[Congressional Record Volume 163, Number 72 (Thursday, April 27, 2017)]
[Senate]
[Page S2579]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NAFTA
Mr. President, we can't simply ignore the benefits of NAFTA for the
U.S. economy. Experts have said that more than one-quarter of global
GDP--some $20.5 trillion--is produced in NAFTA's combined markets of
the United States, Canada, and Mexico. Canada and Mexico are the
largest export markets for the United States. U.S. trade with Canada
and Mexico has more than tripled since 1993, and that was before NAFTA
came into effect.
In 1993, U.S. foreign direct investment in Mexico was slightly more
than $15 billion. In 2016, it was more than $92 billion in foreign
direct investment.
NAFTA increased U.S. agricultural exports to Canada and Mexico by 350
percent, supporting U.S. farmers and ranchers like those back in
Arizona. NAFTA has resulted in an integrated supply chain between the
United States and other countries.
For example, the Wall Street Journal reported that ``tens of
thousands of parts that make up a vehicle often come from multiple
producers in different countries and travel back and forth across
borders several times.'' Abandoning NAFTA would destroy these supply
chains, making it harder for our country's private sector employers to
grow and to do business.
Arizona has certainly benefited from NAFTA. In 2016, Arizona's trade
with Mexico exceeded $15 billion. Total trade between Arizona and NAFTA
countries reached nearly $20 billion last year.
The Arizona Daily Star noted back in November that ``trade with
Mexico supports about 100,000 jobs in Arizona and retailers depend on
roughly $8 million Mexican shoppers spend daily in Arizona.''
The bottom line is that trade is good for American businesses, it is
good for American workers, and it is good for American consumers.
Trade deals like NAFTA make inputs for U.S. manufacturing cheaper
than they would be otherwise. Cheaper inputs mean lower production
costs for U.S.-based businesses, which, in turn, allows these companies
to expand production and to reduce prices. That means everyday consumer
products are more affordable for middle-class families.
If the protectionist trade policies of the past have taught us
anything, it is that when we increase trade barriers, nobody wins. Do I
agree that we should work to make U.S. businesses more competitive?
Absolutely. Do I agree that we can modernize NAFTA? You bet. Pro-growth
trade policies have been at the top of my list of priorities since I
came to Congress. But any efforts to impose new restrictions on our
ability to trade with Mexico and Canada will have serious consequences
for Arizona, leading to jobs being lost and higher costs for consumers.
If we just think, in 2003 total U.S. trade with Mexico was just
around $50 billion. Today, it is between $500 billion and $600 billion.
What is not to like about NAFTA? It is good for Americans. It is good
for the Mexican economy. It is good for Canada.
We have noted many times that with regard to border security, the net
flow of Mexican migrant workers has been south, not north, over the
past couple of years. One of the biggest reasons for that, obviously,
is the Mexican economy is doing better, and part of the biggest reason
for that is because of NAFTA and their ability to trade. That is good
for the United States. It is good for Mexico.
Trade is not a zero sum game where one party wins and the other party
loses. Free trade benefits everyone. I hope that we remember this as we
look toward NAFTA's future. We need to improve it and to modernize it,
certainly, but we shouldn't abandon it.
I yield the floor.
The PRESIDING OFFICER. The Senator from Colorado.
Mr. BENNET. Mr. President, before I begin my remarks, I just want to
say, while the Senator from Arizona is still here, what a privilege it
is to hear somebody come to this floor and actually speak about facts
as they actually are--economic facts, facts related to immigration. If
we had more people in the Senate who spoke on the floor the way the
Senator from Arizona just did, there is nothing we wouldn't be able to
accomplish together. It is a privilege to serve with him. It is a
privilege to hear the clarity with which he spoke about these important
issues. So I want to thank him through the Chair for that speech.