FALSE. ...........Rank-and-file workers in the U.S., Canada and Mexico benefit from NAFTA.
FALSE.............Worker protections, under NAFTA, cover unfair labor practices and unhealthy environmental conditions.
FALSE.............Since NAFTA began, U.S. corporations participating under NAFTA have maintained or increased their
number of U.S. employed workers.
FALSE.............NAFTA's promise of more jobs has been fulfilled.
TRUE..............NAFTA has caused rising income inequality. TRUE..............NAFTA has suppressed real wages for production workers. TRUE..............NAFTA has weakened workers' collective bargaining powers. TRUE...............NAFTA is the direct cause of a U.S. job loss from 1993 to 2001 for 879,280 Americans.
We're told by the President and members of both major parties in Congress that NAFTA is succeeding and good for our country, but how true is this?
Under NAFTA, the U.S. exports to Mexico, parts and components that are assembled into final products that are then returned to the United States. The number of products that Mexico assembles and exports--such as refrigerators, TVs, automobiles, and computers--has mushroomed under the NAFTA agreement. Many of these products are produced in the Maquiladora export processing zones in Mexico, where parts enter duty free and are re-exported to the United States in assembled products, with duties paid only on the value added in Mexico. The share of total U.S. exports to Mexico that is represented by Maquiladora imports has risen from 39% of U.S. exports in 1993 to 61% in 2002.2 The number of such plants increased from 2,114 in 1993 to 3,251 in 2002.
Since March 2001, the U.S. has lost 2.4 million jobs that were primarily in the manufacturing sector.
Credit for information in this article: Robert E. Scott, Economic Policy Institute
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