Why Is The North American Free Trade Agreement So Dangerous?
Despite warnings that NAFTA would result in American jobs being outsourced beyond our borders, our leaders have shown no signs of cutting ties with the harmful “free trade” agreement. As a result, our manufacturing base is now in a state of massive decline. When it costs more to produce here in the United States than it does in Mexico, why would businesses choose to manufacture in the U.S.?
The North American Free Trade Agreement (NAFTA) was implemented in 1994, and the results have been truly disastrous for the United States:
- The trade deficit with Mexico has exploded
- Mexican wages remain nearly as low as they were prior to NAFTA and are still a small fraction of our average wages
- Wealth and power have not trickled down to the people. Most of Mexico is still controlled by fewer than 100 corporations within the country
- Many of our other trading partners have relocated facilities to Mexico to circumvent other trade agreements with the U.S.
- American manufacturing has lost 3 million jobs in the past 10 years as U.S. companies have moved to Mexico for lower wages and lax regulations
NAFTA has, and still is, devastating the American economy. It has impacted the lives of American workers in catastrophic ways and has all but destroyed manufacturing in the United States. As a result, some of our best companies have left our borders to enjoy the non-existent environmental standards, “free trade” without restrictions, and lower wage rates elsewhere.
NAFTA has also allowed for unrestricted “free trade.” “Free trade” means unrestricted, uncontrolled access to our economy, tariff- and duty-free, for goods made for $4-per-hour or less. The U.S. cannot compete with these wages so we are forced to choose between going bankrupt, outsourcing nearly all of our manufacturing or simply selling out.
For example, workers in the U.S. making $20 per hour are now forced to compete with workers in Mexico, who hold the same exact job but make just over $4 per hour. Manufacturers can save a lot of money by simply crossing the border, and then they can ship their product back to the U.S. without hindrance.
NAFTA actually encourages manufacturers to operate outside of the United States, and they take our jobs with them. It uses the enticement 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-made goods.
Then there’s the impact on our trade deficits that NAFTA has caused. Despite having a trade surplus with Mexico in 1993 before NAFTA was implemented, by 2011 we had a deficit of $103 billion deficit. And that isn’t even taking into account Canada. Once Canada is tossed into the equation, our combined deficit by 2011 was $185 billion.
In order to restore our economy, our leaders in Washington must either amend our status with the North American Free Trade Agreement or eliminate it entirely! Contact your Congressional representative immediately and demand a change.
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