NAFTA renegotiations are in full swing. The second round is currently underway in Mexico City with the main issue emerging as differential labor standards among the three countries. The main concern on the part of Canadian and U.S. negotiators and their respective trade union movements is the much lower wages and poorer working conditions in Mexico as compared to the other two countries. The argument of course is that lower pay and poor working conditions in Mexico are at the root of the flow of jobs southward, putting downward pressure on labor standards in the U.S. and Canada and swelling corporate profits. The argument that NAFTA has been a bad agreement for working people in all three countries is a compelling one. That being said, can a renegotiated NAFTA agreement do anything much to address workers’ plight in Mexico? Some observers are optimistic, even seeing Trump’s push for better wages and working conditions as potentially positive for Mexican workers. However, I have my doubts.
Venezuela’s increasing slide into brutal authoritarianism has continued unabated. The country’s recently elected constituent assembly, boycotted by the opposition, has now taken over the powers of the country’s opposition-controlled Congress. With an estimated 124 deaths in opposition protests, international pressure against the regime has intensified. Much of that pressure has come from the U.S. In addition to U.S. imposed sanctions on some two dozen former and current Venezuelan officials, President Trump has declared that he will not rule out “a military option.” The Trump government is also contemplating the banning of oil shipments, a measure that would have a devastating impact on the Venezuelan economy. All of this has supposedly come about in an effort to support the cause of Venezuelan democracy. Trump has characterized the country’s opposition anti-government protesters as engaging in a struggle ”for democracy, freedom, and rule of law,” and has declared that their just demands “continue to be ignored by a bad leader who dreams of becoming a dictator” (a reference to current President of Venezuela, Nicolás Maduro). The pot, I fear, is calling the kettle.
From January 2017, Venezuela’s political crisis, involving a sharp deterioration in social conditions, large-scale street protests, government repression, and human rights violations, has steadily worsened. With the election of a Constituent Assembly on July 30, the country has become increasingly isolated internationally. The European Union, most Latin American Countries, and the United States have all condemned this election, widely seen as a power grab on the part of the country’s president, Nicolás Maduro. Sanctions against Venezuela are under serious consideration, and the U.S. has threatened military intervention. This increasingly intense international pressure will not produce a lasting resolution of Venezuela’s predicament; indeed, it will probably not produce any resolution at all.
On July 17, the Trump administration released a document outlining its negotiating objectives for the renegotiation of the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico. The first round of the renegotiations will begin on August 16. While the U.S. administration claims that it has no deadline for the completion of talks, the reality is that the 2018 Mexican presidential election could make the achievement of U.S. goals considerably more difficult. However, renegotiations are very likely to be fraught with difficulties even before the new Mexican administration takes office in late 2018.
On May 28, the EZLN (Zapatista National Liberation Army) and the Indigenous Council of Government (CIG), selected María de Jesús Patricio Martínez, an indigenous women from the Nahua community of the state of Jalisco, to run as their presidential candidate in the 2018 election. As she readily admits, she has no chance of winning. In fact, just obtaining the opportunity to run for the presidency will be a struggle since electoral law requires that an independent candidate obtain some 850,000 signatures across 17 of the country’s 32 states.
President Donald Trump recently announced a partial reversal of Obama’s initiative to normalize United States’ relations with Cuba. President Obama’s detente in 2014 was an encouraging sign: the new policy involved the re-opening of the American embassy, lifted travel restrictions, and promised an eventual removal of the long-standing U.S. trade embargo against Cuba. Trump has reintroduced travel restrictions on cultural and educational visits by Americans, prohibited business dealings with Cuba’s military or intelligence services, and declared that the trade embargo will remain in place. In Trump’s words, his Cuba policy will alleviate the “tremendous repression” endured by Cubans. In an effort to bring about “a free Cuba,” the Trump administration has demanded that Cuban leaders put “an end to the abuse of dissidents, release the political prisoners, stop jailing innocent people, open [themselves] to political and economic freedoms, [and] return the fugitives from American justice”. Trump’s strategy to bring about change in Cuba, shows a fundamental misunderstanding of Cuba’s history and social development since the Revolution.
Only very recently, observers of Latin American politics were proclaiming the decline of the populist left “pink tide, the various regimes that had come to dominate politics in many countries of the region through much of the 2000s. In 2015 and 2016, centre right leaders obtained a string of notable victories. Mauricio Macri was elected president in Argentina, the opposition in Venezuela obtained a landslide victory in congressional elections, Workers Party President of Brazil, Dilma Rousseff was removed from power through impeachment proceedings, and President Evo Morales of Bolivia lost a referendum to allow him a fourth term as president. However, recent events suggest that the left remains tenaciously resilient.
On May 24th, tens of thousands of protesters marched on the Brazilian Congress demanding the resignation of President Michel Temer and an end to his austerity measures. He has recently taken power, having engineered the removal of Workers Party (PT) president Dilma Rousseff (2011-2016). The increasingly violent unrest was also fueled by revelations of corrupt practices on the part of Temer, videotaped paying off a witness in one of the country’s worst corruption scandals. There are now calls for Temer’s impeachment. The accusations against the president, however, are only the most recent manifestation of ongoing political upheaval over widespread corruption, involving most of the country’s political class and powerful business leaders.
When I teach Latin American politics, I usually begin by counselling my Canadian undergraduates that it is important to resist the natural human inclination to pass judgement. It is tempting to do so because Latin American politics is rife with authoritarian strong men, corruption, and procedural irregularities. However, in the words of Uruguayan journalist, Eduardo Galeano, “History never really says goodbye. History says, 'See you later.'” This is particularly true when trying to make sense of the current turmoil in Venezuela. The Venezuelan crisis is the culmination of a complex and long historical process. Contrary to much of the mainstream media, it is not a good versus evil struggle between the forces of repression and the forces of democracy.
The mainstream media has characterized Emmanuel Macron’s victory in yesterday’s French election as a resounding defeat of right wing authoritarian populism. Macron, heading up a new political party called En Marche! (Forward!), won 65 percent of the popular vote against right wing populist Marine Le Pen’s 34 percent. Despite the rise of populist authoritarian movements in an increasing number of countries, global elites continue to laud the unquestionable benefits of free trade and other features of the neoliberal policy prescription.
With the French public about to vote in a run-off election for the country’s next president, commentators in the mainstream media are cautiously optimistic that centrist candidate Emmanuel Macron will defeat Marine Le Pen’s right populist National Front. Thus, Europe will be saved not only from another movement to exist the EU but also from a racist inward thinking regime that represents a threat to liberal democracy, tolerance, and prosperity. Mainstream media has focussed largely on the National Front’s anti-Semitic and fascist past and on the party’s intolerance towards immigrants. This perspective underestimates the depth and nature of popular disillusionment. The reality is that the very emergence of populist authoritarianism is a symptom of the breakdown of the representative capabilities of liberal democracy. Regardless of who wins the French election, both liberal democracy and the global order will continue to be in trouble.
A number of commentators in the mainstream media have recently lamented that authoritarian populism has been on the rise in Europe and in the United States, while apparently declining in Latin America—a region with a long history of this phenomenon. According to this perspective, while emotionally charged appeals to popular base emotions have now become predominant in the North, Latin Americans have sensibly turned to the political right, electing right-leaning political leaders with solid pro market credentials. There are some basic misunderstandings in this observation. While there are some startling commonalities in the origins of most populisms, there are also some very important differences in their recent manifestations.
U.S. politics is becoming increasingly polarized, characterized by growing rigidity, extremism and, at times, incidents of violence on the part of pro-Trump and anti-Trump demonstrators. What many find most puzzling about the current U.S. administration is how President Trump can continually make what is regarded as outrageous statements without those statements having a substantial detrimental impact on his core base of support. True, his 37% approval rating is one of the lowest so early in a presidential first term. However, even this level of support is difficult to fathom. At the same time, many Democratic supporters have been unwilling to grant the new government even minimal legitimacy, apparently convinced that Trump’s road to the White House was paved with Russian complicity. Europe is now more politically polarized than ever before with the rise in popularity of populist right fringe parties, the result, according to reports, of a general ideological shift.
Lack of employment opportunities has been a longstanding feature of most Latin American countries, including Mexico, and one of the key reasons for historically high levels of poverty, deprivation, corruption, crime, and political violence. Lack of sufficient decent employment is now a widely recognized problem in the United States—one of the crucial issues in the election of Donald Trump was the loss of jobs, particularly in the manufacturing sector.
For much of the twentieth century, unaccountable governments, generally unresponsive to public demands, characterized most countries of Latin America. While from the mid-1980s, electoral democracies seemed to have put an end to the cycles of left populist authoritarian regimes and military dictatorships, authoritarian features (lack of accountability, the absence of the rule of law, etc.) have remained firmly entrenched.
A growing number of U.S. observers are watching the impact of Donald Trump policy pronouncements on Mexican politics with considerable unease. Left populist leader, Andrés Manuel Lopez Obrador (or AMLO as he is widely known), currently the favoured candidate in the 2018 presidential election, has been variously characterized as a Mexican Donald Trump and as a Mexican Hugo Chavez. In some ways, these characterizations are apt. AMLO is a charismatic leader, who has regularly delivered tirades against free trade (including NAFTA), rigged elections, corruption in high places, and the country’s ruling elite, which he refers to as the “power mafia.” He voices strong opposition to U.S. Imperialism, a position that is proving particularly attractive given President Trump’s support for a wall along the Mexican U.S. border, his threat of a 20 percent tariff on goods coming from Mexico, and his promises to deport Mexicans working in the United States. President Trump’s recently leaked suggestion that the U.S. might send in its military to help the Mexican government round up its “bad hombres” is only the most recent offensive remark contributing to growing Mexican nationalist sentiment.
In recent weeks, President Donald Trump has made much of the U.S. trade deficit with Mexico, arguing that Mexico has been on the winning side of the North American Free Trade Agreement (NAFTA). According to Trump, the U.S.’s 60 billion dollar a year trade deficit with Mexico demonstrates that most of the benefits of the agreement have flowed south. Indeed, given the apparent windfall accruing to Mexico, Trump has no qualms about demanding that Mexico pay for the wall he plans to build along the border. In a recent television interview (1), I suggested that a country like the U.S. could run a trade deficit for some considerable time without economic growth repercussions. Indeed, since the signing of NAFTA economic growth in the U.S. has been consistently better than Mexico’s. While it's important to acknowledge the fact that many workers in the U.S. have faced stagnant wages and job losses, Mexican workers have, on balance, fared even worse than their American counterparts. Hence, if workers in neither country have benefited, what does this trade imbalance between Mexico and the U.S. actually tell us? And, if workers in neither country have benefitted, who has?
As Donald Trump assumes office as the 45th president of the United States, widespread pessimism about the impact of his presidency abounds. The Donald has not backed off from (what appeared at the time) to be his most extravagant campaign promises. He has ramped up his rhetoric against China and Mexico as at the root of the decline of American manufacturing. He has announced that he will re-negotiate NAFTA and, if America does not get what it wants, will abandon it. The U.S. will not enter the Trans Pacific Partnership (TPP) trade agreement. The era of pursing free trade agreements with the rest of the world is gone, at least for now. Instead, we can expect his administration to slap tariffs on products manufactured abroad by U.S. companies and re-exported to the U.S., particularly in those sectors where it appears that companies have changed production location for the sake of reducing the cost of labor. Many commentators recalling the prelude to the Great Depression of the early 1930s, have raised fears about a decent into the protectionist policies of the past, a sharp deterioration of economic growth, and the onset of a severe recession. Others have opined that companies will simply seek other ways of reducing costs (and maintaining profits) such as through the use of robot technology. In general, most political observers place a great deal of blame on Trump himself for stirring up anti-trade public sentiments. Others focus on the racist/anti-immigrant and misogynist predispositions of Trump supporters, arguing that he has fostered these attitudes and rendered them legitimate.
The election of Donald Trump introduced border security and illegal Mexican immigration as crucial national issues. The Republican candidate garnered substantial political support for his promises to build a wall along the Mexico-U.S. border, deport Mexicans in the U.S. on a massive scale, and slap tariffs on cheap imported manufactured goods believed responsible for the loss of American jobs. Most critics focus on the xenophobic, illiberal, nature of these policy pronouncements. However, Trump’s critics have said little about the role of the U.S., including powerful U.S. economic interests, in contributing to the very immigration problem that the incoming Trump claims it will solve. Blowback, often used to refer to the impact of various U.S. misadventures in foreign policy, refers to the unwanted/negative result of an action or series of actions. The massive Mexican immigration to the U.S. with its attendant political consequences, is a troubling case of blowback—in large part the consequence of past U.S. actions.
U.S. president-elect Donald Trump has targeted Mexico as one of the main sources of job losses in the U.S., leaving many people with the mistaken impression that countries such as Mexico have been the winners in the global competitive game. However, today’s liberal trade and investment order, as I suggested in an earlier blog post, has not, on balance, benefitted Mexico. From 1996 to 2015, the Mexican economy has grown at the average annual growth rate of only 1.2 percent. With such lacklustre growth, the country’s poverty rate increased by 2.9 percent between 2008 and 2014. Inequality has also risen. While the top 10 percent saw their incomes rise, the bottom 50% of the population either failed to see their situation improve, or saw it deteriorate. In 2012, the total household income of the bottom 10 percent of the population was substantially lower than it was in 2008, despite some slight improvement in 2010.