- Created: Wednesday, 06 May 2009 13:29
- Written by Alvaro Michaels
FRFI 170 December 2002 / January 2003
US imperialism faces a major crisis: it cannot accumulate the profits necessary to maintain its current position in the world. These are not simply the profits generated in the USA but the total profits generated by its exploitation of workers throughout the world. In addition, European investment throughout America in recent years has pushed the USA onto the defensive; it cannot lose opportunities for its own capital. Within Latin America there is the challenge from popular movements which has resulted in the election of Presidents Chavez in Venezuela, Gutierrez in Ecuador and Lula in Brazil. ALVARO MICHAELS reports.
US strategy to resolve this problem is straightforward. It has to re-establish its imperialist monopoly within Latin America, crush the popular movements and massively intensify the rate of exploitation. How will it achieve this? Through the 34-nation Free Trade Area of the Americas (FTAA), the extension of the North American Free Trade Area. The FTAA removes all economic power from any state (except, of course, the USA): all state services have to be privatised, there has to be complete freedom of movement for capital to allow investment without restriction, state subsidies have to be ended and taxation on movements of all commodities abolished. In these circumstances the most productive and largest capitals will win, and they will be US multinationals. Through the FTAA the US hopes to restore its domination, exclude competing imperialist powers and further manipulate the continent in its interests alone.