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Eyes on Trade

Public Citizen's Global Trade Watch blog on globalization and trade

 

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NAFTA's Broken Promises: Failure to Create U.S. Jobs [Table]

NAFTA's Broken Promises: Failure to Create U.S. Jobs [Table]


Company specific promises were drawn from the following sources: the state-by-state NAFTA jobs reports of USA*NAFTA and the National Association of Manufacturers (NAFTA's biggest boosters); the U.S. Department of Commerce's state-by-state NAFTA job forecasts, and from Congressional testimony during the NAFTA debate. (For more on the methodology of this study, see the report text.)

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Air-Hydraulics, Inc.

Farming equipment manufacturer

Jackson, Michigan

JOBS "NAFTA could increase Air-Hydraulics business by 50%, adding 10 new jobs," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 37 According to Air-Hydraulics President Joe Miller, because of the peso devaluation, "we haven't been able to increase business. NAFTA looked very promising but now we can't tell if we were right or wrong." Miller said the firm's sales to Mexico have decreased and are at pre-NAFTA levels. According to Sales Engineer Ron Mull, Air-Hydraulics has not created any new jobs due to their exports to Mexico and Canada.
Air Products and Chemicals, Inc.

Industrial gas and chemical producer

Allentown, Pennsylvania





JOBS "It [Air Products] estimates that its US and Mexican employment levels will grow with NAFTA," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 73 According to spokesperson Greta Campbell, there has been a modest increase in manufacturing jobs in the U.S. and a modest increase in sales jobs in Mexico. When asked if NAFTA had increased Air Products and Chemicals U.S. and Mexican employment levels, spokesperson Greta Campbell said, "We defer on your request for update on NAFTA."

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Allied-Signal

Aerospace manufacturer

Morristown, New Jersey

JOBS "When asked by CNN news anchor Lou Dobbs on CNN's "Moneyline" about whether Allied-Signal would move U.S. jobs to Mexico if Congress passed NAFTA, company Chairman Lawrence Bossidy responded, "I think quite the contrary, Lou. I think the jobs that were to move to Mexico have already moved there," CNN "Moneyline" August, 23, 1993. The Department of Labor's NAFTA Trade Adjustment Assistance program (NAFTA TAA) certified that 183 Allied Signal workers were laid off due to a "shift in production to Mexico" (180 workers at Allied Signal's Greenville, Ohio facility and 3 workers at their El Paso Texas facility). The Department of Labor's NAFTA TAA program also certified that 77 workers at Allied Signal's Orangeburg, South Carolina facility were laid off due to a "shift in production to Canada." When asked about Allied Signal's experience under NAFTA, Vice President of Corporate Affairs Mark Greenberg said, "We decline to comment on NAFTA."

The number of Allied-Signal workers being certified by the U.S. Department of Labor's NAFTA Trade Adjustment Assistance program (NAFTA TAA) as having lost these jobs due to NAFTA reached 992 with a total of 708 laidoff due a "shift in production to Mexico"; 525 workers at the Greenville, AL facility laid off due to "shift in production to Mexico";

70 workers at the Eatontown, NJ facility were laid off due to a shift in production to Canada; and 137 workers at the South Montrose, Pennsylvania facility were laid off due to "customer imports increased; not identified Canada/Mexico".

On January 21, 1997, workers at Allied's Charlotte, North Carolina facility filed a petition with the Department of Labor's NAFTA Trade Adjustment Assistance program (NAFTA TAA) stating they had lost their jobs due to NAFTA. The Department of Labor has not released a ruling yet on that petition.


Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Amoco Oil Company

Petroleum products conglomerate

Chicago, Illinois

JOBS "As a result of NAFTA, Amoco expects to hire 500 additional U.S. employees and to increase purchases from U.S. suppliers," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. xiv. According to Amoco spokesman Ray Thompson, the company has started a convenience store joint venture in Mexico. As part of the venture Amoco has created an unspecified number of "upper middle income" jobs in both their Houston and Chicago offices. Thompson stated that most of these jobs are being filled by people who were previous laid off by Amoco during the downsizing of the company from 59,000 to 46,000 worldwide employees which began in 1992. In terms of the rest of Amoco's operations in Mexico, spokesman Tom Mueller said, "All operations in Mexico are in such an early stage that I don't see any job creation going on." Representatives from Amoco would not answer questions on NAFTA's impact on U.S. jobs at their firm.

According to the July 22, 1994 Times-Picayune, the Amoco Corporation said that "it will cut 3,800 jobs during the next year...Amoco will cut another 700 jobs by the end of 1996."

APC Equipment

Construction and excavation equipment purchasing, sales and service

Tucson, Arizona











JOBS "The company currently does 80 percent of its business with Mexico...APC would be able to hire more people to transport goods, more salesmen, and more machinists," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 1 According to APC Equipment President George French, the company now does 5% of its business with Mexico. French said his company's exports to Mexico have declined dramatically due to the state of the Mexican economy. "I don't know if the situation is going to improve," French said. "I am tired of holding my breath." According to APC Equipment Owner Terry French, the company has not created jobs due to business with Mexico. "We thought it [NAFTA] would help but it hasn't."

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Archer Daniels Midland

Food processing conglomerate

Decatur, Illinois

JOBS "ADM believes that 10,000 U.S. jobs will be created by ADM sales with the passage of NAFTA, from farms to processing to transportation. Without the treaty, ADM anticipates only 1,500 jobs created from company sales to Mexico. ADM expects sales to Mexico would increase by $370 million by 1999, if NAFTA is passed," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 18 According to CEO Dwayne Andreas, NAFTA has helped the firm greatly increase ADM sales to Mexico. Andreas said the company has created new U.S. jobs as a result of NAFTA but could not provide numbers. NAFTA has been a "boom to farmers in the Midwest" he said. The peso crisis had a "very temporary" effect in ADM's exports to Mexico. "We hardly noticed it," he said. He estimates that NAFTA will ultimately result in 100,000 to 500,000 new U.S. jobs because of agricultural exports. Mexico "will be a great market for basic foods," he said. When asked if ADM had increased jobs under NAFTA, spokesman Michael Turner said, " I do not want to participate" in the survey.

Armstrong World Industries, Inc.

Vinyl flooring and acoustic ceiling manufacturer

Lancaster, Pennsylvania

JOBS "NAFTA will provide job security for Armstrong's employees in Pennsylvania," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 73 Representatives from Armstrong would not answer questions on NAFTA's impact on U.S. jobs at their firm. When asked if NAFTA had provided job security for Armstrong's employees, Vice-President for Corporate Relations Cam Collova responded, "We haven't seen a marked effect."

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

AST Research

Computer and computer products manufacturer

Irvine, California













JOBS "The company believes that implementation of NAFTA will lead to a sharp increase in exports to Mexico and will create several hundred jobs in the United States," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p.4 According to a company spokesperson, NAFTA has not created any new U.S. jobs at AST Research, nor has it lead to any exports to Mexico. "We're not doing business in Mexico. They may have been planning to focus some energies there but they didn't." -- Gerri Baker, Public Relations Manager. According to company representative Ken Roberts, the firm does "a limited amount of business" in Mexico. "It's not significant."
Atlanta Saw Company

Food processing saw manufacturer

Atlanta, Georgia

JOBS The President of Atlanta Saw, Joe Hall, commented in regard to NAFTA, the "idea that all these companies will vacate the US is crazy. Some will, I'm sure, but a lot, like Atlanta Saw, will increase their sales there [Mexico] which will increase jobs here in the US," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 17 According to International Sales Director Sam Hudson, NAFTA helped the firm increase their sales 7% in 1994, but the peso devaluation has "hurt". Hudson said the firm has not increased jobs because of NAFTA. According to a September, 1995 letter from Atlanta Saw President Joe Hall to then U.S. Trade Representative Mickey Kantor, the company "expects positive benefits of selling more products in Mexico when the peso/dollar relationship returns to normal!" The peso is not expected to return to its pre-NAFTA exchange rate.

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Bechtel Corporation

Engineering and construction management

San Francisco, California

JOBS "The Company is at work in Mexico on power plants and on a number of assignments for PEMEX. NAFTA's ratification would lead by 1995 to a projected 50 percent increase in the number of Bechtel employees working on these and other Latin American projects," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 4 According to company Spokesperson Rick Lobshire, Bechtel views NAFTA as "a long term proposition to the economic health of North America." Lobshire said there is "not any way for jobs to be created by Bechtel in only 20 months of the agreement."

The Department of Labor's NAFTA Trade Adjustment Assistance program (NAFTA TAA) denied an application representing 74 workers at Bechtel's Richland, Washington facility because the "workers do no produce an article". Workers who do not produce a product are not eligible to receive NAFTA TAA benefits. This type of denial does not mean that the firm's layoffs were not caused by NAFTA. It simply means those laid off workers did not create a product and therefore were not eligible for NAFTA TAA benefits.

When asked if about Bechtel's experience with NAFTA, Media Relations spokesman Jeff Berger said, "Thank you, no. We do not want to participate."

According to the July 22, 1995 San Francisco Chronicle, Bechtel cut 1,600 jobs in 1995. "At the beginning of the year, 80 percent of the firm's employees were in North America. But next year, two-thirds of its projects will be elsewhere...Bechtel would like to bolster its overseas employees in the next year to about 5,500 from 4,000 while reducing its domestic contingent by perhaps another 800..."

Bemiss-Jason Corporation

Multifaceted manufacturing firm

Royersford, Pennsylvania

JOBS "Plants in Newark, California, Tyler Texas, Royersford, Pennsylvania and Neenah, Wisconsin will increase production and employment as sales in Mexico increase under NAFTA," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. xiv and p.73 According to human resources manager Leslie Williams, NAFTA has had "no impact on jobs" and the firm's exports to Mexico have not changed since NAFTA. According to Human Resources Manager Leslie Williams, "As far as hiring employees, NAFTA doesn't play any role."


Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Beneficial Management Corporation

Financial services company

Washington, DC

JOBS "Under NAFTA, the company expects to hire 1-2 people at its U.S. headquarters for every Mexican office opened," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p.86 According to a company representative, Beneficial Management Corporation has not opened any offices in Mexico. According to Vice President of Corporate Community Affairs Bob Wade, the company has not opened any offices in Mexico. There has "not been much movement" with NAFTA. Beneficial is currently analyzing the possibilities of moving into the Mexican market.
Bijur Lubricating Corporation

Designer and manufacturer of centralized lubricating equipment and drilling systems

Bennington, Vermont

EXPORTS "The company's activities in and sales to Mexico have increased over the past few years and even greater sales are expected upon implementation of NAFTA." According to Peter Sweeny, marketing communications manager, "NAFTA will increase the demand for Bijur's products and support approximately 113 manufacturing jobs in Vermont," "The State of Vermont and NAFTA," Department of Commerce, Washington DC, August, 1993. p. 1 According to Marketing Communications Manager Peter Sweeny, NAFTA "didn't affect us at all." When asked if NAFTA supports 113 manufacturing jobs at his firm, Sweeny replied, "that statement was somewhat ambiguous." Sweeny said 113 employees worked at the plant before NAFTA and he thought NAFTA might preserve those jobs. According to International Sales Manager Wendy Ripley, "NAFTA has not increased our sales."


Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

California Tomato Board

Association of tomato growers

Fresno, CA

EXPORTS "With the implementation of NAFTA, growers see exports to Mexico increasing from 7,000 metric tons this year to 17,000 tons by 1995."

NAFTA: We Need It: How U.S. Companies View Their Business Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 6

According to California Tomato Board International Marketing Representative, Beth Weibert, "Export levels this year will plunge. Exports hit rock bottom last month" after having a record export year in 1994. Exports so far this year are "down 90% from this period last year." Regarding job creation, " to be perfectly honest NAFTA hosed us!" "We did not have problems before NAFTA. It [NAFTA] is not worth writing home about." According to California Tomato Board International Marketing Representative Beth Weibert, California tomato exports to Mexico still have not recovered from the devaluation. "The exchange rate, the overall economy and the wholesale markets haven't recovered from the devaluation. NAFTA wasn't a factor in our decreasing exports. It was all due to the devaluation."
Canchola Foods

Restaurant operator

Tucson, Arizona

JOBS "Canchola Foods operates 4 McDonalds in Arizona. NAFTA will increase the flow of travelers in area. Sales resulting from this increased flow may reach $500,000 to $1,000,000. Employee numbers could increase 10-20 per cent," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 1 According to Finance Controller Steve Brazamonte, sales are down substantially and ten people have been laid off at Canchola Foods' two Nogales, Arizona restaurants, "Since NAFTA has passed, things have gotten worse," said Brazamonte. "Because of the devaluation of the peso, the buying power of Mexicans is down. At the McDonalds two blocks from the border [in Nogales] sales are down 24%." According to Finance Controller Steve Brazamonte, NAFTA has not led to any increase in jobs. "Business has been bad the past couple of years because of the crackdown on illegal immigrants." Most of the customers were people who walked across the border and ordered food; now that there is an increase in border patrolling, the number of customers have decreased and so have sales, he said.


Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Caterpillar

Producer of mining and construction equipment, and lift truck, diesel, and gas turbine engines

Peoria, Illinois

EXPORTS "The NAFTA would eliminate the incentive to move operations to Mexico...U.S. companies would be better able top serve the Mexican market by exporting, rather than by moving production...Caterpillar estimates NAFTA-mandated tariff reductions -- coupled with increased economic growth -- would increase demand in Mexico by 250-350 units annually," "The Impact of NAFTA on Illinois," Prepared for USA*NAFTA by the Trade Partnership, Washington DC, June, 1993. p. 6.

According to Company spokesperson Jeff Hawkinson, "I don't have the figures available to answer those questions." Company spokesperson Marsha Hausser declined to respond to inquiries.

According to an October 11, 1994 letter to the editor of the Chicago Tribune written by Terry N. Thorstenson, Director of Corporate Public Affairs for Caterpillar, "We calculate that our exports to Mexico in each of the last two years supported... 2,700 employees who work for our U.S. suppliers."

NAFTA: We Need It published by the National Association of Manufacturers in November, 1993 lists the U.S. companies which are suppliers for the Caterpillar D8N track-type tractor. At least 5 of those companies (Dayco Products Inc., Parker Hannifin, Modine Manufacturing Company, Eaton Corporation and Goodyear Tire and Rubber Company ) were certified by the Department of Labor's NAFTA Trade Adjustment Assistance program (NAFTA TAA) as having laid off a total of 2,081 workers due to NAFTA.

Cavanaugh Corp

Manufacturer of ultraviolet printing inks and coatings

Flemington, New Jersey

EXPORTS "Cavanaugh expects its market to expand by 50%; Have no plans to relocate production," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 53 According to Finance Controller, Jack Wald, "NAFTA has had no effect" on the company. Wald said that exports have only increased "slightly." NAFTA, he said, has not created any new U.S. jobs. According to the Finance Controller, Jack Wald, NAFTA has "not had any significant benefit yet. It is no easier to ship things under NAFTA as there is still a duty, " he said. The company has not created any new jobs because of NAFTA.

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Chrysler Corporation

Automobile manufacturer

Highland Park, Michigan

JOBS "With the passage of NAFTA, Chrysler is planning to export 25,000 vehicles to Mexico and Canada by 1995 and 80,000 by the year 2000. The sales will support 4,000 U.S. jobs by 1995, including Chrysler employees and U.S. suppliers," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. pg. 38 According to Chrysler Spokesperson Lori McTavish, Chrysler's Mexican sales of vehicles imported from the United States has fallen from 8,595 for the first six months of 1994 to 1,838 for the first six months of 1995, a drop 78.4 %. Jason Vines, Chrysler's Washington Director of Public Relations could not provide figures on job creation in the U.S. due to NAFTA but did say, "We have been able to preserve jobs at U.S. plants that didn't previously export to Mexico such as St. Louis." University of Maryland economist Robert E. Scott estimates that 45,000 jobs for U.S. autoworkers do not exist because of the peso devaluation. According to Chrysler Manager of Washington Public Affairs Chris Preuss, the company exports very little into Mexico. In 1993 Chrysler exported 6,000 units to Mexico, 17,000 units in 1994, down to 3,700 units in 1995 and up to 6,000 units in 1996 (as of 11-96). The dealer network fell apart with the peso crisis and the company's exports fell drastically. In 1995-96 exports rose substantially and the company expects them to continue to rise steadily. In 1995 the imports from Mexico to the U.S. totaled $2.5 billion and the exports to Mexico from the U.S. totaled $2.1 billion (mostly service parts). Job creation has been minimal in Mexico and Chrysler has not opened any new plants in Mexico, Preuss added.

In 1996, the United States had a $27.7 billion trade deficit in automobiles, light trucks and parts with Mexico and Canada -- $15 billion with Mexico, $12.7 billion with Canada.

According to the July 14, 1996 El Financiero Weekly (Mexico City), in the first four months of 1996 alone, Chrysler's Mexican plants assembled 121,717 passenger vehicles and light trucks, 87.5% of which were exported, most going to the United States. According to the July 2, 1996 Miami Herald, "Chrysler officials...say their [Mexican] plants are running at full capacity to meet demand in the United States..."

According to the September 29, 1996 El Financiero Weekly (Mexico City), "Chrysler announced on August 25th that it would be investing several hundred million dollars over the next three years to build new plants in Mexico, Brazil and Argentina. In Mexico, the company plans to invest 80 million dollars in an auto parts plant in Saltillo, Coahuila. Last year, Chrysler de Mexico opened a $300 million truck plant that is also in Saltillo."

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Conlan Engineering Company, Inc

Engineering services

Longview, Texas

JOBS "The passage of NAFTA could increase the size of the firm exponentially with potential opportunities. NAFTA will create a greater demand for Conlan's engineering services, primarily in the areas of environmental and civil engineering. Conlan feels that it could increase tenfold within the next five to ten years with the passage of NAFTA," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. xiv, p. 79 According to Conlan President Craig Carney, "We currently have no business with Mexico." According to Carney, NAFTA has not led to an increase in the size of his firm. According to Conlan President Craig Carney, Conlan Engineering has not done any business with Mexico since NAFTA passed. The size of the company has not increased due to NAFTA.
Daimler Benz

Motor vehicles

Montvale, New Jersey

JOBS "The company believes NAFTA would mean more business for Freightliner Corp. (one of its companies) and more jobs in Portland, Oregon, not fewer. NAFTA will increase job growth for over 22 subsidiary companies operating in the U.S.," NAFTA: We Need: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p.53 According to the Director of Corporate Services for Daimler Benz, Olah Bukena-Howard, NAFTA has not meant any new business for Freightliner Corp. Daimler Benz had been hoping to produce parts in Mexico for Freightliner Corp. but that has not yet occurred. Daimler Benz's sales to Mexico have dropped off dramatically since the peso devaluation. "Mexico is not a viable market at this point," Bukena-Howard said. Daimler Benz did open a new $20 million manufacturing plant in Cuautla, Mexico in February, 1995. The plant manufactures airbag systems and other automotive and industrial electronics and is expected to generate $30 million in sales in 1995, according to Bukena-Howard. According to the Manager of Corporate Information for Daimler Benz, Christiana Fisher, Freightliner Corporation had started to assemble trucks in Mexico, but it had to lay off hundreds of workers due to the collapse of the peso. It was a "very hard time," she said. A sales and financing company has been created in Mexico, which was not possible before NAFTA. It has generated about 10-12 jobs, none of which are manufacturing jobs. The company has no accurate figures for jobs and exports because they have been hard to measure due to the collapse of the peso.

In 1996, the United States had a $27.7 billion trade deficit in automobiles, light trucks and parts with Mexico and Canada- $15 billion with Mexico, $12.7 with Canada.

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Desert Rose Salsa Co.

Food Processor and Distributor

Tucson, Arizona

EXPORTS Patti Swidler, owner of Desert Rose Salsa Co., said that Mexican companies are clamoring for distribution rights to Desert Rose products, and she expects sales to boom under the NAFTA just as their Canadian exports increased as a result of the CFTA [Canadian Free Trade Agreement]. "The Impact of NAFTA on Arizona," Prepared for USA*NAFTA by the Trade Partnership, Washington DC, June, 1993. pg. 3 According to CEO Mary Schaheen, the company has not exported to Mexico and has canceled indefinitely plans to expand to Mexico. The company was set to expand their business to Mexico until the peso was devalued. "Everyone is very conservative about speculating what could happen," Schaheen said. According to Marketing Manager Jennifer Hansen, Desert Rose Salsa has only been exporting for about two years and they have not exported to Mexico or Canada. The company has been doing research and analysis of the Mexican markets and are just beginning to open up trade relations with them.

Dexter Corporation

Adhesive and fabric manufacturers

Windsor Locks, Connecticut

JOBS "Dexter employs 35 people and expects employment to increase under NAFTA," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. xiv According to Director of Corporate Development Richard Hurley, the company has not created any new jobs because of NAFTA and doesn't expect to in the future. When asked if Dexter has been able to increase its U.S. employment due to trade with Mexico, Sales Products Specialist Pam Beach replied, "No." According to Senior Division President Dan Clark, NAFTA has not led to an increase in jobs. "NAFTA has not affected us one way or another. NAFTA has yet to develop into something," he added.

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Dodge-Regupol, Inc.

Rubber recycler

Lancaster, Pennsylvania

JOBS "[B]ecause we are an environmental company, our sales to these regions will directly help the general environment by reducing waste and landfill requirements in these areas." "With NAFTA, the U.S. trade surplus with Mexico will continue and will create more U.S. jobs," Statement by George C. Soukas, Dodge-Regupol, Inc., on behalf of USA*NAFTA, before House Ways & Means Committee, p. 156, Sep. 14, 1993. The U.S. trade surplus with Mexico turned into a trade deficit in the fall of 1994. In the first six months of 1995, U.S. trade with Mexico created an $8.6 billion trade deficit which is expected to reach $15 billion by the end of the year. According to George Soukas, the firm's exports to Mexico had increased before NAFTA and that boom extended until the peso devaluation. "The business in Mexico has bottomed out. It is not a lucrative market to be in right now...It's really, really pretty bad." The U.S. trade surplus with Mexico has turned into a $16.8 billion annual trade deficit.

According to Chief Financial Officer George Soukas, the peso devaluation has made trading with Mexico harder. When asked if there was an increase in jobs or exports because of NAFTA, he replied "I can't say that." He added that the company is still selling in Mexico but it has to quantify how much because a lot of it is indirect.

Donaldson Company Inc.

Filtration products

Minneapolis, Minnesota

JOBS "NAFTA...will increase both its US and Mexican employment," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 49 According to company spokesperson Jim Giertz, NAFTA has had "basically no effect on employment" at the company. Giertz said that exports to Mexico were not effected by NAFTA and "have dramatically slowed down since the peso devaluation." According to company spokesperson Jim Giertz, NAFTA has had "no impact" on job creation in the company.

Donaldson has done business with Mexico and Canada in the past and present, but production has not changed.

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

Eastman Kodak

Photographic and duplication product manufacturing

Rochester, New York

EXPORTS "With these trade barriers out of the way, Kodak anticipates that it will double its US exports to Mexico to $250 million by 1995 and double them again to $500 million by the year 2000," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November 1993. p. xiii. According to Kodak's Director of Export Regulation, Alan Wander, Kodak's exports to Mexico reached $238 million in 1994. This was up 20% from 1993. Since the peso devaluation exports are down 20%-25%. Wander predicts exports to Mexico for 1995 will reach $190 million. Reaching $500 million in exports to Mexico by the year 2000, is still a "reachable goal" for Kodak, Wander said. According to the spokesperson for Kodak's Corporate Media Relations, Charlie Smith, Kodak sales in Mexico have "declined." "Exports from our manufacturing areas in Mexico have been approximately 55% to the U.S. and Canada," he said. Kodak exports from Mexico to the U.S. and Canada "increased more than 20% in both 1995 and 1996."
Federal Express Corporation

Express mailing and shipping corporation

Memphis, Tennessee

JOBS "In Miami alone, Fed Ex has added twelve full-time employees to support business with Mexico, and anticipates a further increase in US jobs once NAFTA is approved," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 78 According to Senior Specialist in Media for Federal Express Sandra Munoz, would not answer questions relating to NAFTA's effect on the firm's U.S. employment. According to FedEx Public Relations spokesman Bill Carol, "We have seen a surge in outbound and inbound traffic in Mexico. However, we believe that several factors contribute to that increase: One is the implementation of the NAFTA, which has helped to reduce costs and simplify trade between Mexico, the US and Canada. Because of the devaluation of the peso, Mexican exports are more competitively priced. In addition, as a result of the domestic recession in Mexico, manufacturers are more heavily focused on production for foreign trade. We believe all of these factors contribute to the increase in export traffic from Mexico. It would be difficult to determine exactly how much of the increase is attributed to NAFTA and how much to other forces."

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

FMC Corporation

Machinery and chemical manufacturer

Chicago, Illinois

JOBS "If NAFTA is ratified, FMC projects its exports to Mexico will increase to $73 million by the end of 1994, creating approximately 600 additional US jobs for FMC and its suppliers," NAFTA : We Need it: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 27 According to Vice-President for Latin America, the Middle East and Africa Peter Weber, it is "hard to say what the actual impact [of NAFTA] on jobs and exports was because of the peso devaluation." Weber said, that between 1990 and 1994, exports to Mexico increased 30% a year and estimated that jobs had been created based on model where increased exports equal new jobs. In 1995, he said, "export sales have declined." Asked if the peso devaluation and subsequent decline in exports was responsible for losing any U.S. jobs, Weber replied, "It would seem to follow the model. It's hard to say." Vice-President for Latin America, the Middle East and Africa Peter Weber would not participate in the survey.
General Electric

Electrical product manufacturer

Fairfield, Connecticut

JOBS "We are looking at another $7.5 billion in potential sales over the next 10 years. These sales could support 10,000 jobs for General Electric and its suppliers. We fervently believe that these jobs depend on the success of this agreement," Michael Gadbaw, General Electric USA-NAFTA before the House Foreign Affairs Committee, Oct. 21, 1993. According to GE spokesperson Phyllis Piano, General Electric's exports to Mexico were up 68% in 1994, most of that being exports from the United States. When asked how NAFTA had affected jobs Piano said, "It's very hard to say." Piano also stated the effect of the peso devaluation on GE had been, "minimal".

The Department of Labor's NAFTA Trade Adjustment Assistance program (NAFTA TAA) has certified that 146 General Electric workers were laid off due to a "Shift in production to Mexico" (95 workers at General Electric's Fort Wayne Indiana facility and 51 workers at their Rome, Georgia

According to General Electric Spokesman David Warshaw, GE has had a "positive success in Mexico related to growth in the Mexican economy." He said that there were no specifics on any sales or job increases.

The Department of Labor's NAFTA Trade Adjustment Assistance program (NAFTA TAA) has certified that an additional 2,158 GE workers were laid off due to NAFTA, bringing GE's total up to 2,304. Those certifications include: 2,108 workers certified as having been laidoff due to a "shift in production to Mexico"; 1,500 and 163 in two Erie, Pennsylvania plants and 445 workers in a Hickory, North Carolina plant. 50 workers in a Bucyrus, Ohio plant were certified as having been laidoff to a "shift in production to Canada".

According to GE's 1995 Annual Report, "we increased our industrial motor manufacturing capability in Monterrey, Mexico, to reposition

our competitiveness in AC and DC industrial motors."

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

General Motors

Automobile manufacturer

Detroit, Michigan

EXPORTS "Contrary to predictions by many that the NAFTA will lead to the transfer of U.S. production to Mexico, both GM and Ford have made plans in the United States and Canada...GM predicts that the U.S.'s automotive trade deficit with Mexico, currently running at $ 2 billion a year will shift to a trade surplus under NAFTA," "The Impact of NAFTA on Illinois", Prepared for USA*NAFTA by the Trade Partnership, Washington DC, June, 1993. p. 5 According to Linda Cook, director or corporate communications for General Motors North America, General Motors planned to ship 15,000 vehicles to Mexico in 1995. "Because of the economic situation in Mexico very few of those shipments have occurred.", stated Cook. According to the U.S. Department of Commerce, the U.S. motor vehicle trade deficit with Mexico has been steadily increasing since before NAFTA. During 1993 the motor vehicle trade deficit stood at $3.0 billion. This deficit increased to $3.3 billion in 1994, the first year after NAFTA. The 1995 deficit is on pace to climb even higher. For the first six months of 1995 the deficit was $2.2 billion, up 64 % from the same time last year. According to their 1995 annual report, General Motors sales in Mexico were down 64% in 1995.

According to Public Relations Spokesman Randy Dove,

"We can say that the atmosphere certainly seems more open and people do seem more receptive since NAFTA. We already have business in those countries [Mexico and Canada] and we certainly feel the prospects are good."

In 1996, the United States had a $27.7 billion trade deficit in automobiles, light trucks and parts with Mexico and Canada- $15 billion with Mexico, $12.7 billion with Canada.

According to the February 20, 1996 Des Moines Register, 80 employees earning $6.50 an hour at the Lucas, Iowa based Lucas Products were "laid off" in late 1994 when "GM moved production to Mexico to take advantage of lower wages and the North American Free Trade Agreement."

According to the June 23, 1996 El Financiero International (Mexico City), in 1995 Mexican sales of Mexican produced and imported models of General Motors de Mexico dropped 65% to 41,000 in 1995 while vehicle production increased 24 percent to 199,000 units.

According to April 26, 1996 Miami Herald International, "General Motors Corp. plans to invest $276 million in its Mexican operations this year...GM invested $356 million in Mexico in 1995."

According to the November 20, 1996 States News Briefs, "General Motors will spend over $22 million to expand its Delphi parts plant in Ciudad Juarez, Mexico across the border from El Paso. One thousand new jobs are expected to be created as the plant nearly doubles in size. Eighteen thousand people already work at the facility including some El Paso residents."

Company Type Promise Reality: 22 Months After NAFTA Reality: 3 Years After NAFTA

General Tire

Tire manufacturer

Akron, Ohio

JOBS "Improving our competitive position should permit us to employ more workers in the United States," NAFTA: We Need It: How U.S. Companies View Their Business Prospects Under NAFTA, National Association of Manufacturers, Washington, DC, November, 1993. p. 70 According to spokesperson Ed Coleho, the firm has had "no major changes in employment at all." Coleho said the firm "imports more [from Mexico and Canada] than exports [to Mexico and Canada], especially from Canada. The firm has not increased exports to Mexico," he said. According to Export Manager Tom Kish, the company has not created any new jobs due to NAFTA. The company has been downsizing for the past 3 years and has moved their headquarters from Arkansas to Charlotte and realigned many job functions. In the last year they have increased sales of commercial truck tires to Mexico.

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