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Outcomes
Understand the evolution of “free trade”
Recognize and describe the effects, particularly local effects, of free trade
Identify the range of opposition strategies in place around the world
Be familiar with further resources on free trade & globalization
Defining globalization
Globalization is the world-wide integration of finance, markets, production and the management of labour. It is a process by which large corporations extend their domination of resources, markets and labour… … facilitated by governments and international bodies such as the International Monetary Fund and World Trade Organization.
Origins of Free Trade deals
Post World War II: 1945 meeting at Bretton Woods, New Hampshire, to set up World Trade Organization (WTO)First purpose was to rebuild EuropeLater -- loans to developing countries for infrastructure & militarization High levels of interest charged to countries in economic south
Context for current situation
Free trade deals enormously protestedFailure of free trade deals because of opposition by developing countriesCountry-to-country dealsSecrecy“Atlantica” and “TILMA” (Trade, Investment, Labour Mobility Agreement)
“Integration”….
“Deep integration”
Security and Prosperity Partnership signed by Bush, Fox & Martin in 2005Focused on “harmonizing” security, trade, economic and resource policies Massive standardization of health care and environmental standards (cuts out 400 environmental laws)Allows the 3 countries to negotiate as one bloc in the WTO“We’re becoming a bloc, like the EU, but without the safety standards” (Barlow)
But…
No consultation, no public debate -- not passed by Parliament“A continental resource pact” -- electricity, gas, oil, water, food safety, regulation of toxic substancesLoss of control of our resources (like softwood lumber)Push towards privatization of health careCompatible immigration security measuresThe North American Competitiveness Council (10 CEO’s) has been asked to reduce the 300 recommendations to 30 workable ones
Some key components of globalization
Privatization
Deregulation
Tax cuts then cuts to social services, health care, education
Downward pressure on prices
Security and military expenses
Easy movement of capital, but Restrictions on movement of people (migrant workers = commodity)
Deregulation
Reduces the number of laws covering safety issues for consumers and eases regulations for how industries do their work
Water – Walkerton Cdn Food Inspection Agency & US FDADrug safety – Cdn Health Protection Branch Federal Protections for Canadian WildlifeAviation safetyCanCon rules for satellite radio Canadian Auto Pact (between US & Japanese mfrs) signed in 1965, ended by WTO in 2000Backing away from Kyoto AccordTuition fees deregulated!
Privatization
(Publically-funded and run resources are transferred to the private, for-profit sector)
In Ontario there are now 25 “P3” (public-private partnership) hospitalsA U.S. corporation built and ran a P3 superjail in Penetanguishene for 5 years – study compared it to publicly-run jail found public jail had better security, health care and reduced re-offending rates.
Cuts to services
Employment insurance (from 75% of workers covered in 1990 to only 37% in 2000)Cuts to social assistanceSchool Board cutsCuts to federal funding for literacy programs (9 million need literacy help)Status of Women funding Eliminate national childcare programWildlife protection cuts, Sept 07
Downward pressure on prices
Subsidies to farmers in the U.S. leads to “dumping” of corn in Mexico
Slate mining in China and Newfoundland
The Wal-Mart policy for suppliers
“Race to the bottom” for labour costs – Increasing numbers of low-wage jobs
Security & military spending
Permanent residents’ card with computer chips
Biometrics – voice, eyes, fingerprints
New role for Canadian military
Increased investment in military hardware and war
Regulation of movement of people
Guestworkers – a growing global presence (2003 ILO estimates: 120 million
worldwide) India, Mexico, the Philippines: “remittance” economies Not just agricultural workers, but also nursing homes, semi-skilled trades But removing benefits and legal protections for them (e.g., unions)
What can we do?
Brainstorm!
