How NAFTA has helped
American Manufacturing
IF YOU HAVE ENJOYED PROSPERITY WITH COMPETITIVE GOODS
FROM YOUR BUSINESS, AND CARE ABOUT THE FUTURE OF
AMERICAN MANUFACTURING, YOU SHOULD BE SUPPORTING NAFTA.
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Overview
It’s just that simple: NAFTA countries and the American manufacturing industry have benefitted so
greatly from their mutual partnership, and are tied so closely together, to have one without the other
would be a catastrophe in all three countries. Contrary to the rhetoric that has been coming from the
White House of late, NAFTA has not been a bad deal for the United States; in fact, the very opposite is
true. If tremendous benefits for the U.S. and its manufacturing companies are to continue in the
future, NAFTA will need to remain in place.
For more than 20 years, NAFTA has provided the United States, Canada and Mexico with a level of
mutual market access that has produced significant economic gains for manufacturers, manufacturing
workers, their families and communities.
As CEO of a company with operations in all three NAFTA nations, I’ve seen the benefits of this trade
agreement first-hand. The integrated market zone created by NAFTA established an open, multilateral
environment for investment and innovation — generating new opportunities for companies like ours
to expand their businesses, offer good jobs and wages and support local communities.” – David
MacLennan , Cargill chairman and CEO, Vice Chairman of International Economic Policy at the
National Association of Manufacturers (NAM). source
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An Indisputable Fact: NAFTA has Created, and will
Continue to Create, Millions of New American
Jobs
When it was first enacted in 1994 one of the biggest arguments
against NAFTA was that jobs-wise, America would be the big loser;
millions of manufacturing and other labor-intensive jobs would flood
out of the country, never to return. But in the 17 years since its
inception, the data collected from the manufacturing industry has
produced an indisputable fact: NAFTA has created millions of new
American jobs, and will continue to produce them well into the future
(if it remains in place.)
According to the U.S. Chamber of Commerce, NAFTA exports has
created five million new U.S. jobs since 1994, dwarfing the success of
any other government program or industry since that time. While
most of those jobs went to 17 states, all states enjoyed increases in
jobs. Between 1993 and 1997, U.S. manufacturers added more than
800,000 jobs: This was due in large part to the $487 billion
manufacturers exported by 2014. source
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NAFTA Has Increased Economic Growth
In January of this year, President Trump tweeted “Mexico has taken advantage of the US for long
enough.”
Yet the income from trade among NAFTA partners does not represent that unfounded
characterization: $290 billion in 1993 to over $1 trillion by 2016. A $710 billion gain would hardly
seem to being taken advantage of by any definition. source According to the United States Trade
Representative, NAFTA has provided an expansion to U.S. economic growth at the rate of 0.5
percent a year (including the time of the Financial Crisis of 2007 – 2008). SourceThe sectors that
benefited the most were agriculture, automobiles, and services such as nearshore
manufacturing.
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NAFTA Has Increased Economic Growth
U.S. farm exports to Canada and Mexico grew 156 percent
compared to a 65 percent increase in farm exports to the
rest of the world. Farm exports to Canada and Mexico alone
were greater than exports to the next six largest markets
combined; this is due to the elimination of high Mexican
tariffs making it the highest export destination for beef, rice,
soybean meal, corn sweeteners, apples, and beans from the
United States. It is the second largest export destination for
corn, soybeans, and oils. source
The efficiency in trade led to foreign investment
tripling: According to the U.S. Census in 2015, foreign
businesses invested $452 billion in Mexico and Canada and
in turn, companies in Mexico and Canada invested $240.2
billion back to the United States. That huge investment
helped spur large growth manufacturing, insurance, and
banking companies. source
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US Jobs Depend on NAFTA
Over 5 million jobs, in every state in the Union, depend on Nafta to create and keep jobs.
This infographic tells the entire story: The end of NAFTA would mean the loss of trillions of
dollars. $178 billion, along with 382,0000 jobs, would be lost annually, in Texas alone.
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Conclusion: NAFTA is an Example to
Follow
As competition in the labor market deepens, Mexico provides low-cost manufacturing allowing
US companies to keep higher level, salaried, and technical positions rather than losing these jobs
overseas. NAFTA makes all this possible. The loss of revenue and jobs would be a colossal
mistake for numerous American industries not to mention the United States economy as a
whole.
An Example to Follow
NAFTA’s legacy includes more jobs, higher wages, cleaner environments, more manufacturing
output, less poverty, and (perhaps most significantly) increased economic freedom. ” – Bryan
Riley , Jay Van Andel Senior Analyst in Trade Policy in the Center for Trade and Economics, a
department of the Institute for Economic Freedom and Opportunity, and Donghun Yu, Visiting
Fellow, at The Heritage Foundation.”
Contact NovaLink to learn about a strategic alliance that strengthens the US manufacturer.
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