NAFTA is Causing Manufacturing in the U.S. to Shut Down

NAFTA

The reason: to compete we must work for $4 an hour, which we can’t and won’t do.

The truth about the North American “Free Trade” Agreement (NAFTA) is that it is crippling the American economy. It has created detrimental consequences for American workers destroyed manufacturing in the U.S., prompting some of our best companies to leave our borders to pursue the lower wage rates, non-existent environmental standards and “free trade” without restrictions found in other countries like Mexico.

Despite warnings NAFTA would result in American jobs being outsourced to foreign countries, our leaders show no signs of ending our commitment to this failed agreement. As a result, our manufacturing base is now in a state of massive decline. When it costs more to produce a product here in the United States than it does in Mexico, why would businesses choose to manufacture in the U.S.?

Job competition is fierce! So fierce that workers in the U.S. making $18 per hour are now forced to compete with workers in Mexico, holding the same exact job, but making under $4 per hour. Manufacturers can save a lot of money by simply crossing the border into Mexico, and then they can ship their product back to the U.S. without issue.

Despite having a trade surplus with Mexico in 1993 before NAFTA was implemented, by 2011 our situation had changed dramatically. That surplus morphed into a $103 billion deficit, just 18 years after signing on to NAFTA. Once Canada is tossed into the equation, our total deficit by 2011 was an alarming $185 billion! In addition, illegal immigration in the U.S. has skyrocketed from 3.9 million in 1993, to 23 million in 2010, much of which can be attributed to NAFTA.

That is the root problem with our failed “free trade” agreements. It actually encourages manufacturers to operate outside of the United States, taking their jobs with them. It uses the prospect of lower wage rates, non-existent environmental standards, and “free trade” without restrictions as bait. As a result, there are fewer jobs and an American market drowning in foreign-produced goods.

It is imperative our leaders in Washington either amend the North American “Free Trade” Agreement to make it work for America or eliminate it entirely! It is clear our economy cannot afford to stay the current course. Contact your Congressmen and demand that we fix or eliminate all of our misguided “free trade” agreements immediately.

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