/
Source: http Source: http

Source: http - PowerPoint Presentation

stefany-barnette
stefany-barnette . @stefany-barnette
Follow
420 views
Uploaded On 2016-02-25

Source: http - PPT Presentation

wwwslidesharenetMariaReynaftamay182011 rey Topic 4 NAFTA amp US hegemony Canada and Mexico Kit Quintero Ramírez Mize RL Pantaleo K Wise C Wise TA ID: 231095

amp nafta http canada nafta amp canada http mexico www trade raw periphery materials economic hegemony core 2001 continental

Share:

Link:

Embed:

Download Presentation from below link

Download Presentation The PPT/PDF document "Source: http" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

Slide1

Source: http

://www.slideshare.net/MariaRey/nafta-may-18-2011-

rey

Slide2

Topic: 4: NAFTA & US hegemony: Canada and Mexico

(

Kit:

Quintero

-

Ramírez

; Mize, R.L.

;

Pantaleo

,

K; Wise, C. ; Wise. T.A.;

Abboushi

, S.)

WST

Financial Meltdown (2008)

Trade

liberalization (

Neoliberalism)

Continental Commodification

The

Wonderful World of NAFTA (Part

1, 2

)

- 2007

http://www.youtube.com/watch?v=ZnVL0d9fwkY

7min p1

 

http://www.youtube.com/watch?v=XxQQael1ueE

7 min

p2

NEED

TO KNOW | After NAFTA | PBS 13.57 min

http://www.youtube.com/watch?v=mSXmB_my0ls

0c1 2011Slide3

Thesis: Under U.S. hegemony, NAFTA has integrated Canada and Mexico into a

continental

free-trade system

. As a result, Canada

s

raw materials are exploited

for reconstructing the declining U.S. global hegemony.

As a

result of US-led 2008 financial meltdown, workers face a sharply

depressed job market

in a

de-industrialized Canada

barely buffeted by the welfare system.

In contrast, Mexican

cheap

, but skilled and

surplus

labour

is exploited

for

restructuring the industrial sector in the U.S

. The

failure of the US financial system

has worsened the

unemployment of the Mexican workers intensifying their poverty as they have no welfare system.

Both,

Mexican and Canadian economies, have become

dependent

on the U.S. through the

commodity chain

of exploitation. Slide4

Peripheries: NAFTA

Periphery: Mexico

Semi-periphery: Canada

Arguments in the literature:

Wise T. A.(2011): Hegemony and

dumping

NAFTA + U.S. Farm Subsidies Devastates Mexican Agriculture

2010

https://www.youtube.com/watch?v=

N4KRd7Qjyys

8 min

Abboushi

, S (2010):

US trading power, US disregard for agreements, land-ownership structure vs. strategy of acquisition; and Managed (not Free) trade

Quintero Ramirez (2002)

NAFTA deindustrialized & depressed labour conditions in Canada and exploits workers in MexicoSlide5

4

. Susan George:

WTO is ineffective

http

://www.youtube.com/watch?v=

NQ952ba75Yk

you tube uploaded May

5, 2011

)

5

.

Wise, R.D &

Cypher

, J.M (2007).

Cheap-labor embodied Mexican exports but not achieving new high-value added production or specialization.

Source: The Strategic Role of Mexican Labor under NAFTA: Critical Perspectives on Current Economic Integration, THE ANNALS OF THE AMERICAN ACADEMY, March

2007

6

.

Carol Wise (2009):

Regional market integration of US, Canada and Mexico has been superseded by China’s use of NAFTA to facilitate its entry into US through Mexico Slide6

7

.

Gandasegui

, M.A (2006

) Kit

#

17:

Using its hegemony, US

wants to

gain

advantages over 4

areas in making trade agreements with each country in

LAm

:

Government contracts

Pharmaceutical markets

Agricultural markets

Intellectual property (GRAIN 2004).

 

Slide7

8

.

Katherine

Pantaleo

(2010).

the

murders as gendered sexual serial killings primarily

perpetuated and

caused

by: NAFTA, Gender issues & Corruption

of the criminal justice system

.

NAFTA's Ultimate Effect on Mexico P1 of 2 2010

april

9.29 min murder city Charles

bowden

http://www.youtube.com/watch?v=WSrOAfMylAs

 

NAFTA's Ultimate Effect on Mexico P2 of 2  

http://www.youtube.com/watch?v=nokmc36jnOI

7 min

 

9

.

Cormier &

Targ

(2001)

Globalization led to workers’ poverty &

global income inequality

Cormier , D &

Targ

, H

, (2001) Globalization And The North American Worker.

Labor Studies Journal

, Spring 2001 v26 i1 p42

 

Paul

Ciccantell

(2001). NAFTA and the Reconstruction of U.S. Hegemony: The Raw Materials Foundations of Economic Competitiveness. (Statistical Data Included),

Canadian Journal of Sociology

,

Wntr

2001 v26 i1 p57

Slide8

How does NAFTA de-industrialize & depress

labour

conditions in Canada and exploit workers in Mexico?

(Quintero Ramirez: 2002)

By:

Reducing the number of full-time jobs

Subcontracting work outside the plant

Increase of part-time workers

Piecework outsourced to home work

Slide9

Core: NAFTA & US (as Core):

Core: NAFTA & US (as Core):

Power of the US: Neoliberalism is imposed on Mexico and Canada

Impact of US financial boom-bust cycles affect their trade balances.

Semi periphery and Periphery:

Continental commodification of Canada

s (semi periphery) and Mexico

s (Periphery) raw materials

http://www.slideshare.net/MariaRey/nafta-may-18-2011-

rey

1-40 slidesSlide10

D

riving force of Global market integration: (Cormier &

Targ

: 2001)

Neoliberalism (NL)

deregulate commercial activity. Liberalize trade, open for foreign investments. Deregulate finance/currency, privatize the economy, ensure private property protection

Why should Canada and Mexico adopt NL?

US

s enforcement: How?By integrating Canada and Mexico through NAFTAAs requirements of loans: WB, IMF & SAP

Feb 2010: UNCTAD’s new economic report shows that neoliberal policies have negatively affected the countries that were forced to follow them Slide11

Why does Mexico as a peripheral country bow to American hegemony

IMF requires each country to balance export vs. import payment in trade. It lends money to bridge the gap (imports minus exports) and imposes the rules of neoliberalism (

LAPDoGS

) on the borrowing country.Slide12

Core: NAFTA & US (as Core):

Power of the US: Neoliberalism is imposed on Mexico and Canada

Impact of US financial boom-bust cycles affect their trade balances.

Semi periphery and Periphery:

Continental commodification of Canada

s (semi periphery) and Mexico

s (Periphery) raw materials

Slide13

WST: US

s commodification of Canadian and Mexican raw materials: How?

1.

Continentalization

of the 3 economies

Corporatization of production in NAFTA countries

Continental expansion of US

s MNCs

Continental enforcement of neoliberalism 2. FT FT-terms

favourable to the US GCC & Continental commodity chainSlide14

http://www.dfait- maeci.gc.ca/eet/research/nafta/nafta-en.asp#aconmondSlide15

Global Integration by trade agreements in

Table 1

US vs. European Union (EU).

European U: Sovereign states may resist global integration because it would mean surrendering national control on economic policies

CU allows greater bargaining power between trading nations

FTA may appeal to small states as exporters need to adjust only to block standards not to global standards.Slide16

WST

:

Continentalization

of the

three economies

& US (Core

s)hegemony:Mexico (periphery) and Canada (semi-periphery) are integrated through NAFTA Favourable terms of trade for the US (unequal exchange)

US disregards

WTO

s decisionsSlide17

FT:

Continental commodification of Canada

s (semi periphery) and Mexico

s (Periphery) raw materials

US power within NAFTA leads to the continental commodification

Under the US hegemonic power Mexico and Canada abide by the US strategies.Slide18

How does a hegemon in a trade block make gains?

Political influence

Terms-of-trade (TOT)

Discrimination against non-members

Greater influence over multilateral trade

negotiationsSlide19

http://www.pecc.org/trade/papers/bangkok-2001/low.pdfSlide20

http://

www.pecc.org

/trade/papers/bangkok-2001/

low.pdfSlide21

Impact of Neoliberal Trade Policies:

UNDP Human Development Report 2004 :

46 countries

people are poorer today

(2004) than

in 1990

Liberalization and privatization restrict countries

supply of basic services

WB conditionality undermines local service industries that cannot compete with trans-national service corporationshttp://www.un-ngls.org/cso/cso5/cfmm2004statement.pdfSlide22

http://

ageconsearch.umn.edu

/

bitstream

/61895/2/AAEA_RGR_PAPER_May_3_2010.pdf

Rafael

Garduño

Rivera 2010Slide23

UN Economic and Social Council, 2000: committee on human rights reports:

Most global trade is controlled by

multinational

enterprises

Trade and commerce have serious

human

rights implications

WTO: gender

insensitive

Patents for genetically engineered species – economic high-jacking.

http://www.unhchr.ch/Huridocda/Huridoca.nsf/(Symbol)/E.CN.4.Sub.2.2000.13.En?

Opendocument

. Slide24

US hegemony

Advanced industries, technology & market (P)

Mergers and expansion of MNCs (NDL)

Financial stability (P)

Largest & desirable market for capital and for export (P)

Mexico: Periphery

Raw material based industrialization/ agriculture (Mexico)

(

unequal trade

: UT

)Development model –locked in by US market (oil demand & manufacturing) (

lack economic resistance to US market)Export dependence

(since 1970s, oil to pay debt dependence on US)

Smaller

domestic market

&

lacks

LAm’s

economic

d

evelopment pull

NAFTA:

Impact of US on MexicoSlide25

US hegemony

Advanced industries, technology & market (P)

State support of MNCs: Mergers

and expansion of MNCs (NDL

) for capital accumulation

Neoliberalism, Washington

Consensus

,

m

arket liberalization

Financial stability (P)Capital flow from and dominant pull of the largest market for export (P)Canada:

SemiperipheryContinental integration of raw materials industries

(

heaviest

, bulkiest, and largest

volume, e.g., petroleum

, iron, coal, aluminum and

copper, for industrial production.)

Promote

higher technology manufacturing and

service

sector

industries

as the Development Model

Maintain export dependence on US as a secure market

(

U.S

. negotiators aimed for and got 'secure and enhanced access' to Canada's resource

sector)

Smaller domestic markets

& less globally powerful

NAFTA: Impact of US on CanadaSlide26

Canada

(Semi-periphery)

Manipulative power

D

ifferent

goals in negotiating

CUFTA: protect

resource and manufactured exports from U.S. trade discrimination

(stronger State and econ stability)

Regulated NAFTA ties with US but weakened by continentally integrated economy

1980s: NEP (National Energy Program), of Canadian government aimed at

self-reliance in oil and natural gas & increased investment & production & restricted

exports

Restrictions

on

US re: foreign

ownership of petroleum, uranium production, mining

leases, transportation industries

Mexico

(Periphery)

(Weaker state and dependence on Core and semi-periphery)

Different

goals in

negotiating NAFTA: promoting

economic and political restructuring

were central (lack of powerful and stable State)

Locked in dependence on exports of oil and raw resources & US industries shaped its econ. development

Mexico, a major world producer of lead and

zinc, pollution intensive production, drew U.S

.

investment (UT)

US demand for bulky/heavy raw resources has continentally tied Mexico to the capital and markets of US & Canada

NAFTA: Comparing

impact of US on Mexico and on

CanadaSlide27

WST: US

s commodification of Canadian and Mexican raw materials: How?

1.

Continentalization

of the 3 economies

Corporatization of production in NAFTA countries

Continental expansion of US

s MNCs

Continental enforcement of neoliberalism 2. FT FT-terms favourable to the US

GCC & Continental commodity chainSlide28

Ciccantell

(2001): NAFTA: an institutional framework of integrating raw materials

Why was U.S. interested in NAFTA?

US raw materials supply systems

were declining

To access cheap

labour

and to gain new markets

Name a resource that is expensive today:

oil & gas

e.g.: oil price increases of 1973-74 led to 1979-80 decline of U.S. economic competitivenessSlide29

http://www.acs-aec.ca/Polls/Poll55.pdfSlide30

Core: NAFTA & US :

1. Problems of U.S. & its MNCs:

How did they solve insecure supplies of the raw materials ?

Canada

s & Mexico

s oil, natural gas, and other natural resources

2. Why was US interested in these supplies?

To reduce for U.S. MNCs

’ cost of production to advance their profit & competitiveness. Slide31

Core: NAFTA & US (

cont

d):

Core-Periphery unequal exchange continues under hegemonic FT rules:

FT ensures:

Cheap access to heaviest, bulkiest, and largest volume raw materials

Monopolistic (MNCs) extraction peripheries

raw materials at low costsSlide32

What is

Direct foreign investment

?

branch plants -- central mechanisms of core economies' control over their raw materials in peripheries

Limit processing to certain refineries:

physical relationship tightly links many extractive peripheries to particular core

firmsSlide33
Slide34

Foreign Direct Investment in Canada 1995 - 2004

FDI received in to Canada $449 billion in

2006   

http://www.witiger.com/internationalbusiness/FDIinCanada.htmSlide35

http://revista.amec.com.mx/num_7_2004/Peter_Kresl.htmSlide36

John W. Foster and John Dillon1 http://

www.kairoscanada.org

/e/economic/trade/

NAFTACanada.pdf

Annual % Changes for 10 years of NAFTA

Increasing Productivity (red) gains

were not passed on to

workers (

labour

costs (

yello

w

:Slide37

Sources: Canadian Institute for Health Information,

Gouvernement

du Québec, Government of Canada,

Institut

de la

statistique

du Québec, International Monetary Fund,

Organisation

for Economic Co-operation and Development, Population Reference Bureau, Statistics Canada, US

FedStats, World Bank.

http://www.stat.gouv.qc.ca/donstat/econm_finnc/conjn_econm/compr_inter/ipcvar_an.htm

2005: Mexico

s cost of living increased double that of Canada Slide38

http://www.stat.gouv.qc.ca/donstat/econm_finnc/conjn_econm/compr_inter/index_an.htm

 

2005

Sources: 

Canadian Institute for Health Information,

Gouvernement

du Québec, Government of

Canada

,

Institut

de la

statistique

du Québec, International Monetary Fund,

Organisation

for Economic Co-operation and Development, Population Reference Bureau, Statistics Canada, US

FedStats

, World Bank.

40 mil. Poor in MexicoSlide39

Quintero Ramirez (2002): How does NAFTA de-industrialize & depress

labour

conditions in Canada and exploit workers in Mexico?

In Canada: by

Reducing the number of full-time jobs

Subcontracting work outside the plant –affects jobs:

increase of part-time workers

piecework

outsourced to home work

Slide40

Quintero Ramirez (

cont

d)

In Mexico:

average of 70 hrs. per week without overtime pay - no health insurance, no benefits

violation of the Employment Standards by employers – workers received no compensation under the Workplace Safety Act

no welfare or UI (unemployment insurance)Slide41

Canadian Institute for Health Information,

Gouvernement

du Québec, Government of Canada,

Institut

de la

statistique

du Québec, International Monetary Fund,

Organisation

for Economic Co-operation and Development, Population Reference Bureau, Statistics Canada, US

FedStats

, World Bank.

2003

http://

www.stat.gouv.qc.ca

/

donstat

/

econm_finnc

/

conjn_econm

/

compr_inter

/

chomage_an.htmSlide42

http://www.dfait-maeci.gc.ca/eet/research/nafta/nafta-en.asp#aconmondSlide43

http://www.dfait- maeci.gc.ca/eet/research/nafta/nafta-en.asp#aconmondSlide44

http://www.dfait- maeci.gc.ca/eet/research/nafta/nafta-en.asp#aconmondSlide45

http://www.dfait- maeci.gc.ca/eet/research/nafta/nafta-en.asp#aconmondSlide46

NAFTA benefits the capital investors but workers lose jobs:

Source: G & M Feb. 15, 2008, p.A18.(editorial)

Trade Area 440 mil people

1993-2006: $15 Trillion (value of goods and services produced)

Economies grew by :

U.S. 50%

Canada 54%

Mexico 46%

NAFTA partners

total trade /a minute

$1.7 million (worth)Source: G & M Feb. 15, 2008, p.A18.(editorial)Slide47

The Wonderful World of Nafta

http

://www.youtube.com/watch?v=

ZnVL0d9fwkY

7 min (the wonderful World of

Nafta

1/2)

http

://www.youtube.com/watch?v=

XxQQael1ueE

(2/2)Slide48

Does Canada

control its own sovereignty, taxation and

borrowing?

Yes, but:

U.S. hegemony

It ensures that its huge sunk capital in raw materials, overpowers Canada

s claims to sovereignty Slide49

Pre 9/11: What % of Canadians were

continentalists

?

Two thirdsSlide50

Post-9/11: Who is a close ally of the U.S?

http://www.acs-aec.ca/Polls/SoCloseYetSoFar.pdfSlide51

What is

hegemony?

Arrighi

(2004):

When a state uses its economic, political, military and cultural power to control a group of sovereign states.

Arrighi, G (2004).

"Hegemony and Antisystemic Movements". In I. Wallerstein, ed.,

The Modern World-System in the Longue Duree

. Boulder, Co: Paradigm Publishers, 2004Slide52

Core: NAFTA & US

:

Ciccantell

,

P.

(

2001)

1

. Problems of U.S. & its MNCs:

How did they solve insecure supplies of the raw materials

? Ciccantell, P. (2001). Canada’s & Mexico’s oil, natural gas, and other natural resources 2. Why was US interested in these supplies?

To reduce MNCs’ cost of production for U.S. to advance their competitiveness.

(

Ciccantell

, P (2001). NAFTA and the Reconstruction of U.S. Hegemony: The Raw Materials Foundations of Economic competitiveness.

(Statistical Data Included) , Canadian Journal of Sociology, Winter 2001

v26

: 1, p57)Slide53

Core: NAFTA & US (cont’d):

3. What does US as a hegemon want to

monopolize

trade in

the world?

Cheap access to heaviest, bulkiest, and largest volume of raw materials

Maintain its hegemony to extract raw materials at low costs from the peripheries. Slide54

WST explains Core’s Globalization agenda & its consequences to the peripheries

Expansion of US Hegemony: (read: Ciccantell, P: 2001)

Enforced uniformity in development

Hegemonic control over technologies

Unsuitable, costly & centralized solutions

Lack of locally effective problem solvingSlide55

Wise, Timothy A. (2011) (in course kit)

NAFTA + U.S. Farm Subsidies Devastates Mexican Agriculture 8.23 min 2012

http://www.youtube.com/watch?v=N4KRd7Qjyys

Dumping margin

In a case of

dumping

, the difference between the "

fair price

" and the price charged for export. Used as the basis for setting

anti-dumping duties

. http://www-

personal.umich.edu

/~

alandear

/glossary/

d.htmlSlide56
Slide57

Peripheries: NAFTA

Periphery: Mexico

Semi-periphery: Canada

Wise

T. A.(2011): Hegemony and dumping

Abboushi

, S (2010):

US trading power, US disregard for agreements, land-ownership structure vs. strategy of acquisition; and Managed (not Free) trade

Quintero Ramirez (2002)

NAFTA deindustrialized & depressed labour conditions in Canada and exploits workers in Mexico