Nafta

LOSS OF LOW-WAGE AMERICAN JOBS TO MEXICO* The* biggest complaint about NAFTA is how jobs, mainly blue-collar jobs, will all be lost to Mexico because labor is so cheap down there.. What is true is that Mexican labor is cheaper than American labor. The average U.S. worker makes $10.97/hour while the average Mexican worker makes $1.85/hour. And in the FTZ (Free Trade Zone) in Northern Mexico, the worker makes $0.75/hour.     In fact, the greatest Mexican employer right now is General Motors (GM).   Pollution ''   In response to NAFTA competitive pressure, Mexico agribusiness has increased its use of fertilizers and other chemicals, costing $36 billion per year in pollution   *TRADE AFTER THE PESO DEVALUATION A* U.S. surplus of $1.6 billion in 1994 eroded to a $260 million deficit in 1995. The price of Mexican products suddenly became cheaper for U.S. residents to buy, while U.S. products became more expensive for Mexico residents*. The impact was greater felt in Mexico, where the resulting recession caused a decline in Mexican consumer income. That in turn worsened the prospects for U.S. exports. *U.S. exports to Mexico declined by 11%.   The peso's value has dropped 2946.1% from Mar. 85 - Sep. 95.   Dec. 1994: 1 US dollar = 3.5 Mexican pesos   Sept. 1995: 1 US dollar = 6.3 Mexican pesos   Dec. 1995: 1 US dollar = 7.68 Mexican pesos   As of April 12, 2003: 1 US dollar = 10.7 Mexican pesos.   Since NAFTA, the economy drastically improved.   the Clinton administration scrambled to help with a $50-billion credit package - $20 billion from the United States and the balance from the World Bank and the International Monetary Fund.   )))   Overall, Obama opposes many current trade agreements, which he says are bad for the economy because they provide perks for businesses but don't protect workers.   Obama Has Three Main Proposals:   Amend NAFTA - He would re-open NAFTA to beef up protection for labor and the environment.   Fight for Fair Trade - He opposes pending Free Trade Agreements...