Baja Officials Out to Spoil Nafta Agreement

Prof. Jose De la Torre (“Mexico Is Unlikely to Retreat From a Decade of Rapid Progress,” May 22) notes that “pre-1980s Mexico was (emphasis mine) characterized by trade barriers that shielded domestic business from foreign competition.” However, a present-day news item plainly shows that local protectionist sentiments are still at work in Mexico attempting to circumvent free-trade provisions in apparent violation of the terms of NAFTA--known in Mexico by its Spanish initials, TLC.

Baja California Norte officials have acted to ban sales of U.S.-produced milk in Tijuana’s 18 Calimax stores. In refreshing frankness from officials anywhere, the Mexican state officials acknowledged that they were acting to protect their own dairy industry. Baja officials claim some 120,000 individuals, either directly or indirectly, depend on their milk industry for jobs. Clearly, shielding domestic producers from foreign competition is a deeply ingrained, understandable reaction not easily shed.

On either side of the U.S.-Mexico border, unions, trade groups, professional associations, etc. have for decades used regulations, permits and licenses not so much for quality control, but for quantity control to artificially limit competition and protect their own bottom-line financial interests. Here, the quality of the milk was never at issue. Not surprisingly, then, the mechanism for the removal of the product was the lack of a state permit for the sale of the milk.

Perhaps the greatest insight into the Mexican Angst over the sale of U.S. milk in Tijuana and their threatened loss of milk industry jobs is to be found in many Mexican workers’ definition of TLC: “todos a la calle” (everybody (out) to the street).

It would be reasonable to expect that this incident will not be the last--merely the first--free-trade skirmish where there are sure to be losers as well as winners. Will the “losers” merely just go away?

GEORGE C. BALDERAS

Corona