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Saturday
Aug232008

Mexican immigration to USA has increased because NAFTA was bad for them too.

This post reports Mexican government data that 1.7 million Mexican farm workers lost their livelihoods as a result of NAFTA. Initially 700,000 manufacturing jobs were created by shifting work from the US, but more than half of those jobs have since been moved again—to China. (I personally observed several hundred jobs move from USA to Mexico to China.) In addition 20,000 small Mexican businesses were displaced by NAFTA-facilitated trade in just the first 7 years. The Labor Council for Latin American Advancement says these severe dislocations have caused increased immigration to the USA. That put further downward pressure on US wage rates. And the benefits of NAFTA were . . . . ?

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