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North American Free Trade Agreement (NAFTA)
What is it?
What's New?
Background
Chapter 11
Learn more

What is NAFTA?
NAFTA is a treaty agreed to by the governments of the United States, Canada and Mexico in 1993. Its purpose was to bring down barriers to trade and investment between the member nations and thus ensure the prosperity of all citizens of those nations. In fact, most indicators show that NAFTA has had the opposite effect--that it has been disastrous for the workers of these three countries. The new treaty, called the Free Trade Areas of the Americas, which would extend the provisions of NAFTA to all thirty-four countries of Latin America (except for Cuba), contains many of the most destructive rules contained in NAFTA.

What's New?

Analysis of the North American Free Trade Agreement (NAFTA) on its 10th Birthday

"NAFTA Tribunals Stir U.S. Worries" Front page article from the New York Times explains how national sovereignty and courts can be compromised by NAFTA tribunals. (4/18/04) Go...

Women's Edge Coalition's New Study Demonstrates that NAFTA has Hurt Poor Women in Mexico, FTAA will make it Worse (4/18/04) Go...

"Second Thoughts on Free Trade" (1/6/04) Go...
"Second Thoughts..." provides background to two other New York Times articles specific to NAFTA.

"Free Trade Accord at 10: Growing Pains Are Clear" (12/27/03; You now would have purchase the article, but you can contact us if you'd like the article by email.) Go...

"The Broken Promise of Nafta" (1/6/04) Go...

Background

In May 2003, the PC(USA) passed an G.A. Action on trade agreements and asks Presbyterians to educate themselves on NAFTA, FTAA and other agreements. Please read the General Assembly Action and Rationale Go...

January 1, 2003 was the ninth anniversary of the implementation of the North American Free Trade Agreement: NAFTA now has an extensive real life record. NAFTA's proponents promised the pact would create new benefits and gains in each of these areas. The promised benefits ­ of 200,000 new U.S. jobs from NAFTA per year, higher wages in Mexico and a growing U.S. trade surplus with Mexico, environmental clean-up and improved health along the border ­have failed to materialize. However, after eight years, NAFTA fails to pass the most conservative test of all: a simple do-no-harm test. Under NAFTA, conditions not only have not improved, they have deteriorated in many areas.
Learn more about NAFTA from Public Citizens' Global Trade Watch

The North American Free Trade Agreement (NAFTA) includes an array of new corporate investment rights and protections that are unprecedented in scope and power. NAFTA allows corporations to sue the national government of a NAFTA country in secret arbitration tribunals if they feel that a regulation or government decision affects their investment in conflict with these new NAFTA rights. If a corporation wins, the taxpayers of the "losing" NAFTA nation must foot the bill. This extraordinary attack on governments' ability to regulate in the public interest is a key element of the proposed NAFTA expansion, called the Free Trade Areas of the Americas (FTAA). Go...

Chapter 11

NAFTA's investment chapter (Chapter 11) contains a variety of new rights and protections for investors and investments in NAFTA countries. If a company believes that a NAFTA government has violated these new investor rights and protections, it can initiate a binding dispute resolution process for monetary damages before a trade tribunal, offering none of the basic due process or openness guarantees afforded in national courts. These so-called "investor-to-state" cases are litigated in the special international arbitration bodies of the World Bank and the United Nations, which are closed to public participation, observation and input. To learn more about Chapter 11 Go...

EDUCATIONAL RESOURCES

1) Action 03-33. On Opposing the Free Trade Areas of the Americas in Its Current Form
From the Presbytery of San Francisco.
Concurrence to Overture 03-33 from the Presbytery of Giddings-Lovejoy.

The Presbytery of San Francisco overtures the 215th General Assembly (2003) of the PC (USA) to take the following actions:

1. Support efforts to strive toward international cooperation based on fair trade, respect for diversity, and common concerns for a peaceful, just, and sustainable world.

2. Oppose multinational actions and trade agreements that elevate rights of corporations over the right of governments and indigenous peoples to pass and enforce laws that preserve the public good and protect their citizens, economies, and environments.

3. Oppose the Free Trade. Area of the Americas (FTAA) in its current form.


4. Direct the Stated Clerk of the General Assembly, as well as representatives of PC (USA) programs dealing with economic justice, hunger, and advocacy, to promptly communicate the General Assembly position to the U.S. trade representative, U.S. senators and representatives, congressional committees with trade jurisdiction, and state legislators.

a. Call on the U. S. trade representative to withdraw from any further negotiations on the proposed FT AA until there has been full public disclosure of its proposed text, open public debate, and a place at the negotiating table for representatives of the diverse sectors of civil society who would be affected by this agreement.

b. Petition the federal government to refuse to sign any new trade and investment agreements, such as the proposed FTAA, that include investor-state provisions, where corporations can directly sue governments for lost profits ("regulatory takings").

c. Demand that all trade agreements incorporate workers rights, human rights, food safety, and environmental standards, and that they allow governments and sovereign indigenous peoples to regulate corporations to protect the common good.

d. Oppose any extension of "Fast Track" Presidential Trade Negotiating Authority, which limits the role of Congress in negotiating or amending the terms of the FT AA and other proposed trade agreements.

5. Call on presbyteries, churches, and church members to do the following:

a. Become educated about the FTAA, NAFTA,
MERCOSUR (Southern Cone Common Market), and other trade agreements, and the role of the International Monetary Fund (IMF), World Bank, World Trade Organization (WTO), and other multinational organizations in creating and enforcing globalization policies that are unsustainable and unjust, in part, by drawing on the resources of the Presbyterian Hunger Program, Joining Hands Against Hunger.

b. Advocate with state legislators and U.S. senators and representatives, urging them to oppose extending Fast Track and oppose the FTAA.

c. Join in coalitions with community groups, including other Christian denominations, who are organizing opposition to the FTAA and trade agreements with similar provisions, and to make meeting space available to such groups.

READ THE ACTION RATIONALE Go...

2) Enough for Everyone's Coffee Project and Sweat-Free T

3) PHP's Food and Faith: Global Food Systems

4) Globalization and Trade Study Papers
from PC(USA)'s Advisory Committee on Social Witness Policy (ACSWP)

The ACSWP has developed a series of four study papers on globalization and trade issues impacting the church and the world as the new millennium dawns. They serve as a basis for the development of a Resolution anticipated for the 216th General Assembly (2004). They are the following:

  • “The Globalization of Economic Life: Challenge to the Church” by Gordon Douglass. (available through PDS)
  • “The Employment Effects of Free Trade and Globalization” by Pharis Harvey. (available through PDS)
  • “The Impact of Globalization on Environment” by Bob Stivers
  • “Cultural Aspects of the Globalization of the Economy” by Ruy O. Costa

5) Global Discipleship CD
This free CD-ROM (PC and Mac compatible) from the Presbyterian Hunger Program is intended for use in your congregation's high school and adult study classes to learn more about our roles as Christians in a global economy.
Go to the PC(USA) Marketplace and in the search field enter the words - global discipleship.

The following resources may be useful for sparking ideas, but may not be fully backed by GA policy:
6) FTAA for Beginner's Workshop from United for a Fair Economy
Go...

7) Stop the FTAA: Democracy Before Trade - from the Council of Canadians Go...

8) Making the Links: A People's Guide to the WTO and FTAA
by Maude Barlow and Tony Clarke
This colorful, 43-page manual is a thorough, readable guide to the issues and strategies for opposing unjust trade. (PDF 610 KB)
Go...

9) ACTION TOOLS: Take Action Against Unfair Trade - from Witness for Peace Go...

A Menu of Actions Go...

BACKGROUND DOCUMENT

MAKING GLOBAL TRADE WORK for People
UN Development Programme
This report presents a far reaching reassessment of the current multilateral trade regime and examines how it can be improved in order to contribute genuinely to human development Go...

Your reactions and ideas are encouraged.
Please email or call (888) 728-7228 x5388.

Prepared by Andrew Kang Bartlett
Associate for National Hunger Concerns

 

 

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