Posted on 07/13/2008 12:13:22 AM PDT by Liberty Valance
McALLEN - Barack Obama's statements that he would consider renegotiating the decade-old North American Free Trade Agreement are drawing criticism from Rio Grande Valley business leaders.
The treaty, which removed most trade and investment barriers among the United States, Mexico and Canada, has quickly turned into a point of contention between Obama, the presumptive Democratic presidential nominee, and his Republican counterpart, John McCain, whose pro-free trade stance calls for even more NAFTA-like trade blocs - specifically with Colombia and South Korea. Obama has routinely denounced the treaty as a deal that "put special interests over workers' interests," as he said at a February campaign stop in Ohio.
Now he is calling for new environmental and labor regulations under NAFTA to be enforced in all three countries. The Obama campaign did not return repeated phone calls requesting the details of the proposed regulations.
"In terms of us going in (to Mexico) and telling them how to treat their domestic workers, it's a little arrogant," said Keith Patridge, president and chief executive officer of the McAllen Economic Development Corp.
Mexico's environmental laws are on par with those of the United States, but domestic manufacturers don't necessarily comply with them, Patridge said.
"The maquilas (owned by foreign corporations) comply with it," he said. "Within Mexico's labor laws, there are some things that need to be changed, but a lot of maquilas would agree with that target" of improving labor law enforcement.
While Obama's protectionist stance on trade is grating against the Valley's pro-commerce business community, McCain is touting an economic plan he says would remove further barriers to U.S. participation in the global economy.
The expansion of free trade is viewed here, a region where the processing and transportation of goods from Mexico to the United States is a growing industry, as a positive, said Steve Ahlenius, president and CEO of the McAllen Chamber of Commerce.
"We can compete and do very well in the global economy," he said. "Some of the bigger emerging markets, like India and China, there are going to be opportunities there."
With both candidates in the midst of a competitive presidential race, their positions - especially Obama's - are treated with some healthy skepticism.
Lately, the Democratic contender seems to be toning down his position on NAFTA, telling Fortune magazine last month, "Sometimes during campaigns the rhetoric gets overheated and amplified."
That comment followed an incident earlier this year in which a memo surfaced that raised questions about the sincerity of Obama's NAFTA stance. Written by a Canadian official and leaked to The Associated Press, the memo states one of Obama's advisers told the official that the candidate's criticism of NAFTA was "political posturing (rather) than a clear articulation of policy plans."
The adviser later said his comments to the Canadian official had been misinterpreted.
For some observers here, everything said now - campaign or not - should be considered a possibility should the candidate become president.
"Anytime the federal government says anything, we need to take it seriously," Ahlenius said. "Look at the (border) fence. I never thought they could move that fast."
Since passing in 1994, NAFTA has had its fair share of detractors.
Labor unions and farming lobbies in all three countries have argued that workers are losing out and that a small group of multinational corporations is benefiting.
A study the World Bank released in 2004, however, reported Mexican workers had not lost out under NAFTA and that their country had actually benefited economically - a finding that contradicted a number of other studies and that some criticized as skewed for the benefit of industrialized countries like the United States.
The Mexican government does not comment on U.S. presidential candidates' platforms, said Miriam Medel, the Mexican Vice Consul to McAllen.
In the Valley, NAFTA hasn't had the impact often attributed to it, said Patridge, the McAllen economic development official. "From the maquila perspective, it's been pretty neutral. In some areas it's actually hurt the maquilas," he said. "As far as other aspects of trade, like retail, things like that, it's had a positive effect. But it probably hasn't had the impact, positive or negative, people thought it would." ____
James Osborne covers McAllen and general assignments for The Monitor. You can reach him at (956) 683-4428.
Obummer has more positions than the Kama Satra.
McCain is no prince with his Amnesty for Illegals program as noted during his meeting with the La Raza flakes. But an Obama presidency would be FAR more destructive. Republicans who stays home on Nov 4th to “send a message” to the GOP will probably doom this country.
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