Annotations for Subject-headings: Economic Policy

This is news from Latino USA. I'm María Martin. Hearings have begun on the North American Free Trade Agreement with Canada and Mexico. While concurrently in Washington, Latino leaders held a national Latino seminar on NAFTA. Andres Jimenez of the University of California at Berkeley says this is the first time Latino organizations attempt to formulate a common strategy on a major national question because of NAFTA's far-reaching impact on US Latinos.

The impact of job displacement, environmental concerns, and not just protection of spotted owls, but protection of water in the air where people live along the border.

Latino organizations, including the National Council of La Raza, the Mexican American Legal Defense and Education Fund, and the Puerto Rican Institute for Policy Studies have signed on to a Latino consensus position on NAFTA, which calls for parallel agreements on immigration, job retraining, the environment, and for a North American Development Bank. Other organizations, including the Hispanic Chamber of Commerce, accept NAFTA as negotiated.

We've gathered a group of Latino journalists to talk about the news of the week from their perspective. With us from Washington are Sandra Marquez, a reporter for Hispanic Link News Service; Zita Arocha, a freelance journalist and contributor to USA Today; and José Carreño, Washington Bureau chief of the Mexican Daily Newspaper El Universal. Thank you all for coming and welcome to Latino USA. I guess we should start off with this, Zita… the Clinton administration started off with a focus on multiculturalism. We saw Edward James Olmos at the inauguration along with Willy Colón and many other Latino artists and participants. Well, so far have the promises of Latino inclusion been met by President Clinton's appointments and hirings?

He's taken a first step. I mean, we have Federico Peña as Secretary of the Department of Transportation, and we have Henry Cisneros who is the head of the Urban and Housing…and that's a good first step for him, but I would say that there's still really a long ways to go and also he hasn't really made most of the appointments he's supposed to make. All told we're waiting for about 1500 appointments. He's made about 150 or so, and just today the Associated Press came out with a little survey that they did saying that about 86% of the appointees so far, basically white males in their mid-forties. So we're looking at almost the same kind of configuration that existed when President Bush was president.

So is there a lot of pressure coming down within the political circles of Latinos in Washington that possibly may make Clinton make some more appointments and hirings?

Just last month, a group of Latinas, very powerful Latinas from across the country met here in Washington. They had the first ever national Latinas forum, and spontaneously what came out of that meeting was a real strong drive to push for Latina appointments to this government, and it was a very dramatic experience. Within 10 minutes, the women in the room decided to put their money where their mouths were, raising over $10,000 in less than 10 minutes to put an ad in the Washington Post. That ad has not materialized to this date because word got out to the White House. The women were invited back, and they've already had two meetings with personnel directors from the White House. They have been told to hold tight and to be very confident that they can see some very high-level Latina appointments to the new administration.

Well, José, you covered the Bush administration during his tenure and what we've just heard is that, in terms of appointments and staff, the Clinton administration looks a lot like the Bush administration. So, what would you say is the most fundamental change you see from the Bush administration to the Clinton administration regarding the issues affecting Latinos?

Well, I could say that it is the willingness to do something about it. It's unfair, in a way, to say that the Clinton administration hasn't appointed too many Latinos… hasn't appointed too many of anything in terms of a comparison with the Bush administration. I think that mostly maybe the care that they're trying to go with, but at the same time it's nothing but projects at this point. It's nothing but words.

Well, and in fact, regarding the words of President Clinton, we have his new economic plan on the table. Sandra, is the plan going to be a boom or a bust for Latinos? What areas do you think that Latinos will benefit most or be most hard hit from the Clinton economic plan?

Well, my concern about the economic plan is just that the majority of our community is comprised of the working poor, and so I wonder how much more they can give. So, I think Latinos, like the rest of this country, are ready for change and are really hoping to see a reduction in the deficit, and they've been giving disproportionately more than the rest of the society for the last 12 years. And so, I think that we're just watching closely to see what our role is going to be in this package.

Okay. Well, thank you very much Sandra Marquez, Zita Arocha and José Carreño for joining us here on Latino USA.

This is Latino USA, a radio journal of news and culture. I'm María Hinojosa. Today on Latino USA: two years after the Mount Pleasant riots in the nation's capital.

Overnight, Latinos were an issue in Washington DC.

Where US Latinos stand on the Free Trade Agreement with Canada and Mexico.

The jobs that are expected to be lost are the low-skilled, low-paying jobs that so many Latinos in this country hold.

Also, Afro-Cuban jazz pioneer, Mario Bauzá, and some thoughts on what's really important.

Here on top of the earth, we have everything a man can need. What more can one ask for?

All this here on Latino USA, but first: las noticias.

I'm María Hinojosa. Trade talks are now underway regarding the North American Free Trade Agreement with Canada and Mexico. NAFTA perhaps, as no other US economic initiative, will have a significant impact on US Latinos. With us to speak about the future of the controversial free trade agreement are three journalists who cover Washington DC politics: Sandra Marquez of the Hispanic Link News Service; freelance journalist, Zita Arocha; and José Carreño, DC Bureau chief for the Mexican daily, El Universal.

The biggest misperception in this whole thing is that even if NAFTA is a new document, in a way, it is something that is already happening at the border, as well, the people who's in Texas and California can say. Now what is going to happen? I think that there will be a lot of pressures on Mexico and the United States mostly in the environment and labor problems. Congressman Gephardt and a number of other Democratic freshmen went to Tijuana to take a look at the ecological situation there. They came out saying, "No way that way. At least the actual treaty has to be upgraded." We'll see a lot of the arguments in the next few months about it.

In fact, we've seen a lot of arguments already. Sandra, how much has the debate over NAFTA divided the Latino community in particular?

I think there's tremendous division among US Latinos on the issue of NAFTA because primarily, the jobs that are expected to be lost as a result of this agreement are the low-skilled, low-paying jobs that so many Latinos in this country hold. So, there is concern that the jobs that Latinos have are going to be exported to Mexico, but at the same time, Latinos realize that they have this intrinsic link with their Mexican kin across the border. And so, they realize there's tremendous potential that because of Latinos' bicultural skills that they can really tap into this and benefit more so than other Americans in this country.

The Latino population is also divided in terms of convenience. For instance, in Texas, there is a lot of people who's in favor of NAFTA because most of the import-export businesses are going through Texas and of course, they're getting a boost out of it. But in California, for instance, where there is a lot of Latinos in this low end of the industry, they're having a lot of problems, a lot of hesitations about it. So, I think that it is also related a lot with where are the jobs.

I think the Mexican government has realized that US Latinos can be very good promoters of this plan. And they have started a NAFIN fund, a $20 million fund for US Latino business leaders to create joint ventures with business partners in Mexico. And US Hispanic chambers of commerce here in this country have also been leading in terms of creating these trade partnerships and expose and taking people from the United States to Mexico and really helping to create these links.

There's another benefit to Latinos and I think Latinos are beginning to see this, that if the agreement leads in less immigration from Mexico to the United States…from Latin America in general to the United States, then those low-end jobs will not be taken away as easily as they would be if we continue to see hundreds of thousands of people coming across the border every year. There is some resistance on the part of some Latinos for fear that a lot of the low-end jobs will go to Mexico, but at the same time, there is also a realization that there will be benefits long term that will come from fewer immigrants coming over and you know, taking US jobs at the low end.

Thank you very much, Sandra Marquez, Zita Arocha, and José Carreño for joining us here on Latino USA.

This is news from Latino USA. I'm Maria Martin. President Clinton met with Latino leaders from around the country in Washington. Among those meeting with the president were representatives of the National Council of La Raza, the National Hispanic Leadership Agenda and the League of United Latin American Citizens. Healthcare, Education and Clinton's economic plan were among the topics on the agenda.

Even now, before NAFTA's implementation, business people in Texas are actively trading with their colleagues south of the border, and if the trade agreement is going to work, it will be up to individual entrepreneurs to lead the way. It's a trail already being blazed by many Hispanic-owned businesses, such as John Montoya's. He's the president of World Dallas International, a trading services company, and for him, the rewards of the agreement are quite clear.

You're listening to Latino USA. Section 936 of the US Tax Code, which gives a break to US companies operating in Puerto Rico, has become a victim of budget cuts.

President Clinton says 936 is an unnecessary tax shelter, which slaps the US Treasury of billions of dollars in revenue. Government officials in Puerto Rico disagree. From Washington, Patricia Guadalupe reports.

Puerto Rico's Governor Pedro Rosselló has formed a task force to lobby the Senate, where talks on Section 936 are currently underway. Heading up the task force is Clifford Myatt, director of Fomento, Puerto Rico's economic development agency. Myatt says he's found tremendous confusion on Capitol Hill concerning the issue.

We need 936, so I don't know where that logic comes from. There are others on the other hand who say that any kind of a change in 936 will destroy the island, destroy the economy of Puerto Rico. I don't believe that. To destroy the economy of Puerto Rico just by making a change in 936 is, I think far-fetched.

Puerto Rican Congress members, Jose Serrano and Nydia Velasquez of New York and Luis Gutiérrez of Illinois, together represent almost 2 million Puerto Ricans, a greater number than those living in Puerto Rico's capital. They recently met with President Clinton. Congressman Jose Serrano.

Considering the political status of Puerto Rico, where Puerto Rico is not equipped to have members of Congress discuss their situation, that it falls on us both emotionally and in every other way to discuss this issue. And we brought to the president, again, the concern that we have.

President Clinton told the Congress members he would reexamine his position. According to the White House, they've received more mail on this issue than any other since Clinton became president. For Latino USA, I'm Patricia Guadalupe in Washington.

My own feeling, my own personal feeling is that if we work at it, that we'll be able to get a treaty that's good for the country and good for Mexico.

That's Raul Yzaguirre, president of the National Council of La Raza, commenting on the present status of the North American Free Trade Agreement. At this point, congressional approval of NAFTA is still in question. Mexico and Mexico's president, Carlos Salinas de Gortari, have a lot at stake in NAFTA's becoming a reality, as do many Hispanic entrepreneurs in this country. In Dallas, Latino business and civic leaders recently met with the Mexican president trying to counter the arguments from a certain Texas politician that NAFTA will mean major job losses. Brian Shields prepared this report.

Dallas billionaire, Ross Perot is spending millions of dollars to go on national television to stir up opposition to NAFTA, but members of the Dallas Hispanic Chamber believe the treaty will be beneficial for their businesses. During a recent visit to Dallas, Mexican president, Carlos Salinas, asserted there's no time to waste.

I have been asked, "Why NAFTA?" Because this is the only way how we will be able to compete in the world in which we live. "Why now?" Because we are late, late when other regions in the world are getting together to increase the efficiency and competitive capacity.

To my business, it would probably help it tremendously. I've been in business now for 12 years, doing business back and forth through Mexico, and we have had quite a bit of product going back and forth. The prices generally will then be lowered on some of the items that we now are paying some duties in.

Opposition to NAFTA in the United States centers on concerns that higher paying jobs north of the border will disappear to be replaced by very low wage employment in Mexico. Such arguments are coming not only from supporters of Ross Perot, but also from grassroots Hispanic groups such as San Antonio's Fuerza Unida, if you're a loss of American manufacturing jobs that now employ Latinos here. However, President Salinas insists the treaty will have the opposite effect.

NAFTA is also a wage increase agreement, because with increases in productivity, we will be able to increase wages in Mexico more than they have been growing in the past four years.

Between Ross Perot and opponents of free trade in and out of the Congress, right now, the agreement appears to be in trouble, but Jorge Haynes with Laredo's International Bank of Commerce insists the opportunity is too important to allow it to slip away.

If we should decide not to adopt NAFTA, which is something I don't want to think about, I think we will be going backwards in our relationship with Mexico rather than forwards.

The Clinton administration plans to shut down phone services allowing people in this country to call Cuba through Canada. State Department officials say companies advertising toll-free numbers, which link callers to Cuba, may violate the U.S. trade embargo. The embargo against Cuba was established more than 30 years ago and has been expanded in recent years.

From Austin, Texas, you're listening to "Latino USA."

Mexican and U.S. commerce officials gathered in San Antonio, Texas, to discuss a North American Free Trade Agreement and infrastructure needs along the U.S.-Mexico border. Already without NAFTA, cross-border trade has quadrupled and the region's population nearly doubled in the last decade, taxing facilities on both sides of the border.

Domingo Gonzalez works with the Texas Center for Policy Studies in Brownsville.

If we increase industrial activity under NAFTA, all of the problems that we have now are going to increase. We hope at the very least that infrastructure is defined in a more beneficial way for us and that we don't get just bridges and more bridges and more bridges.

According to a recent poll, more than 40% of all Americans say they've never heard of the North American Free Trade Agreement.

I'm Maria Martin with news from "Latino USA."

This is Latino USA, the radio journal of news and culture.

[Opening theme]

I'm Maria Hinojosa. Today on Latino USA, the border prepares for free trade.

And the question is how do you manage this process in a way that really leads to people's lives being better off?

Also, tackling border health problems and the perennial question, what do we call ourselves?

I'm Chicano.

I'm Puerto Rican,

I'm Cuban Argentine,

and now we have this new thing, non-white Hispanics. I mean, it's crazy.

[Transition Music]

That's all coming up on Latino USA. But first, las noticias.

As representatives from the US, Canada, and Mexico prepare to enter into the final round of negotiations regarding the final form of the North American Free Trade Agreement, in San Antonio, Texas, bankers from both countries met recently to discuss infrastructure needs along the 2000-mile stretch between the United States and Mexico. Latino USA's Maria Martin prepared this report.

There is always a lot of talk about what we're going to do and when we're going to do it, what the border does need and what the border does not need.

Commerce Secretary Ron Brown and his Mexican counterpart, Mexico Secretary of Social Development Luis Colosio, touted as a strong possibility to succeed President Salinas, convened the gathering of government officials and some 400 business executives. Represented were some of the largest corporations in the US and Mexico. They came to make deals and to discuss ways to bring badly-needed infrastructure to the border area. A region which, in the last 10 years has seen a dramatic increase in population along with rising environmental pollution and deteriorating roads, bridges and sewer and water systems.

It's a development problem is what it really is. We are dealing with a border that is unique in the world, that is a linkage between the most developed country in the world and relatively poor country of which gap you'll find nowhere else. In Europe, the largest gaps are about a four to one difference. In US/Mexico it's a 10 to 1 difference.

UCLA economist, Raul Hinojosa, says the current discussion regarding financing for border infrastructure in anticipation of NAFTA presents a major challenge, since neither the government of Mexico nor this country will be able to afford the steep price tag of cleaning up and building up the border.

The real issue is how do we get the economies of North America such that there's rising living standards and environmental standards on both sides of the border? That is a concrete problem that is not going to be solved by simply reducing tariffs. That's going to have to mobilize both government and the capitalists of the private sector to get involved jointly in solving the environmental problems and solving the infrastructure and social infrastructure, physical infrastructure, housing, all of these very serious problems

As a way of dealing with those problems, the coalition of Latino organizations calling itself the Latino Consensus on NAFTA has come up with a proposal to establish a North American development bank. According to its proponents, including the National Council of La Raza and the Mexican-American Legal Defense and Education Fund, the so-called NAD Bank would be able to fund 20 billion dollars of infrastructure with 1 billion of startup investment. Antonio Gonzalez of the Southwest Voter Research Institute in Los Angeles was at the finance conference advocating for the development bank proposal.

This was the only viable proposal put on the table. People heard it. People saw it. The media grabbed onto it, and I think very soon the administration may indeed embrace the development bank as the kind of third pillar of his NAFTA package. First pillar being NAFTA. Second pillar being the supplementary negotiations on labor and environmental. Third pillar being the development bank or financing mechanism, and the still missing element would be the new package of current US laws to retrain and support displaced workers.

Legislation to establish a North American Development Bank has been introduced in Congress by California representative Esteban Torres. But others say the development bank may not be the best way to finance border infrastructure, that perhaps existing institutions such as the Inter-American Bank could do the job. Still another idea is to establish a border transaction fee. Economist Hinojosa, a proponent of the development bank believes this solution is not viable considering the present economic reality along the border.

These are already poor communities right now, and you're going to be taxing the trade that you're going to try to enhance, in fact, for the benefits on both sides of the border.

The next few weeks will be key for the future of the North American Free Trade Agreement. As negotiations on the treaty and supplementary agreements on labor standards and the environment continue, and as proponents and opponents of the treaty gear up for the final vote in Congress. Meanwhile, polls show many Americans haven't even heard of NAFTA and in the Latino community there's been a steady erosion in support for the treaty as concern has grown about the possibility of job losses to Mexico. Latino organizations lobbying for NAFTA have their work cut out for them. Andy Hernandez of San Antonio Southwest Voter Research Institute spent the day following the finance conference in San Antonio, planning a strategy to advocate for the Latino consensus position on NAFTA.

So, I think the way we answer is this; you don't solve the job flight problem by taking down NAFTA. You can build a NAFTA with the side agreements to protect workers' rights on both sides of the border. And frankly, what the opponents of NAFTA have not been able to answer to us and where Chicano labor is not [unintelligible]. How do things get better if NAFTA's defeated? Are we going to have fewer jobs leaving or are we going to have more political will to clean up the environment? Are we going to have any focus at all upon our populations along the border?

If NAFTA becomes the reality, it would create the world's largest free-trade zone, removing virtually all barriers to trade and investment throughout North America. From the Yukon to the Yucatan, I'm Maria Martin reporting.

This is news from Latino USA. I'm Vidal Guzman. President Clinton's economic plan faced opposition from Republicans who called it one more democratic tax and spend plan and even from members from his own party. And as Patricia Guadalupe reports, members of the Hispanic caucus were concerned about cuts to social programs.

Democratic members of the Congressional Hispanic Caucus conditioned their support of President Clinton's budget on his backing the House version, which contains more money for social programs. The Senate version virtually eliminates many of those programs. Caucus chair José Serrano of New York says Hispanic representatives are also concerned about amendments they find discriminatory.

There is a mean amendment going around that says that any dollars allocated for any program must meet a test that says if you are... You serve an undocumented alien, anywhere in any of the programs you may run as an agency that you cannot share in those dollars.

President Clinton promised the caucus he would try to include their points in the final budget version. For Latino USA, Patricia Guadalupe in Washington.

100 Democratic congressmen have asked President Clinton to delay any action on the North American free trade agreement until Congress can consider the administration's healthcare plan. The President's press secretary says Mr. Clinton has not yet made a final decision on the timing of the two initiatives, but that a vote on NAFTA is expected before the end of the year.

This is news from Latino USA. I'm Maria Martin. The struggle over the North American free trade agreement continues to intensify. Even as treaty negotiations draw to a close, supporters and opponents of NAFTA heat up the lobbying effort for votes in Congress. Among vocal opponents of NAFTA coming to Capitol Hill recently were members of Mexico's opposition Democratic Revolutionary Party. From Washington, Patricia Guadalupe reports.

While Mexican president Carlos Salinas de Gortari has staked his political reputation on passage of the North American Free Trade Agreement, Congressman Miguel Huerta of Mexico's Democratic Revolutionary Party said he had to come to Washington to tell his counterparts here that the North American Free Trade Agreement would hurt citizens of both countries.

It's not the problem that because we are opposed to Salinas, we are opposed to NAFTA. It's not... that's not the argument. We are opposed to some fundamental chapters of this NAFTA because it's bad for the citizen of the two countries. We are opposed to NAFTA because some chapters and some principles establishing the NAFTA are opposed to the interest of citizens of Mexico, of United States, and of Canada.

Since then, six Democratic senators have sent a letter to President Clinton, urging him to renegotiate the free-trade agreement. For Latino USA, I'm Patricia Guadalupe, in Washington.

This is Latino USA. Recent polls show Americans are split on support for President Clinton's budget plan, but some analysts believe the bill's provisions may benefit many in the Latino community. Patricia Guadalupe attended the bill signing ceremony and she prepared this report.

Thank you. Thank you very much.

At the bills signing, the president declared the budget passage, a mandate from the people. Although the plan barely squeaked by in both the house and the Senate, many in Congress voted against it, citing constituent resentment towards the package. But presidential pollster, Stan Greenberg says his studies indicate many Americans, including most Latinos, widely supported the President's plan.

They're much more supportive, broadly supportive of the plan. Though the Hispanic community is very diverse, as you know and national samples aren't quite large enough to represent all of the diversity, but overall supportive of the plan and in general more supportive of the plan than other voters.

Analysts that the National Council of La Raza say the plan will greatly benefit the Hispanic community, particularly the earned income tax credit, which is designed to help lower income families. Democratic representative Henry B. Gonzalez of Texas says this provision will help Latinos in his district who disproportionately hold jobs that pay poorly.

This program will mean that there are over 58,000 families that qualify there. They're sub marginally employed. They're earning on that level less than 27,000, but still trying to maintain a family. And this targeted tax assistance program they call it, will be of immense help.

President Clinton's plan increases the earned income credit salary cap from $21,000 to $27,000 a year. Other parts of the plan, which enjoyed wide support in the Hispanic community and which were signed into law as part of the package were increased monies for urban development and vaccinations for children. For Latino USA I'm Patricia Guadalupe in Washington.

You're listening to Latino USA.

This is Latino USA, the radio journal of news and culture.

[Opening Theme]

I'm Maria Hinojosa. Today on Latino USA, the race is on for approval of the North American Free Trade Agreement.

If you are a Chicano entrepreneur in the border states, you're likely to do very well by NAFTA. If you are an industrial worker in the Northeast or in the Midwest, your company might find it advantageous to move your job to Mexico.

From East LA, an Elvis for El Pueblo. El Vez, the Mexican Elvis.

One of my favorites is [singing] ‘you ain’t nothing but a chihuahua, yappin’ all the time’. We start the show with the lighter easy songs, the familiar ones and then we hit them with the one-two punch.

That's all coming up on Latino USA, but first las noticias.

This is news from Latino USA. I'm Maria Martin.

Today I'm pleased to announce that the governments of the United States, Mexico, and Canada-

Now that the governments of North America have agreed on labor and environmental accords to the North American Free Trade Agreement, President Clinton has named a NAFTA czar. He's William Daley, brother of current Chicago Mayor Richard Daley. It'll be his job as head of the administration's task force on NAFTA to push the free trade agreement through a still undecided Congress.

We're here today as a coalition of Latinos, leaders in our community, leaders in business, and leaders in the political arena to hold Governor Wilson accountable for his recent proposals to President Clinton.

As politicians throughout the nation from Washington to Texas come up with proposals to curb illegal immigration. A coalition of Latino organizations in California warned that immigrants are fast becoming the scapegoats of bad economic times. From Los Angeles, Alberto Aguilar reports.

In just 12 hours, this week, US attorney Janet Reno, two US Senators, Governor Pete Wilson, the state Senate, and the assembly put aside other issues to promote laws against illegal immigration. The rush to legislate and castigate illegal immigration has created a great deal of concern in the Latino community, which responded with its own open letter decrying Governor Wilson's recent initiatives to strip immigrants of access to health, education, and constitutional protection.

We know well in our community that this is a historical cycle. During the depression in 1931, immigrants were made scapegoats. In 1954, immigrants were made scapegoats. During the inflationary periods of the seventies, immigrants were made scapegoats. And the 1990s, in today's recession, guess what? Immigrants are being made scapegoats.

Arturo Vargas is the vice president of the Mexican-American Legal Defense and Education Fund. MALDEF is part of the coalition who responded to what they feel is an anti-immigrant hysteria. Representing the Latino Business Association, Ed Vasquez disputes that immigrants are a public charge.

There's a hundred thousand, 100,000 Latino owned businesses in Los Angeles alone generating six and a half billion dollars in revenues every single year. For the politicians to blame the economic problems on immigrants it sends out a dangerous message. Immigrants did not take away the jobs in the defense industry. Immigrants are not taking away jobs from corporate America, bad economic policies are.

California leaders aware of the upcoming state elections strongly decry what they call scapegoating of Latinos for the sorry state of California's economy by both Republicans and Democrats. For Latinos USA, I'm Alberto Aguilar in Los Angeles.

After months of protracted talks, negotiators for the United States, Canada, and Mexico have reached agreement on side accords to the North American Free Trade Agreement. But not everyone is happy with the final consensus, not labor, not environmental groups. Not even an organization called the Latino Consensus on NAFTA, a coalition of groups which generally support NAFTA. From Washington, Patricia Guadalupe has more.

The agreement reached includes oversight commissions that will monitor environmental and labor standards in Mexico, the United States, and Canada. Sanctions and fines are established for failure to obey labor and environmental laws. US trade representative Mickey Kantor called it, "A momentous pact that raises the standard of living for the three countries."

For the first time a free trade agreement covers workers' rights and the environment. This will serve as a model in the future.

But the same groups the negotiators were trying to appease are still not convinced. Labor and environmental groups attacked the agreement saying it didn't go far enough. Ron Carey is president of the Teamsters Union.

President Clinton made it very clear the protections that he would be looking at and the kinds of things that were important to him were raising the wages, protecting the environment, and providing good jobs for Americans. Well, these side agreements simply don't do that. American corporations through this agreement are encouraged more than ever to move to Mexico. So, when you look at that from our perspective and from working people in this country, what you see is that corporations get NAFTA and working people in this country get shafta.

There are even those who want a trade agreement but don't like the accords reached. One of those groups is the Latino Consensus, an Association of National Hispanic Organizations that support NAFTA. They are not happy with what the negotiators agreed to regarding the financing of border projects. The Latino Consensus wanted a bank that would not just finance border activity or just concentrate on environmental projects. The financing mechanism agreed to only addresses conditions at the border. Trade policy analysts, Mary Jo Marion of the National Council of La Raza, which is part of the consensus, said that, "This agreement was hastily put together and she doesn't feel it does enough to convince those members of Congress who remain undecided."

We have now formed a block in Congress of people that are on the fence that are part of this bill, they're saying, "If we get the NADBank or most of it, then we can vote for the free trade agreement." I don't think that the administration can afford to ignore that. I mean, they haven't got enough votes. They need to work with us and the proposal that they now have, even with the side agreements are not going to be enough.

A tough fight awaits NAFTA when Congress returns in September, especially in the House of Representatives, even in President Clinton's own Democratic Party. For Latino USA, I'm Patricia Guadalupe in Washington.

With us to discuss the implications of the agreement and the future of NAFTA are three reporters who have been keeping their eyes and their ears on free trade. Richard Gonzalez of National Public Radio, Jose Carreño of the Mexican daily El Universal, and Latino USA's, Washington correspondent Patricia Guadalupe, who's also a reporter for the Hispanic Link News Service. Bienvenidos to all of you. Let's look at to what was actually agreed to in this final round. What about the side agreements and what protections do they offer for labor and the environment on all sides of the border? Richard?

I think what they offer is basically a very complicated, long, convoluted process by which a government entity, a private company, a public agency or an individual might file a complaint saying that one country is not enforcing its own labor and environmental laws. It does nothing about addressing the inadequacy of any laws, but just talks about enforcing laws that are now in the books. And so it sets up this process, if one believes that the process can work, then one thinks that these side agreements are good. If you don't think the process is going to work, then you don't think that the side agreements are any good.

Jose Carreño, from the Mexican perspective will this be good? Will this work or are these more faults in the treaty?

God, that is a great question because it is a completely untried territory, this kind of agreements that has never been done before. So as Richard say, if you believe in those, you think that they will, you hope that they will work. If you do not believe in them, you think that they won't work, but it's completely unchartered territory. There is nothing like this as far I know anywhere else.

Well, the conventional wisdom has it that US based Latinos have a lot to gain from this treaty. Is that still the case with the final version of NAFTA? Are Latinos in this country going to benefit more or less?

I think it depends on who you speak to. I mean, the Latino Consensus, a group of Latinos who want further participation in NAFTA want a treaty, but some of the final details, they don't agree with us. For instance, the financing of a development bank. They agree with the idea, but they don't like the final outcome.

I think that's a very hard question because you really don't know how much it'll benefit the population in general or not, or how much will it harm it. The truth though is that at this point there is this sort of political haggling going around and, "Okay, if you want my support, you will have to give me something."

If the question is, will Latinos in the US say benefit from NAFTA? The answer depends on who you are, where you live, and what you do. If you are a Chicano entrepreneur in the border states, you're likely to do very well by NAFTA. If you are an industrial worker in the Northeast or in the Midwest, you're probably in a situation where your company might find it advantageous to move your job to Mexico, in which case you become a loser. And because of these various circumstances, you see that the Congressional Hispanic Caucus here in Washington up on Capitol Hill is very divided on NAFTA. As one caucus member said to me, "Whenever you bring up NAFTA, you really have to watch your table manners," because people have very strong opinions pro and against inside the Congressional Hispanic Caucus.

What kind of a timeline are we looking at and will it be passed or will it not be passed by Congress?

Well, if you had the vote right now, no. Absolutely not. And then there's also the discussions of what healthcare reform and all the other issues that are going up on Capitol Hill. Then the average person here wants that before the treaty. I mean, I don't think the average person has been following NAFTA as much as the press and business people are.

Look, up to now I might say, I think that has been basically inside the beltway issue.

Absolutely.

The population in general has heard only slogans both in favor or against and has sort of decided its position in base of slogans, but the population hasn't heard hard facts, not as well. The Congress itself is, I could bet that most of some of the people who are in favor and some of the people who are against doesn't even have an idea of what they're talking about.

I think what we're seeing is that we'll find the administration will be ready to send this up to the hill sometime in early October after they've sent the healthcare package up to Congress and we won't have a vote until November, maybe even as late as December. So once they send it up to The Hill in October, there's 90 days in which Congress has to act and they're really pushing to get this done by January 1st. Whether it will pass, like Patricia said, today it would not pass. But the vote is not going to be held today. It's going to be held after two or three months of a very nasty, ugly debate. And so I don't think you can place of bet either way.

Well, thank you very much, muchas gracias, for joining us on Latino USA's Reporters Roundtable. Richard Gonzalez of National Public Radio, Jose Carreño of the Mexican daily El Universal, and Latino USA's Washington correspondent Patricia Guadalupe. Muchas gracias.

You're listening to Latino USA. Government officials from states along the US-Mexico border came together for a border summit in El Paso, Texas. On the agenda, how to pay for improving infrastructure projects. Luis Saenz of station KTEP reports.

Texas Congressman Ron Coleman, who convened the border summit, says, "It is unfair for border residents to pick up the tab in preparation of a North American free trade agreement." Coleman specifically opposes a proposal by house majority leader Richard Gephardt to levy a special tax on border businesses. Coleman says, "No one has asked people along the Mississippi to pay for flood damage, so why should the border be any different?"

It seems to me illogical, then, that something that benefits the entire United States, meaning international world trade and commerce, people of America would ask people along the border to pay for.

Coleman says, instead of taxing border communities, the government should use the money collected from duties at the various ports of entries to pay for infrastructure projects. For Latino USA, I'm Luis Saenz in El Paso, Texas,

I'm Maria Hinojosa. From mom-and-pop stores to computer corporations, the number of Latino-owned businesses in this country is growing rapidly. According to the US business census, 20 years ago, there were just over a hundred thousand such enterprises. Today, they number over a half a million with total revenues of over $34 billion. That figure is expected to rise to $49 billion by the year 2000. A number of CEOs of the top Latino-owned business firms were in Washington, DC recently for a dialogue with policy makers in the nation's capital. Latino USA's, Patricia Guadalupe reports.

Organized by Hispanic Business magazine, this gathering brought over 250 chief executive officers of top Hispanic companies to communicate their concerns and legislative priorities to members of Congress and President Clinton. Among their concerns, the North American Free Trade Agreement and healthcare reform. Nancy Archuleta, CEO of MEVATEC Corporation, a small aerospace company in Huntsville, Alabama, is concerned that available details from the President's healthcare plan indicate it may pose problems for many Latino businesses.

Almost a resounding message that we've received is that small to mid-size business America has not been heard. We currently provide full pay medical benefits to our employees, but given the tax reform, given healthcare as a mandate, those things would really make me consider seriously whether I would be able to even be profitable any longer. And if I can't be profitable, obviously, I can't stay in business.

Archuleta added that as part of their meetings with congressional leaders, the Hispanic CEOs will propose tax incentives for small businesses as a way to help pay for participation in the healthcare system.

I think there's a good compromise somewhere in there. It's a great start. I hope we can take our time with it.

A majority of the business leaders assembled support the North American Free Trade Agreement between the United States, Mexico, and Canada. Many say that as Latinos, they can take advantage of the common language and cultural identification with Mexico. Gilbert Moreno, a senior partner for a telecommunications company in El Paso, Texas, says that even though he has problems with the enforcement powers of the labor and environmental site agreements to NAFTA, he feels those who are against the treaty don't realize it as beneficial overall.

I think there's a lot of issues, environmental, a lot of concerns that existed with or without the NAFTA environment here that I think are muddying the water relative to what's happening. And I think that we have no choice as American business people to use some provisions that are not to our liking as the excuse not to move forward. We have no choice, and what I'm afraid of is that most of the legislators who for political reasons may be making the decision not to vote for NAFTA are not taking a look at the big picture and the common ground that we can reach between the three nations.

According to the latest US Census and Department of Labor Statistics, new business growth, even in a recession, is greatest among Hispanics and even outpaces the population group in that community. Democratic representative, Lucille Roybal-Allard of California, one of the lawmakers meeting with the Latino business leaders says that with the growing influence of Latinos, more members of Congress are paying attention.

The Latino community and the business community is growing tremendously, and it has tremendous influence, not only in terms of the contributions that the Latino businesses will make to the economy of the United States but in terms of their political influence, their influence and a lot of the policy decisions that are going to be have been made and are being made today.

Those attending the business leaders conference also met with members of Clinton's cabinet. For Latino USA, I'm Patricia Guadalupe in Washington.[transition music]

This is news from Latino USA. I'm Maria Martin. In an effort to gain Latino support for the North American Free Trade Agreement, the Clinton administration has thrown its support behind a border development finance project developed by Latinos. It's called the North American Development Bank, or NADBank. From Washington DC, Patricia Guadalupe has more.

The North American Development Bank is the brainchild of the Latino Consensus, a group of over 20 Hispanic organizations supporting NAFTA. Based on legislation introduced by Democratic Congressman Esteban Torres, NADBank would finance border development projects and provide economic support in communities anywhere in the United States affected by NAFTA. Both the United States and Mexico would make available from $2 to $3 billion in investment funds and provide added monies for environmental cleanup and training for workers. Congressman Torres said that without those resources, he would not have voted for NAFTA.

People fear that if the agreement is passed, American companies will close and workers will be left jobless. And for this reason, I believe it was necessary to address the legitimate fears that some communities and workers may be adversely affected. The North American Development Bank, known as NADBank, boldly addresses these fears in the most efficient and in the best cost effective manner.

Congressman Torres added that 14 undecided members of Congress, including four Hispanics, will support NAFTA, now that the financing mechanism is taken care of. The Latino Consensus says that it is intensifying its grassroots campaign around the country in support of NAFTA. For Latino USA, I'm Patricia Guadalupe in Washington.

A poll conducted by the San Antonio-based Southwest Voter Research Institute, one of the members of the Latino Consensus, finds a slight majority of registered Latino surveyed supporting NAFTA, but a large percentage remains undecided regarding the merits of free trade.

A group of dislocated Levi Strauss employees from San Antonio, Texas is intensifying its campaign for a boycott of Levi's products. The members of Fuerza Unida say they deserve better from the company, after it moved a plant to Costa Rica. From San Francisco, Chuy Varela has more.

[Background--natural sound--protest] This week, Fuerza Unida brought their campaign to San Francisco, California where Levis is headquartered to intensify pressure on the company to negotiate a fair settlement for the dislocated workers. Irene Reina is the co-coordinator of Fuerza Unida.

[Background--natural sound--protest] We know that they're very, very proud of their lily-white reputation, and that's what we're going to do, to make the public aware that they are not the progressive responsible company that they claim to be because it's obvious.

[Background--natural sound--protest] Levi's management has met twice recently with the dislocated workers, and are still willing to negotiate. But at this point, they say they feel they've gone beyond the requirements of the law to help their formers workers make the transition to other work opportunities. For Latino USA, I'm Chuy Varela in San Francisco.

The North American Free Trade Agreement is now official. Patricia Guadalupe attended the signing ceremonies in Washington.

[Background--natural sound--music] Over 100 supporters, including members of Congress and business and labor leaders came to see President Clinton sign the hotly contested treaty. This pact creates the world's largest market with over 300 million potential consumers. President Bill Clinton.

We are on the verge of a global economic expansion that is sparked by the fact that the United States at this critical moment decided that we would compete, not retreat.

Latino analysts says the Hispanic community, particularly Hispanic-owned businesses, will benefit greatly from NAFTA and the President's emphasis on global expansion. Among those analysts is Raul Yzaguirre of the National Council of La Raza.

If we get our act together, if we do some very specific things, I think we can benefit by increased business and increased employment.

Yzaguirre added that the specific thing he wants to see is Hispanics uniting to make sure that the community now receives the funds it was promised to develop projects along the border with Mexico through the North American Development Bank. This unity was not evident during the vote in Congress, however, with almost all Mexican American representatives voting for NAFTA , and Puerto Rican and Cuban American members voting against it citing fear of loss of jobs and Mexico's friendly relations with Cuba.

Some speculate this has created divisions within the Hispanic caucus, and will affect work on other pieces of legislation. Democratic representative, Kika de la Garza of Texas disagrees.

From this day, like any other piece of legislation, you finish one piece of legislation, you go on to the other. I don't see any connection. I don't see any problems for the President or in the Congress.

The North American Free Trade Agreement will be enacted on January 1st, gradually eliminating tariffs and other trade barriers over the next 15 years. For Latino USA, I'm Patricia Guadalupe in Washington.

Puerto Rico's governor, Pedro Rosselló, also came to Washington to lobby Congress. Rosselló wants the US government to maintain Section 936 of the US tax code. Section 936 allows US companies operating in Puerto Rico to go without paying taxes for 10 years. From Washington, Patricia Guadalupe has more.

Section 936 was originally planned as a post-World War II economic incentive to industrialize the once agricultural economy of Puerto Rico. Section 936 is viewed by many lawmakers, including President Clinton, as an unnecessary tax shelter. According to congressional figures, eliminating Section 936 would add more than 6 billion to the US Treasury. President Clinton has proposed eliminating Section 936, but Puerto Rico's governor Pedro Rosselló believes that would spell economic disaster for the island. Rosselló says Puerto Rico's unemployment rate, now at 18%, double the US average, would rise sharply. Over a third of the island's workforce is employed by Section 936 companies. Rosselló met with New York Democrat Daniel Patrick Moynihan, chairman of the Senate Finance Committee.

What we asked him to do was to include a two-option plan. Also, that the level of contribution from Section 936 is new revenues to treasury be kept in the range of 3 billion dollars over the next five years.

Some proposals include keeping Section 936 revenues in Puerto Rico to help pay for a national healthcare plan. For Latino USA, I'm Patricia Guadalupe in Washington.

A North American Free Trade Agreement has been signed by Canada, the US, and Mexico. Once it becomes law, we will be in the process of becoming the largest artificial economic community of the planet.

Negotiations between the US, Canada, and Mexico continue regarding the North American Free Trade Agreement. If the three parties should come to an agreement regarding environmental protection and labor issues, and if the US Congress approves NAFTA, free trade will be the economic order on the continent. But there are many opposing views on the impact NAFTA will have, should it become law. For performance artist and Latino USA commentator Guillermo Gomez Peña, many questions regarding the free trade agreement remain.

In terms of geography and demographics, it will be much larger than the European community or than the fashionable Pacific Rim. From the myriad possibilities of free trade agreements that could be designed and implemented, the neoliberal version we have is not exactly an enlightened one. It is based on the fallacy that the market will take care of everything. Avoiding the most basic social labor, environmental, and cultural responsibilities, there are many burning questions that remain unanswered. Given the endemic lack of political and economic symmetry between the three countries, will Mexico become, as Mexican artist Yareli Arizmendi says, the largest Indian reservation of the US? Or will it be treated as an equal by its bigger partners?

Will the predatory Statue of Liberty depower the Virgin of Guadalupe, or are they merely going to dance a sweaty cumbia? Will Mexico become a toxic and cultural waste dump of the US and Canada? Who will monitor the behavior of the three governments? Given the exponential increase of American trash and media culture in Mexico, what will happen to our indigenous traditions, social and cultural rituals, language, and national psyche? Will the future generations become hyphenated Mexican-Americans, brown-skinned gringos and Canochis or upside-down Chicanos? And what about our northern partners? Will they slowly become Chicanadians, Waspacks and Anglomalans?

Whatever the answers are, NAFTA will profoundly affect our lives in many ways. Whether we like it or not, a new era has begun and the new economic and cultural topography has been designed for us. We must find our new place and role within this new federation of US Republics.