NSA Spy Revelations Show Need to Recast US-Mexico Security Programs
By Laura Carlsen | CIP Americas Program | October 21, 2013
The latest analysis of Snowden leaks from the German magazine Der Spiegel is a bombshell for Mexico.
“The NSA has been systematically eavesdropping on the Mexican government for years,” reads the opening line in the Oct. 20 issue.
The article goes on to detail three major programs that together constitute a massive espionage operation against Mexico. No one seems to have been immune from its intrusions, including two presidents.
The presidential computer network was infiltrated since 2010 when Felipe Calderon was still president. The ever-zealous National Security Agency (NSA) was apparently very proud of itself for hacking the private communications of the leader and cabinet members of an allied nation.
In a “top secret” report, its “Tailored Access Operations” division (TAO) crows:
“TAO successfully exploited a key mail server in the Mexican Presidencia domain within the Mexican Presidential network to gain first-ever access to President Felipe Calderon’s public email account”, calling it a “lucrative source” to gauge Mexican “political system and internal stability”. The leaked operation was code named “Flatliquid”.
Mexicans first found out that their nation, along with Brazil and other Latin American countries, was a major target back in September, when Brazil’s O Globo published an article by Glenn Greenwald, Roberto Kaz and Jose Casado on tapping Brazilian President Dilma Rousseff’s phone and other communications. The article noted that the NSA had Mexico in its sights too.
A specially designed NSA program spied on then-presidential candidate Enrique Peña Nieto to find out who he was planning to appoint to his cabinet and how he’d handle the volatile drug war—the cornerstone of US policy in Mexico.
That caused a stir and the Peña Nieto administration sent a diplomatic note and demanded a U.S. investigation.
Sunday’s revelations add details to the previous information and show a far vaster and more insidious operation than was first imagined. Text messages from Peña Nieto’s cell phone—85,489 to be exact, according to the Der Speigel-Snowden report– were harvested and organized into data bases, identifying nine close associates for surveillance and analysis.
A third program called “White Tamale” dates back to 2009, when the NSA managed to hack into the emails of high-level officials in the now-defunct Public Security Ministry.
“In the space of a single year, according to the internal documents, this operation produced 260 classified reports that allowed US politicians to conduct successful talks on political issues and to plan international investments.”
The documents note that the spy operation allowed the NSA to gain access to “diplomatic talking points”.
What does this mean? Wouldn’t using ill-begotten private communications in negotiations be something akin to blackmail?
In any case, it seems to have fulfilled its purpose because during the subsequent period U.S. intelligence, military, police and drug enforcement agencies achieved an unprecedented margin to operate in-country, effectively breaking down any remaining resistance to their activities on Mexican soil.
The Der Speigel article states that in spy operations in Mexico, “the drug trade” was given top priority level, while the country’s “political leadership”, “economic stability” and “international investment relations” received number-three priority rankings on a scale of five.
This latter category gives credence to charges from Brazilian President Dilma Rousseff that the NSA used its apparatus for industrial spying, seeking advantages. Her charges are borne out by documents that show that Brazilian oil company, PETROBRAS, was a target of U.S. espionage. The Mexico revelations were more general but also indicate economic espionage.
The NSA, as reflected in its own documents, seems to have no sense of boundaries—it qualifies its invasions as unqualified “successes”. Der Spiegel quotes another document that reads,
“These TAO accesses into several Mexican government agencies are just the beginning — we intend to go much further against this important target.”
It goes on to state that the divisions responsible for this surveillance are “poised for future successes.”
Mexico’s Muted Response
The response from NSA to questions was predictable,
“We are not going to comment publicly on every specific alleged intelligence activity, and as a matter of policy we have made clear that the United States gathers foreign intelligence of the type gathered by all nations.”
So far, no enterprising journalists have asked the Mexican government if it has 85 thousand text messages off of Obama’s phone.
Since September the Mexican government has known it was massively spied on by the United States. After the revelations regarding Peña Nieto’s communications and contacts with US diplomats, Mexico says President Obama agreed to carry out an investigation.
But what exactly does the Mexican government expect of this investigation? No one has questioned the authenticity of the documents. Everyone knows Snowden has them, otherwise why would the U.S. be trying to force his extradition and threatening countries offering asylum. And it seems that asking the U.S. government to investigate NSA be an exercise in futility, especially since the Der Speigel article states explicitly that the programs had presidential authorization.
Not surprisingly, Mexico’s response was widely considered weak.
So far, the response to this latest round of revelations hasn’t shown much more backbone. The foreign relations ministry called the practice “unacceptable, illegitimate and against the law”—and said it would be sending another diplomatic note.
“In a relationship between neighbors and partners, there is no room for the practices alleged to have taken place,” the ministry said.
When Der Speigel asked for a comment from Felipe Calderon, Harvard University, apparently the spokesperson for the beleaguered ex-president since it took him under its ivied wings as a Global Leaders Fellow at the Kennedy School, said it would give him the message.
A senior U.S. State Department official told CNN that the Mexican government reached out about the report, and that the two governments will be discussing it via diplomatic channels.
Peña Nieto has to react now. Brazil is taking specific steps to protect privacy from the long ear of the NSA. Rousseff has been outspoken in its indignation, taking it to the floor of the United Nations General Assembly and cancelling a state visit to Washington.
Mexico’s economic dependence on the United States under NAFTA puts the Peña administration in a tougher bind. Big business will put pressure on Peña to let it slide. The PRI is likely to be seriously annoyed, but it also knows an important part of its power base rests on its relationship with the U.S. government and economic elite, almost a tautology, as shown again in the fact that taxpayer-supported NSA spying was directed at industrial spying to give U.S. companies an edge in bidding, investing and competing.
Whatever the response, the revelations are a blow to a somewhat shaky relationship. Peña Nieto has made it clear it will not allow the same carte-blanche treatment U.S. agencies were given under former president Calderon, but he has also continued security integration and U.S. expansion under the guise of the war on drugs.
Calling into question the terms of the bi-national security relationship should not necessarily be viewed negatively. Demands for a more transparent and less military-oriented relationship between the U.S. and Mexico have been growing. The NSA documents reveal a global security doctrine that has spun dangerously out of control, with what Greenwald calls “the construction of a worldwide, ubiquitous electronic surveillance apparatus” that apparently has no qualms regarding the right to privacy or national sovereignty. Neither the Mexican nor the U.S. Congress has sufficient knowledge of what’s going on to provide reasonable oversight, and the Mexican government apparently has little knowledge of the realm of shadowy U.S. intelligence activity in its own country.
When you add in the private contractors hired under the $2 billion-dollar Merida aid package, it makes for a vast and murky world of post-Cold War conniving.
That can’t be good for diplomacy, or democracy.
Laura Carlsen is director of the Mexico City-based CIP Americas Program.
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‘Globesity’: US junk food industry tips global scales
By Robert Bridge | RT | September 07, 2013
From Mexico to Qatar, obesity rates are soaring to unprecedented levels. The alarming trend is damaging economic performance, as well as the health of millions of consumers worldwide.
Take our increasingly sedentary lifestyles, mix in a generous portion of American fast-food and dubious agricultural practices, add a dash of corporate duplicity and you have a recipe for high obesity rates across the planet.
The newly released United Nations report on global nutrition does not make for very appetizing reading: Amid an already floundering global economy, the reality of a fattening planet is dragging down world productivity rates while increasing health insurance costs to the tune of $3.5 trillion dollars per year – or 5 percent of global gross domestic product (GDP).
31.8 percent of US adults are now considered clinically obese. This is a remarkable figure, especially considering that it is approximately double the US obesity rate registered in 1995, according to data from the Center for Disease Control and Prevention.
An individual is considered obese when their body mass index (BMI), a measurement obtained by dividing a person’s weight in kilograms by the square of the person’s height in meters, exceeds 30 kg/m2, according to the World Health Organization.
Meanwhile, much of the international community is quickly catching up with the global consumption superpower. Mexico, for example, just surpassed US obesity rates with a whopping 32.8 percent of Mexican adults now considered to be clinically obese.
The unprecedented weight gains in Mexico, however, as well as many other countries, appear to be no accident.
Following the passage of the North American Free Trade Agreement (NAFTA), Mexico became the dumping ground for a slew of cheap fast food and carbonated drinks, according to a Foreign Policy report.
Thanks to NAFTA, there was a more than 1,200 percent increase in high-fructose corn syrup exports from the US to Mexico between 1996 and 2012, according to the US Agriculture Department. In an effort to place a cap on the high-calorie drinks, Mexican officials introduced a tax on beverages containing high-fructose corn syrup. American corn refiners, however, cried foul and the tax was voted down by the World Trade Organization.
Mexicans now consume 43 gallons of soda per capita annually, giving the country the world’s highest rate of soda consumption, according to estimates by Mexico’s national statistics agency.
Yet another disturbing casualty on the obesity trail is tiny Qatar, an oil-rich Arab nation of 250,000 people that is also rich in fast food diets.
“Like most people in the Arab Gulf, (Qataris) were traditionally desert-dwelling and therefore much more physically active,” according to a 2012 report by Policymic.com. “Now, cars have replaced camels and fast food and home deliveries take the place of home cooking. Even housework and child rearing is left to maids and nannies.”
Today, some 45 percent of Qatari adults are obese and up to 40 percent of school children are obese as well.
Last month, nutrition experts from around the world shared their views at an obesity and nutrition conference in Sydney. For many of the attendees, the primary culprit in the global obesity scourge is out-of-control corporate power, where the free market decides everything.
The rise of global fast food outlets has been a key change in our environment leading to fattier foods and fatter people, Bruce Neal, professor at the George Institute for Global Health in Sydney, told the Indo-Asian News Service.
“As fast as we get rid of all our traditional vectors of disease – infections, little microbes, bugs – we are replacing them with the new vectors of disease, which are massive transnational, national, multinational corporations selling vast amounts of salt, fat and sugar,” Neal said.
John Norris, writing in Foreign Policy, explained some of the global dynamics that contributed to the so-called “globesity” epidemic, including the soft drink industry’s move to use cheaper high-fructose corn syrup instead of sugar in many of their products.
“Suddenly, it was cheaper to put high-fructose corn syrup in everything from spaghetti sauce to soda. Coke and Pepsi swapped out sugar for high-fructose corn syrup in 1984, and most other US soda and snack companies followed suit,” Norris wrote. “US per capita consumption of high-fructose corn syrup spiked from less than half a pound a year in 1970 to a peak of almost 38 pounds a year in 1999.”
While some might be tempted to downplay the negative effects of such a harmless sounding additive, researchers from Canada’s University of Guelph, as pointed out by Norris, discovered that a high-fructose corn syrup diet in rats produced “addictive behavior similar to that from cocaine use.”
As obesity explodes, US fast food companies look abroad.
Americans, thanks in part to First Lady Michele Obama’s ‘Let’s Move’ program, have recently woken up to the unsustainability of their soda guzzling, fast food ways. Other politicians and activists have also weighed in on the debate, making the environment for the fast food industry not as comfortable as in the past.
In March, New York City Mayor Michael Bloomberg attracted the ire of the soft drink industry when he placed a ban on the sale of sodas in sizes larger than 16 ounces. Violators will be fined $200.
In his 2004 a documentary film, “Super Size Me,” Morgan Spurlock stunned audiences by tracking the physical effects on his body – none of them positive – after consuming nothing but McDonald’s food for 30 days. As a result of the experiment, Spurlock gained 24½ lbs. (11.1 kg), a 13 percent body mass increase, and a cholesterol level of 230, among other negative side-effects.
Perhaps the biggest wake-up call for the fast food industry came in 2002 when two teenagers accused McDonald’s of deceptively marketing its menu from 1985 to 2002, causing them, they alleged, to become obese. The judge dismissed the case in 2010, but the message to the industry was crystal clear.
As a result of these and other public awareness campaigns, the American fast food industry – although slower than some may like – has been gradually rewriting their menus and marketing campaigns, many of which are aimed at kids.
At the same time, the junk food industry – sensing the sea change of attitudes in the United States as the physical effects of junk food manifests itself – are investing increasingly in foreign markets where public awareness of the subject is not so developed.
Similar to the crackdown on the tobacco industry in the late 1990s, US fast food companies are busy setting up shop abroad for easy, unregulated markets to hawk their wares.
Already the size of their presence is breathtaking: “Coca-Cola and PepsiCo together control almost 40 percent of the world’s $532 billion soft drink market, according to the Economist. Soda sales, meanwhile, have more than doubled in the last 10 years, with much of that growth driven by developing markets. McDonald’s investors were disappointed that the company only turned $1.4 billion in profit during the second quarter of 2013, having become used to years of double-digit gains every three months,” according to the Foreign Policy report.
So while the United States is steadily finding ways to regulate its fast food, soft drink industry, and thus nip the obesity epidemic in the bud, it is, at the same time, legislating on behalf of unhealthy exports abroad.
Now the question is, will the rest of the world bite the hand that feeds?
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Report: NSA targeted Brazil, Mexico leaders
By Ian Swanson – The Hill – 09/02/13
The NSA monitored communications of the leaders of Brazil and Mexico, Guardian journalist Glenn Greenwald said in an interview on Brazilian television, according to the Associated Press.
The revelations come days before President Obama is to travel to Russia for a meeting of the G20.
Greenwald told the Brazilian television program “Fantastico” that he has a document indicating Mexican President Enrique Pena Nieto’s emails were being read. The document is dated from June 2012, a month before Nieto was elected.
National Security Agency leaker Edward Snowden has leaked thousands of documents related to the U.S. surveillance programs to Greenwald.
The document from June 2012 shows who Nieto was considering for appointments to key government posts, according to the AP report.
While Greenwald said that document shows “specific intercepted messages” in the case of Nieto, the tracking of Brazilian President Dilma Rousseff was done through a program known as DNI Presenter that allows the NSA to open and read emails and online chats, the AP report said.
It said the U.S. targeting mapped out the aides with whom Rousseff communicated and tracked patterns of how those aides communicated with one another.
The NSA programs seem likely to come up in some of Obama’s meetings at the G20 in St. Petersburg. Brazil and Mexico are both members of the G20, and Snowden has been granted asylum by Russia.
Related articles
- NSA spied on Brazil, Mexico presidents – Greenwald (rt.com)
- Greenwald claims up to 20,000 Snowden documents are in his possession (alethonews.wordpress.com)
- Brazil may reject US fighter jet deal over NSA spying scandal (alethonews.wordpress.com)
- Greenwald Testifies to Brazilian Senate about NSA Espionage Targeting Brazil and Latin America (alethonews.wordpress.com)
US Training of Mexican Troops Has Escalated in Step With Mexico’s Murder Rate
By Bill Conroy | The Narcosphere | February 17, 2013
US training of Mexican military forces spiked in fiscal years 2010 and 2011, coinciding with a sharp rise in drug-war homicides in Mexico, an analysis of records made public under the Foreign Assistance Act show.
The training in those two years, funded by the US Department of Defense, and to a lesser extent by the US Department of State, covered a wide range of military skill sets and involved hundreds of training programs offered in the US to Mexican forces as well as dozens (at least 60) provided inside Mexico.
For example, in Mexico City during that two-year period, the US military provided to Mexican security forces training in, among other tactics, “asymmetrical conflict,” “anti-terrorism,” and “open-source intelligence” gathering. US military training also was provided in other parts of Mexico, including the state of Campeche, where infantry, marksmanship and intelligence programs were offered to Mexican troops; and in Chiapas, in fiscal 2011, infantry training was provided to Mexican Marines over two-week periods in April and September.
The latter training programs might be considered particularly sensitive for Mexican politics, given the Mexican state of Chiapas is home to the Zapatista Army of National Liberation (EZLN, in its Spanish initials).
The Zapatistas are a rebel indigenous group governing more than 1,000 rural communities that rose up in arms in 1994. However, since peace talks were initiated in 1995, the Zapatistas have not fired a shot and have converted to peaceful and civil resistance.
In the 1990s, under Mexican President Ernesto Zedillo, a member of the PRI Party, an unsuccessful, violent counter-insurgency campaign was waged against the Zapatistas that involved the use of both the Mexican military and civilian paramilitary forces — as part of an effort to destroy the indigenous movement and its autonomous communities.
On another sensitive front for Latin American/US relations, Foreign Assistance Act records reveal that US military training also was provided to Mexican soldiers in fiscal 2010 and 2011 by the US Department of Defense’s Western Hemisphere Institute for Security Cooperation (WHINSEC). The Institute was formerly the School of the Americas, which, in past decades, provided training to some of the most notorious violators of human rights in Latin America.
WHINSEC, now reportedly reformed and sensitive to human rights, offered at least 10 different training programs (some multiple times) to Mexican troops in fiscal 2010 and 2011 in subjects such as “counter-narco-terrorism,” “joint operations” and “counterdrug ops,” according to data provided to Congress under the requirements of the Foreign Assistance Act. … Full article
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- Mexico: Nine Indigenous Prisoners Released in Chiapas (alethonews.wordpress.com)
Mexico: Nine Indigenous Prisoners Released in Chiapas
Weekly News Update on the Americas | July 7, 2013
The southeastern Mexican state of Chiapas released nine indigenous prisoners from its Los Llanos prison near San Cristóbal de las Casas in the state’s highland region on July 4. State governor Manuel Velasco Coello arrived at the prison from Tuxtla Gutiérrez, the state capital, to deliver the release papers in person. The nine prisoners, described as adherents of the 2006 Other Campaign of the Zapatista National Liberation Army (EZLN), had participated in hunger strikes and other actions over several years to win their freedom. Rosa López Díaz, the only woman in the group, was pregnant when she was arrested in 2007; she lost her child, reportedly as a result of torture.
Under pressure from Mexican and international groups, the state appears to have started releasing EZLN allies imprisoned on questionable charges. Francisco Sántiz López was freed on Jan. 25 [see Update #1161]. But the best known of the prisoners, the schoolteacher Alberto Patishtán Gómez [see Update #1173], remains at Los Llanos, along with a prisoner named Alejandro Díaz Sántiz. Patishtán was allowed to take part in the release of the nine prisoners on July 4. He walked a few meters out of the prison and told the relatives, with a smile: “I’m turning the compañeros over to you here; I’m still staying here, but one shouldn’t lose hope.” He then walked back into the prison with Gov. Velasco Coello and various officials. “We’ll go on struggling until we achieve the release of compañero Alberto and all the compañeros who are still prisoners,” former prisoner Rosario Díaz Méndez promised after his release. (La Jornada (Mexico) 7/5/13)
Mexico’s Aging Laguna Verde Nuclear Plant a Fiasco
By Talli Nauman – Americas Program – 10/05/2013
The case of the failure of Mexico’s Laguna Verde Nuclear Plant, nestled on the jagged Veracruz seacoast, reveals the need to nix nukes and fortify public right-to-know mechanisms.
With Latin American countries still turned off to nuclear power two years after Japan’s monumental Fukushima meltdowns dispersed radioactive fallout across the ocean to them, events inside a similar facility in Mexico have fueled mounting skepticism over the potential for developing the energy technology.
Fissures, leaks, shutdowns, government secrecy, a failed upgrade, alleged bid-rigging and contract fraud at Mexico’s lone atomic power station, the state-run Laguna Verde Nuclear Plant, were vetted during the 9th Regional Congress on Radiation Protection and Safety held in Rio de Janeiro in April.
The audience of Latin American experts eager to share the information at the professional association forum starred scientists from Argentina and Brazil, which also have nuclear power plants, as well as from Venezuela, Chile and Cuba, which had made tentative moves toward establishing atomic energy stations before the Fukushima catastrophe stymied aspirations.
The irregularities at Laguna Verde came to light thanks to a courageous group of anonymous high-level employees inside the power plant and to the public information requests by their spokesperson, Mexico’s National Autonomous University Physics Professor Bernardo Salas Mar, a former plant employee and valiant whistleblower.
Some of Salas Mar’s most recent research was accepted at the International Radiation Protection Association congress in Brazil, but his university did not provide him with travel expenses to attend in person.
Salas faces high-level attempts to have him fired as a result of his persistent efforts to make public his discoveries of dangerous faults and cover-ups at the Laguna Verde plant. But Salas’ achievements speak for themselves. Were it not for his ceaseless hammering on the doors of the 10-year-old Federal Information Access Institute (IFAI), perhaps no one ever would have known about the latest incidents at Laguna Verde until it was too late.
Based on his freedom-of-information requests to the institute, Salas and Laguna Verde’s own technicians revealed in an April 19 letter to President Enrique Peña Nieto that Mexico has been defrauded to the tune of more than a half-billion dollars by the international companies that won the bid for the federal contract to uprate the two reactors at the plant located near the Caribbean port of Veracruz.
“Uprating” is industry jargon for boosting the capacity of nuclear reactors so they can generate more electricity.
The letter to the President alleges the Federal Electricity Commission purposely botched the bid letting by omitting the usual requirement for a contractor to abide by the Review Standard for Extended Power Uprates. Apparently the CFD did this to favor the Spanish company Iberdrola Ingenería and the French company Alstom Mexico, which lacked the capability to carry out the changes to the nuclear steam supply system according to standard specifications.
Employees in key positions at Laguna Verde had alerted the two previous presidential administrations to the issue as far back as 2006, communicating their “worry over the capacity-boosting work contemplated for this nuclear plant, considering it to be unreliable, risky and overpriced,” according to the letter. Still Iberdrola and Alstom got the $605-million contract to increase the plant’s power output by 20 percent.
Iberdrola announced the successful conclusion of the five-year, $605-million modernization project in February, noting that it overhauled equipment dating back to 1990, in the project that created more than 2,000 jobs.
The president of Alstom in Mexico, Cintia Angulo, was arrested a week after the announcement of the upgrade conclusion on charges of giving false testimony in an unrelated French case of non-payment.
However, the more spectacular fraud for both firms will prove to be the Mexican uprate contract, which not only failed to accomplish the goal of boosting Laguna Verde’s power output, but also left the reactors in worse condition than before, Salas and employees charge.
The Federal Electricity Commission responded to Salas’ inquiries, saying that Reactor Unit 2 would be operating at 100 percent of planned output in April and Unit 1 would be at 100 percent in May.
Nonetheless, after further information requests, Salas revealed that the National Nuclear Safety Commission has denied both reactors the licenses to operate at higher output in the aftermath of the contract, due precisely to the fact that the guidelines for the nuclear steam supply system were not followed.
Employees say the failure to follow the guidelines during the uprate cracked the jet pumps that inject the water to the core of the General Electric boiling water reactors, the same kind that melted down due to a generator system crash at Fukushima.
“The situation of the reactors is not serious yet, but operating with fissures could cause a major problem to the extent that it could endanger national security. (Remember Fukushima and Chernobyl.)” the letter to President Peña Nieto says. The employees consider it “risky and unacceptable for both reactors to continue operating with the fissures that have been encountered.”
Simultaneous suspension of operations at both reactors in September 2012 and related confusing news releases, some blaming the pump fissures, caused alarm in the communities around the installation.
Authorities first said a diesel generator breakdown was at fault for the interruption in service of one reactor, while fuel-cell restocking was the reason for a stoppage at the other.
The next day they said a clogged seawater intake was part of the reason for removing both reactors from service. An escape of hydrogen gas from a condenser was posited. And finally, officials stated to the public that the fissures in both reactors’ water pumps were to blame.
Government secrecy about details surrounding the event accentuated longstanding worries in the population near the plant. The fear of accidents and serious concerns over the ongoing situation was highlighted by an NGO’s court appeal arguing that people should be exempted from paying their light bills due to the fact that their civil rights had been violated by the lack of safety measures and accountability at Laguna Verde.
In response to Salas’ information requests, the Energy Secretariat, in charge of the Federal Electricity Commission (CFE) and the National Nuclear Safety Commission (CNSNS), said it didn’t have the answers to his questions.
Its commissions presented incongruous replies. The vagueness of the answers provided by the Federal Electricity Commission prompted the researcher to appeal to the IFAI to require revised responses.
After his second round of questioning, he was able to deduce that the cooling water intake channel had indeed filled with sediment and it had been dredged, so it did not present a hazard and did not cause the reactor operations’ interruption.
He also then could determine that the hydrogen had been released from the ductwork into the cooling water of the main generator, during the month of August. While the amount of gas was unknown, the escape was not to the atmosphere, and neither presented a danger nor was cause for halting operations.
The CSNSNS responded that the diesel generator failed when a piston stuck due to lack of lubrication resulting from a bearing problem on Sept. 12. The event did not endanger life and limb, according to Salas.
Simultaneous reloading of fuel cells at both reactors was the most likely reason for the concurrent stalling, Salas concluded after the numerous freedom-of-information requests.
While the main present dangers appear to be the fractures in the cores’ water pumps, a Jan. 11, 2013 scram (emergency reactor shutdown) remains to be inspected under the looking glass of the IFAI.
The institute created by decree in 2002 has provided important tools for shedding light on the machinations of the nuclear plant, among other formerly opaque federal operations.
Yet, as this case underscores, IFAI should strengthen its own processes in order to avoid the kind of inconsistent and self-belying responses that ensnared this most recent of many investigations into the lack of security at Laguna Verde.
Even so, that won’t protect the population from the specter of accidents or deteriorating health and safety in the advent of air and water pollution from the facility, which is located on a part of the coast with only poorly maintained roads to offer escape routes.
If Peña Nieto and company are to be more responsive to community needs than their predecessors, one way to show good intentions would be to comply with demands for conducting an emergency public evacuation drill, something that never has been done in the history of the 17-year-old nuclear plant. Another would be to take the irresponsible parties to court to establish accountability.
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Trans-Pacific Partnership: Free Trade vs. Democracy
By Cliff DuRand | Americas Program | April 12, 2013
As closed-door negotiations concluded in Singapore on the Trans-Pacific Partnership, opposition begins to build in many countries. At the urging of the United States, Canada and Mexico have joined the nine countries in the talks and now Japan has announced it too wants to be part of this new free trade pact of Pacific rim countries, described by its critics as “NAFTA on steroids”.
Going into its 17th round of negotiations, the Obama administration aims to wrap up an agreement by October, hoping to push ratification through the Senate on a fast- track basis. Called Trade Promotion Authority, fast track would mean an up or down vote without amendments or even hearings on the agreement presented to it. It is a profoundly anti-democratic procedure because it shuts down debate.
But from start to end, TPP has been thoroughly anti-democratic. On the first day of the Singapore talks a broad range of civil society organizations issued an open letter to Congress calling for greater transparency in the proceedings. The agreement is being hammered out in secret discussions among trade ministers. Even Senators have been denied a look at its draft provisions.
However, some 600 transnational corporations are in the inner circle. They are writing the rules for trade in their own interests without any democratic input from the people whose lives will be profoundly affected. If adopted, TPP will deny citizens their democratic rights to shape public policies on a host of domestic issues, conceding those decisions to the large corporations.
Some sections have been leaked. They reveal “an agreement that actually formalizes the priority of corporate power over government,” according to Lori Wallach of Public Citizen’s Global Trade Watch. Only 5 of the 29 chapters have to do with trade. Wallach says the rest of the draft “include[s] new rights for the big pharmaceutical companies to expand, to raise medical prices, expand monopoly patents, limits on Internet freedom, penalties for inadvertent noncommercial copying, sending something to a friend. There are the same rules that promote off-shoring of jobs that were in NAFTA that are more robust that literally give privileges and protections if you leave. There is a ban on ‘buy American’ and ‘buy local’ or ‘green’ or sweat-free procurement. There are limits on domestic financial stability regulations. There are limits on imported food safety standards and product standards. There are limits on how we can regulate energy towards a more green future – all of these things are what they call ‘Behind the Borders’ agenda. And the operating clause of TPP is: ‘Each country shall ensure the conformity of its domestic laws, regulations and administrative procedures with these agreements.’”
Global Class War
Free trade is about more than trade. It is about favoring corporations over the democratic rights of citizens and the sovereignty of nations. As the former Director-General of the WTO, Renato Ruggiero, said in 1995, “We are no longer writing the rules of interaction among separate national economies. We are writing the constitution of a single global economy.”# What is being created is a global governance order in which corporations are the citizens, not flesh and blood humans like you and me. With free trade, corporations are making an end run around democracy.
TPP is the latest offensive in a global class war. For nearly 40 years now, since the mid 1970s, corporations have been rolling back the popular gains of the New Deal era and the 1960s. Democracy has been the target of a class war to restore the class power of capital. And there has been weak resistance, at best, by the popular classes. But the stakes have become increasingly clear to more and more. Indeed, on the issue of free trade, there is now a broad public sentiment against this aspect of the corporate offensive.
The US has become the world advocate of “free trade,” promoting it through trade agreements like NAFTA and other bi-lateral agreements as well as through global governance institutions it has sponsored such as IMF, World Bank and WTO. The US has promoted free trade for much the same reason Great Britain promoted it in the 19th century, viz. the economically strongest country in the world benefits from free trade. It is the weaker countries that seek tariff protection for their infant industries, protection from competition with cheaper and higher quality imports. That protection is what enabled the US to industrialize in the last half of the 19th century. But then when the US became economically strong enough to compete regionally and eventually globally, it became an advocate of free trade and demanded that others abandon protectionism.
The justification for free trade rests on the theory of comparative advantage. This is the view that if countries trade free of government impediments, the market will tend to direct each to export that which they can produce most efficiently and import what can be produced more efficiently and thus more cheaply elsewhere. The invisible hand of the market will guide each to specialize in producing what they have a comparative advantage in. Thus a rational production and trading system will emerge that maximizes efficiency.
Free trade agreements like NAFTA were sold to the US public by appealing to consumer’s interest in having access to cheaper goods imported from Mexico. What was deliberately soft-pedaled was their interest as workers in having jobs. Organized labor opposed NAFTA, fearing it would pit US workers in competition with low wage Mexican workers. Independent presidential candidate Ross Perot warned of “a giant sucking sound” as jobs would be off-shored to Mexico.
But the Clinton administration said US exports to Mexico would create new jobs. And so, ignoring opposition from its traditional base in the unions, new Democrat Clinton pushed ratification of NAFTA through the Senate as his first priority. Perot proved to be correct as US companies shifted production to low wage Mexico – until even lower wage Chinese workers were brought into play when China joined WTO. But Clinton was also right as cheaper consumer goods from abroad filled the shelves of Wal-Mart with bargains welcomed by US workers who found their wages reduced. Free trade proved to be a mixed blessing.
Capital Becomes Global
One important point about free trade that is often overlooked is that it is not only about the free, frictionless movement of goods and services across borders, unrestricted by tariffs, quotas and regulations. It assures the free movement of capital, as corporations are freed to invest abroad. The mobility of investment capital is of utmost importance, with profound economic consequences and consequences for democracy.
Unable to find sufficiently profitable venues for investment in the overdeveloped US economy, large corporations have increasingly moved abroad. They sought not just new outlets to sell their commodities, but low wage workforces that would decrease their production costs and thus boost their profits. Frequently that would involve locating different stages of the productive process in different countries so as to take optimal advantage of local conditions. The assembly lines of US industry were disaggregated and disbursed across the globe.
Global assembly lines emerged. These global production chains have become a signature feature of contemporary capitalism. Components may be manufactured in Singapore, transported to China for subassembly and then shipped to Mexico for final assembly before sale in the United States. Although global assembly lines are geographically dispersed, they overcome the limitations of the fixed assembly lines of the Fordist era in that they no longer have to rely on a fixed labor force that can organize itself to effectively claim a share of the surplus they create.
Instead, the global assembly line gives capital the flexibility to seek out the lowest wage workforce and friendliest business environment available anywhere in the world. This has been made possible by the development of a global computerized network of instant communications via satellite. That and the computerization of banking have made money transfers and the movement of capital both easy and instantaneous. The communications network also allows the decentralization of technological development and design. Technicians can work at points distant from the processes of production to which they address themselves. And the entire process can be coordinated by management located anywhere on the globe. The limitations of space and time have been overcome by digital communications and cheap energy for transporting goods to their ultimate consumers.
For such globalized production to be possible, capital must be able to flow freely across national borders and products have to be able to move with minimum friction across those borders, unhampered by tariffs or quotas or non-uniform standards. In other words, there must be free trade for transnational capital to optimize accumulation.#
But transnational corporations also need legal protection of their investments. They need protection from expropriation of their assets, laws and governments that can ensure their property is secure. A crucial part of free trade agreements is protection of what are called investor rights. This involves more than just protection from expropriation, as happens with revolutions. It also involves protection from governmental actions that might reduce the value of their property or potential profits by environmental and health regulations, labor laws or other such measures even though they might be for the public good. What in US law is called “regulatory takings” are seen as tantamount to expropriation.
When such governmental actions do occur, free trade treaties give the foreign corporation the recourse to sue. The suit is not adjudicated in a national court, but by a transnational body of experts operating in secret. States are expected to enforce its decisions on their own nation’s taxpayers and consumers. This favors investor rights (i.e. the interests of transnational corporations) over the democratic rights of a nation.
Super NAFTA
As corporations have globalized, morphing into transnational corporations, they have promoted free trade agreements to get national governments to assist them. But when “investor rights” trump the democratic rights of citizens, the transnational corporations become the real citizens of the emerging global order. TPP is a further step in this direction, making an end run around a number of important issues –banking regulation, extension of patent protection, food inspection, environmental protection, food sovereignty, internet freedom, health care, job creation policies, and more, denying voters the opportunity to decide such matters when they impinge on corporate profit making.
Here are a few of the issues around which opposition to TPP is beginning to emerge.
* Doctors Without Borders (Medecins Sans Frontieres, MSF) is concerned that TPP would “enhance patent and data protections for pharmaceutical companies, dismantle public health safeguards enshrined in international law and obstruct price-lowering generic competition for medicines.” The intellectual property provisions would give pharmaceutical companies prolonged monopoly protection for medicines and delay access to cheaper generic versions. This would have disastrous consequences in poorer countries.
* Internet freedom is also in danger. The Council of Canadians and OpenMedia have warned that the TPP would “criminalize some everyday uses of the Internet,” including music downloads, making no distinction between commercial and non-commercial copyright infringement. The TPP imposes a “three strikes” system for copyright infringement, where three violations would result in the termination of a household’s Internet access.
* Japanese farmers are concerned that TPP will force removal of protections from Japan’s agriculture needed to maintain food sovereignty for the country. They are protesting Japan’s decision to enter into TPP negotiations at all.
* Guaranteed compensation for loss of “expected future profits” from health, labor or environmental regulations.
* Corporate performance requirements are banned.
* Capital mobility is to be guaranteed, preventing capital controls in event of a financial crisis. TPP will require countries to let capital flow in and out without restriction, not allow the banning or regulation of risky investments like derivatives and credit-default swaps and will prevent the formation of much-needed public banks
Democratic sovereignty
Most fundamentally what is at stake with TPP and existing free trade treaties is the sovereignty of nations and the ability of their peoples to make democratic decisions. This is a concern on both the Left and the Right, suggesting the possibility of a broad coalition opposing TPP, bridging our otherwise polarized politics.
A major NBC News-Wall Street Journal poll from September of 2010 revealed that “the impact of trade and outsourcing is one of the only issues on which Americans of different classes, occupations and political persuasions agree,” with 86% saying that outsourcing jobs by U.S. companies to poor countries was “a top cause of our economic woes,” with 69% thinking that “free trade agreements between the United States and other countries cost the U.S. jobs.” Only 17% of Americans in 2010 felt that “free trade agreements” benefit the U.S., compared to 28% in 2007.
Arthur Stamoulis, executive director of Citizen Trade Campaign said: “If they were to negotiate an agreement that put human rights ahead of corporate profit, creating more just and sustainable social policy, the TPP could be a tool for incredible good. But if you look at who has a seat at the table, with the public shut out and more than 600 corporate lobbyists included, there is nothing to indicate that’s the deal we’re going to get.”
The developing opposition to the corporate coup that the TPP represents has the potential to win. It’s about time for the people to win one victory in the corporate class war. Our first chance in this campaign will be over granting fast track Trade Promotion Authority. And that battle will be followed by the fight over Senate approval of TPP itself. This is one that we can win. The stakes are high. The alternatives are democracy or plutocracy.
******
Cliff DuRand is a Research Associate at the Center for Global Justice and a contributor to the CIP Americas Program http://www.cipamericas.org. He is co-author and co-editor of Recreating Democracy in a Globalized State (Clarity Press, 2012). Contact him at global.justice.cliff@gmail.com
For More Information:
Public Citizen’s Global Trade Watch http://www.citizen.org/trade
on TPP http://www.citizen.org/TPP
Citizens Trade Campaign www.citizenstrade.org
A coalition of labor, environmental, religious, family farm, and consumer organizations united in the pursuit of socially and environmentally just trade policies.
It’s Our Economy www.itsoureconomy.us
It’s Our Economy seeks to educate, organize and mobilize Americans to shift the power from concentrated capital to the people. http://itsoureconomy.us/occupy-the-tpp-stop-the-global-corporate-coup/
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