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nafta 5 years of failure

stand that the figures used do not mean goods to be sold in Mexico. Most of the figures released by the government include what is termed as industrial tourism. This means we send goods to Mexico to be assembled in their low wage plants and then re-imported into the U.S. as finished products. (2) A significant portion of the jobs lost to Mexico due to NAFTA are in the higher wage sectors of manufacturing. Many of these are in the automobile and electronics industries. The latest government data shows that 70% of the jobs lost were in manufacturing. The U.S. has gone from a pre-NAFTA manufacturing trade surplus of $4.6 billion with Mexico in 1993 to a $8.9 billion deficit in 1998. Imports from Mexico have increased 129% since NAFTA went in to effect. (3) According to the U.S. Department of Labor, approximately 214,902 American workers have been certified as having been laid off due to NAFTA. These numbers do not take into account the workers displaced out side of the factories. When a plant closes and moves to Mexico it is not only the line worked who is affected but also the entire community. One must look at the retailers who have to layoff works due to decreased sales; restaurants and all service industries tied to the consumer are affected. These workers are not considered by the government as being displaced by NAFTA. The wages paid in the new high tech plants being built in Mexico, are so low there is not a single U.S. worker who could take enough of a pay adjustment to compete. The average hourly compensation for a U.S. manufacturing job is approximately $18.74/hour,) and the average wage in Mexico is $1.51 per hour. (4) NAFTA is directly responsible for the wage stagnation being experienced in the U.S., this is largely due o the threat of closing the business and moving to Mexico every time workers try to organize and negotiate a wage increase. Kate Bronfrenbrenner of the Cornell University School of Industr...

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