The Impact of the North American Free Trade Agreement on U. S. Jobs and Wages
Excerpt from The Impact of the North American Free Trade Agreement on U. S. Jobs and Wages: Hearing Before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Third Congress, First Session on the Impact of the Proposed North American Free Trade Agreement (Nafta) On U. S. Jobs and Wages Particularly in the Manu The committee met at 10:02 a.m., in room SD-538 of the Dirksen Senate Office Building, Senator Donald W. Riegle, Jr. (chairman of the committee) presiding. Opening Statement Of Chairman Donald W. Riegle, Jr. The Chairman. The committee will come to order. Let me welcome all those in attendance today. We have a capacity, standing-room-only, gathering here. Many more people wanted to get in and, unfortunately, the room is only as large as it is. So, we hope that people are being accommodated through the televising of this into another room. We're meeting this morning to examine the impact of the proposed North American Free Trade Agreement and the impact it will have on U.S. jobs and wages, particularly in the manufacturing sector. We have a very important witness, H. Ross Perot, here this morning and I will save my introductory remarks for him until I've made two other comments about this problem. I think the most important economic goal for America over the next 4 years is creating at least 8 million new private-sector jobs. Yet, I'm convinced from all the work that we have done, if this Free Trade Agreement with Mexico is adopted, that America's biggest export to Mexico will be American jobs, particularly American manufacturing jobs. This is the first time that countries of vastly different levels of economic development have attempted to enter into a free trade agreement. Currently, wages in Mexico are approximately one-tenth of the wages here in the United States. Similarly, the gross domestic product per capita in the United States is over $21,000, as it is in Canada. In Mexico, it is a meager $3,350. These wage disparities have already resulted in countless jobs moving from the United States to Mexico and causing many American firms to relocate down there. Of course, this is being heavily promoted by the Mexican government. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.