Toward a More Corporate Union of the Americas?

By Katherine Sciacchitano, Dollars and Sense. Posted February 11, 2008.

Which is closer to your vision of North America?

Vision A: Three interdependent countries with vibrant social movements, respect for labor rights, and environmentally sustainable economies anchored in provision of social needs and respect for cultural autonomy?

Or Vision B: An unequal alliance dominated by the United States, complete with pumped up oil and gas production, increasing militarization, corporate transnational planning groups, and guest worker programs to ensure cheap, vulnerable labor?

If your answer is Vision A, there's good news and bad news. The good news is that this past August at a summit of the leaders of the United States, Canada, and Mexico in Montebello, Quebec, labor, environmental and globalization activists braved riot police and tear gas to demand democratic input into North American decision-making. The bad news is that the summit was about the Security and Prosperity Partnership of North America (SPP) -- the real-world name of Vision B.

While left activists and researchers in Canada and Mexico have been spreading the word about the SPP for several years, so far in the United States the SPP, which was officially launched in March 2005, has mainly caught the attention of the right wing, which sees it as a stealth plan to impose a European Union-style government on the continent.

The SPP is not a North American version of the European Union. But it is a stealth plan -- one aimed at bypassing the kind of international solidarity that halted the Free Trade Agreement of the Americas and the Multilateral Agreement on Investment. The European Union emerged after years of public debate and a treaty ratified by member states. By contrast, the SPP is not a treaty and will never be submitted to the U.S., Mexican, or Canadian legislatures. Instead it attempts to reshape the North American political economy by direct use of executive authority. And while the European Union maintains an explicit role for government in addressing inequality within and between countries, the SPP's foundation is an unequal alliance where the United States retains the political and economic trump cards.

Designed to shore up the United States' weakening position as a global hegemon, the SPP's primary goals are to link economic integration of the three countries to U.S. security needs; deepen U.S. access to oil, gas, electricity, and water resources throughout the continent; and to provide a privileged -- and institutionalized -- role for transnational corporations in continental deregulation. The stakes for labor, the environment, and civil liberties in all three countries couldn't be higher. Yet because of the SPP's reliance on executive authority to push the agenda, many of the SPP's initiatives remain virtually invisible, even to many activists.

SPP Basics

The North American Free Trade Agreement (NAFTA), which went into effect in 1994, was designed to enhance the access of transnational capital from the United States to cheap Mexican labor and Canadian natural resources. The SPP deepens these relations and harnesses the so-called war on terror to an expanded U.S.-Mexican-Canadian trade agenda and a lopsided energy grab to secure U.S. access to dwindling continental oil and gas reserves.

As its name implies, the SPP has two basic parts: the Security Agenda and the Prosperity Agenda. Both are rooted in the United States' deteriorating global position, particularly its increased competition for access to global oil and gas reserves and worsening trade balance with China.

With the explicit aim of securing North America from "internal" as well as external threats, the Security Agenda coordinates intelligence activities among the three countries and streamlines the movement of "low risk" goods and people (especially so-called "NAFTA professionals") across borders. It also involves extensive military coordination, much of it focused on protecting energy and transportation infrastructure. (Consolidating a North American military structure no doubt also serves as an offensive hedge against Venezuela's attempt to shape an independent South American energy policy.)

The Prosperity Agenda continues the Security Agenda's focus on energy. World demand is growing as traditional sources from the Middle East, Russia, and South America are becoming less secure; and the resulting price increases and realignment of power threaten a redistribution of wealth and power in favor of the oil and gas producers, many of them in the Global South. The Prosperity Agenda aims first and foremost at consolidating U.S. control over North American energy supplies, first by expanding production in Canada and Mexico, and second by increasing U.S. access to that production by deregulating energy markets. In addition to expanding energy production, Prosperity Agenda activities include a tri-national framework for "minimizing" regulatory "barriers"; special committees on the auto and steel industries; removal of constraints on movement of capital and financial services; and expanded and streamlined cross-border transportation networks -- networks that will facilitate not only trade within the continent, but more outsourcing to Asia.

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Katherine Sciacchitano is a former labor lawyer and organizer. She currently teaches at the National Labor College in Silver Spring, Maryland.