The AFL-CIO and other trade unions announced that they have filed a complaint against Tridonex, a Mexican auto parts factory and subsidiary of Philadelphia-based Cardone Industries, located in the city of Matamoros, Tamaulipas state. This case will be one of the first to test the United States-Mexico-Canada Act (USMCA), which supersedes the North America Free Trade Agreement (NAFTA). The complaint is brought under the new “rapid response” mechanism of the USMCA, allowing complaints of labor violations to be brought against individual factories. The complaint comes after Tridonex workers attempted to organize with an independent union, replacing the co-opted “protection union” at the plant. Over 600 workers were fired for their association with the new union. Susana Prieto Terrazas, the lawyer representing the Tridonex workers, was also arrested and jailed by the Tamaulipas governor on “trumped-up charges,” and only released after agreeing to leave the state of Tamaulipas. (Photo: Prensa Obrera)
A Mexican court issued a suspension of the new electricity law that aims to strengthen the state-run company, Comisión Federal de Electricidad (CFE). The law is supported by President Andrés Manuel López Obrador, who wants to increase state control of the energy market. López Obrador claimed that under the previous administration, the electricity market was skewed in favor of private operators. Grupo Bimbo, Walmart Inc and two unnamed companies filed challenges against the law. The US Chamber of Commerce expressed concern that the new law violates the US-Mexico-Canada Agreement (USMCA) and may create a monopoly in the electricity sector. The injunction will be in place until the case is decided on its merits. The judge asserted that the injunction was necessary “to prevent economic damage to the electricity sector, to ensure competition, and to protect the environment.” (Photo of power lines in Ixtapaluca via Wikimedia Commons)
Mexico’s President Lopez Obrador met with Trump at the White House to inaugurate the new trade treaty that replaces NAFTA. Embarrassingly, the meeting was punctuated by horrific new outbursts of narco-violence in Mexico. And the country’s promised cannabis legalization—mandated by the high court and looked to as a de-escalation of the dystopian drug war—is stalled by a paralyzed Congress. (Photo: Secretaría de Seguridad y Protección Ciudadana)
The White House is accusing Peru of violating its commitment to protect the Amazon rainforest, threatening to hold Lima in violation of the US-Peru Free Trade Agreement . Robert Lighthizer, President Trump's top trade negotiator, announced that he is seeking consultations with Lima to address concerns about its recent move to curtail the authority of Peru's auditor for timber exports, the Organism for the Supervision of Forestry Resources (OSINFOR), established as a provision of the trade agreement. The move move had been demanded by Peru's logging industry following an OSINFOR seizure of illegal timber. The White House needs support from congressional Democrats to pass the pending US-Mexico-Canada Agreement, Trump's replacement for NAFTA, which is supposed to have tougher labor protections. The forestry annex in the Peru agreement was conceived as a model for a new inspection system that could include confiscation at the border of goods found to violate treaty provisions, and the prosecution of companies that import noncompliant products. (Image via Sierra Club)
President Trump announced that the US and Mexico have reached an agreement on a new trade deal called the United States-Mexico Trade Agreement, which will ultimately terminate the North American Free Trade Agreement (NAFTA). Trump called Mexican President Enrique Peña Nieto from the White House to announce the new deal. Among a number of changes to NAFTA, both parties agreed to a provision that would require a significant portion of vehicles to be made in high-wage factories, a measure aimed to discourage factory jobs from leaving the US. Trump said he is in communication with Canada about a new trade deal, but is unsure if it will be part of the US-Mexico Trade Agreement. The Trump administration expects the new pact to be signed by the end of November. (Map: CIA)
Andres Manuel Lopez Obrador—known by his initials AMLO—will be Mexico's next president, following his victory in the July 1 election. This marks the first time a Mexican presidential candidate of the left has had his victory honored. An obvious question is how AMLO will deal with Donald Trump—who attained office by demonizing Mexicans and pledging to build a wall on the border (and make Mexico pay for it). Last year, AMLO actually filed a complaint with the Inter-American Commission on Human Rights against Trump's proposed wall. But he also hired Trump's current crony Rudolph Giuliani as anti-crime czar when he was mayor of Mexico City in 2002. As populists and opponents of free-trade economics, there may be unlikely common ground between the two men. (Photo: El Txoro)
Chilean activists protested in Santiago against the signing of the new Trans-Pacific Partnership agreement, now rebranded as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), or TPP-11. Protesters outside La Moneda Palace, headquarters of the Chilean government, held banners reading "No to modern slavery, no to the TPP-11" and "The TPP and TPP-11 are the same!" Lucía Sepúlveda, leader of the organization Chile Mejor Sin TPP, said the agreement would "deliver full guarantees to foreign investors" at the expense of "rights and national interests." (Photo: Chile Mejor Sin TPP)
With his "shithole" comment, Trump makes clear he would bring the United States back nearly a century to the 1920s, when immigration "quotas" were imposed for countries whose inhabitants were deemed undersirable, essentially cutting off immigration of Jews, Italians and Slavs. But deepening the insult, today Haitians and Salvadorans are being driven from their homelands by poverty and instability which is itself the bitter fruit of "free trade" policies foisted upon their governments by pressure from Washington. (Photo: Homeland Security's Otay Mesa Detention Center, BBC World Service via Flickr)
Trump's threat to make Mexico pay for the wall with a 20% tariff on all goods coming in from across the border portends—at least—a trade war with the third biggest US trading partner.
Several states across Mexico have been shaken by days of angry protests in response to a jump in the price of gasoline sparked by a new deregulation policy.
World War 4 Report offers its annual annotated assessment of Obama's moves in dismantling, continuing or escalating the apparatus of the Global War on Terrorism.