Submitted by J. Sieglitz, Aug 20, 2007 23:03

Mr. Edwards is right to a certain extent. Mr. Edwards failed though to point the fickle finger of fate at Pres. Clinton for emasculating the enforcement provisions of NAFTA. The NAFTA treaty drafted by the Bush Administration contained formidable enforcement provisions that allowed affected parties of one NAFTA country to file and pursue actions for violations committed in another of the NAFTA countries. The rewrite fostered by Pres. Clinton removed all substantive enforcement provisions NAFTA now prescribes that the accused NAFTA country is charged with investigating itself and if culpable pursuing legal redress. In otherwords, the Fox (Presidente) is in charge of the hen house.

The lack of meaningful enforcement provisions has led to NAFTA companies violating the civil and labor rights of American employees working in Mexico. A Mexican Court recently ruled that plaintiff American employees had been defrauded out of compensation equal to 69% of their base pay. The enforcement of the ruling was deterred when a higher court ruled that although the interpretations of the Mexican Constitution, Labor and Tax Laws were correct, the enforcement of the ruling would be precluded because incriminating questions were asked of U.S. company executives and officers during cross examination.

The Governments of the other NAFTA countries refused to intercede because the issue was a domestic affair of Mexico. Albeit that the affected parties were American. There are more than 4,000 U.S. companies with operations in Mexico. These companies have more than 100,000 Americans working in Mexico. That other U.S. companies are potentially conducting themselves in a like manner is underscored by two recent Mexican Supreme Court (SCJN) rulings. The actions pertained to like issues in the previously mentioned ruling pertaining to fraud of 69%. The SCJN rulings were favorable to American employees working in Mexico for Halliburton.

The cheating of compensation at the rate of 69% of base pay amounts to hundreds of millions of dollars each year. These are manufacturing costs not incurred and evaded costs that are distributed as bonuses and raises to scofflaw executives and officers of offending U.S. companies. The resulting undervalued Mexican goods are imported to compete with articles made by fully compliant American manufacturers.

The defrauded monies also failed to pay Mexican Social Security Taxes. There is a bilateral tax treaty between the U.S. and Mexico. The failure to pay owing compensation means social security taxes were avoided. The tens of millions in social security taxes are sorely needed by Mexico. But, Mexico needs the employment provided by the NAFTA companies so they keep quiet and let their populace suffer treatable health problems. The result in part is the poor Mexicans sneak into the U.S. not only seeking work - they're seeking health care.

There must be U.S. companies with operations in Mexico that are law abiding and conscientous. The problem is that those that are not are ruining it for those that are. NAFTA could work, but the participants must all be law abiding and conscientous. We've seen too many scofflaw U.S. companies to believe in miracles.

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