Tuesday, March 24, 2009

NAFTA ‘s Promise or Lack Thereof

The New York Times ran an article, “Nafta’s Promise, Unfulfilled,” looking at the effects of NAFTA. I tend to think the view is dramatically affected by the fact that the world is currently in conniptions with the economic crisis, but its effect on small farmers cannot be exaggerated. Coffee Kids witnessed the effects of NAFTA on many of the small farmers we work with. Subsidized corn flooding the market in Mexico drove prices down to a point where it made no sense for local production. Many are now dependent on imported food. The dearth of jobs leads to migration just to survive.

Though international trade is important, it often benefits developed economies moreso than the developing world. In these parts of the world, a developed local economy can truly increase the independence of families. Coffee Kids partners in Mexico are working to stimulate local economies. Groups like Self-Managed Development (AUGE) and their microcredit program are fomenting small business investment throughout coffee communities in Veracruz; our partner FomCafé is promoting organic gardening as a healthy substitute to imported foods and a source of supplemental income; the Association for Research and Training of Southeastern Mexico (ICSUR) is working with families to raise edible mushrooms and flocks of chickens that add healthy foodstuffs to the local economy.

According to the article, there appear to be big changes on the horizon for NAFTA, but diversifying local economies is one way to reach the areas that don’t benefit from global trade agreements.