Why the NAFTA-style Free Trade Agreement Will Fail to Benefit Colombia

October 21, 2011  |   Economics & Trade

Why the NAFTA-style Free Trade Agreement Will Fail to Benefit Colombia

Despite evidence of limited economic welfare benefits and significant social costs, Latin American countries have been signing and ratifying trade treaties with the United States since the early 1990s.  This week, the long-stalled treaties with Colombia and Panama were ratified by the U.S. congress and signed by the President.  Like other trade treaties, these were based on the same template that has been the basis for U.S. trade policy since NAFTA. In the case of the Colombia Free Trade Agreement (Colombia FTA), promises from the government of President Juan Manuel Santos to better protect trade unionists pressured enough reluctant Democrats to vote in favor of the agreement.  Over 4,000 trade unionists have been murdered in Colombia in the past 20 years, mostly by right-wing paramilitaries with links to the government, making Colombia the most dangerous country in the world to support collective bargaining rights. Colombian labor union leaders have rejected government claims that human rights and trade unionist protection has improved, denigrating symbolic gestures aimed at securing U.S. ratification of the  agreement, which they rightly claim will help multinational companies over Colombian workers. In addition to doubts that the Colombian government will live up to its promises vis-à-vis the trade unionists, the gains from trade that Colombia can expect once the agreement is in force are ambiguous at best.  When the gains to some sectors (e.g. cut flowers, leather goods, seafood, textiles, certain services) are measured against the losses to other sectors (e.g. rice, corn, poultry, communications technology),  along with fiscal

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U.S. Trade Policy and Declining Manufacturing: Where do we go from here?

September 25, 2010  |   Economics & Trade Politics and Policy

The U.S. economy and the manufacturing sector in particular, face both short-term and long-term challenges.  There is debate about whether government can or should play a role in addressing those challenges, and if so, what are the fiscal, industrial, regulatory, and trade policies that would benefit the stakeholders, which essentially include all U.S. citizens in one way or another. I should acknowledge at the outset a bias toward thoughtfully considered government interventions to guide the economy and trade in ways that benefit American workers and allow them to participate in the gains that accrue from their labor.  There are economic reasons for my bias that have nothing to do with either socialist or altruistic impulse.  That bias in no way means that I favor protectionism or a retreat from global trade, or that government intervention in the economy is always desirable, but there are, I believe, issues and stakeholders that get too little consideration and solutions to structural economic problems that are given short shrift in the name of conservative ideological orthodoxy. There is ample evidence that without adequate and well-designed regulatory intervention in domestic and global markets, capital and political power tends to migrate upward and become concentrated at the top of the economic ladder. We see that phenomenon in country after country, most recently in the U.S.  Concentrated wealth becomes problematic when it undermines social cohesion and a sense of shared purpose.  The wealth/income gap is at the core of social and political stress and instability in most

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America’s System Failure: Only a Wave of Democratic Participation Can Save This Country

August 8, 2010  |   Paul Crist Politics and Policy

 I didn't write this... but posted it because it is well worth reading! America's System Failure: Only a Wave of Democratic Participation Can Save This Country As welcome as it was, the removal of George W. Bush was not enough to cure what ails us. It goes to the root of our political system. by Christopher Hayes  February 3, 2010 There is a widespread consensus that the decade we've just brought to a close was singularly disastrous for the country: the list of scandals, crises and crimes is so long that events that in another context would stand out as genuine lowlights -- Enron and Arthur Andersen's collapse, the 2003 Northeast blackout, the unsolved(!) anthrax attacks -- are mere afterthoughts. We still don't have a definitive name for this era, though Paul Krugman's 2003 book The Great Unraveling captures well the sense of slow, inexorable dissolution; and the final crisis of the era, what we call the Great Recession, similarly expresses the sense that even our disasters aren't quite epic enough to be cataclysmic. But as a character in Tracy Letts's 2007 Pulitzer Prize-winning play, August: Osage County, says, "Dissipation is actually much worse than cataclysm." American progressives were the first to identify that something was deeply wrong with the direction the country was heading in and the first to provide a working hypothesis for the cause: George W. Bush. During the initial wave of antiwar mobilization, in 2002, much of the ire focused on Bush himself. But as the

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Obama’s Foreign Policy: What approach now?

April 2, 2010  |   Paul Crist Politics and Policy

Obama’s Foreign Policy: What approach now? By Paul Crist Since taking office, President Barack Obama has had to grapple with an endless list of thorny issues, but few areas of policy are more of a minefield than foreign policy.  In the Middle East, Asia, Latin America, and elsewhere, he faces challenges that defy solutions.  Two hundred years of history provide him with role models and approaches that should guide him through the global minefield he faces.  But who should he emulate to ensure a successful foreign policy?  What foreign policy philosophy most closely resembles his basic instinct?  Which constituencies will support, and which will oppose, the policy choices he makes?  And what are the domestic political implications of the foreign policy choices he makes? American foreign policy through the centuries has been characterized by four fundamentally different philosophies that can be traced to four great historical figures: Alexander Hamilton, Thomas Jefferson, Andrew Jackson, and Woodrow Wilson.  Hamilton favored a realist policy that included a strong national government, powerful military, and the promotion of American business and economic interests through strength and engagement.  It was Hamiltonian realism that kept George H. W. Bush from pursuing Saddam Hussein in the first Gulf War.  Bush Sr. was tempted by the goal of toppling the Iraqi regime, but his strong realist instinct prevailed, understanding as he did that the political and human costs were too high.  Mocked for his frequent use of the term “prudence,” Bush was, in fact expressing a Hamiltonian, clear-eyed calculation

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The Limits of Power: The End of American Exceptionalism

January 20, 2010  |   Politics and Policy

The following is excerpted from The limits of Power by Andrew Bacevich.  It is long, but well worth reading every word. The American Empire Project      The Limits of Power: The End of American Exceptionalism By Andrew Bacevich Published by Metropolitan Books Excerpt Chapter One The Crisis of Profligacy Today, no less than in 1776, a passion for life, liberty, and the pursuit of happiness remains at the center of America’s civic theology. The Jeffersonian trinity summarizes our common inheritance, defines our aspirations, and provides the touchstone for our influence abroad.  Yet if Americans still cherish the sentiments contained in Jefferson’s Declaration of Independence, they have, over time, radically revised their understanding of those "inalienable rights." Today, individual Americans use their freedom to do many worthy things. Some read, write, paint, sculpt, compose, and play music. Others build, restore, and preserve. Still others attend plays, concerts, and sporting events, visit their local multiplexes, IM each other incessantly, and join "communities" of the like- minded in an ever- growing array of virtual worlds. They also pursue innumerable hobbies, worship, tithe, and, in commendably large numbers, attend to the needs of the less fortunate. Yet none of these in themselves define what it means to be an American in the twenty-first century.  If one were to choose a single word to characterize that identity, it would have to be more. For the majority of contemporary Americans, the essence of life, liberty, and the pursuit of happiness centers on a relentless personal quest

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