How Costco Totally Makes Up For NAFTA's Sordid Legacy

Posted on Tuesday, September 18 at 19:57 by NAUWATCH

On Monday, the Washington Post published an article extolling NAFTA for bringing Costco to Mexico. The article profiled the expansion of the bulk goods behemoth across the Rio Grande as an example of how NAFTA has allowed “Made in USA” products to sweep through Mexico, to the delight of U.S. workers and Mexican consumers. It’s a happy, albeit misleading, narrative.

The Post article missed nearly two-thirds of the NAFTA story. It reported that “trade between the United States and Mexico is surging” thanks to NAFTA. Indeed. But 65% of the surge has been in Mexican products imported into the U.S., not U.S. products heading to Mexico. While U.S. exports to Mexico have more than doubled since NAFTA, imports from Mexico have more than quadrupled (after controlling for inflation). The net impact on U.S. workers has been the disappearance of hundreds of thousands of jobs as the small pre-NAFTA trade surplus with Mexico has crashed into 17 consecutive years of trade deficits. Last year the U.S. trade deficit with Mexico topped $100 billion for the first time, accelerating the job atrophy.

read full article http://citizen.typepad.com/eyesontrade/2012/09/hold.html

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