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| NAFTA Showtime: Stephen Harper, Enrique Peña Nieto, and Barrack Obama | 
The Canadian Broadcasting Corporation noted: "Jean 
Chretien famously pronounced his last G8 summit as prime minister a 
success. When asked why, he replied, "Because it could have been a 
disaster.'
'
That same logic could be applied to this past weeks meeting of the three North American leaders in Toluca, Mexico.
Even though the" three Caballeros" called NAFTA a great success - looking at the results - tells another story. .
The Financial Times wrote about NAFTA: "Treally wenty
 years into Nafta, Mexico has too many criminals and not enough 
policemen; too many workers earning low wages and not enough skilled 
jobs; too many false dawns and not enough economic growth. 
NAFTA really is a big economic failure. From 1994 through 2003, the 
Mexican economy has grown by only 11 percent per person. This is less 
than one-fourth the rate of growth that Mexico experienced in the 1960s 
and 1970s. This is the relevant economic comparison for anyone who wants
 to evaluate Mexico's experience with NAFTA.
Of course, the 
reforms embodied in NAFTA did not begin in 1994 - they started in the 
early 1980s. But if we take the longer view, it looks even worse: From 
1980 to the present, income per person in Mexico has grown by about 19 
percent. This compares to 93 percent for the 1960-1979 (somewhat 
shorter) period. In other words, there is no economic evidence that the 
NAFTA model is a success at least not for the tax paying public.
U.S. economic winners and losers under NAFTA vary with company size, type of 
industry or 
sector,
 and geographical location. Sectors affected positively include planes, 
trains and automobiles, large agri-businesses, appliance makers and 
energy corporations. Clearly, large multi-national companies with 
investment capacities, world-market savvy and 
capital resources have benefited from protected investment and cheap labor. These companies enhanced management 
performance-based compensation
 while putting downward pressure on production-worker wages and 
benefits, collective bargaining clout and available jobs, especially in 
manufacturing. Many view their actions as a major contributor to 
compensation inequality.
According to one estimate, 
workers in Canada and Mexico have displaced 829,280 U.S. jobs, mostly 
high-wage positions in manufacturing. The heaviest U.S. 
manufacturing-job losses were in states such as Ohio, Michigan, 
Pennsylvania, New York, North Carolina, Texas, Connecticut, New Jersey, 
California, Indiana and Florida.  
Canada has so far experienced significant benefit from: 
- U.S. investment in automotive production,
    
- Increases in oil exports to the U.S. and the rest of the world,
    
- Increases in shipment of beef, agricultural, wood and paper products to the U.S.
- Export of mineral and mining products, which have fared well in U.S. markets. 
Canada has, however, also experienced some losses in narrow 
sectors such as specialty steel production and processed foods due to 
U.S. imports.
Overall the conclusion is that NAFTA has not lived up to the high 
expectations of its proponents. It has made many U.S. companies and 
investors rich - and their managements even richer. But it has also cost many
 U.S.
 manufacturing workers their livelihoods while failing to raise living 
standards for most Mexicans. Any major market changes not dictated by 
market forces usually lead to both opportunity and loss, and this has 
happened with NAFTA.  
EU-Digest