asian and European car brands are investing heavily in Mexican-based assembly plants, catapulting the country’s auto industry to unknown heights.
A few days ago, Mexico became Latin America’s leading car maker, ahead of Brazil. In the first half of 2014, the country’s plants produced1.59 million automobiles, a 7.4-percent rise from the same period in 2013. Meanwhile, Brazil’s production in the first six months of this year fell back to 1.57 million units. Read more.
A few days ago, Mexico became Latin America’s leading car maker, ahead of Brazil. In the first half of 2014, the country’s plants produced1.59 million automobiles, a 7.4-percent rise from the same period in 2013. Meanwhile, Brazil’s production in the first six months of this year fell back to 1.57 million units. Read more.
Jul 2, 2012
Why Mexico's election doesn't matter to Americans
Global Post: Analysis: The winner of Sunday's Mexican presidential election is unlikely to change course on US trade and the drug war.
Something remarkable happened, or rather, didn’t happen, in the middle of Mexico’s June 10 presidential debate when the three leading candidates were asked to share their views on foreign policy.
Not a single one — not even leftist Andres Manuel Lopez Obrador — used the opportunity to question the two pillars of the US-Mexico relationship: free trade and the shared fight against Mexico’s drug cartels. Read more.
Not a single one — not even leftist Andres Manuel Lopez Obrador — used the opportunity to question the two pillars of the US-Mexico relationship: free trade and the shared fight against Mexico’s drug cartels. Read more.
Feb 16, 2012
Laura's Blog: Mexico at the Helm of the G20
In a few days Hillary Clinton will land on the sunny shores of the Mexican Pacific Ocean to take part in an unusual meeting of foreign ministers. Los Cabos is hosting the ministers of G20 countries, plus a few selected guests, as part of the run-up to the G20 summit to be held in the same peninsular beach resort in June. Mexico took over the presidency of the G20 last December.
The meeting is unusual because foreign minister meetings don't normally form part of the Group of 20 process. But the Mexican government seems to have decided on a strategy of multiple and frequent preparatory meetings as the best guarantee for a successful summit--at a time when the odds against that happening are particularly high.
The G20, with 19 countries and the European Union, claims to represent 90% of global GDP, 80% of international global trade and 64% of the world’s population. It started as a meeting of finance ministers talking about global financial governance and economic policy. Then it morphed into an informal organization with presidential participation that grapples with the world's most pressing issues in a 'members-only club' setting.
The foreign ministers are meeting in part because the G20 is experiencing mission creep at precisely the time when it finds it most difficult to deal with the issues it already has. Because of the hermetic nature of the organization, it's hard to say what Clinton will be talking about, and we likely won't have a clear idea even after the joint declarations and photo ops come out. Mexico has promised more civil society participation and public information, but as hundreds of people work on the elaboration of documents and proposals, getting details from the outside has been like pulling teeth.
The Mexican government may be regretting its decision to take over the 2012 presidency. In the past few meetings the G20 has been virtually paralyzed by the European economic crisis--without reaching effective solutions and without being able to deal with other issues. Mexico hoped to have the European crisis, and particularly the Greek situation, resolved before it held the summit. Not only has the crisis continued, but it threatens to flare up again in a big way despite the Grecian parliament's acceptance of a deal.
The road to Los Cabos has been strewn with obstacles for the beleaguered powerhouses of the world. Besides the crisis, the division between developed countries and developing countries, which Mexico claims to represent, has been growing. Before going into the obstacles, it's important to ask: Why is Mexico doing this? What does the Calderon government hope to obtain?
Mexico has laid out five priorities:
Since the first priority is practically the sin qua non for the rest, the whole agenda depends on a miracle to a large degree. Calderon stated that the crisis should be resolved before June to make progress on the G20 agenda. His goal is to "resolve the euro crisis, to isolate the effects of the crisis on viable economies, like Italy or Spain and avoid systemic contamination and, of course, to discount the part of the Greek debt that is simply unpayable." Although he offered some specific measures to reach this goal, it is looking more and more impossible, especially given the current strategy of brutal austerity measures. Instead of an end to the economic crisis, at this rate we can expect it to spread into a broader political crisis.
The proposals for reaching the other goals support the current economic system that got us into this mess in the first place. In trade, the Mexican government recommends free trade, no to all forms of protectionism and a blind faith that fixing macroeconomic factors will eventually improve the lives of the population.
Strengthening the financial system and fostering inclusion appears to be understood as instituting vigilance and monitoring mechanisms, with structural reforms and regulation off the table. Inclusion does not mean a fairer distribution of wealth generated, but access to the banking system for the poor.
The core proposal for improving the international financial architecture put forth to date is to increase funds in the International Monetary Fund (IMF). Mexican government officials have stated that this will be a fundamental goal at the meeting. However, to date it has received few echoes as nations struggle to find funds for rescue programs in their own countries. In member nations, such as Brazil and Argentina, enthusiasm is low, to say the least, for running funds through a non-representative and orthodox IMF that continues to heavily condition its loans.
In food security, Mexico will promote an agenda aimed at reducing volatility but without curtailing speculative markets. Calderon has publicly recognized the link between food prices, poverty and hunger, and the role of speculation but so far has not supported calls for ending speculation in basic foods.
Finally, "green development" and climate change should be the hallmarks of the Mexican G20 presidency but here, especially, the chances of success and the approval of energetic measures in these critical areas appears distant. Mexico calls for attacking climate change through market mechanisms including promoting carbon markets, REDD+ and payment for environmental services, without a universally binding system of emissions controls--a necessary idea that was already proven politically dead in the water at the Climate Change Conference that Mexico hosted in December of last year.
Mexican civil society has organized in almost as many groups and sub-groups as the G20, to monitor, influence, critique or protest the official events--depending on who you talk to and what tack they're taking. Getting detailed information on the procedures and content of materials and proposals poses difficulties but the idea is to use the meeting to raise issues that affect real people. The question of the basic legitimacy or lack of legitimacy of the G20 as a forum for making global decisions--due to its lack of clear rules and exclusive membership--as well as its orientation toward the interests of the world's wealthiest and most powerful nations--remains central to strategies.
See also G20 Update
The meeting is unusual because foreign minister meetings don't normally form part of the Group of 20 process. But the Mexican government seems to have decided on a strategy of multiple and frequent preparatory meetings as the best guarantee for a successful summit--at a time when the odds against that happening are particularly high.
The G20, with 19 countries and the European Union, claims to represent 90% of global GDP, 80% of international global trade and 64% of the world’s population. It started as a meeting of finance ministers talking about global financial governance and economic policy. Then it morphed into an informal organization with presidential participation that grapples with the world's most pressing issues in a 'members-only club' setting.
The foreign ministers are meeting in part because the G20 is experiencing mission creep at precisely the time when it finds it most difficult to deal with the issues it already has. Because of the hermetic nature of the organization, it's hard to say what Clinton will be talking about, and we likely won't have a clear idea even after the joint declarations and photo ops come out. Mexico has promised more civil society participation and public information, but as hundreds of people work on the elaboration of documents and proposals, getting details from the outside has been like pulling teeth.
The Mexican government may be regretting its decision to take over the 2012 presidency. In the past few meetings the G20 has been virtually paralyzed by the European economic crisis--without reaching effective solutions and without being able to deal with other issues. Mexico hoped to have the European crisis, and particularly the Greek situation, resolved before it held the summit. Not only has the crisis continued, but it threatens to flare up again in a big way despite the Grecian parliament's acceptance of a deal.
The road to Los Cabos has been strewn with obstacles for the beleaguered powerhouses of the world. Besides the crisis, the division between developed countries and developing countries, which Mexico claims to represent, has been growing. Before going into the obstacles, it's important to ask: Why is Mexico doing this? What does the Calderon government hope to obtain?
Mexico has laid out five priorities:
- Economic stabilization and structural reforms as foundations for growth and employment.
- Strengthening the financial system and fostering financial inclusion to promote economic growth.
- Improving the International Financial Architecture in an interconnected world.
- Enhancing food security and addressing the issue of commodity price volatility.
- Promoting sustainable development, green growth and the fight against climate change.
The proposals for reaching the other goals support the current economic system that got us into this mess in the first place. In trade, the Mexican government recommends free trade, no to all forms of protectionism and a blind faith that fixing macroeconomic factors will eventually improve the lives of the population.
Strengthening the financial system and fostering inclusion appears to be understood as instituting vigilance and monitoring mechanisms, with structural reforms and regulation off the table. Inclusion does not mean a fairer distribution of wealth generated, but access to the banking system for the poor.
The core proposal for improving the international financial architecture put forth to date is to increase funds in the International Monetary Fund (IMF). Mexican government officials have stated that this will be a fundamental goal at the meeting. However, to date it has received few echoes as nations struggle to find funds for rescue programs in their own countries. In member nations, such as Brazil and Argentina, enthusiasm is low, to say the least, for running funds through a non-representative and orthodox IMF that continues to heavily condition its loans.
In food security, Mexico will promote an agenda aimed at reducing volatility but without curtailing speculative markets. Calderon has publicly recognized the link between food prices, poverty and hunger, and the role of speculation but so far has not supported calls for ending speculation in basic foods.
Finally, "green development" and climate change should be the hallmarks of the Mexican G20 presidency but here, especially, the chances of success and the approval of energetic measures in these critical areas appears distant. Mexico calls for attacking climate change through market mechanisms including promoting carbon markets, REDD+ and payment for environmental services, without a universally binding system of emissions controls--a necessary idea that was already proven politically dead in the water at the Climate Change Conference that Mexico hosted in December of last year.
Mexican civil society has organized in almost as many groups and sub-groups as the G20, to monitor, influence, critique or protest the official events--depending on who you talk to and what tack they're taking. Getting detailed information on the procedures and content of materials and proposals poses difficulties but the idea is to use the meeting to raise issues that affect real people. The question of the basic legitimacy or lack of legitimacy of the G20 as a forum for making global decisions--due to its lack of clear rules and exclusive membership--as well as its orientation toward the interests of the world's wealthiest and most powerful nations--remains central to strategies.
See also G20 Update
Globalization-Trade: 13 billion pounds of fresh fruit and vegetables cross the US-Mexican border each year
Another measure of the extent of Mexico-U.S. trade--and factoid of the week.
freshplaza.com: "Over 13 billion pounds of fresh fruit and vegetables cross the US-Mexican border each year." (If you want to know how the Dept. of Agriculture keeps track of this: read more)
freshplaza.com: "Over 13 billion pounds of fresh fruit and vegetables cross the US-Mexican border each year." (If you want to know how the Dept. of Agriculture keeps track of this: read more)
Jan 7, 2012
Globalization: US Aerospace and Defense Companies Set Up Shop in Mexico
Public Radio International: "In the past five to 10 years, more than 50 aerospace and defense companies have started operations in Baja California, according to Mexico’s trade ministry. Most of them are American, and they produce everything from electronic components to steel bolts for commercial and military aircraft." read more
Jan 5, 2012
NAFTA: How US Policies Fueled Mexico's Great Migration
The Nation: "The experience of Veracruz migrants reveals a close connection between US investment and trade deals in Mexico and the displacement and migration of its people. For nearly two decades, Smithfield (a U.S. company) has used NAFTA and the forces it unleashed to become the world’s largest packer and processor of hogs and pork. But the conditions in Veracruz that helped Smithfield make high profits plunged thousands of rural residents into poverty. Tens of thousands left Mexico, many eventually helping Smithfield’s bottom line once again by working for low wages on its US meatpacking lines." read more
NAFTA: Booming Mexico-U.S. Trade Buoys Kansas City Southern Railroad
This story points to the continued growth in Mexico's trade with the U.S.--and in U.S. corporate profits from that growth--by focusing on the role of a U.S. railroad's Mexican subsidiary in that trade.
Bloomberg: "Cross-border merchandise trade totaled $341 billion by the end of September, about 18 percent higher than it was at the same point in 2010, according to the most recent data from the Bureau of Transportation Statistics in Washington. The increase will help Kansas City Southern, the only U.S. railroad with a wholly owned Mexican subsidiary, ...as the 125-year-old company seeks to take business away from trucks traversing the border." read more
Bloomberg: "Cross-border merchandise trade totaled $341 billion by the end of September, about 18 percent higher than it was at the same point in 2010, according to the most recent data from the Bureau of Transportation Statistics in Washington. The increase will help Kansas City Southern, the only U.S. railroad with a wholly owned Mexican subsidiary, ...as the 125-year-old company seeks to take business away from trucks traversing the border." read more
Dec 26, 2011
NAFTA: American Christmas trees take over Mexico
GlobalPost: "US and Canadian Christmas trees have flooded into Mexico in recent years .... This holiday season alone, more than a million trees have been imported over the Rio Grande to decorate homes celebrating the birth of Jesus Christ, Mexico’s Environment Department reported. The imports now outnumber the 700,000 trees provided by Mexican growers this year.
But not everyone sees the southward flow of pines as a welcome present. Some Mexican farmers and politicians complain they are fighting unfair competition from the wealthy subsidized US plantations." read more
But not everyone sees the southward flow of pines as a welcome present. Some Mexican farmers and politicians complain they are fighting unfair competition from the wealthy subsidized US plantations." read more
Nov 21, 2011
Globalization and trade: Mexico sees life beyond U.S. export market
Reuters: "For years after the North American Free Trade Agreement came into force, the main road to riches for many Mexican entrepreneurs was across the border. Now they are increasingly likely to cross an ocean instead.
... having ... become dependent on U.S. demand for 88 percent of exports, Mexican firms were heavily exposed to economic shocks across the frontier, and the economy was battered by the financial crash that hit Wall Street in 2008. Since the crisis, Mexico has stepped up efforts to limit its reliance on the world's biggest economy, ratcheting up trade with Latin America, Asia and Europe... Mexico managed to cut its share of exports bound for the United States late last year to less than 80 percent for the first time since NAFTA, and the figure is expected to dip to around 78 percent in 2011." read more
... having ... become dependent on U.S. demand for 88 percent of exports, Mexican firms were heavily exposed to economic shocks across the frontier, and the economy was battered by the financial crash that hit Wall Street in 2008. Since the crisis, Mexico has stepped up efforts to limit its reliance on the world's biggest economy, ratcheting up trade with Latin America, Asia and Europe... Mexico managed to cut its share of exports bound for the United States late last year to less than 80 percent for the first time since NAFTA, and the figure is expected to dip to around 78 percent in 2011." read more
Nov 15, 2011
U.S.-Mexico Relations: Ignore Mexico and We’ll All Pay the Price
A discussion of the reasons--both dangers and benefits--as to why the U.S. media--and citizens--ought to pay more attention to Mexico. That's a goal shared with Americas MexicoBlog.
www.citywatchla.com: "The truth is, American media elites—not to mention the man on the street—aren’t invested, or even much interested, in the fate of Mexico.
www.citywatchla.com: "The truth is, American media elites—not to mention the man on the street—aren’t invested, or even much interested, in the fate of Mexico.
Mexico, clearly, doesn’t have (much) status. I think it should, and I’ve spent a lot of time thinking about why it doesn’t. Yes, I grew up in Mexico, but there’s a lot more to it than that. More than 40,000 people have died in Mexico since its government decided to take on drug cartels that are nourished by American consumers and armed by U.S. gun dealers. There is an almost direct causal link between Wall Street bankers doing blow or Occupy Wall Street protesters getting high and journalists and elected officials getting assassinated in Mexico. Not only is this violence undermining a democracy next door; we as Americans are responsible for much of it." read more
Nov 4, 2011
The Drug War and Free-Market Capitalism
canada.com: "Ciudad Juarez, a city on Mexico's border with the US state of Texas, is described by Ed Vulliamy as "the most murderous city in the world" (Guardian Weekly, July 1/11). The 40,000 homicides claimed so far by Mexico's recent drug war didn't all occur in Ciudad Juarez. But enough were committed there to make the city a focus of attention and a symbol of socio-economic failure, a glimpse into a future in which the quest for profit is pursued to its logical extreme. Put simply, a demand for drugs exists in America and Europe, a supply is available, and competing entrepreneurs are eager to meet the needs of the marketplace." read more
Oct 17, 2011
Globalization: Mexico Extends Tax Benefits to Maquiladoras, Social Groups
Mexidata: "Mexican President Felipe Calderón signed a decree granting tax incentives to two key sectors of the economy: the maquiladora industry, and philanthropic and social organizations. In the case of the maquiladora industry, a pillar of the Mexican economy in areas with high aggregate value, such as the aerospace, telecommunications, electronics and automobile industries, the decree will extend the tax incentives, which would have expired at the end of the this year, to 31 December 2013." read more
Sep 23, 2011
Globalization and the Mexican Economy: Gold Diggers, Gun Runners, and GMO Exporters
A review of a number of changes in the Mexican economy due to globalization over the past fifteen years.
Spero News: "A slew of press reports offers glimpses at a few of the trends that have transformed the Mexican economy during the past decade,..."
Spero News: "A slew of press reports offers glimpses at a few of the trends that have transformed the Mexican economy during the past decade,..."
Sep 11, 2011
Globalization: 18,600 jobs offshored by corporations backing job-offshoring trade deals
Eyes on Trade: "The heads of 32 corporations placed an "open letter" in yesterday's National Journal Daily (subscription only) calling for congressional passage of the NAFTA-style trade deals with Korea, Colombia, and Panama.
While these CEOs claimed that jobs would be created by these deals, these claims are belied by the government’s own official studies (which predict an increase in the U.S. trade deficit as a result), by independent economists (who project the net loss of hundreds of thousands of jobs), and the historical record of similar trade agreements (which show slower export growth to countries we have NAFTA-style deals with than with other countries)."
While these CEOs claimed that jobs would be created by these deals, these claims are belied by the government’s own official studies (which predict an increase in the U.S. trade deficit as a result), by independent economists (who project the net loss of hundreds of thousands of jobs), and the historical record of similar trade agreements (which show slower export growth to countries we have NAFTA-style deals with than with other countries)."
Aug 23, 2011
The Border: Union Pacific to spend $50M on Mexico border security
Now we have the globalization of the border, that is, the entrance of a transnational corporation, Union Pacific Railroad, into a partnership with the U.S. Customs and Border Protection to "enhance" border security. Union Pacific has been fined by CBP for drug shipments found on its trains. In a deal to have CBP to drop the fines, the railroad has agreed to this private investment in CBP.
securityinfowatch.com: Union Pacific Corp. (UNP) announced Friday that it signed an agreement with the U.S. Customs and Border Protection or CBP that formalizes and enhances their collaborative relationship to help secure the U.S. border against contraband and other security risks and to improve the flow of goods.
Union Pacific said that it will invest $50 million to enhance efforts to help secure the U.S. - Mexico border and improve supply chain security. The funds will be allocated towards technology, infrastructure, and personnel enhancements that CBP and Union Pacific will define in coming months. The company stated that the investments will include enhanced technologies such as intelligent video scanning and developing technologies such as global positioning systems or GPS and radio frequency identification or RFID tracking of rail movements.
securityinfowatch.com: Union Pacific Corp. (UNP) announced Friday that it signed an agreement with the U.S. Customs and Border Protection or CBP that formalizes and enhances their collaborative relationship to help secure the U.S. border against contraband and other security risks and to improve the flow of goods.
Union Pacific said that it will invest $50 million to enhance efforts to help secure the U.S. - Mexico border and improve supply chain security. The funds will be allocated towards technology, infrastructure, and personnel enhancements that CBP and Union Pacific will define in coming months. The company stated that the investments will include enhanced technologies such as intelligent video scanning and developing technologies such as global positioning systems or GPS and radio frequency identification or RFID tracking of rail movements.
Jul 15, 2011
Globalization: White House plans to submit Free Trade Agreements to Congress next week
Eyes on Trade: Trade-ifact Part Deux: "FTA proponents in the administration and Congress have worked to move along the negotiations for curtailing Trade Adjustment Assistance (TAA), all while maintaining a straight face when claiming that these trade pacts will create jobs. Late yesterday, White House Chief of Staff Bill Daley said that they would submit the FTAs for Congressional approval within days, so next week expect the FTA debate to turn white-hot (and a wave of questionable claims to reach tidal wave heights)."
Jul 12, 2011
Globalization: Launch of Trade-ifact: Keeping the Media Honest about Trade Deals
From Public Citizen's 'Eyes on Trade' blog
Now, more than ever, it’s important that Congress and the public be well informed about the likely impact of these deals, which are modeled on NAFTA.
Unfortunately, there has been too little reporting on the deals, and even less that is accurate and balanced. In the interests of accurate reporting, we're launching a new feature on the blog: Trade-ifact. (Think Politifact, but for Trade.)"
Globalization: Bulldozing Democracy One FTA at a Time
From Public Citizen 'Eyes on Trade' blog
This recent tragedy has brought renewed attention to the local conflicts erupting throughout Latin America from Peru to Mexico - regarding oil, mineral and gas extraction projects and their effects on the local environment.
The Border and Globalization: Santa Teresa crossing grows in the desert
Santa Teresa crossing grows in the desert: "About 15 miles northeast (sic.: actually, northwest) of El Paso, where the Pete Domenici Highway meets the (New Mexico) U.S/Mexico border, construction has started on improvements to the Santa Teresa Port of Entry. Traffic there has grown exponentially over the past few years.
While the project will double the capacity of the land port, it’s only expected to keep pace with the growth and have a negligible effect on wait times at El Paso ports of entry.
While the project will double the capacity of the land port, it’s only expected to keep pace with the growth and have a negligible effect on wait times at El Paso ports of entry.
“This port will play a very vital part in the global competition for jobs and wealth creation and capital creation. We now understand that we compete with the likes of Asia, so projects like this are absolutely critical for regional development and job creation here in this region,” says Jon Barela, secretary of economic development nominee for New Mexico."
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