Harley Shaiken

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Going South

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.

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.