activist media project.los angeles

this is what free trade looks like

the NAFTA fraud in méxico, the failure of the WTO, and the case for global revolt

study guide

overview of the film
background information for teachers/discussion leaders
learning objectives
vocabulary list
reflection questions
group exercises
questions & connections for further research

order . home

 

overview of the film

This is what Free Trade Looks Like examines México's experience with NAFTA as a basis for understanding the impacts of other free trade agreements (FTAs), such as the WTO and the FTAA, on developing countries, on farmers, youth, and the poor. The film contextualizes growing resistance to free trade policies.

learning objectives

  • Draw the cycle of NAFTA (flows of products and people between US & México).
  • From the perspective of Global South countries, explain the role of US & other G8 nations in shaping and pushing free trade policies.
  • Analyze the impacts of export-based development & foreign investment on poverty.
  • Trace the race to the bottom in terms of wages and workers' rights.
  • List the impacts of free trade on cost of living (don't forget services!)
  • Describe how economic changes impact the "social fabric".
  • Explain why people immigrate to the US.

background information for teachers/discussion leaders

Free Trade Agreements (FTAs) are the latest phase of economic relations between the first world (developed countries or Global North) and third world (postcolonial underdeveloped or "developing" countries, also known as the Global South or the majority world). Many scholars argue that these policies continue the power relations and extractive economic policies put in place under colonial rule and extended through the era of debt-driven export-based development (1950s-) which failed to establish economic independence for the purportedly "postcolonial" third world.

In international law, FTAs function as "economic constitutions" against which national, state, and local law can be tested and overruled. In this way, they are seen as a threat to national sovereignty of nations. They overrule environmental law, workers rights, land reform law, nationalization of industries, product safety law, advertising law, and many other kinds of laws. In addition, FTAs (which are enforceable) have no legal relationship with (unenforced) areas of international law such as human rights law, ILO labor conventions, and environmental treaties.

The North American Free Trade Agreement (NAFTA) is an FTA between the US, México, and Canada which went into effect on January 1, 1994. NAFTA is the most comprehensive FTA currently operating. It contains aspects of Free Trade law which are still under negotiation at the 146-member World Trade Organization (WTO). The Free Trade Area of the Americas (FTAA) is an FTA still under negotiation which would extend NAFTA to all of Latin America and the Caribbean. Implementation of the FTAA would pressure Asian and African countries currently resisting the WTO to submit to G8 (the Group of 8 most economically powerful countries) demands in fear that Latin American exports will gain advantages over theirs.Other regional FTAs are used to jockey in the same way. APEC and CAFTA are used to pressure countries to agree to the FTAA. The terms of most regional FTAs are dictated by G8 powers who aren't even part of the region!

The World Trade Organization was established in 1995 after a 7-year negotiation called the Uruguay Round. Like other FTAs, the process by which the WTO was established claims to be democratic but is accused of being highly exclusionary and bullying Global South nations into deals which damage their attempts to establish equity and invest in human development. The process by which FTAs were agreed to is highly contested because multinational corporations had security clearances to participate in writing the agreements while citizens' organizations, labor groups, environmental groups, consumer rights organizations, and civil and human rights groups were locked out.

The impacts of FTAs are felt acutely all over the world. The livelihoods of farmers, small businesspeople, and indigenous people are so severely and directly affected that Free Trade is described as a life or death crisis. In addition, the wages and rights of workers are undermined by Free Trade agreements which encourage companies to "race to the bottom", moving manufacturing operations to the latest cheap labor haven. New international alliances have emerged to oppose and disrupt FTAs in very aggressive and direct ways, while also developing alternatives. One of the most powerful alliances is the Vía Campesina, an international movement of over 100 million farmers in 70 nations who point out that small farmers do not need the promised "access to global markets", they need access to their local markets - access which is undermined by subsidized imports sold below the cost of production because their governments are no longer allowed to tariff to protect domestic markets.

This film was shot at the 5th WTO Ministerial in Cancún, México in September 2003. This Ministerial, like the 1999 Seattle Ministerial, collapsed when Global South nations refused to agree to policies pushed by the G8 as the G8 countries (particularly the aggressive US) fail to abide by the rules of the WTO themselves! Vía Campesina had a very large presence in Cancún as campesinos (farmers) came long distances (even from Korea) to protest the meetings. You can identify members of Vía in the film by the green kerchiefs they wear tied around their shoulders. Activists from all over the world were also very concerned about the proposed Services Agreement (GATS) which would privatize a raft of public services (including water and education) so that private sector corporations could compete for these markets in postcolonial nations.

While proponents of the WTO argue that it is still in its infancy and cannot yet be evaluated, Mexicans argue that they have already seen the devastating effects of such an agreement in ten years of NAFTA. México's experience is a crucial lesson for other postcolonial countries which hope that the WTO will help their countries address poverty. Moreover, activists from other Global South nations argue that FTAs are just another form of the same economic policies forced on their nations through Structural Adjustment Programs imposed as a condition of refinancing their external debts with the International Monetary Fund and World Bank. (Even the Bank admits that SAPs are now inversely associated with the "economic growth" they promise.) Economists may see "growing pains", but from the Global South perspective, SAPs and FTAs are a risky experiment with marketization which endangers biodiversity, culture, food security, healthcare systems, small farmers, and sector after sector of sustainable livelihoods. Many Global South activists even call these policies "recolonization".

The "movement of movements" which opposes the WTO and other FTAs with growing solidarity, confidence, and creativity has clear visions of how to make possible "another world". At the end of the film, several of these visions are articulated, including canceling the debts of Global South Nations, regional trade agreements (without the G8), direct action, and food sovereignty.

vocabulary list

  • third world/postcolonial/global south/majority world
  • social fabric
  • export-based development
  • development models
  • farmgate price
  • g8
  • multinational/transnational corporations
  • sovereignty
  • free trade agreements
  • services agreement
  • FTAA
  • ministerial
  • subsidies
  • tariffs/de-tariffed
  • developing countries
  • markets
  • exploitation
  • foreign investment
  • neoliberal
  • poverty alleviation
  • poor-washing
  • small & medium sized businesses
  • retail invasion
  • informal sector
  • maquiladoras
  • manufacturing sector
  • unionized jobs
  • benefits
  • exporters
  • investors
  • commons
  • human rights
  • competitive healthcare
  • privatization
  • economic growth
  • privatization
  • campesino
  • self-consumption
  • sustainability
  • transgenic/biotechnology/genetic modification/gmo
  • crop varieties
  • food security
  • biological heritage
  • biodiversity
  • dependence
  • contamination
  • indigenous
  • migration
  • militarization
  • livelihood
  • counterforce
  • structural adjustment programs
  • direct action
  • food sovereignty
  • anti-imperialism
  • debt cancellation
  • opposition
  • ungovernable

reflection questions

  • How did you feel about the Korean farmer who commit suicide?
  • What must it be like to send family membersto maquilas, tourist zones, or across the border?
  • How does it feel to know you're eating biotech corn and soy?
  • What is at stake in the contamination of Mexican corn varieties?
  • Why do the third world countries call the US and G8 nations "bullies"?
  • Why are people so angry about Free Trade Agreements?
  • What would it feel like to lose your livelihood?
  • Why did people chant "Todos Somos Lee" ("We Are All Lee")?

group exercises

  • Appoint several students to play the roles of members of a campesino family. The family has just discovered they can no longer survive from selling their beautiful corn crop. They are discussing their options.
  • Watch the youth section: What would it feel like to not be able to study for a profession but only to be a worker? What does it mean that in México, people used to have this opportunity, but now it is disappearing? What are the similarities here in the US?
  • Discuss some of the small businesses run by students' families. What pressures are on their parents in maintaining their businesses? What is a family livelihood? What does it mean to lose it? Should family livelihoods be subject to "market forces"?
  • Why do families immigrate to the us from Latin America?
  • Why would a father commit suicide because he's having economic troubles with his farm or business?
  • Why do farmers receive such low prices for the food we eat?
  • Why do American farm families have to have off-farm jobs?
  • What is biodiversity and how does it relate to food security?
  • How has Walmart impacted your community?
  • Does the WTO "listen" to concerns? What was that fence for? How can we decide if the WTO's claims to be democratic are true?

questions & connections for further research

  • Create a timeline of the Mexican economy in 4 phases: 1950s before the border industrial project, Era of the development of maquiladoras, Era of structural adjustment, NAFTA era.
  • Study fair trade and find fair trade products from Latin America in your town.
  • Learn how farmers in your state are impacted by the global economy.
  • Research biotech foods in the US food supply, regulations and labeling.
  • Are there free trade zones/enterprise zones in the US? How are they similar and different from maquiladoras?
  • What was the process for passing NAFTA and the WTO? How is it controversial?
  • What was colonialism? How are Free Trade Agreements similar to colonialism?
  • How are free trade policies similar to Structural Adjustment Policies of the
  • International Monetary Fund & World Bank?
  • Choose one of the components of "another world is possible" and research it. (Food sovereignty, direct action, drop the debt, regional trade agreements, and anti-imperialism.)
  • What do sovereignty and autonomy mean in the global south?

 

research links also see the list of represented organizations and links requested by screening participants

Fair Trade

TransFair USA

Equal Exchange

Food & Agriculture Issues

Slow Food

City Farmer, Canada's Office of Urban Agriculture

the Agriculture Observatory (U.S)

Erosion, Technology, Consolidation (formerly RAFI). great research

Practical Farmers of Iowa (innovative new stuff)

Via Campesina

Food First: The Institute for Food & Development Policy

Coalition of Immokalee Workers

People's Food Sovereignty

Biotech

Rachel's Environment & Health Weekly Bulletin

Sacramento Bee series, 2004.

Organic Consumers Association, publishers of Biodemocracy News, a free online newsletter 

Joseph Vogel's book, The Biodiversity Cartel online.

Maquiladoras/Export Processing Zones/
US & UK Enterprise or "Empowerment Zones"

ICFTU report "Behind the Wire"

Coalition for Justice in the Maquiladoras

NAFTA

Global Trade Watch

Economic Policy Institute

Structural Adjustment/Drop the Debt

50 Years Is Enough

Global Exchange

Jubilee Research

Resistance to Globalization/Direct Action

Reclaim the Streets

Peoples' Global Action

Anti-Imperialism

ANSWER

Focus on the Global South

this study guide was designed by sean maloney with assistance from amory starr. feedback and requests to amp.la