Section IV

Policy Proposals: Stabilizing NAFTA's Societies

Carol Hartt, Stacey Stack, Vicky Vanderpool and Matt Sisk

The preceding chapters have illustrated that NAFTA and the neoliberal policies on which it is predicated have had significant social impacts throughout the societies involved in the agreement. The severity of the issues presented suggests that modifications to NAFTA, incorporating clear mechanisms for better political, economic, and social representation and inclusion, would have positive results on the process of integration unleashed by free trade. Without such modifications, the inequalities apparent in today's interactions will only contribute to further political instability as certain groups within the participating societies are increasingly marginalized. Ultimately, the economic sustainability of this free trade regime itself is threatened unless more is done to address these harmful processes of marginalization and destabilization.

Review of Section Chapters

Carol Hartt's chapter presented a framework for understanding current trends of social marginalization within the societies participating in NAFTA, particularly in terms of decreasing state sovereignty. This shift in sovereignty is having negative social side effects, as states are decreasingly able to provide for their citizenry. The commitment to neoliberal reforms that was entrenched by NAFTA, has placed economic relationships above social responsibilities, resulting in decreased social support. This is illustrated by recent cuts in welfare and other social programs within the societies involved in the agreement. Additionally, the withdrawal of state social support has aggravated income disparities within all three nations.

Vicky Vanderpol highlights the plight of children under NAFTA. Children represent a critical, yet often overlooked, unit of analysis when considering the implications which free trade and neoliberalism have had on the participating nations. Little noticed is the fact that the number of children in poverty has steadily grown within member nations since the implementation of the trade agreement. At the same time, children are becoming more and more vulnerable as traditional state safety-nets are withdrawn. These issues have not been addressed within the current NAFTA framework.

Stacey Stack described the processes by which NAFTA and neoliberal ideology have undermined the socioeconomic stability of women in the signatory nations. Government withdrawal from the social sector and commitment to economic liberalism has resulted in decreasing wages, poorer working conditions for women, and less stable job opportunities, while making them more susceptible to human rights violations, particularly in the maquiladora zone bordering the U.S. and Mexico. In addition, within all three nations, decreases in social spending encouraged by neoliberal policy-making are having negative impacts on women. Low-income women and their families have been significantly affected, and if a reversal of these trends does not occur, many women and their families will continue to fall below the poverty line.

Matt Sisk focused on the plight of indigenous populations in southern Mexico since the implementation of NAFTA. By analyzing the Zapatista uprising and the use of discourse in manipulating national identities and agendas, his analysis focused on social and political exclusion of various groups throughout society and the political instability that results. The Zapatistas, in combating the official line of the Mexican government, have brought to the attention of a global audience the inequalities and flaws inherent in contemporary neoliberal ideology.

Policy Proposals

It is evident from the case studies outlined above that NAFTA should be revised to recognize and empower a variety of social groups, not just corporations, so as to encourage socioeconomic stability and more democratic decision-making within the NAFTA structures. We propose several mechanisms by which to make these revisions:

• First, the NAALC needs to be revised to make due process of NAALC violations more efficient and enforcement more effective. Strengthening the NAALC will help protect the rights of laborers, inhibit further negligent enforcement of labor and human rights laws, and promote fair trade. Examples of how this can be accomplished include: establishing minimum labor standards for the NAFTA nations; revising NAALC institutions such as the ECE to have the ability to critique corporations and impose trade sanctions for NAALC violations; and by establishing a trinational North American Commission that includes NGO participation reflecting the diversity of NAFTA's participating societies. These proposals, and others that support the protection of human rights and fair trade, are further described in the policy proposal chapters of the Economics and Labor sections of this document.
• Secondly, NAFTA should be revised to increase the flexibility of national governments to create and improve social programs without the consent of their NAFTA partners. As it exists now, a NAFTA member nation which chooses to establish a new social program often has to reimburse the private sector for any potential losses resulting from the implementation of that program. As a result, this costly policy discourages governments from providing assistance to sectors of their populations that are near or below the poverty line - a position dominated by single-parent women and their children. Social programs crucial to the well-being of a nation's population should not be undermined by the desires of private sector corporations to monopolize social services in the NAFTA nations; for the private sector often only serves those who can afford to pay, leaving others to fend for themselves. Thus, governments do have a responsibility to provide services that the private sector would not or cannot provide. Increasing the flexibility of governments to provide a substantial safety-net for its populations will promote the opportunity for all members of society to lead more healthy and stable lives, thus increasing the productivity and advancement of national economies.
• In addition, new principles should be incorporated into NAFTA to promote the protection of human rights and democratic accountability. This can be accomplished by establishing a clause requiring NAFTA nations to uphold current UN conventions on human rights issues. Examples of relevant conventions include: the UN Convention to Eliminate All Forms of Discrimination Against Women (CEDAW); the UN Convention on the Rights of the Child; and the International Covenant on Economic, Social, and Cultural Rights. First, incorporating such a memorandum into NAFTA would require the United States to ratify the first two conventions mentioned, lending credibility to its otherwise criticized reputation as a promoter of human rights. Second, commitment to the UN principles would strengthen the development of human rights norms within the NAFTA member nations and around the world, leading to greater socioeconomic stability and development of democratic principles.
• Next, in order to improve the development and productivity of future generations, NAFTA should seek to provide assistance to children by establishing a trinational family fund. This could be accomplished through a NAFTA-based tax, the revenues of which would go to fund basic needs and/or education of children in the NAFTA nations. The tax would be collected via corporations; the employers would pay a 1-2 percent tax on each employees' salary and submit the revenue to a NAFTA organization, which would then distribute the revenue throughout the member societies (as further described in the chapter by Vicky Vanderpol). A similar program has worked in Israel and many European nations, and would enhance the lives of impoverished children, as well as the education of all children. In the long run, this will improve the health, productivity, and creativity of NAFTA's future labor force.
• Finally, this section recommends NAFTA should be amended to establish a proactive trinational task force on social justice to enhance democratic representation within NAFTA decision-making. This task force would be comprised of NGO representatives with expertise in a variety of social concerns. The task force would serve as a mandatory advisory committee to NAFTA officials developing changes within the NAFTA structure - including revisions to principles, institutions, and the incorporation of new members. By requiring the review and consent of such a committee, future developments in NAFTA would gain some of the democratic representation and credibility it currently lacks. In addition, the committee would help ensure that future NAFTA developments recognize and strive to reduce negative social impacts, which will in return enhance the productivity and advancement of NAFTA economies.

It is evident that in order for the future of NAFTA economies to be strong, progressive, and, most importantly, sustainable well into the next century, NAFTA structures must strive to address and enhance the socioeconomic stability of all members of its trinational population. Ensuring democratic credibility and sustaining social programs should not be viewed as a burden which slows the efficiency of the market, but rather as an investment towards the future economic security of NAFTA nations as a whole.