CAFTA: Last Nail in the Coffin?

The American Conservative ^ | May 9, 2005 Issue | Patrick J. Buchanan

[A. Pole]

With U.S. prisons filling up with aliens, 10 million illegals here and counting, Californians fleeing east, savage Salvadorian gangs battling with machetes inside the Beltway, and Minutemen headed for the Arizona border, Rip Van Republican has awakened to the threat of open borders. Meanwhile, the White House dozes on.

But just as the chickens are coming home to roost on the Bush failure to defend America’s frontier, so they will soon be coming home on Bush’s embrace of free-trade fanaticism.

As I write, the Department of Commerce has just released the trade deficit numbers for February. Again, the monthly trade deficit set a record, $61 billion. In January-February 2005, the annual U.S. trade deficit was running $100 billion above the all-time record of $617 billion in 2004.

In the mail this week came the annual graphs and tables from Charles McMillion of MBG Information Services, who has patiently chronicled the decline and fall of the once-awesome U.S. industrial machine. Since 1992, when some of us urged the president’s father not to grant MFN to China, the returns are these:

• Between 1993 and 2004, the U.S. trade deficit with Beijing grew 700 percent to $162 billion.
• In the last decade, China’s total trade surplus at U.S. expense was $805 billion.
• China’s leading exports to us, which account for almost half her $162 billion trade surplus, came from shipments of computers, electrical machinery, and parts.
• Leading U.S. exports to China (Boeing alone excepted) were, in ascending order: meat, meat offal, fibers, ore, slag, ash, organic chemicals, fertilizers, copper, cereals, raw hides, skins, pulp of wood, cotton, and the big seller—oil seeds and oleaginous fruits (soybeans). All very, very high-tech stuff.

China’s surplus, the largest one nation has ever run against another, provides her with the hoard of cash to buy Russian and Western weaponry to menace Taiwan and the 7th Fleet and pile up the T-bills that give Beijing the leverage it enjoys today over the sinking U.S. dollar and shaky U.S. prosperity.

In the 1993 battle of NAFTA, the Clinton-Gore-Dole-Gingrich globalists predicted our trade surplus with Mexico would grow, Mexico would prosper, and illegal immigration would be easier to control. Either they deceived us, or they deceived themselves. For since NAFTA passed:

• The U.S. trade surplus with Mexico has vanished and the annual trade deficit is now running above $50 billion a year.
• The cumulative trade deficit with Mexico is now over $300 billion.
• 1.5 million illegal aliens are caught each year crossing our border and 500,000 make it in to take up residence and enjoy all the social programs a generous but over-taxed America can provide.

With Chrysler now a German company, GM and Ford down to less than half the U.S. auto market, and GM paper looking like Argentine bonds, Americans now import $188 billion worth of autos, trucks, and parts, three times what we export. Motown is no more king of the road.

With three million manufacturing jobs lost under Bush, the U.S. dollar looking like Monopoly money, trade deficits exploding, and our dependence on foreigners for oil, the critical components of our weapons, and the cash to finance our insatiable appetite for consumer goods all growing, one would think even Bush Republicans might pause before taking another great leap forward into a future of global free trade. One would be wrong.

For CAFTA, son of NAFTA, is at hand: the Central American Free Trade Agreement. The White House will bring it up, but only if enough Republicans can be bamboozled into going along. In return for access to our market, we get access to five Central American markets and the Dominican Republic—with a total economy the size of New Haven’s—47 million consumers, half of whom are living in poverty by their standards.

The highest per capita income in Central America is $9,000 a year in Costa Rica, which is less than the U.S. minimum wage. But CAFTA will enable agribusiness and transnational companies to set up shop in Central America to dump into the U.S. and drive our last family farmers out of business and kill our last manufacturing jobs in textile and apparel.

If there are any Reagan Democrats left still loyal to the GOP, CAFTA may see them off. For if the GOP passes CAFTA over Democratic opposition, Hillary’s party may just be able to take back North Carolina, Ohio, and a couple of bright red farm states as well.

[ninenot]

As usual, your riposte is devoid of counter-arguments based on facts.

[ninenot]

ADM made their fortune the old-fashioned way: Bribery of every single politician they could find.

Makes one wonder--if they took bribery out of their budgets, how much could they reduce the selling price of their beans?

[ninenot]

Good.

We took care of Cargill, ADM, and all the other corporate farmers. That's about, oh, 2% of the actual VOTERS in the USA.

[ninenot]

As usual, rudie's using a sleight-of-hand set of stats.

The US exports a good deal of industrial product to Mexico, which is then assembled into products which are re-exported to the USA.

Where do you think your Maytag is actually assembled? Or your Evinrude? Master Lock? Buick?

[ninenot]

Lindner's nomination has been noted, unhappily, by most US small-business manufacturing companies. He's another political hack who's drinking the KoolAde of Bush-family globaloney.

[ninenot]

incomes of salaried workers in Mexico fell by 25% between 1993 and 1998.

Not to worry. US real income is also falling. We'll catch up with Mexico soon.

[1rudeboy]

I would suppose that "sleight-of-hand" stats are better than none at all. [hint]

[1rudeboy]

These guys bump the threads on "free trade" all the time. It helps to keep the topic on the top of the list. It helps us to get the facts out.

We do it because it's fun. Nothing is more amusing than posting some facts and watch you guys scramble. Besides, you avoid threads with positive economic news like the plague. Where else do you expect us to get a laugh?

[1rudeboy]

The US exports a good deal of industrial product to Mexico, which is then assembled into products which are re-exported to the USA.

Last week it was parts manufactured elsewhere, and imported to be assembled here. Can a protectionist ever stick to one position?

Economic activity in the manufacturing sector grew in April for the 23rd consecutive month, while the overall economy grew for the 42nd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
Source

Spin that, hedgetrimmer.

[1rudeboy]

[Toddsterpatriot]

Nice poster. Do you think that's one of our favorite math majors, Havoc, on that poster? Or is it one of his union buddies?

[SwankyC]

Your comments made me wonder why you're advocating "free trade" when what you advocate only affects the ag industry. Hardly a boon to the American economy overall.

[1rudeboy]

Tough to say. I think it's simply an abstract representation of a working man. But what do I know? I'm not concerned about the little guy. I stand with the corporate multi-nationals and the wealthy industrialists who operate them.

Which reminds me . . . I have to pick-up some birdseed at Wal-Mart and taunt the displaced computer engineers.

[ninenot]

Ummmnhhh...

Trade with Mexico has many elements, Rudie.

Export-to-reimport is one component. Pure imports are another component.

I thought you knew that...

[Toddsterpatriot]

Which reminds me . . . I have to pick-up some birdseed at Wal-Mart and taunt the displaced computer engineers.

The higher they rise the harder their fall.

[1rudeboy]

Your comments made me wonder why you're advocating "free trade" when what you advocate only affects the ag industry.

Any half-sentient being can see that I was responding to another member who brought-up the subject of agriculture. You apparently cannot.

[Toddsterpatriot]

Export-to-reimport is one component. Pure imports are another component.

You wouldn't have any actual facts to back up your point, would you?

[1rudeboy]

Where would I be without you to tell me the obvious? If it makes you feel intelligent, go right ahead.

[SwankyC]

Uh, any sentient being can see you wanna sell the US a bill of good to "benefit" a tiny fraction of the American economy. Apparently you cant.

[1rudeboy]

Define "tiny."