Subtitles prepared by human
Greetings and welcome to Bully Magnets, I am your friend Reijard and this time I will tell you on the Free Trade Agreement of America North, it's a strange subject but it can help understand what the hell is going on with the economy of our entire region with the arrival of Donald Trump. Reijard bad man. Our story begins at the end of the 80s, the world is ending the war cold, the United States emerges as the maximum and only world power and Mexico is beginning to open up to international trade with technocratic and neoliberal policies by the hand of President Carlos Salinas de Gortari. But let's not dwell too much in the context Well, we have another video that talks about Mexico in the 80s and 90s, you can see it here and go a little deeper into the framework historic where the Treaty of free is born trade, so let's continue because this once we are going to talk about super-dense information. In 1988 there was a strong transformation in the world with Gorvachev in the Soviet Union,
Margaret Tacher in the United Kingdom and the Republican Ronald Regan in the United States, all of them they marked a clear inclination towards politics Right in a world that back then he advocated the liberation of markets and the globalization Just the opposite of what the world right of 2017 wants, ironically. Those are a lot of bad men with a british nasty woman, wrong. In that scenario, rules of the global economy that were known as the Washington Consensus, basically it was about 10 points to follow to integrate the free market and the global neoliberalism in developed countries and of course, also for those who were developing, like Mexico. President Salinas de Gortari was particularly active in implementing reforms that were according to the Washington Consensus, this implied decrease government participation in economic activities and give opening to the investment of national individuals and foreigners. This is called neoliberalism, neo-liberalism.
Free trade agreements were also signed with Chile, Colombia, Venezuela, Costa Rica and of course, at the beginning of 1990, negotiations began of the Free Trade Agreement of America North with the United States and Canada, it was signed by the president of the United States George HW Bush, the Canadian Prime Minister Brian Mulroney and the Mexican president Carlos Salinas de Gortari, the treaty entered in force on January 1, 1994. With this Mexico opened to the economy of a good part of the continent and in addition practically adhered to the market of United States to be the Treaty of Free North American trade treaty with larger commercial concessions to both sides. As a measure for the adaptation of the economy mexicana 3 zeros were removed to the currency with the creation of the new weight, also Salinas withdrew government control and it returned from private mines, airlines, railways and thousands of kilometers of roads, dissolved the sugar industry and of coffee besides the monopoly of telephony of Telmex passed from the government to Carlos Slim, a private individual who received a sector
fundamental for the development of the country. That's right gentlemen, now you can practically do whatever they want Yei! The banks were liberalized to individuals rather carelessly, this generated in 1994 a huge economic crisis that broke the pace of the reforms and let see once more corruption and weak institutions Mexicans that stopped the development and confidence in the plans of the Mexican government. For its part, the United States and Canada focused your attention on becoming an economy of the market, that is, to base its growth in high technology, consumption and purchase sale of goods and services to leave the manufacture of products to third countries world like Mexico and China so that the production was much cheaper. The free trade agreement removed or lowered Import and export taxes of goods all kinds, opened the exchange commercial food and gave the legal framework for foreign companies to have facilities to settle in Mexico,
this also the treaty was thought by Americans as a way to give work to Mexicans and reduce migration to his country, which at that time was very high. But things did not go very well from the principle, the entry of transgenic foods from the United States broke with prices of the food of many field products Mexico, also the lack of protection of the government to that sector caused an abandonment massive land and increased migration, informal trade also increased and the concentration of people in the centers urban So with the years instead of creating more employment in Mexico what was done was to concentrate it in the industry and remove it from the field, what in the end it has not brought benefits to all the sectors of the population. I used to live in the countryside, now I sell covers for cell phones and Chinese chat bars in the city, I do not see what the benefit was. This and more phenomena were gestating in the next 25 years, let's see in parts what happened in all that time.
As promised, lots of companies foreigners came to Mexico, this to the long did not take jobs from any country but yes he made the workforce around the world lower price. It works well for me to earn 15 dollars a day US too Well, that is a grime for me, it's not worth pain On the other hand, the legal framework of the Treaty of Free Trade of North America has done that Mexico is a great place to import goods from all over the world, not to consume them here but to sell them to the US. Looking at it in a simple way Mexico works like a large winery that has free passage to North America, that's why great part of world trade enters Mexico to assemble their goods with the sole intention to trade cheaply with the US, this is to such a degree that 85% of what is exported of Mexico goes to that destination and not even half of what is exported is owned of Mexican companies. And this is not so good, the government of Mexico can not charge a lot of money for imports
of the world and because of the Free Trade Agreement of North America The US does not charge many taxes for goods receipt from Mexico, come on, that by this logic, no of the two governments earns a lot. Hey, the governments are the ones that put the rules, do not come to complain with me. With the arrival of foreign industries to Mexico government support was abandoned to the domestic industry, it was also generated an economy dependent on the outside in many fronts between which there are two a both absurd, one is the food dependency despite the country's agricultural potential. Abundance And the other the energy dependence of gasoline thanks to the historical inefficiency and corruption of PEMEX in addition to the import every time largest of refined fuels in the US. So there you have it, that's the story of what it is about and some of the consequences that have the Free Trade Agreement of North America in these moments where they talk about their renegotiation or even cancellation, still not sure what will happen but
having some perspective helps us see that the cancellation or renegotiation of this treaty is not necessarily something negative. In addition, we must be aware that the world has changed a lot in the last 25 years, electronic commerce, environmentalism, telecommunications and energy sources are issues that are not in the agreement and are issues that affect us throughout the region, at the same time the needs have changed and free trade and globalization have brought a huge force to entrepreneurs and weakened governments around the world, this without counting that poverty and inequality have been accentuated to the degree that 8 people can have the same wealth as the poorest half of the entire planet. We are also entering to the fourth industrial revolution, a time where automation, robots and artificial intelligence are there for Integrate into human labor what changes the board as we know it. So friends from around the world apologize if the subject is too local but in truth
is something that not only affects the region but that can have consequences throughout the continent and even in global trade. I I am your friend Reijard and I leave you a question Do you think defending NAFTA is a good thing? idea, you must leave it, you must renegotiate or you should do everything possible to leave it as this? I await your answers in the comments and as always I invite you to subscribe to this channel, like this video if you learned something new, share the knowledge with your friends and now yes, see you until the next Bye!
Watch, read, educate! © 2021