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Old 01-27-2017, 03:06 PM
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Tom Joad Tom Joad is offline
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Globalization and NAFTA Caused Migration from Mexico

i suspect Trump will do more to solve the problem of illegal immigration with his trade polices than he will by building his wall. And that will be a good thing.

http://www.politicalresearch.org/201....XtbBeTVy.dpbs

Quote:
NAFTA, however, did not lead to rising incomes and employment in Mexico, and did not decrease the flow of migrants. Instead, it became a source of pressure on Mexicans to migrate. The treaty forced corn grown by Mexican farmers without subsidies to compete in Mexico’s own market with corn from huge U.S. producers, who had been subsidized by the U.S. Agricultural exports to Mexico more than doubled during the NAFTA years, from $4.6 to $9.8 billion annually. Corn imports rose from 2,014,000 to 10,330,000 tons from 1992 to 2008. Mexico imported 30,000 tons of pork in 1995, the year NAFTA took effect. By 2010, pork imports, almost all from the U.S., had grown over 25 times, to 811,000 tons. As a result, pork prices received by Mexican producers dropped 56%.8

According to Alejandro Ramírez, general director of the Confederation of Mexican Pork Producers, “We lost 4,000 pig farms. Each 100 animals produce 5 jobs, so we lost 20,000 farm jobs directly from imports. Counting the 5 indirect jobs dependent on each direct job, we lost over 120,000 jobs in total. This produces migration to the U.S. or to Mexican cities—a big problem for our country.”9 Once Mexican meat and corn producers were driven from the market by imports, the Mexican economy was left vulnerable to price changes dictated by U.S. agribusiness or U.S. policy. “When the U.S. modified its corn policy to encourage ethanol production,” he charges, “corn prices jumped 100% in one year.”10

NAFTA then prohibited price supports, without which hundreds of thousands of small farmers found it impossible to sell corn or other farm products for what it cost to produce them. Mexico couldn’t protect its own agriculture from the fluctuations of the world market. A global coffee glut in the 1990s plunged prices below the cost of production. A less entrapped government might have bought the crops of Veracruz farmers to keep them afloat, or provided subsidies for other crops.

But once free-market structures were in place prohibiting government intervention to help them, those farmers paid the price. Campesinos from Veracruz, as well as Oaxaca and other major corn-producing states, joined the stream of workers headed north.11 There, they became an important part of the workforce in U.S. slaughterhouses and other industries.
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