Game Changers: US-Canada Dispute Proves Need to Democratize North American Trade
Editor’s Note: The following is part of new series for Common Dreams based on “Game Changers: Economic Policies for a Working America,” a project spearheaded by the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst. Game Changers is a collaborative initiative bringing together leading economists and policy experts to develop bold, new ideas to build a stronger, fairer, greener, and more inclusive economy for all Americans.
In the following essay, Game Changers takes on corporate-friendly trade deals, including those in North America. And as the US-Canada trade war rages on, beyond the dizzying headlines—including renaming Lake Ontario to Lake America—what does this mean for North American workers, and what is a more sensible trade policy for North America?
This Thursday, Sept. 17th, the Game Changers webinar, Oh Canada: Trump Vs. North American Workers, will dig beyond the headlines to answer these questions, putting focus on the international trade collaboration we need to make the economy work for working America, not just big corporations. Register for the webinar here.
Corporate-dominated trade deals
Corporate-driven free trade agreements have distorted global trade and investment relationships over the past 40 years – including in North America. The power and freedom they grant business has produced deindustrialization, job loss, and inequality for workers in the US, Canada, and Mexico. Donald Trump weaponized this hardship, but his erratic tariffs and other actions are only making things worse for workers in America.
Past Failures to Solve the Problem
NAFTA hurt workers in all three countries; Trump’s policies are making it worse Starting in the 1980s, global business interests, backed by leaders of both main parties, pushed hard for an ambitious new approach to international trade policy. Instead of straightforward and mutual tariff reduction to promote two-way trade, they pioneered a new generation of trade agreements (bilateral, regional, and global through the World Trade Organization) that entrenched corporate rights, undermined national policy autonomy, and pitted workers in different countries against each other in a race to the bottom. This model was imposed in North America through a Canada-US deal in 1989, followed by the North American Free Trade Agreement (NAFTA, including Mexico) in 1994. NAFTA was negotiated by a Republican president, but passed under a Democrat, and it cemented corporate power across the continent, providing a template for future deals. Some changes were made to NAFTA (renamed the USMCA) in Donald Trump’s first term. But they didn’t fix the core threats facing workers in the US Now Trump’s unilateral, erratic, and destructive tariffs and unhinged attacks on our trading partners are causing chaos and uncertainty. US manufacturing employment is falling, while US companies (including the tech oligarchs) continue to profit from preferential rules that protect their profits, but undermine labor, environmental, and democratic standards.
Democratizing North American trade Donald Trump claims his tariffs and other threats against trading partners (including challenging their very sovereignty) will help American workers. But the costs, supply bottlenecks and uncertainties he has imposed are damaging the efficiency and competitiveness of key North American industries (like auto manufacturing). US industry and employment are doing worse, not better. Instead of trying to conquer our neighbours through economic or even military force, American workers would do better through a cooperative continent-wide strategy to build a stronger, fairer, more sustainable, and more democratic North American economy.
A new plan for North American economic cooperation, development, and trade would focus on six key themes:
Labor rights: Strengthen protections for workers in all three countries, including access to fair and independent union representation, strong minimum wages, and rapid-response enforcement to compel employers in all three countries to comply. US workers would get better access to union protection and minimum labor standards when basic labor standards are embedded in a continental framework.
Migration and human rights: Trump’s inhumane scapegoating of migrants for political gain undermines the rights and safety of all in the US, and sets the stage for broader repression. It has also hurt the US economy: damaging critical industries and disrupting normal international exchange. Of course, sovereign countries must retain control over their borders and immigration, and this will continue to be the case........
