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Nafta

In December of 1992, Presidents Salinas (Mexico), Bush (U.S.) and Prime Minister Brian Mulroney of Canada signed the North American Free Trade Agreement (NAFTA). The Mexican legislature ratified NAFTA in 1993 and the treaty went into effect on January 1, 1994, creating the largest free-trade zone in the world. NAFTA’s promoters promised 200,000 new jobs per year for the U.S., higher wages in Mexico and a growing U.S. trade surplus with Mexico, environmental clean-up and improved health along the border. NAFTA was supposed to be the way of the future, free trade for all, and all would benefit. In theory this was the truth, but theory is not always reality. The reality is NAFTA has failed in many regards and unless some things are changed in the agreement, it will never be a good deal for all sides.

The reality of the post-NAFTA surge in imports from Mexico has resulted in an $14.7 billion trade deficit with Mexico for 1998. By adding the Mexican trade deficit to the deficit with Canada, the overall U.S. NAFTA trade deficit for the year 1998 is $33.2 billion dollars. In the last five years we have gone from a pre-NAFTA trade surplus of $4.6 billion with Mexico to a $14.7 billion deficit. Using the D


Manufacturing jobs are not the only jobs lost to NAFTA. The American farmer has suffered greatly under the program. American exports to Canada and Mexico have risen 35%, but net farm incomes have remained the same. In fact, 45% of small and medium farms in the U.S.

received the strawberries through the federal school lunch program. As early as 1993 imported strawberries from Mexico were found to contain harmful and potentially fatal strands of bacteria.

When a plant closes and moves to Mexico it is not only the line worker who is effected

have had dramatic decreases in income. American farmers are finding it difficult to compete with the cheap labor cost across the Mexican border. The average wage paid to migrant workers in the U.S. is $6 an hour, while across the border farmers pay $6/day. There is no way a U.S. farmer can cut production cost enough to compete against such cheap labor. Tomatoes are a prime example of produce being imported from Mexico and costing American jobs. Under NAFTA, Mexican tomato imports have increased 63%. Between 1993 and 1998, over 100 Florida tomato farmers have closed up shop and 24 packing houses have closed. The loss of the tomato farms has cost Florida agriculture $1 billion. During this same period prices for tomatoes have risen 16%, this shows there has been no savings passed on to the consumer only higher margins for the retailers.

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Approximate Word count = 1387
Approximate Pages = 6 (250 words per page double spaced)


  

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