Hanson's Latin American Letter - Number 1565 - Solution to Competition?

Sep 29, 2026

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Hanson's Latin American Letter outlines U.S.-Mexico relations and the developing-country policy concern labeled “disengagement under pressure.” It uses concrete U.S. political and labor positions from 1975 to show how competition and imports are handled through measures like child labor demands, tariff and production-rule repeal requests, and White House authority to curb imports affecting U.S. jobs. It also covers trade-related export restraint expectations and legislative proposals targeting mineral and coffee supply pressures.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

AccessFree to download

Start with some current developments

Senator Hatfield and child labor

AFL-CIO tariff code repeal demands

Trade negotiation export restraint commitments

Mobilizing sea-mineral resources to meet cartels

U.S. Department of Agriculture on Mexican coffee industry

# SOLUTION TO COMPETITION? THE "HELP'" IS CHILD ONLY MEXICAN FROM MEXICO's "FRIENDS" Dear Sir: LABOR THE # HANSON'S LATIN AMERICAN LETTER WASHINGTON 15 March 1975 Number 1565 "Kissinger's speech contained warnings toLatin American countries not to adoptpolicies of outright opposition to the U.S."...New York Times "Mexico pursues her traditional policy ofblackguarding the U.S.in public but main-taining the best relations privately,withmasterful Latin discretion." ...Washington Star. "It is time for the U.S.to go into the UNand every other international forum and startraising hel1.For years the U.S.has allowedanti-American sentiment to grow unchecked andhas taken an increasingly defensive attitudetoward the so-called third world." ..Former U.S.Ambassadorto India Moynihan. In January 1975 the United States had a favorable trade balance withRELATIONSMexico at the rate of $2.4 billion per year. It is a pace that wouldWITHcompel continued extraordinary reliance by Mexico on external loansMEXICOeven when the great oil boom exports now anticipated materialize.TheMexican-American relationship is thus particularly well suited forillustrating the central concern of the developing U.s.policy towardLatin America which is so often labelled disengagement under pressure. Start with some current developments: (1)On February 26,Senator Hatfield(1iberal Republican)told the Senatethat a restoration of child labor in this country is the only defenseleft against the expanding Mexican exports of agricultural products.(TheCongress had passed the Fair Labor Standards Law prohibiting the employ-ment of children under 12 years of age in agricultural harvests).Now,this 1iberal demanded that something must be done against the import ofMexican strawberries,for instance.He protested that Mexico now con-trols 41%of the U.S.market for strawberries,that the average wage inMexico for fieldworkers is just under $4 per day,compared with $20 dollars in Oregon,that the Mexican price for sugar used in processing is 8.4 cents perpound compared with 56 cents in the United States,and that something simply has to bedone to save the U.S.industry from Mexican competition. His immediate solution was child labor in the United States.And pre- sumably his longer-term solution would be a curb on imports from Mexico. (2)At the same time,the AFL-CIO Executive Council demanded that theCongress repeal the sections of the Tariff Code that encourage foreignproduction for shipment back to U.S.markets.This was aimed at cripplingthe Mexican border industries,which are already suffering serious shut-downs due to the recession in the United States,and would leave themdestroyed permanently. If such a demand can come from the organization whose president has said that "since Latin America is our closestneighbor in the trade union field,we feel we have a responsibility as workers to workersto be of help to them,"what is to be anticipated from the Congress whose members areless influenced by the desire to be of help to Mexico? Further,Mexico's helpers also demanded that the White House exercise itsauthority to curb imports of any products(repeat any products)that are adversely affectingU.S.jobs in this country.In effect,a dagger pointed at every Mexican industrial esta-blishment which has worked so hard to create export capacity for the U.S.market. (3)Three years ago the leading Brazilian exporter of shoes predicted thatEXPORT"the United States will soon be out of the shoe-producing business en-RESTRAINTtirely"and that the U.S.Government would be prepared to phase out theAGREEMENTSshoe industry in the United States entirely.On February 24 Senator"THE ONLYHathaway proved to the Senate that the Brazilian had spoken too soon andWAY”TO MEETwithout factual basis.He had asked the Deputy Special RepresentativeREQUIREMENTSfor Trade Negotiations for a formal commitment on the meaning of the TradeOF THE TRADEAct as it pertained to such items as

FAQs

What concern does Hanson say guides the U.S. developing-country policy toward Latin America?

It focuses on “disengagement under pressure,” illustrated through the Mexican-American relationship and how U.S. policies respond when competition and imports intensify.

How does Senator Hatfield propose to respond to Mexican exports of agricultural products?

He argues that restoring child labor in the U.S. is the defense against expanding Mexican agricultural exports, and he also implies longer-term import curbs on items like strawberries.

What measures does Hanson describe as responses to trade pressures from Latin America?

The letter cites demands to repeal tariff-code provisions encouraging foreign production shipped back to U.S. markets, requests that the White House curb imports harming U.S. jobs, and legislative approaches such as export restraints and mobilizing sea minerals to counter cartel threats.

Sep 29, 2026

Upload by Aran