The Case For NAFTA

Policy Backgrounders | Trade

No. 130
Monday, November 15, 1993
by Edward L. Hudgins, Ph.D.


  1. Mexico agrees to abide by major international agreements protecting intellectual property, such as the 1971 Berne Convention for the Protection of Literary and Artistic Works and the Paris Convention for the Protection of Industrial Property (1967).
  2. Critics often fail to add that when the products are sent to the United States, they are counted as imports. Thus, whatever the proportion sent to the United States, the total rise in volume of exports from $11.9 billion in 1986 to $40.6 billion in 1992 is real.
  3. From the Statistical Abstract of the United States: 1992, Economics and Statistics Administration, Bureau of the Census, U.S. Department of Commerce, Table No. 1353, most recent available numbers.
  4. Ibid, Table No. 1243 and 1244.
  5. Ibid, Table No. 1349.
  6. "Economic Indicators, April 1993," prepared for the Joint Economic Committee by the Council of Economic Advisors, Washington, DC.
  7. Cited by Senator Robert Bennett (R-Utah) in an April 22, 1993 hearing of the U.S. Senate Banking, Housing and Urban Affairs Committee.
  8. "Potential Impact on the U.S. Economy and Selected Industries of the North American Free-Trade Agreement," USITC Publication 2596, January 1993, pp. 2.1-2.3.
  9. Gary Clyde Hufbauer and Jeffrey J. Schott, NAFTA: An Assessment (Washington: Institute for International Economics, 1993).
  10. See Gene Grossman and Alan Krueger, "Environmental Impacts of a North American Free Trade Agreement," NBER Working Paper No. 3914, November 1991, National Bureau of Economic Research.
  11. Angela Logomasini, "Free Trade and Economic Growth: Opportunities for Environmental Improvements," Economic Perspective, February 24, 1993.
  12. Under the arrangement, Mexico allows foreign firms to own 100 percent of a factory and to supply it with imported equipment and parts if the resulting products are exported. In addition, the United States allows products made of American parts to enter the United States with duties paid only on the labor value added.

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