NAFTA defenders say Mexico can't lure high-wage jobs away, but they are already heading across the border -- and the treaty will only make matters worse.
Harley ShaikenDec 19, 2001
Proponents of the North American Free Trade Agreement (NAFTA) assure nervous lawmakers that free trade with Mexico will not send high-wage American jobs south. They say Mexico is an industrial backwater limited to low-tech, low-productivity operations. Low wages alone, they insist, will not persuade manufacturers to uproot entrenched American operations. Rather, NAFTA will bring Mexican wages up to world-class levels, rendering the argument about wage differentials irrelevant in the long run and opening a lucrative market for goods manufactured in the United States.