Posted: Thursday, 13 August 2009

Guadalajara, Mexico
August 9/10, 2009

The North American Free Trade Agreement (NAFTA) has, to a significant extent, defined the relationship between the three North American nations over the last fifteen years. NAFTA was sold on the promise that it would bring more and better jobs and faster growth to the region and reduce emigration from Mexico to the United States and Canada. While trade and investment flows did increase, NAFTA did not create more net trade-related jobs and those that it did were very often less stable, with lower wages and fewer benefits. Instead, increased trade largely benefited the corporate elite in all three countries. Income inequality has also grown in the region. We believe that the trade liberalization and investors' rights provisions contained in NAFTA were an important contributor to these results.

These difficult social and economic conditions have been exacerbated by the current economic crisis which was precipitated by neo-liberal policies and the deregulation of international finance. Further, the global recession is likely to be long and painful. However, the current crisis does provide an opportunity to reassess prevailing economic doctrines, arrangements and institutions and work for common prosperity through the implementation of a continental strategy for economic and social development. These problems must be addressed through an open and participatory process which includes workers and unions.

Our governments will need to undertake measures to address the economic crisis, such as directing fiscal stimulus to meet national priorities, including rebuilding our infrastructure and making a transition to clean renewable energy sources, re-regulating the financial sector, passing labor law reform, strengthening public services, reducing inequality and solving the protracted housing crisis. We will also need concerted international economic policy coordination, and the U.S., Canada and Mexico can play an important role in that regard both regionally and globally.

We believe in the potential for the people of North America to strengthen common ties and participate in broadly shared economic prosperity. Fixing the flaws in NAFTA is only one part of the challenge we face. We also need to work together to address a number of pressing issues, which include labor law reform, migration and development and the promotion of the rule of law.

Labor Law Reform and Enforcement: With respect to the most fundamental of the ILO core labor rights, freedom of association and the right to organize and bargain collectively, the United States, Mexico and Canada are out of compliance with their international obligations due to substantial restrictions on the right to organize and bargain collectively, both in law and practice. All the North American countries must ensure that workers can exercise their most basic and fundamental rights or face appropriate sanctions.

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