Wednesday, March 18, 2009

washington's war on narco-terrorism

Global Research | NAFTA is in fact more than a trade agreement, it’s a trade bloc, the size of which rivals the European Union as the world’s largest. A trade bloc is essentially an agreement between countries on economic integration, which inevitably includes varying levels of political and military agreements. Also, every trade bloc has a dominant member — which in NAFTA’s case is the U.S.

When NAFTA was enacted, a new flood of U.S. corporate and private investment flooded into Mexico, requiring that this money be well protected. For the international investor, political instability of any kind is bad for business. This is in fact why NAFTA was extended into the “Security and Prosperity Agreement,” which provides U.S. security (military) aid to protect the NAFTA-created prosperity (investments) inside of Mexico.

In speaking of security and foreign investment, The World Bank’s website says:
“We act as a potent deterrent against [foreign] government actions that may adversely affect investments. And even if disputes do arise, our leverage with host governments frequently enables us to resolve differences to the mutual satisfaction of all parties.” Such security is ultimately guaranteed by the U.S. military.

U.S. investors had a valid fear that their investments in Mexico needed extra protecting. Social inequalities in the country have been intensifying for years, and the poor’s standard of living has continued to deteriorate. This deterioration promised to continue because of the extremely fragile Mexican economy, which was especially vulnerable for the following reasons:

1) Commodities coming in from the U.S. because of NAFTA promised to out-compete and destroy Mexican farmers and businesses.
2) Mexico is highly dependent on high oil prices that have since plummeted.
3) Mexico is highly dependent on U.S. foreign investors whose investments have tapered off (because of the recession)
4) Mexican exports to the U.S. – 80% of its total exports — have sharply declined because of U.S. workers’ inability to consume them.
5) Remittances from Mexicans living in the U.S. have dropped sharply due to the recession.

This economic situation promised that the Mexican working class would be pushed into desperation, and that police-state measures would be needed to control them, since they might demand that U.S. owned corporations in Mexico should instead be used for ordinary Mexicans. Those who didn’t emigrate to escape the crumbling economy would likely rise up.