Tag Archives: Mexico

The cost of free trade

There is a side in me that is a little beyond angry. When I see these politicians whine like little bitches on how good ‘Free Trade‘ is, on how it is so good for all. I wonder if they remember the days when slavery was an actual solution for commerce. How these people look and praise Chiwetel Ejiofor (aka Baron Mordo) for playing a slave in ‘12 years a slave’. When we see “Mexico, Japan, Australia, Malaysia, New Zealand and Singapore aim to continue with TPP with or without the United States, Mexico’s economy minister, Ildefonso Guajardo, said on Friday” (Source: SBS), we need to wonder on how the TPP is seen as anything but evil, a mere apparatus of convenience for large corporations to keep a stranglehold on those around them and to minimise the number of opportunities for smaller businesses.

The Evidence?

The Economic Policy Institute gives us: “This paper does not include an exhaustive review but cites as an example Capaldo, Izurieta, and Sundaram (2016), who noted that studies claiming that the TPP would have a positive impact on the U.S. and global economy are based on unrealistic assumptions, including no change in the U.S. trade balance with the TPP countries and full employment“, which is only the top of the iceberg. You see, in addition we have “Currency manipulation is the most important cause of the large and growing U.S. goods trade deficit with the group of countries in the Trans-Pacific Partnership. Coupled with the fact that the United States is the largest and most reliable trading partner for many of the TPP countries, this is a recipe for U.S. pain at others’ gain“. This is not the USA, it would also hit Australia in other ways, not the people who secretly arranged all that they get top dollar in a few other ways. Yet, before we move on, let’s take one more part, because that will have connecting issues. The quote “Many members of the proposed TPP, including Malaysia, Singapore, and Japan, are known currency manipulators. Others, namely Vietnam, appear to be following the lead of currency manipulators by, for example, acquiring excess foreign exchange reserves to depress the value of their currency. Currency manipulation explains a substantial share of the large, persistent U.S. trade deficit with the 11 other TPP countries that has not only cost millions of U.S. jobs but also increased income inequality and put downward pressure on American wages“, and although this paper focuses on US consequences, it will in addition have a speculative negative impact on Australia, Canada and New Zealand.

The Dutch Financial Times (at https://fd.nl/economie-politiek/1176922/tpp-opzegging-holt-voorbeeldfunctievs-uit) gives us: “Donald Trump heeft de wereld deze week een belangrijke boodschap gegeven. Door te stellen dat hij de Verenigde Staten op de eerste dag van zijn presidentschap terug zal trekken uit het Pacifische vrijhandelsverdrag TPP, geeft hij het signaal af dat hij de relaties met andere landen puur vanuit de blik van een zakenman zal zien. Hij wil bilateraal met landen gaan onderhandelen ‘over eerlijke handelsafspraken die ertoe leiden dat banen en industrieën terugkeren naar Amerika’. Internationale relaties moeten voordelig zijn; anders hoeft het niet“, which paraphrased gives us: “Donald Trump will be withdrawing from the TPP on day one of his presidency. He will be looking at relationships with other countries from a business point of view, international relations need to be advantageous, or need not be“. Is that a bad thing? You see for exploiters it is, which gives us the Malayan Times (at http://www.themalaymailonline.com/what-you-think/article/tpp-aint-over-till-its-over-firdaos-rosli). Last week they had the headline ‘TPP ain’t over till it’s over‘, the article is a decent legal view of getting the TPP ratified, which only gives additional cause for concern in a few ways, yet that is not the issue for now. The one quote at the end that matters is “The government must proceed with its top-down reforms agenda and these are direly required to make Malaysia great again” This is fair enough on one side, Malayans are there to make Malaysia strong, there is no cause more just, yet in what ways are they doing this?

This is where the other side gets to show us the dangers. You see the headline ‘Malaysia workers speak of their despair: ‘Samsung only knows how to take’‘ (at https://www.theguardian.com/global-development/2016/nov/21/malaysia-workers-speak-of-their-despair-samsung-only-knows-how-to-take), shows that large corporations are at the heart of the problem. Tax shelters, exploitation and what cannot be seen as anything else than intentional slavery are at the heart of the matter. The Samsung Port Klang factory as mentioned shows how Samsung is growing its business by massively reducing costs whilst maximising customer exploitation at almost the same time.

When we see “In total, Bhandari says he paid £750 to secure his job in Malaysia – more than the average annual salary in his home district” as well as “There are an estimated 2.1 million documented migrant workers like Bhandari in Malaysia, many of them hired through third-party labour supply companies who recruit foreign workers from Nepal, Indonesia, India and Bangladesh to drive Malaysia’s industrial boom“. Implying that Samsung has no HR to speak of, it is arranged through third party affairs that are buttering their bread on both sides of the isle with a labour population in slavery. So when we rethink the Malayan Times with ‘TPP ain’t over till it’s over‘, we get that they (those making the profits) need the TPP, because slaves tend to be free (read: really cheap) and too many people seem to be filling their pockets in a few ways. So when you see “Now he’s in Malaysia, Bhandari’s recruitment debt – and the 60% interest loan he took to pay it – has a stranglehold on the teenager“, you know that this is how slavery is created and how it is maintained. Not through shackles that bind you, but debts that stop you from moving and breathing. I reckon that the old southern ‘solution’ was a lot more humane. At least you knew that there was slavery, now the boat load of governments remain in denial and the large corporations can claim to remain negligently unaware. Which of the two is the larger hypocrite remains to be seen. The fact that Australia signed this, whilst they had to be aware that this was happening to some degree is an issue on many fronts, not just the slavery part, but the fact that the TPP has the largest option of being a negative influence. You see, those who had walked away wanted to do so via the TPP, there is absolutely no guarantee that whilst in the TPP jobs are not lost to areas where labour laws are a lot more flexible.

Consider the quote “Many of the group now want to leave, if only they could. They say their passports were all confiscated on arrival in the country, an illegal but pervasive practice, and they have been told they will have to pay £740 if they want to go – the equivalent of four months’ basic salary“, which translates to a little over 4 weeks of Australian welfare. Which in light of “A Samsung statement said: “As a committed member of the Electronics Industry Citizenship Coalition (EICC), we comply fully with the EICC’s Code of Conduct and have found no evidence of violations in the hiring process of migrant workers hired directly by our manufacturing facility in Malaysia. Once there is any complaint, we take swift actions to investigate” as well as “When asked whether Samsung had repaid any worker debts at the factory, one man employed directly by Samsung instead of through a labour supply company says he hasn’t received any compensation. “Samsung doesn’t know how to give,” he says. “It only knows how to take.”” which to some degree shows that not only is Samsung not doing too much about it, it is also intent towards reaping the benefit of these trade deals for as long as they can. More important, even though Samsung is the visible one, the fact that from several sources we see “Malaysia’s trade volume is booming“, implies that there are other brands exploiting this way of cutting costs. So from that part, the evidence that Slave labour is again a ‘valid’ form of cost cutting towards commerce is given.

Should any government object that I reckon it is time that clear labour requirements are added to the TPP, I wonder how many would suddenly oppose such actions, because as I see it it is clear that Japan and USA, the two direct requirements for the TPP would not oppose it, unless Sony decides that their margins would dwindle, but that is just pure speculation from my side.

What to do?

Well, I do not think it is too far-fetched that those linked to these unacceptable labour practices are required to have a specific import license for their good, which is at a price, FTA or not! I wonder what will happen when Samsung gets a 23% surcharge on slave labour goods import. Will that suddenly make them see the light? I do not mind if they decide to make them in Malaysia, but I reckon we all agree that these workers are due decent pay and no slave labour conditions. At that point, when the margins are hit, how good was the TPP and how beneficial were factories in Asia? I do not proclaim to have the answer, I am merely asking the question. When slavery is dealt with, we will suddenly see that there is no benefit in some of these places and that other places like Argentina, Texas, New Zealand, Australia, Canada, the UK and Belgium are decent places where goods can be produced whilst the company still has a margin. And perhaps there is no need for a $229 Samsung Microwave when a $129 Sharp version would suffice. So, a $100 more expensive whilst ‘depending’ on slave labour (to at least some degree), seems odd doesn’t it?

Consider: “it promised only £268 a month, including overtime“, whilst “a payslip seen by the Guardian shows Bhandari worked 29 out of 30 days in September, including 65 hours of overtime“, so we get 65 hours a slave every month and an income of £9.20 a day, which amounts to 25% of what you get in Australian Centrelink and the cost of living in Sydney is actually high. So the next time you see those Samsung advertisements, consider that they can afford these billboards thanks to slave labour. Look at your Samsung phone and admire how you got that great deal, if you are lucky only one person literally worked himself/herself to death to make you one. Feel better now?

It is also important to realise that Samsung is not alone here, one firm does not make for “Malaysia’s trade volume is booming“, it takes a lot more than one firm and if only Samsung was involved, those people would apply for every other place on day two of their arrival. This makes the issue a lot larger and this also makes the unbalanced use of what we now laughingly call ‘Free Trade Agreements‘. So when we get another load of Bill Shorten and how the TPP isn’t costing jobs, we see a clear case that the man needed to be tarred, feathered and walked through George Street whilst a person behind him clanks the bell shouting ‘Shame!‘ It might be a little too much Game of Thrones, yet in that place they are only now abolishing slavery on the East side of that place (read: Essos), in addition, Malcom Turnbull is not free of any moral harm either. The fact that the TPP was supposed to implement stronger protections and the fact that Malaysia is still very much on the TPP ball, whilst as the Guardian shows, that what amounts to Slave labour is still going strong to me implies that those involved have either loop holes in place or that there are alternative options for those enjoying the fruits of their exploitation.

You see, the TPP Labour summary gives us: “In addition to commitments by Parties to eliminate forced labor in their own countries, the Labor chapter includes commitments to discourage importation of goods that are produced by forced labor or that contain inputs produced by forced labor, regardless of whether the source country is a TPP country“, this implies that those involved at Samsung have either a Chinese wall in place or a system of deniability. The fact that The Guardian received evidence (payslips) and had testimonials of multiple workers should suffice as evidence.

The fact that Huawei has the option to expose issues with Samsung, whilst not seeming to act, gives also pause for concern. China is not part of the TPP, it is trying to seal its own trade agreement. Even though we have no evidence on how China works in certain matters, the existence of China’s State Owned Enterprise’s (SOE) is another circle of issues and it will be so for both Australia and New Zealand, yet to what extent cannot be stated by me (read: ignorant of such levels of government rules). In that regard Huawei might have an unfair advantage (read: when compared to Samsung) and of course, Huawei could impact the booming Mobile business Australia has (read: Exchange rate of sarcasm towards giggles). As many see that China has been non-enthusiastic when it comes to dealing with corruption, the shown evidence gives us that several other nations aren’t that much better and corporate greed tends to trump government requirements. So there!

No matter how we slice it, the trade agreements only truly benefit large corporations and no one else, which is an issue on a few fronts and in that President Elect Donald Trump might be the clearest American patriot when he states “international relations need to be advantageous, or need not be“, for the simple truth is that for the most and agreement signed that was not advantageous was an agreement best not signed at all.

 

Advertisements

Leave a comment

Filed under Finance, Law, Media, Politics

Any sport implies corruption!

Yes, I agree that this statement is over the top, but at present, I have had it with sports. Whenever we hear about any sport, we are likely to hear doping, corruption or treason. When was the last time you watched your favourite sport and one of these three elements were not in play? Even if this is the case, when you Google your sport with the keywords ‘crime’, ‘corruption’ or ‘investigation’ you will see a list of events that is tainting your favourite sport.

I am originally Dutch, which means that cycling, skating and Soccer make the list for most Dutch people. I (being a statistical outlier in all this) do not really care about those three. If I am at such an event I will enjoy watching it, but I usually do not really bother watching it on TV, unless it is a special event (like a semi-final or final for a world cup or something like that).

So, when I saw on TV that Qatar had won the World Cup host for 2022, I was just happy for Qatar. I was happy, because a thoroughly European sport would go to the Middle East, hopefully inspiring more people and more nations to take up the sport, which is always a good thing. I also considered that the location would show the ‘smaller’ nations had an opportunity to host the ‘big’ boys in soccer and show them that they too can wield the torch of hosting pride. I had no negative thoughts at all. Although I realised that this was a very warm place, it would be nice for other teams like Qatar, Cameroon and Mexico get to play with home field weather advantage, which was pretty much it for me.

So when I got the news this morning that another corruption scandal had hit FIFA, I pretty much lost it on the spot. I remember the Final games of the 1978 world cup. It was NOT the final that was fixed; it was the match before that. What I still consider today as a match-fixed battle between Argentina and Peru, where the hosts needed to win by four goals to reach the final when they slaughtered Peru with a score of 6-0. I saw how Argentina passed on the left, passed on the right and the Peruvian team played frozen, like zombies in a Haitian Dance festival. In my personal view Argentina made it to the finals on false grounds. Yes, the finals were in my view honestly won, but they did not get there honestly and as such the Dutch were robbed of their final victory.

So when I see sports and corruption I tend to go slightly mad. The allegations against Qatar can best be found at http://www.theguardian.com/football/blog/2013/oct/03/world-cup-2022-fifa-qatar.

In my view the hosting game needs to get changed. I am so sick of these corruption events. In my view the following needs to happen. When a person is found guilty of corruption, those nations, in this case Brazil, Paraguay and Cameroon are barred from getting officials into FIFA and the IOC (International Olympic Committee) for a term no less than 16 years, furthermore, they cannot become a host nation for that same amount of time. For the first upcoming World Cup, those three nations are then prevented from entering. There is of course a small chance that their families will slightly suffer when Soccer fans go a little nuts at that point, but who gives a fuck? (Pretty please pardon my ‘French’ here.)

I have seen too much corruption and treason and it had too often got settled with a ‘reprimand’. These two transgressions are now often seen as legalised gambling. You have no risk, you get money and perhaps a fee and a slap on the wrists if you get caught. It would be nice to see these people run for their lives. I foresee that sport corruption could take a steep dive towards a 0% sport crime rate, which is good for sports overall.

To be quite honest, until the article in the Guardian, I was willing to ignore the stories. In my personal view, the Telegraph tends to be a less then academic levelled source of information (they usually lay it on a little too thick). I even contemplated the option that all this were false allegations through media giants as the timing and temperatures might result in a shift in dates to play, which could result in a loss of advertisement coinage no less than 1 Billion Euro on a global scale, not to mention the merchandising that might make a sizzler, all that because the Qatarian time zone could shift the games to less civil times for many of the European TV viewers.

Yet the Guardian shows another story. The one passage I do have a slight problem with is “Mohamed bin Hammam, from Qatar, at the time the challenger to Blatter’s presidency, was found by the court of arbitration for sport last year to ‘more likely than not’ have brought cash to two meetings in May 2011 which was then handed to FIFA delegates

The more likely than not is a bit of an issue for me. It is more likely than not that I do not have the purest of thoughts when I see Olivia Wilde (or Laura Vandervoort, Leslie Bibb, Natasha McElhone or Olivia Munn for that matter). That is a sentence that holds ground (not grammatically). In regards to funds it does not really hold any ground (unless there is a better quality of tangible evidence).

I desire a woman? (Yes and it is not illegal!), I desire money? (To some extent, a definite yes if it gives me access to desire group number one and again it is not illegal), Will I be corrupt for it? Very less likely, however I might be willing to falsify my medical records if it gets me access to my initial group one. The last would actually be illegal and it is covered in Criminal Law, so I am definitely not willing to pursue that avenue.

Why the previous rant? It is about evidence and ‘more likely than not‘, just does not cut it in my book when it comes to these levels of corruption. Even though it is a Civil Court requirement and has been in UK courts since Miller v. Minister of Pensions [1947] 2 All ER 372, which was stated by Lord Denning, former Lord Justice of Appeal and former member of the House of Lords and Master of the Rolls as “more probable than not“, yet when we regard the world as it is today, more probable then not is in my personal view no longer a valid reasoning when it comes to larger amounts of money. It is too easy to frame a person; in the electronic age it is too likely to be falsely processed and when you consider the Bitcoin issue of February 2014, was it stolen or actually lost? More likely than not is very probable to imply involved parties in acts of fraud and theft and less likely that a data files were corrupted and through this misplaced into nothingness.

So there we have it! Is there guilt? I am not sure whether this can be easily proven. If certain people are missing out on a billion in revenue and securing it would require blaming three people of taking a few million, is framing three people so far-fetched? I personally think that this is not the case, or stated under the legal premise ‘it is more likely than not that three people were falsely set in an illegal light so that several unnamed persons could walk away with many hundreds of millions of Euros‘. This is a lot easier to sell in many civil courts.

So which scenario is correct?

I honestly do not know, but it still bothers me that no matter what the truth ends up being, and in hindsight when we look at FIFA, the IOC as well as groups that offer global events had to be revamped in several ways for well over two decades. Consider the ‘old boys’ brigade as it was in the UK between WW1 and WW2. In today’s global setting of fast paced events, where this approach just does not cut it.

 

2 Comments

Filed under Gaming, Law, Politics