[Congressional Record Volume 140, Number 13 (Thursday, February 10, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 10, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                                 NAFTA

                                 ______


                           HON. HENRY BONILLA

                                of texas

                    in the house of representatives

                      Thursday, February 10, 1994

  Mr. BONILLA. Mr. Speaker, NAFTA represents the most significant job 
creation action of this Congress. For this reason, I am submitting an 
article written by John Adams, chairman of the Laredo Border Trade 
Alliance.
  I believe his remarks effectively capture the efforts embodied in the 
NAFTA to keep America competitive, working, and the leader of the 
global economy for years to come.

                [From Business Weekly, Nov. 22-28, 1993]

                After NAFTA, We'll Have Winners, Losers

                        (By John A. Adams, Jr.)

       It was the best of times, it was the worst of times--free 
     trade or protectionism? The economic future of the United 
     States and Mexico well into the first quarter of the next 
     century rested on Wednesday's Nov. 17 NAFTA vote by the U.S. 
     House of Representatives. During the past decade the 
     complexion of trade, manufacturing and commercial sourcing 
     has taken on truly a global framework.
       ``Freer trade'' versus those who would seek to limit 
     expanded commerce has been an ongoing debate for much of this 
     century, with the result being that those who do not change 
     and impose protectionist barriers fall behind and those who 
     reach out to new markets surge ahead to create new jobs and 
     opportunities.
       We need only look at all the closed protectionist economics 
     of Mexico and Brazil in the 1970s to remind us what an 
     attempt to close an economy will produce: stagnation. 
     Mexico's acceptance of GATT in 1986 opened its economy onto 
     the road of free trade and growth. The issue is one of 
     progress, and given the nature of global trade, those that 
     are willing to change and reach out to new markets will, in 
     the end, be the winners.
       And there will be losers, with or without NAFTA, in each 
     industry and company that does not evaluate their ability to 
     compete on a transitional scale.
       While a number of issues have captured center stage in the 
     NAFTA debate, none is more critical than jobs and the larger 
     question of the United State's ability to compete globally. 
     For decades we excelled and still do as the world's most 
     dynamic and leading economy. It is the very nature of our 
     expansive economy that others off-shore have worked to copy, 
     economically penetrate and cumulate our successes. While 
     being copied is somewhat flattering it is also irritating. 
     The production scheme has changed worldwide and will continue 
     to change as technology shortens the delivery timeline in 
     large part due to the demand for quality products in emerging 
     markets.
       Similar to Great Britain and Germany the industrial base of 
     the United States is in a mature stage, yet not as some claim 
     in stagnation.
       To be stagnant implies no new ideas or growth and this is 
     not the case with the U.S. Herein lies the challenge: to have 
     a quality jobs-retraining program intertwined with 
     technological advancements in the workplace.
       This must be coupled with an understanding that if we do 
     nothing and try to impose protectionist barriers, the 
     competitive world around us will continue to chip away at our 
     markets, thus our jobs.
       The job market has, in fact, in the last two decades taken 
     on a shift that began long before NAFTA. While trade unions 
     have a key role to play, their membership is in a net decline 
     in numbers, due to such items as right-to-work laws and the 
     shift of numerous sectors of high-tech fields in Sunbelt 
     states. What has evolved is global production by cutting-edge 
     companies, both small and large, that can bring together the 
     highest quality components to produce the most price-
     competitive product. The just-in-time approach in and of 
     itself puts all the major industrial nations on the 
     defensive, including Japan, which has tried to remain 
     insulated from the outside world, and threatens the 
     traditional approach to labor.
       Japan's worst nightmare about NAFTA has been that, with 
     passage of the accord, North America will be joined as one 
     trading block that will limit (due to product content rules) 
     Asian back-door access to the U.S. market. This item alone 
     will protect thousands of U.S. jobs.
       Thus the alternative, in addition to emphasis on training 
     and technological interfacing is to be among those nations, 
     suppliers and producers that will assemble, monitor, 
     distribute, service and market tomorrow's products and 
     services. Education will play the largest role to ensure 
     future workers are trainable and adaptable. Additionally, 
     industry should and will continue to produce ``easily-
     manufactured items,'' always mindful that competition is 
     always over the horizon.
       The fact that there is no limit to the types of products 
     and services that can be produced and exported leads to the 
     conclusion that those who are near the market will benefit. 
     Furthermore, the United States remains the leader in know-
     how, research and development as well as one of the leading 
     sources of investment capital.
       Laredo and South Texas are probably two of the most 
     strategically located regions in North America to benefit 
     from free trade and the passage of NAFTA. As the No. 1 inland 
     port in the world, this region is one of the fastest-growing 
     areas in the Southwest and possibly the nation. Thus it can 
     be assumed that things will not remain as they always have. 
     Change, with or without NAFTA, will occur in all sectors of 
     our economy; retail, distribution, shipping, service and 
     financial.
       Those companies that take the change in stride and look to 
     competitively improve their business will prosper. Sure 
     growth or reduction in competition are not likely to occur 
     any time in the near future. On the contrary, infrastructure 
     needs and planning will be paramount to service the twin 
     communities of Laredo and Nuevo Laredo that will number a 
     million inhabitants by the year 2000.
       Thus, the North American Free Trade Agreement, like other 
     milestones, is a defining moment for not only the United 
     States and Mexico but, more importantly, for Laredo.
       Mexico's membership in GATT, the reduction of inflation to 
     below 10 percent per year, the privatization of hundreds of 
     government-owned businesses and account reserves of more than 
     $20 billion compared to a monetary base of only $14 billion 
     position Mexico as a great trading partner.
       And, given the fact that this is indeed the time to embrace 
     free trade, we usher in continued growth and prosperity for 
     Laredo for the best of times and challenges well into the 
     next century.

                          ____________________