Tag Archives: nafta

In the Cradle of Corn, Farmers Go Broke and People Go Hungry

By Deborah Van Hoewyk

Maybe nine thousand years or so ago, corn was “born and bred” by the early peoples of the modern states of Oaxaca and Puebla, most probably in the Valley of Tehuacán. It took centuries of careful selection to turn a grass called teosinte into corn, but farmers in even the most remote areas developed hundreds of corn varieties adapted to different growing conditions. Although there are only about 60 strains of corn still grown in Mexico – Oaxaca is the origin for well over half of them – this genetic diversity should make corn a reliable food source even when natural or man-made disaster wipes out some types of corn.

(The Eye has published a number of articles on the history and cultivation of corn, go to https://theeyehuatulco.com/ and use the search box.)

Over time, corn has shaped the cultures and the lives of the indigenous peoples of Latin America; indeed, the Popol Vul, the sacred book of the people we now call the Maya (fl. c. 1800 BCE – 900 CE), reports that the gods tried to create humans first from mud and then from wood, but they failed. When the gods tried to create humans from corn, they succeeded, and the Maya became “the Children of the Corn.” Corn is thus way more than elotes y esquites sold from street carts – it is life itself. But the capacity of Mexican corn to sustainably support its people has faded almost entirely away.

How we think about hunger

People go hungry all the time. Drought here, famine there, and people in poverty have nothing to eat – we send money to food banks and hope for rain. That, however, is a response that only provides immediate relief. Growing and distributing food is by no means solely a natural phenomenon, and treating hunger as an unfortunate failure of nature is useless.

In 1981, the economist Amartya Sen, who notably also studied philosophy, published Poverty and Famines: An Essay on Entitlement and Deprivation – one of those books that changed the way we think about something. In 1943, when Sen was nine years old and growing up in Bengal, three million Bengalese starved to death, ostensibly due to famine. (Bengal is now divided into the state of West Bengal, India, and the country of Bangladesh.)

Analyzing the Bengal famine, as well as multiple famines in other countries, Sen argued that people do not go hungry for lack of food. In fact, there were adequate supplies of rice in Bengal to prevent people from starving. But starve they did, because the system that provided food did not provide equally for everyone. In 1942, in the midst of WWII, Japan took Burma (now Myanmar) and Singapore, cutting off their rice exports. The Indian military overreacted, stockpiling large quantities of rice, which led the public to panic buying, hoarding, price increases and then price gouging. People in Calcutta (now Kolkata), which was the capital of British India, could still pay the price – but three million people in marginal occupations and rural areas, where wages were stagnant and resources were few, could not.

Hunger in Mexico

For a country with a history of rebellion and revolution on behalf of its “ordinary people,” Mexico has a complicated, century-long history of poverty and hunger. The latest statistics on hunger, food insecurity, and nutrition indicate that overall, about 1 person per hour starves to death in Mexico; about 1 in 5 kids under age 6 is morbidly malnourished; about a quarter of Mexico’s population is food insecure (lacking access to basic foods); and a quarter of the population is obese. Mexico is the largest Latin American consumer of highly processed, “hyper-caloric” food products – raising the incidence of diabetes, hypertension, and heart disease.

In rural areas, where poverty is endemic, food is available but people can’t pay for it; on average, over 40% of the populations of Guerrero, Oaxaca, and Chiapas suffer from “food poverty.” (Statistics on Mexico’s social development status are collected by CONEVAL [Consejo Nacional de Evaluación de la Política de Desarrollo Social], which in 2008 developed the first multidimensional – both social and economic deprivation – poverty measurement protocol in the world.)

However, as both Amartya Sen and CONEVAL would point out, the connection between poverty and hunger is not simply a matter of whether you can afford to buy healthy food. For millennia, corn was the main staple in the Mexican diet, and it was a healthy food for the Mexican families who grew it. Tortillas made from native corn (maíz criollo) provided over 40% of a day’s protein requirement, they prevented rickets in kids, and offered lots of fiber. Between 1982 and 2018, however, tortilla consumption dropped by over half, and tortillas were “industrialized,” made from commercially grown and ground masa harina (corn flour). What happened?

NAFTA and the collapse of Mexican corn

A lot of things happened – agricultural, social, and political – but most significantly economic, starting with the promotion of free trade policies in the 1980s. Mexico, like other Latin American countries, had borrowed internationally to support modernization and industrialization. On August 12, 1982, Mexico defaulted on its debt. The International Monetary Fund (IMF) bailed Mexico out with a loan that required, among other things, reducing trade barriers, deregulating industry, and

liberalizing foreign investment. These conditions, along with other measures to facilitate international trade, especially with the U.S., led a decade later to Mexico’s participation in the North American Free Trade Agreement (NAFTA, signed in 1994), renegotiated in 2020 as the United States-Mexico-Canada Agreement (USMCA). On the surface, NAFTA seemed to convey great benefits on Mexico’s ability to trade with the U.S. and Canada.

But NAFTA didn’t work out all that well in relation to agriculture and domestic food production, particularly the native corn. Concurrent with NAFTA, and required in part by the agreement, Mexico shuttered the few agricultural support programs it had in place, some of which were considered anti-poverty programs as well. The Mexican government made strenuous efforts to acquire imported grain, mainly corn, from the U.S. Scads of American corn arrived in Mexico, and was sold more cheaply than the more nutritious native corn. The impact on Mexico’s food system and people at the economic margins was profound.

By 2003, nine years after NAFTA, the zócalo in Mexico City was crammed with machete-wielding campesinos – farmers demonstrating against the impact of NAFTA on their ability to make a living growing corn. An additional clause took effect in 2003 – Mexico would no longer impose duties on agricultural imports from Canada and the U.S. That meant even more foreign corn, cheaper than ever; 900,000 farming jobs in Mexico had disappeared by 2003.

By 2004, the U.S. had quadrupled its corn exports to Mexico, and prices of native corn had dropped by 66%, driving many mid-sized corn farmers – the ones who were producing corn for sale, not subsistence – out of business.

By 2011, two million small and mid-sized farmers had left their land because they couldn’t support themselves; the land most of their farms occupied was rough and rocky, and couldn’t be adapted to compete with larger farms in flatter territory. For at least five years now, Mexican agricultural production has been shifting to export crops popular in the U.S., notably berries and avocados. Neither crop is integral to the Mexican diet, and small farmers do not have the resources to switch to such export production.

By 2016, corn was Mexico’s #1 agricultural import from the U.S. Mexico became the #1 export market for the U.S. not only for corn, but for dairy products, soybean meal, and poultry – all basic foodstuffs. It was the #2 export market for highly processed food from the U.S.

By 2018, Mexico was importing 45% of its food, ranking it 7th in the world as a food-importing nation.

In Eating NAFTA: Trade, Food Policies, and the Destruction of Mexico (2018), author Alyshia Gálvez argues the food-system case against NAFTA’s “unintended consequences,” finding that a global and financial definition of “food security” has been more valued than subsistence agriculture, that commercial development has been more important than sustainability, and that market participation outweighs social welfare, particularly in relation to the Mexican diet. Galvez saw little chance for changing these outcomes.

On a more hopeful note, tortillas to the rescue

Just as healthy, protein rich tortillas made from heirloom corn seem to be a thing of the past, they may be back, ironically rescued for their potential to offer a gourmet food experience, albeit with a social purpose.

In May 2018, the Alianza por Nuestra Tortilla (Alliance for Our Tortilla), a collaboration among 75 or so businesses, food producers, corn farmers, and researchers, was formed to ensure Mexico can recover “la buena tortilla,” the ideal tortilla, made from native corn that has been nixtamalized (processed in an alkaline solution that unlocks nutrients and enhances flavor and scent). The corn will have no agricultural toxins or additives, and will not be genetically modified.

One member of the Alianza, businessman Rafael Mier, had founded the Fundación Tortilla in 2015, and its main program, Tortilla de Maíz Mexicana, a year later; the goal was to promote the “culture and consumption of corn and the tortilla as fundamental elements of national wellbeing.” Mier’s program works on public policy to revitalize native corn; preserve the traditional “three sisters” (corn, beans, squash) method of corn cultivation; and generate and disseminate knowledge of native corn and how to use it.

Taking a non-tortilla approach, the Scorpion Mezcal company launched Sierra Norte Native Corn Whiskies in 2016, made from 15% malted barley and 85% maíz criollo. Although the new product was driven by the burgeoning popularity of mezcal, which in turn caused a shortage of agave, owner Douglas French sees it as a way to help keep Oaxacan “native cultures and traditions alive,” specifically by buying endangered heirloom corn produced by small family farms at a fair price.

New tortillerías have opened in Mexico City that specialize in traditional tortillas, which have started appearing on the menus of upscale restaurants, e.g., Pujol; the first, Maizajo in Azcapotzalco, opened in 2016 and is “dedicated to the research, production, and commercialization of native corn products.” Cintli, opened in 2017 in the La Roma neighborhood, likewise focuses on native corn, uses nixtamalization in its processes, and practices social justice in its relations with corn producers. You can take a tour of Cintli, and try out their tortillas (and other heirloom corn products).

You don’t even have to go to Mexico to experience tortillas made from maíz criollo. In 2014, Jorge Gaviria, originally from New York, founded Masienda in San Francisco; now located in Los Angeles, Masienda aims to “elevate the everyday tortilla through a return to its origins,” which Gaviria found in Oaxaca. By now, Masienda has relationships with over 2,000 smallholder Oaxacan corn farmers, and produces traditional tortillas from their native corn. You can purchase Masienda’s Corn Tortillas (pink bag) and their Blue Corn Tortillas (blue bag) from Whole Foods in New York City for $4.49 US each.

Whether creating a market for gourmet tortillas will create enough demand to help small farmers in Oaxaca is an open question, though. If you’re in Mexico now or even a couple of years from now, that corn tortilla under your taco will most probably have been “born in the USA.”

Mexico’s Reckoning with NAFTA and GMO Corn

By Julie Etra

Andrés Manuel López Obrador (aka AMLO), president of Mexico, recently called on Mexican farmers to stop using the herbicide glyphosate by 2024. By his final executive order of 2020, AMLO made a surprising decree to phase out both genetically engineered corn (GE, maíz transgénico), often referred to as GMO, or genetically modified, corn, and the use of the herbicide glyphosate.

Glyphosate, commercially known as Roundup, is a non-selective herbicide in that it kills all herbaceous (non-woody) vegetation to which it is applied. GMO corn, however, has been genetically modified to tolerate glyphosate. This creates a market cornered by the multinational agro-chemical giant Monsanto (bought out by Bayer in 2016), as they produce both the genetically modified corn (among other crops) and the herbicide. The national campaign, known as “Without Corn There is No Country” (Sin Maíz, No Hay País), and Greenpeace Mexico support the initiative that opens a path to eventually eliminate the use of glyphosate in Mexico by 2024. They urged AMLO to sign and publish the decree in the government’s Official Gazette of the Federation (Diario Oficial de la Federación), which occurred on December 31, 2020.

According to Reuters (May 24, 2021), the decree has held up: “A Mexican federal judge ruled against a request by the National Farm Council to freeze a government plan to ban genetically modified (GMO) corn and the widely used herbicide glyphosate by 2024, the national science council said on Monday. Judge Martin Adolfo Santos Perez’s ruling allows the executive order issued by President Andres Manuel Lopez Obrador late last year that outlines the planned ban to proceed.”

This is a huge economic issue. Since the passing of the North American Free Trade Agreement (NAFTA) during the Clinton administration (1992), there has been a catastrophic decrease in domestic production, particularly of what we would call heirloom corn (maíz criollo) by small farmers who could not compete with the industrially-produced U.S. corn that poured into Mexico after passage of NAFTa. (An essential read on the subject is Eating NAFTA: Trade, Food Policies, and the Destruction of Mexico, by Alyshia Gálvez [Oakland, CA: University of California Press, 2018]).

On the Mexican side, President Carlos Salinas de Gortari signed NAFTA betting that privatizing the economy and relying on market forces would modernize and grow the country, so to speak. This has not quite worked out as planned. Of the 20.4 million metric tons of corn imported by Mexico from the United States during from 2018 through March 2020 – 95% of it yellow corn, and 78% of it (16 million tons) in 2020 alone. According to Mexico’s national feed association (CONAFAB, Consejo Nacional de Fabricantes de Alimentos Balanceados y de la Nutrición Animal), Mexican feed companies used about 11.1 million tons of imported corn in 2020, the vast majority of it sourced from U.S. farmers; U.S. corn represented nearly 70% of the sector’s total corn purchases for the year.

What remains unclear as of this writing is that, although the ban would eliminate GMO corn for human consumption, the decree did not clarify what products would be included and it appears that feed corn would be exempt from the decree.

On the other hand, and as the wagons circle, the executive decree of course has its detractors. Mexico’s national association for Crop Protection, Science and Technology (PROCCYT, Protección de Cultivos, Ciencia y Tecnología), among others, rejected the order. PROCCYT warned that “the greatest economic and social blow will be dealt against Mexican farm workers, by promoting the publication of the Decree by which any possibility of import and use of glyphosate to protect food crops, despite the fact that it is scientifically proven that this herbicide does not harm health or the environment.”

But supporters of the decree have vowed to “defend our corn, since Mexico is considered the center of origin, domestication and diversification of at least 64 breeds of corn, and more than a thousand other species, including chili, beans, squash, vanilla, cotton, avocado, cocoa and amaranth.” The origin of corn is indeed Mexico, and more specifically the state of Oaxaca, where it was cultivated from its ancestor, the wild plant known as teosinte. Corn has achieved its current robust form over 8,000 years of plant breeding (my three-part article on the history of corn in Mexico appeared in The Eye in 2012).

Although there are few valid studies that link glyphosate to human health problems, the selective breeding of corn just for the ease of industrial production and the associated resistance to herbicides (and maximum profit) is anathema to Mexican culture, and has resulted in loss of nutrition and exhaustion of the soil as a natural, living resource. This depleted soil now relies on huge inputs of commercially produced, high nitrogen fertilizer, accompanied by its own suite of environmental problems. And the summer sweet corn we are accustomed to eating in the USA is mostly water and sugar and tastes nothing like the street corn – esquites y elotes – we find locally.

From this writer’s perspective Mexico has taken a big, progressive step forward.

Editor’s Letter

By Jane Bauer

“Sugary drinks are blamed for increasing the rates of chronic disease and obesity in America. Yet efforts to reduce their consumption through taxes or other measures have gone nowhere. The beverage industry has spent millions defeating them.” Robert Reich

The ritual of beverages: morning coffee, glass of wine with dinner, champagne for celebrations, hot chocolate for first snowfalls and a lime margarita once your toes hit the sand as you embark on a holiday. Most of us are quite committed to the ritual of our drinking habits, whether it is a ‘grande non-fat chai latte’ from Starbucks at the airport or your favorite brand of beer when watching your favorite sports team.

In this issue our writers explore beverages. Mexican classics such as coffee, chocolate, beer and pulque. I was driving through my village while contemplating what to write about for my editorial when I spotted a six-year old boy I know coming out of the tienda. Barefoot and with a little puppy nipping at his heels, he struggled to hold the 2-liter bottle of Coca-Cola he’d just purchased. Ugh how could I have overlooked the most important beverage crisis that Mexico faces.

After the implementation of Nafta on January 1, 1994, Mexico saw a dramatic rise in consumption of sugary beverages and processed foods.

“In addition to dramatically lowering cross-border tariffs, Nafta let billions of dollars in direct foreign investment into Mexico, fueled the growth of American fast food restaurants and convenience stores, and opened the floodgates to cheap corn, meat, high-fructose corn syrup and processed foods” (New York Times, Dec. 11, 2017).

The rise in diabetes and obesity in Mexico was a huge factor before the pandemic, but has never been more paramount than now, given that these conditions make people at much greater risk.

One of the ways that junk food has infiltrated small communities that have traditionally been very self-sufficent – growing corn, fishing, relying on the vegetation found around the village – has been to offer inexpensive non-perishable products and incentives such as free refrigerators and even low-interest loans for expansion.

A new development is stickers on processed foods warning people about high sugar and fat contents. Whether this will lead to a reduction in consumption of such foods has yet to be determined. The state of Oaxaca did implement a law making it illegal to sell junk food to minors. Enforcement is another beast entirely.

“In the rural Oaxacan town of Villa Hidalgo Yalálag, citizens have physically blocked chips and soda delivery trucks from entering since April, saying they don’t want outsiders to bring in the coronavirus or junk food” (NPR ,September 14, 2020).

I don’t know if that is the answer, but I do know we need to start asking the question.

Cheers,

Jane

What Happened with NAFTA?

By Jan Chaiken and Marcia Chaiken

The North American Free Trade Agreement (NAFTA) went into effect in 1994 and effectively made the US, Mexico, and Canada into a single trading zone without tariffs for many products, or lower tariffs than applied to other trading partners. While the treaty was originally envisioned as a mechanism for creating new employment opportunities and enhancing working conditions and standards, its main impacts were an enormous increase in the amount of goods traded among the three nations and a sudden spurt of Mexican nationals moving to the US for employment (a migration that ended after a few years but left a large residue of Mexican citizens living and working in the US). NAFTA also stimulated the creation of entirely new methods of production between the US and Mexico. US companies export intermediate components to manufacturing companies in Mexico, which assemble the finished product and export it back to the US. As a result, now over 40% of the content of goods imported into the US from Mexico is of US origin. This form of cooperation has helped make US businesses more globally competitive,

Even before he was elected president, Donald Trump declared NAFTA to be the worst trade deal ever made, and after he took office, he initiated renegotiation of the treaty. A revised treaty was signed by the presidents of the US and Mexico and the prime minister of Canada on November 30, 2018, a date chosen specifically because the next president of Mexico, an outspoken opponent of NAFTA, took office the following day. In addition, the Democratic party had already been elected to a majority in the US House of Representatives, but the new members had not yet assumed power to assert their objections to the treaty. This effort by the signers to nail down a new treaty in the face of obvious forthcoming impediments did not succeed, and eventually the trade negotiators returned to the bargaining table. The revised version of the new treaty was ratified by the Senate of Mexico in December 2019 and by the US Congress and President by the end of January 2020. Canada waited for the other parties to act on revisions, and now the ratification process has begun in Canada but may take several months more. The new treaty will take effect 90 days after all three countries have ratified it.
The renegotiated treaty is called USMCA in the United States and T-MEC in Mexico. (The government of Mexico always invents more pronounceable acronyms!.) All told, what are the changes? Despite the bombast and rhetoric that arose from interested parties, the new treaty is remarkably similar to NAFTA. The main effect of enacting a new treaty is to end uncertainty as to whether there will be any treaty at all going into the future – if NAFTA had been simply terminated, the normal operations of many companies would have been thrown into substantial chaos.

Among its changes are a requirement that more components for vehicles be produced in the three countries in order to avoid tariffs, and a provision that 40% of each vehicle must eventually be produced by workers who earn at least $16 US per hour (about 3 times as much as is currently paid to the average Mexican factory worker). Trump has touted this provision as necessarily returning more automobile production to the United States and a subsequent increase in jobs for Americans. But if average wages for Mexican auto workers go up by increasing the salaries of industry administrators, low paid jobs will remain in Mexico and prices for U.S. cars and trucks will noticeably rise.

The treaty also gives US dairy farmers access to a larger proportion of the Canadian dairy market than in the past. In particular, more American cheese, milk and butter can be sold in Canada. Correspondingly US consumers will have access to more Canadian dairy products. Canadian sugar can also be marketed in the U.S.

Perhaps ironically, the most sweeping changes in the new NAFTA were proposed, not by the Trump administration but by Democrats in the US Congress. These included provisions related to new labor laws in Mexico that will allow Mexican workers to form independent unions, prevent forced labor, and have increased control of their contracts. The final USMCA treaty includes benchmarks and inspection protocols that will allow enforcement of the labor provisions. Other late changes to the treaty protect the environment by preventing outsourcing of pollution and related jobs to Mexico, but no specific benchmarks for controlling climate change were included in the renegotiated treaty. The Democrats also won a concession from Trump with a provision change that prevents large drug companies from retaining the rights to a class of extremely expensive pharmaceuticals for ten years and from obstructing the sale of equally effective generic forms of the drugs.

One of Mexico’s main original goals in negotiating a new trade agreement was to update and modernize the list of products so as to include ones that didn’t exist when NAFTA went into effect or that had changed substantially in their nomenclature or mode of manufacture or distribution since 1994. The text of the new treaty covers a variety of digital products and intellectual property rights that were not previously included.

Although the ratification of the new NAFTA provides more certainty in the Mexican, American, and Canadian markets, true to his style of governing by chaos, Trump inserted a sunset provision in the treaty. Any one of the three partner countries can pull out of the treaty six years after all have signed and, after a substantial delay, leave the trading partnership. But, by then, the Trump administration will be over, gone; it is hoped that North America and the rest of the world will be back on track to improving global prosperity rather than serving strictly corporate interests.