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Americans--or at least the American
establishment--may be the most gullible people on
earth. When Gorbachev tried to sell his timid reforms as "market
socialism," only the American
establishment cheered. The Soviet public immediately spotted the
phoniness and would have
none of it. When the Polish Stalinist Oskar Lange touted "market
socialism" for Poland, only
American economists shouted huzzahs. The Polish public knew the score
all too well.
For some people, it seems, all you have to do to
convince them of the free enterprise
nature of something is to label it "market," and so we have the
spawning of such grotesque
creatures as "market socialists" or "market liberals." The word
"freedom," of course, is also a
grabber, and so another way to gain adherents in an age that exalts
rhetoric over substance is
simply to call yourself or your proposal "free
market" or "free trade." Labels are often enough to
nab the suckers.
And so, among champions of free trade, the label
"North American Free Trade
Agreement" (Nafta) is supposed to command unquestioning
assent. "But how can you
be against free trade?" It's very easy. The folks
who have brought us Nafta and presume to call
it "free trade" are the same people who call government spending
"investment," taxes
"contributions," and raising taxes "deficit reduction." Let us not
forget that the Communists, too,
used to call their system "freedom."
In the first place, genuine free trade doesn't
require a treaty (or its deformed cousin, a
"trade agreement"; Nafta is called a trade agreement so it can avoid
the constitutional
requirement of approval by two-thirds of the Senate). If the
establishment truly wants free trade,
all it has to do is to repeal our numerous tariffs, import quotas,
anti-"dumping" laws, and other
American-imposed restrictions on trade. No foreign policy or foreign
maneuvering is needed.
If authentic free trade evers looms on the policy
horizon, there'll be one sure way to tell.
The government/media/big-business complex will oppose it tooth and
nail. We'll see a string of
op-eds "warning" about the imminent return of the 19th century. Media
pundits and academics
will raise all the old canards against the free market, that it's
exploitative and anarchic without
government "coordination." The establishment would react to instituting
true free trade about as
enthusiastically as it would to repealing the income tax.
In truth, the bipartisan establishment's trumpeting
of "free trade" since World War II
fosters the opposite of genuine freedom of exchange. The
establishment's goals and tactics have
been consistently those of free trade's traditional enemy,
"mercantilism"--the system imposed by
the nation-states of 16th to 18th century Europe. President Bush's
infamous trip to Japan was
only one instance: trade policy as a continuing system of maneuverings
to try to force other
countries to purchase more American exports.
Whereas genuine free traders look at free markets
and trade, domestic or international,
from the point of view of the consumer (that is, all of us), the
mercantilist, of the 16th century or
today, looks at trade from the point of view of the power elite, big
business in league with the
government. Genuine free traders consider exports a means of paying for
imports, in the same
way that goods in general are produced in order to be sold to
consumers. But the mercantilists
want to privilege the government-business elite at the
expense of all consumers, be they domestic
or foreign.
In negotiations with Japan, for example, be they
conducted by Reagan or Bush or Clinton,
the point is to force Japan to buy more American products, for which
the American government
will graciously if reluctantly permit the Japanese to sell their
products to American consumers.
Imports are the price government pays to get other nations to accept
our exports.
Another crucial feature of post-World War II
establishment trade policy in the name
of "free trade" is to push heavy subsidies of exports. A favorite
method
of subsidy has been the
much beloved system of foreign aid, which, under the cover
of "reconstructing Europe," "stopping Communism," or "spreading
democracy," is a racket by which the
American taxpayers
are forced to subsidize American export firms and industries as well as
foreign governments who
go along with this system. Nafta represents a continuation of this
system by enlisting the U.S.
government and American taxpayers in this cause.
Yet Nafta is more than just a big business trade
deal. It is part of very long campaign to
integrate and cartelize government in order to entrench the
interventionist mixed economy. In
Europe, the campaign culminated in the Maastricht Treaty, the attempt
to impose a single
currency and central bank on Europe and force its relatively free
economies to rachet up their
regulatory and welfare states.
In United States, this has taken the form of
transferring legislative and judicial authority
away from the states and localities to the executive branch of the
federal government. Nafta
negotiations have pushed the envelope by centralizing government power
continent-wide, thus
further diminishing the ability of taxpayers to hinder the actions of
their rulers.
Thus the siren-song of Nafta is the same seductive
tune by which the socialistic Eurocrats
have tried to get Europeans to surrender to the super-statism of the
European Community:
wouldn't it be wonderful to have North America be one vast and mighty
"free trade unit" like
Europe? The reality is very different: socialistic intervention and
planning by super-national
Nafta Commission or Brussels bureaucrats accountable to no one.
And just as Brussels has forced low-tax European
countries to raise their taxes to the
Euro-average or to expand their welfare state in the name of
"fairness,"
a "level playing field,"
and "upward harmonization," so too Nafta Commissions are to be empowered to
"upwardly harmonize," to ride roughshod over labor and other laws of
American state
governments.
President Clinton's trade representative Mickey
Kantor has crowed that, under Nafta, "no
country in the agreement can lower its environmental standards ever."
Under Nafta, we will not
be able to roll back or repeal the environmental and labor provisions
of the welfare state because
the treaty will have locked us in--forever.
In the present world, as a rule of thumb, it is
best to oppose all treaties, absent the great
Bricker Amendment to the Constitution, which could have passed Congress
in the 1950s but was
shot down by the Eisenhower Administration. Unfortunately, under the
Constitution, every treaty
is considered "the supreme law of the land," and the Bricker Amendment
would have prevented
any treaty from overriding any preexisting Constitutional rights. But
if we must be wary of any
treaty, we must be particularly hostile to a treaty that builds
supranational structures, as does
Nafta.
The worst aspects of Nafta are the Clintonian side
agreements, which have converted an
unfortunate Bush treaty into a horror of international statism. We have
the side agreements to
thank for the supra-national Commissions and their coming "upward
harmonization." The side
agreements also push the foreign aid aspect of the establishment's
"free trade" hoax. They
provide for the U.S. to pour an estimated $20 billion into Mexico for
an "environmental cleanup"
along the U.S.-Mexican border. In addition, the United States has
informally agreed to pour
billions into Mexican government coffers through the World Bank when
and if Nafta is signed.
As with any policy that benefits the government and
its connected interests, the
establishment has gone all out in its propaganda efforts on behalf of
Nafta. Its allied intellectuals
have even formed networks to champion the cause of government
centralization. Even if Nafta
were a worthy treaty, this outpouring of effort by the government and
its friends would raise
suspicions.
The public is rightly suspicious that this effort
is related to the vast amount of money that
the Mexican government and its allied special interests are spending on
lobbying for Nafta. That
money is, so to speak, the down payment on the $20 billion that the
Mexicans hope to mulct
from the American taxpayers once Nafta passes.
Nafta advocates say we must sacrifice to "save"
Mexican President Carlos Salinas and his
allegedly wonderful "free-market" policies. But surely Americans are
justly tired of making
eternal "sacrifices," of cutting their own throats, on behalf of cloudy
foreign objectives which
never seem to benefit them. If Nafta dies, Salinas and his party may
fall. But what that means is
that Mexico's vicious one-party rule by the PRI (Institutional
Revolutionary Party) may at last
come to an end after many corrupt decades. What's wrong with that? Why
should such a fate
cause our champions of "global democracy" to tremble?
We should look at the supposed nobility of Carlos
Salinas in the same way we look at the
other ersatz heroes served up to us by the establishment. How many
Americans know, for
example, that under Annex 602.3 of the Nafta treaty, the "free-market"
Salinas government
"reserves to itself" all exploration and use, all investment and
provision, all refining and
processing, all trade, transportation and distribution, of oil and
natural gas? All private
investment in and operation of oil and gas in Mexico, in other words,
is to be prohibited. This is
the government Americans have to sacrifice to preserve?
Most English and German conservatives are fully
aware of the dangers of the
Brussels-Maastricht Eurocracy. They understand that when the people and
institutions whose
existence is devoted to promoting statism suddenly come out for
freedom, something is amiss.
American conservatives and free-marketers should also be aware of the
equivalent dangers of
Nafta.
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