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Red China is investing heavily in developing deep-water ports in Mexico to bring an unprecedented volume of containers into the U.S. along the emerging NAFTA Super Highway. This move signals China’s emergence as the unexpected economic winner in the North American Union free market.
Now, investing millions to deepen Mexico’s ports in a plan to access the developing NAFTA corridors, HWL has found perhaps the most effective backdoor of all for gaining access to the continental U.S. market.
West coast ports such as Los Angeles and Long Beach are regularly described as overwhelmed with containers arriving from China and the Far East, resulting in a virtual gridlock that causes expensive delays. As a result, “inland ports” such as the Free Trade Alliance of San Antonio and Kansas City Smartport, both members of the North America’s SuperCorridor Coalition Inc. (NASCO), are exploring with enthusiasm opening NAFTA corridors to facilitate the movement from Mexican ports 50% to 60% of all containers entering the U.S. from China that are destined for delivery in the heart of the U.S.
Opponents of Bush Administration free-trade policies, such as Global Policy Forum, have argued for enforcing “anti-dumping” provisions commonly designed in traditional international trade agreements to prevent the import of under-market goods produced by countries exploiting near-zero labor costs. The argument is that in opening the U.S. to cheap Chinese goods, we are leading a worldwide “race to the bottom,” in which “the only priority is cost effective production, at the expense of workers, resources and sustainability.” The result is that the international capitalists owning companies such as Wal-Mart earn additional billions, while U.S. manufacturing continues to out-source an increasing number of jobs and poor countries such as Mexico are only pulled deeper into poverty.
All this sounds like a good deal for China. But are cheap sneakers at Wal-Mart really worth the damage being done to the most successful middle class ever built in world history? Aristotle's Politics give reason to ask whether the U.S. constitutional republic we have enjoyed for 230 years will long endure a middle class squeezed by an original NAFTA market that evolves into a European-style North American Union dominated by the Chinese.