How Nafta Will Affect Us Agriculture Hearing Before the Committee On Agricul
How Nafta Will Affect Us Agriculture Hearing Before the Committee On Agricul
Nutrition United States Congress Senate Committee On Agri
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* Senator Cochran Mr. Chairman, thank you for convening this hearing to discuss the North Amer- ican Free Trade Agreement. I join you in welcoming Secretary Espy, Ambassador Kantor and the other witnesses who will testify. I'm convinced NAFTA will break down trade barriers, create more jobs, and im- prove living standards in Mexico, Canada, and the United States. It will create the world's largest market with over 370 million people and $6. 5 trillion of production, and an estimated 200, 000 jo...bs in the first 2 years of its implementation. Opponents of NAFTA claim that only Mexico will benefit from this agreement. But Mexico already enjoys one-way free trade with the United States because of its high tariffs, which range between 10 and 20 percent. Incidentally, they now have the legal right to raise tariffs to 50 percent. To make matters worse, Mexico applies a restrictive import licensing system for many of our agriculture commodities. That would all be phased out under NAFTA. In contrast, the United States applies much lower tariff duties on Mexican foods — averaging less than 4 percent — and over half of agriculture imports from lexico already enter duty free or subject to a minimal tariff.
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