Irish Drifter wrote:
Counte Dante wrote:
The fact is that even with Costa Rica's rich soil, no nation can match us in agriculture. Even with our higher labor costs, we can produce food more efficiently than any other nation. They rightfully suspect that if American food enters the marketplace without tariffs to artificially increase its price, the price will be so low that they won't be able to compete.
I have not heard that point of view expressed by even the ardent anti CAFTA people. The only commodity mentioned that might suffer by being imported from the United States is rice.
ID, then you haven't been listening. This HAS been one of the points made by even the most neutral CAFTA people. And Counte Dante mentioned only half of the story. As much as he'd likes to pat our farmers on the back for their productivity (which in fact is very great due to the prevalence of large scale agribusiness cropland and extensive use of labor saving machinery and petro-fertilizers), the other half is the humongous federal subsidies that we pay to all sectors of the industry (from milk to meat, sugar, corn etc.). Mexico has already discovered about this under NAFTA. We like to think about the negative consequences of that pact on the US worker, but it hasn't been all roses for Mexico either. It has been devastating for the Mexican farmer and that in turn is a large factor in the sudden and explosive growth in illegal immigration from the poor rural areas of Mexico that began around the same time that NAFTA went into effect.
Haywood Jablommi wrote:
Zman is absolutely right. It is about the big corporations which is why the politicians and media here put a pleasant spin on so called " free trade agreements. The costa ricans are correct to protest. Remember the people of CR are far less political than in other latin American nations so the fact that they took to the streets in such large numbers shows some passion about this subject.
Its no different here, so don't look down your noses at the tico politicians and media. Big corporations today are global corporations. They have the money to spread influence and put the politicians and media in their pocket WHEREEVER it serves their interests, inlcuding the US. Case in point, US energy policy. How was it formulated? Dick Cheney calls in his Big Oil executive buddies into a close room and out pops their plan. Who stood to benefit from NAFTA in the US? It WASN'T the already hard pressed manufacturing worker, who have watched their rolls and real income declined since NAFTA was passed. Rather, it WAS the MNC's who spent millions on PR to get NAFTA passed and their shareholders who watched their stock prices soar afterward.
Chi_trekker wrote:
I think the ticos that are against CAFTA are just plain scared about uncertainty. This is why they are so emotional. I always point-out Mexico to them. Is the Mexican economy falling apart? NOOOOOO!!!! The Mexican stock market has had its biggest rally EVER in the past 10 years. Their economy is screaming ahead with growth. I, personally, have made some money buying futures on the Mexican stock market. Would I buy futures on the US stock market? Would I buy futures on the CR stock market if CAFTA passes? Hell Yeah!!!
Sure they're scared but that doesn't mean they don't have good reason. Sure they're uncertain but thats because they've heard conflicting reports and the tico media, politicians and other moneyed interests have been only telling them part of the story. I'm glad you've made money off of NAFTA, but don't mistake prosperity on Wall Street (which reflects corporate profits) with prosperity on Main Street or Calle Central (which reflects the experience of the average citizen). Is the Mexican economy falling apart? Maybe not for the Mexican elite but, as Bilko pointed out and judging from the throngs of illegal immigrants that have crossed over their border since NAFTA went into effect, it doesn't seem to be working too well for many Mexican citizens.
Here is a highly informative article on the subjext of the upcoming CAFTA vote in CR:
http://americas.irc-online.org/am/4575One part in particular relates to this distinction between increased economic activity on the one hand and improvements for the working person on the other.
Quote:
We are told that CAFTA increases exports and increases Foreign Direct Investment (FDI) and that this will increase employment. Nevertheless, none of this reasoning is true. On the one hand, CAFTA does not guarantee an increase in exports nor in FDI. In fact, last year Guatemala, Honduras, and El Salvador, with the agreement in place, actually saw their exports to the United States decrease.
No increase in foreign investment is guaranteed. Last year foreign investment in Costa Rica, without the treaty in place, was greater than that which was invested in all of the other Central American countries put together. Also, an increase in exports and in FDI does not guarantee that employment rates will rise. Between 1994 and 2006 in Costa Rica FDI rose by 500%, exports by 300%, and nevertheless unemployment also rose. This is because FDI displaced national production, and in doing so sometimes generated more unemployment than employment. This also was a result of an increased rate of displacement of national producers and employees. All such effects would be exaggerated if the agreement were to be approved.
Does this mean I think CAFTA doesn't have any merits? Not quite. ICE is grossly inefficient with lots of "featherbedding" (do-nothing jobs). A little competition will probably do them some good. I;m not so sure what the net effect of those changes will be. It will also put a lot of those do-nothing ICE employees out of work and make the rest actually do something for their paycheck, which doesn't sound like such a bad thing either. However, ICE and all its various affiliates plus other similar quasi-govt enterprises make up a large portion of the tico workforce and significant job losses by them will mean that many ticos won't be able to share in any of the possible benefits of CAFTA.
Bilko wrote:
Trade agreements are written by and for special interests. There may be a 'trickle down' effect, but make no mistake who wrote it and who will benefit most (and soonest, just by coincidence).
Tman wrote:
"Free Trade" is a misnomer. These agreements are still full of limits, controls and subsidies for various parties on both sides of the equation.
Both sides? There's more than 2 sides here. There's certainly the US MNC's. There is also the local CR politicians and moneyed elites who are bought off by the MNC's. But who if anyone is really representing the interests of the average tico in all of this, or for that matter the interests of the average US citizen? For example, CAFTA does nothing to protect worker's rights (except in five specific instances)and is committed to prevent violations only "if commerce is affected", in other words only if it hurts the MNC's.
Bilko wrote:
Tman, We are of the same mind here. Over 1/2 of the voters who voted for our current President believed (probably still believe) that Iraq was involved in 9/11 and that we (the USA) found Sadaam's WMDs. It would be great to require a passing grade in civics and current events to be able to vote. It would be even better if the test was required to run for office.
I'm completely with you on requiring citizens to be better informed if they are going to weigh in on national policies that affect all of us, but who would that leave? As for the first part, we should be very careful about dipping into US politics here as some of that other 1/2 are also CRT members.