NAFTA

US accuses Peru of violating FTA forestry provisions

The White House is accusing Peru of violating its commitment to protect the Amazon rainforest from deforestation, threatening to hold Lima in violation of the 2007 US-Peru Free Trade Agreement (formally the Peru Trade Promotion Agreement or PTPA). On Jan. 4, Robert Lighthizer, President Trump's top trade negotiator, announced that he is seeking formal 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), which was established as a provision of the trade agreement. "By taking this unprecedented step, the Trump administration is making clear that it takes monitoring and enforcement of US trade agreements seriously, including obligations to strengthen forest sector governance," Lighthizer said in a statement. 

Trump announces 'termination' of NAFTA

US President Donald Trump announced Aug. 27 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). While sitting at the resolute desk, Trump called Mexican President Enrique Peña Nieto to announce the new pact, which Trump described as "a really good deal for both countries [and] something that is very special for our manufacturers and farmers." 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. Peña Nieto agreed with Trump while on speaker phone, stating, "I think this is something very positive for the United States and Mexico." The Mexican president further stated that he wanted Canada to be involved in the agreement.

Mexico: AMLO-Trump populist convergence?

Andres Manuel Lopez Obrador—known by his initials AMLO—will be Mexico's next president, following his victory in the July 1 election. By any measure, this is historic—it is the first time a candidate of the left has had his victory honored, after three tries. In 1988, Cuauhtémoc Cárdenas of the Democratic Revolutionary Party (PRD) almost certainly had his victory stolen by fraud. Then, in 2006, AMLO himself, then running with the PRD, claimed his victory was similalry stolen. His supporters launched a protest occupation of Mexico City's central plaza, the Zocalo, and there was talk of forming a "parallel government." Now AMLO, running with his new vehicle, the National Regeneration Movement (Morena), has made it. There is a sense of a real break with Mexico's traditional political parties, The once-hegemonic Institutional Revolutionary Party (PRI) is again discredited, as narco-violence only escalated under the incumbent President Enrique Peña Nieto. AMLO's old vehicle the PRD meanwhile formed an unlikely coalition with the right-wing National Action Party (PAN). 

Chileans protest signing of rebooted TPP

Chilean activists protested in Santiago March 7 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."

Trump's vision for USA: shithole of racism

So by now we've all heard. President Trump, in an Oval Office meeting with a bipartisan group of senators, apparently referred to "shithole countries" whose nationals should not be welcomed in the US. The meeting was ostensibly on possibilities for a compromise immigration deal to protect the now suspended DACA program in exchange for Democratic support for some version of Trump's border wall. But the comment evidently came up regarding Trump's decision to end Temporary Protected Status for folks from Haiti, El Salvador and several African countries. According to sources speaking to the Washington Post, Trump said: "Why are we having all these people from shithole countries come here?” Trump suggested the US should instead bring more people from countries such as (white) Norway. "Why do we need more Haitians?" Trump is reported to have said. "Take them out."

Control of oil at issue in NAFTA re-negotiation

As "NAFTA 2.0" negotiations open, a provision that essentially locks in Canada's current levels of oil exports to the US is drawing opposition from unlikely allies across the Canadian political spectrum but winning staunch support in the "Oil Patch," as the country's petroleum industry is colloquially called.  The "proportionality clause" originally appeared in the US-Canada Free Trade Agreement of 1988 and became a major issue in that year's national election that returned Prime Minister Brian Mulroney to office. It was replicated six years later in the North American Free Trade Agreement—although Mexico won an exemption. The clause can be invoked if a government in Canada reduces US access to Canadian oil, natural gas, coal, electricity or refined petroleum products without a corresponding reduction in domestic access to those resources.

Trump risking war with Mexico for useless wall?

The planned meeting in Washington between President Trump and his Mexican counterpart, Enrique Peña Nieto, was called off after Trump signed his Jan. 25 executive order decreeing construction of a wall on the border—accompanied with more bluster about how Mexico will pay for it. Since the cancelation, Trump and Peña Nieto have engaged in an unseemly Twitter war, each taking responsibility for calling off the meeting. Things got worse when the White House raised the option of making Mexico pay for the wall with a 20% tariff on all goods coming in from our southern neighbor. The threat portends a trade war with the United States' third biggest trading partner.

'Gasolinazo' protests rock Mexico

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. Protests, road blockades and civil strikes are reported from 12 states since the new policy was instated Jan. 1. Looting was reported in Hidalgo, Veracruz and México states, with over 350 stores sacked. Several federal police agents were briefly taken hostage by protesters when they tried to break up a roadblock in Ixmiquilpan, Hidalgo. Two protesters were killed in the Ixmiquilpan clash, while one Federal District police officer is reported dead in rioting on the outskirts of Mexico City. Police also fired in the air to scatter protesters in Ecatepec, México. Nearly 900 have been detained nationwide. (Sol de Mexico, Jan. 6; Animal Politico, Jan. 5; Apro, Jan. 4)

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