Big Labor Unions Push Obama into another Mexican-American War
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By Adolfo Franco.
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After promising to usher in a new era of dialogue and cooperation with friend and foe alike, one of this Administration’s first decisions was to start a trade war with Mexico as a reward for the labor unions which helped get Barack Obama and his Democrat allies elected last year.
Candidate Obama and Congressional Democrats had promised Big Labor that they would kill a pilot program that granted a small number of Mexican trucks access to U.S. highways. This pilot program was not a concession to Mexico but was promised under the North American Free Trade Agreement (NAFTA), a pact that has greatly benefited U.S. businesses during the past 15 years. These gains are now at risk because of the reckless protectionism of this Congress and Administration.
Despite fierce opposition by the Teamsters Union and Big Labor in general, the Bush Administration approved a “Cross Border Demonstration Project” that gave 107 Mexican trucks access to all of the United States, and not just the restricted area along the border, as had been the policy of the Clinton Administration. Mexico had opposed these unjustified restrictions but did not impose retaliatory tariffs while waiting for the pilot program to be fully implemented. As part of the Bush Administration’s agreement with Mexico, an equal number of U.S. trucks were also given unfettered access to Mexican roadways. The pilot program that President Bush initiated was extended twice and resulted in creating jobs and profits for American businesses shipping products to Mexico.
An infuriated Big Labor and the Teamsters leadership vowed to kill the pilot program in order to protect union jobs and wages by claiming that Mexican trucks were “unsafe”. But the U.S. Department of Transportation has concluded that there “had been no accidents involving trucks participating in the program.” In fact, according to the Department of Transportation’s report, Mexican trucks in the pilot program have “a better safety record than their American counterparts.”
Undaunted, Big Labor decided to solve the problem the old fashioned way. In the dark of the night, with the Obama Administration’s blessing, Senator Byron Dorgan inserted legislation to kill the pilot program into the mammoth Fiscal Year 2009 Omnibus Appropriations bill. President Obama has repeatedly claimed to be against protectionism, but he signed the bill into law anyway saying he had no choice—although by doing so he clearly and knowingly violated our treaty obligations to Mexico.
As it has a right to do under NAFTA, Mexico retaliated by imposing tariffs ranging from 10 to 45 percent on 89 U.S. agricultural and industrial products—including cosmetics, toilet paper, fruit juices, grapes, strawberries, dishwashers, wine, pet food, shampoo, soy sauce, beer, and nuts and seeds, among a host of other U.S. exports. These American exports total over $2.4 billion in annual sales for U.S. companies. Many of these sales and profits have been lost or put at risk by this Administration and Congress over a handful of Mexican trucks.
Most troubling for American consumers is that Mexico has vowed to expand its retaliatory tariffs if the United States continues to violate its obligations under NAFTA. Fortunately, both Transportation Secretary Ray LaHood and United States Trade Representative Ron Kirk understand the seriousness of this second Mexican War and the need to stop knuckling under the threats of Big Labor. Hopefully, their efforts will yield fruit before the damage to our bilateral trade relationship with Mexico is irreparable.
At a time when the United States needs allies more than ever, to go to war with Mexico over trade sends the wrong signal to both our allies and foes. President Felipe Calderon was elected as a pro-free market democrat who could deliver a better standard of living for Mexicans through increased trade and cooperation with the United States. By his actions, President Obama has undermined a valuable U.S. ally and has sent a dangerous message to the world that he will toss aside solemn U.S. commitments whenever it is politically convenient to do so.
Adolfo Franco is currently Vice President for Global Regulatory Affairs at the Direct Selling Association, a global trade association representing over 200 direct selling companies. In 2001, President George W. Bush appointed Franco as Assistant Administrator of the United States Agency for International Development, and the Senate confirmed him to that position in January 2002. Prior to serving in the Bush Administration, the writer was Republican Counsel to the House International Relations Committee.
Excellent article.
BIg labor will grandstand until it achieves BIg Socialist Europe with massive unemployment and minimal worker productivity. To be less competitive in the world market until all the jobs are shipped abroad to those needing the work.
this is so true our schools are full of Mexicans we are paying for their education and medical they are having babies in our hospitals and we are footing the bill.
When are we going to learn? why do we teach spanish in our schools and we have to learn it in order to work some jobs. This is not our job they laugh at us and speak Spanish thinking we don’t understand them but there are those who do understand, and don’t like being the fool!!!!
Jane – You are part of the problem. You call people you don’t know Mexicans, you know they are? Hispanics represent more than just Mexico. Your comment sounds like you’re saying all those with Mexican blood are bad and a problem whether they are legal or not. I feel sad for you.
Monica, please do enlighten us by explaining all that Hispanics represent…
As much as we encourage comments and truly believe in our right of freedom of expression, we certainly do not permit offensive and derogatory comments. Therefore, we have deleted various comments in this discussion.
Proud Gringo – Please do grow up!
What does growing up have to do with any of this? You’re not answering my question.
Be intelligent commenters. It’s not Hispanic or Mexican, it’s legal or illegal. And it doesn’t matter what nationality or race, period. Now, lets get back to the article, shall we?
The article educated me. The conspiracy theorists will talk about the North Am. Union and go on about these unsafe trucks coming from Mexico with no tracking of who or what evil things they’re bringing into the US.
I learned in the article what the purpose is for their trucks coming here and that we too have our trucks going to Mexico. I also learned about the political football back and forth over it. Now I have better insight into the whole trucks and border thing when I’m arguing with these North Am. Union conspiracy idiots.
So thank you for a concise and informative article!!
Well, the bottom line is that we should not be doing any business whatsoever with rogue nations such as Mexico. The only reason we included Mexico into NAFTA was to keep them quiet.
Bea – what part of this “whether they are legal or not” didn’t you get? I’m clearly saying it’s a legal/illegal issue. I just had to clarify a detail with another poster. Great comment otherwise.
Proud Gringo – not so Proud I would say since your life consists of roaming bilingual sites to instigate petty arguements. haha
Petty arguments to you, legitimate concerns to me, Mrs. Lopez.
Hey Gringo, Mexico isn’t a rogue nation. I’d rather have legitimate trade wth our next door neighbor than Communist China!!!!
I read your comments and I can’t even believe what you are saying,
Proud Gringo- I am mexican (and I proudly live in Mexico, I wouldn’t change it for anything) and I strongly agree that we shouldn’t have a trade with you because the USA takes advantage of Mexico with this agreement, If you are a little aware of your world and if you live outside the little bubble you have in the US where you think everybody wants to be american (to be honest I think Mexico is the only country where you are welcome, I know a lot of europeans and asiatics that just hate the USA and his imperialism) you would know that the most benefited country from this agreement was your country. And I am working hard, I am studying in the best university of my country, I have learned 4 languages so far, and all of this just to find new trade partners for my country. I want intelligent partners for my country not ignorants as I can see in this comments.
Ms. Guzman, you are missing the point. I traveled for over 10 years doing business in Latin America, especially Mexico and have no issues with the country, but your statements do not reflect the intellectual level you brag about. You live in Mexico, fine, the issue is with the illegals that have produced an excessive burden on the US economy. If you do not like the agreements between our countries, then blame your president for signing them. I also know many Europeans and Argentinos that don’t like Mexicans either; so what! That defines nothing. With the millions of people in Mexico, I just wish your compatriots in Mexico used their large numbers to protest against your own government corruption and improve the quality of life, so thousands do not seek to cross the border illegally. We have enough corruption here to deal with our own politicians and don’t need marches with Mexican flags crying “Si Se Puede”. But the truth is in Mexico “No Se Puede”, because the government will not allow it. It is also silly to hear you talk of being taken advantage of, when from the middle class and up in Mexico, you look down on the uneducated and less fortunate, and treat them like a true lower class and look down your noses on your in-house workers. They are treated like real “servidumbre”. If I crossed into Mexico and falsified documents to live there, I would be treated like a hardcore criminal and be tossed in jail with no mercy. Work on your issues, we will work on ours.
AmericanHispanic:
the illegals that have produced an excessive burden on the US economy? You have no idea of what you are saying. They are the ones that help farmers to produce cheaper (because they don’t pay them the regular wage), they are the ones that help walmart to have high profits (they do the hard work and they don’t pay them the minimum wage) and like that I can give you tons of examples, I have met a lot of illegals, when I go shopping to the USA, I talk to them at the malls and I can tell you that they work so hard 8-12 hours daily, that’s insane!!! and why?? I am going to tell you why, I want to go to south america so I wanted to start saving money so yesterday I went to a restaurant here in Mexico to see if I could find a job and they said yes of course you are hired but you have to work from 3 to 11 pm and you will receive every month around $3,000 pesos that is like $250 dlls per month! working 8 hours 7 days of the week, I don’t think that’s fair. And let me explain you how our world works, multinationals come to Mexico because they want to have more profits and they talk to the government to ensure the minimum wage remains low, so the government wants to have more jobs created so they keep the minimum wage low, and where does that multinationals come from?? (most of them from the USA). The ones that have the money decide. My intention was not to be rude in my first message I just got really upset about the comments that I read here, I have met amazing people in the USA and I have a lot of friends there, but I know that sometimes when we don’t have enough information we can give wrong judgements, and I think that’s a little what happens with the illegals in your country.
If you find the film “Backyard” please see it, it reflects a lot the economic part of all what we are discussing about.
I will seek out the film you suggested. Enlightment is always a good thing. Thank you and God Bless