NAFTA 2.0 Text Analysis
Analysis of the NAFTA 2.0 Text Relative to the Essential Changes We Have Demanded to Stop NAFTA’s Ongoing Damage
Text of a revised North American Free Trade Agreement (NAFTA) was published on September 30, 2018 following a year of renegotiation talks. This overview analysis measures the NAFTA 2.0 text against changes Public Citizen has long demanded that are necessary to stop NAFTA’s ongoing damage. Almost one million American jobs have been government-certified as lost to NAFTA, with more outsourced to Mexico every week. New NAFTA Investor-State Dispute Settlement (ISDS) attacks on environmental and health policies are regularly filed after $392 million has been seized from taxpayers by corporations using NAFTA’s ISDS regime.
The NAFTA 2.0 text includes some improvements we have long demanded, as well as the addition of damaging terms we have long opposed in other pacts. It also reveals that more work is needed, especially with respect to ensuring the swift and certain enforcement of labor standards and environmental standards.
Corporate Powers and Privileges
We demanded an end to NAFTA’s Investor-State Dispute Settlement (ISDS) regime that grants corporations rights to attack our laws and demand unlimited taxpayer compensation.
How does the NAFTA 2.0 text measure up?
Job Outsourcing and Wages
We demanded the elimination of terms that promote the outsourcing of American jobs and create downward pressure on wages.
How does the NAFTA 2.0 text measure up?
- Includes modest but meaningful Improvements of labor standards — but the swift and certain enforcement that is essential to these terms having any effect is a work in progress.
- Adds new rules to eradicate wage-suppressing fake “protection” contracts in Mexico, which could make a significant difference over time on wage levels and incentives to outsource jobs from the U.S. to Mexico — if enforcement of these terms is improved.
- Lacks no labor-specific monitoring and enforcement provisions, but work is underway now to try to address this critical failing.
- Includes an insufficient “expectation” that Mexico enact labor law reforms: Language explicitly requiring this is done before NAFTA 2.0 enters into force must be included in implementing legislation.
Environment
We demanded the elimination of terms that undermine environmental policies and the addition of strong environmental standards that are subject to swift and certain enforcement.
How does the NAFTA 2.0 text measure up?
Access to Affordable Medicine
We demanded no new terms be added that extend beyond the existing World Trade Organization patent rules or that limit countries’ abilities to negotiate lower prices for government health programs like Medicare or Medicaid.
How does the NAFTA 2.0 text measure up?
- Grants Big Pharma new monopolies that lock in bad U.S. policies keep prescription drug prices high and imposes those policies on Mexico and Canada.
- Adds a new 10-year monopoly period for biologic medicines that could deny consumers affordable access to live-saving medicines.
- Grants additional Big Pharma handouts that block access to cheaper generic drugs.
Food Safety
We demanded that imported food must be required to meet U.S. safety standards, enhanced border inspection must be added and food labeling regimes must be protected so consumers can make informed choices.
How does the NAFTA 2.0 text measure up?
- Maintains NAFTA terms that undermine domestic food safety and inspection policies and adds new limits.
- Maintains NAFTA rules that require the U.S. to accept food imports that do not meet U.S. safety or inspection standards.
- Maintains NAFTA’s limits on border food inspection and adds new rules limiting audits of NAFTA countries’ food safety programs.
- Fails to fix roll backs of U.S. food labeling policies that previously were trade-challenged by Canada and Mexico, including country-of-origin labels for meat and dolphin-safe labels for tuna. New terms could threaten GMO labeling.
Consumer Protections
We demanded that all imported goods and services meet U.S. standards and a safeguard for environmental, health and other public interest policies be added.
How does the NAFTA 2.0 text measure up?
Sunset Clause
We demanded a sunset clause that requires the pact to be reauthorized every five years to increase democratic accountability and oversight.