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Nafta Eco 490

In: Business and Management

Submitted By sexygirl1
Words 1233
Pages 5
Should the textile industry be protected after the enactment of NAFTA?
The North American Free Trade Agreement is an agreement that went into effect in 1994 by the Bush Administration. It is simply free trade between Canada, Mexico, and the United States. Many people expressed their concerns, and fears about this agreement; many people feared that lost of jobs will occur, impacting our U.S. labor force negatively. Apparently those people who expressed those concerns were absolutely correct. We will discuss the migration of jobs, who gained from NAFTA, as well as, what I feel the solution should be to protect the textile industry. Between 1994 and 2004, the production of apparel fell by at least 40 percent, and production of textile fell by at least 20 percent, this unfortunate drop occurred within the time frame the demand of U.S. apparel was growing, in fact growing by 60 percent. Also, during this time frame, U.S. employment in the textile industry dropped from 478,000 to a staggering 239,000, and employment in the apparel industry dropped as well, from 858,000 to 296,000. This alarming situation was happening amidst the ever increasing exports from Mexico surged from $1.26 billion to $3.84 billion. This data concludes that some job loses are due to the apparel migration from the US to Mexico. The trade balance, which measures the difference between the nation’s imports and exports, grew to a $46.3 billion deficit in January 2011, up from $40.3 billon in December 2010, according to the Commerce Department. Let’s take a look at the current figures the United States Balance of Trade.
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 -46341.0
2010 -34840.0 -39912.0 -39699.0 -40762.0 -42187.0 -50130.0 -42898.0 -46759.0 -44455.0 -38278.0 -38316.0 -40264.0
2009 -36067.0 -26362.0 -28009.0 -28445.0 -24855.0 -27139.0 -33086.0 -31072.0

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