A School of Labour Workshop Maureen Hynes & Kathryn Payne

Outcomes Understand the evolution of “free trade” Recognize and describe the effects, particularly local effects, of free trade Identify the range of opposition strategies in place around the world Be familiar with further resources on free trade & globalization

Defining globalization Globalization is the world-wide integration of finance, markets, production and the management of labour. It is a process by which large corporations extend their domination of resources, markets and labour… … facilitated by governments and international bodies such as the International Monetary Fund and World Trade Organization.

Origins of Free Trade deals Post World War II: 1945 meeting at Bretton Woods, New Hampshire, to set up World Trade Organization (WTO) First purpose was to rebuild Europe Later -- loans to developing countries for infrastructure & militarization High levels of interest charged to countries in economic south

Context for current situation Free trade deals enormously protested Failure of free trade deals because of opposition by developing countries Country-to-country deals Secrecy “Atlantica” and “TILMA” (Trade, Investment, Labour Mobility Agreement) “Integration”….

“Deep integration” Security and Prosperity Partnership signed by Bush, Fox & Martin in 2005 Focused on “harmonizing” security, trade, economic and resource policies Massive standardization of health care and environmental standards (cuts out 400 environmental laws) Allows the 3 countries to negotiate as one bloc in the WTO “We’re becoming a bloc, like the EU, but without the safety standards” (Barlow)

But… No consultation, no public debate -- not passed by Parliament “A continental resource pact” -- electricity, gas, oil, water, food safety, regulation of toxic substances Loss of control of our resources (like softwood lumber) Push towards privatization of health care Compatible immigration security measures The North American Competitiveness Council (10 CEO’s) has been asked to reduce the 300 recommendations to 30 workable ones

Some key components of globalization Privatization Deregulation Tax cuts  then cuts to social services, health care, education Downward pressure on prices Security and military expenses Easy movement of capital, but  Restrictions on movement of people (migrant workers = commodity)

Deregulation Reduces the number of laws covering safety issues for consumers and eases regulations for how industries do their work Water – Walkerton Cdn Food Inspection Agency & US FDA Drug safety – Cdn Health Protection Branch Federal Protections for Canadian Wildlife Aviation safety CanCon rules for satellite radio Canadian Auto Pact (between US & Japanese mfrs) signed in 1965, ended by WTO in 2000 Backing away from Kyoto Accord Tuition fees deregulated!

Privatization (Publically-funded and run resources are transferred to the private, for- profit sector) In Ontario there are now 25 “P3” (public-private partnership) hospitals A U.S. corporation built and ran a P3 superjail in Penetanguishene for 5 years – study compared it to publicly- run jail found public jail had better security, health care and reduced re- offending rates.

Cuts to services Employment insurance (from 75% of workers covered in 1990 to only 37% in 2000) Cuts to social assistance School Board cuts Cuts to federal funding for literacy programs (9 million need literacy help) Status of Women funding Eliminate national childcare program Wildlife protection cuts, Sept 07

Downward pressure on prices Subsidies to farmers in the U.S. leads to “dumping” of corn in Mexico Slate mining in China and Newfoundland The Wal-Mart policy for suppliers “Race to the bottom” for labour costs – Increasing numbers of low-wage jobs

Security & military spending Permanent residents’ card with computer chips Biometrics – voice, eyes, fingerprints New role for Canadian military Increased investment in military hardware and war

Regulation of movement of people Guestworkers – a growing global presence (2003 ILO estimates: 120 million worldwide) India, Mexico, the Philippines: “remittance” economies Not just agricultural workers, but also nursing homes, semi-skilled trades But removing benefits and legal protections for them (e.g., unions)

What can we do? Brainstorm!