    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book II)]
    [October 29, 1993]
    [Pages 1860-1863]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on NAFTA to Gillette Employees in Boston, Massachusetts
    October 29, 1993

        Thank you very much. I've had a good time here today. I'm a
    satisfied customer, that's true. And I rarely cut myself, and when I do,
    it's my fault, not yours. [Laughter]
        Mr. Zeien and Governor Weld, Senator Kennedy, Senator Kerry,
    Congressman Moakley, Congressman Kennedy, and my other friends here
    today. This was a good experience for me for a lot of reasons. I've had
    a wonderful day today. We dedicated the Kennedy Museum over at the
    Kennedy Library. I urge you all to go and see it. It's wonderful,
    improved, accessible. It's terrific. And they even put a little clip of
    me in there talking, so I like it better. [Laughter]
        And I spoke at the Kennedy Library about the challenges that
    President Kennedy faced over 30 years ago: trying to get America to
    solve its problems here at home, which at that time were largely the
    problems of civil rights, and still to be adventuresome when looking
    toward the future; when he launched the space program, which we're
    trying to keep alive and keep going today; when he agreed to establish
    and push for the establishment of the Peace Corps and the Alliance for
    Progress in Latin America; and when he started a trade adjustment
    program for people who lost their jobs in trade because he knew that if
    we did it right, we'd always have more winners than losers, but people
    who lost their jobs should be retrained so they could get new and
    different jobs. And this is the kind

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    of replay in some ways of that time, with a more complex and difficult
    set of problems.
        I feel right at home here, when before--I tell people, back when I
    had a life, before I became President--I was the Governor of what my
    opponent in the last election called ``a small southern State'' that had
    22 percent of its work force in manufacturing. And my job was
    essentially schools and jobs. That's what I did for a living. I was in
    plants all the time; I frequently worked shifts in plants. I understand
    a little bit about machine tools and how they work and how they're
    adjusted. I now know what a bam, a cam, and a pam is.
        I had some plants when I was the Governor of my State that shut down
    and went to Mexico. And because it was a small State, I knew who they
    were and what they did for a living. I was quite proud of the fact that
    before I left office, I brought one of them back, because our people
    were doing a better job in productivity and product modification, just
    like you are.
        And so I want to talk a little bit today just as briefly as I can,
    because Mr. Zeien has already said how this plant and this company will
    benefit if NAFTA passes. Everybody knows there will be some winners and
    some losers. But there's a lot of sort of fogginess about why this is
    good for America or why it's bad. And I want to go through this because
    I need your help. And the Congress needs your help, not his help. With
    all due respect to him, Members of Congress know most business people
    are for NAFTA, but they can figure out that if you're smart and you're
    running a business, you can benefit six and one-half dozen of the other.
    That is, you could benefit in Mexico or in the U.S. So the Members of
    Congress want to know that you're going to win if it passes. And you
    hired them; so they should want to know if you're going to win, right?
    They work for you, just like I do.
        The first thing I want to say is, I have lived with the
    manufacturing changes of the last 15 years. And I would never knowingly
    do anything that would cost Americans jobs.
        I am for this agreement for quite a few reasons. The first and big
    reason is this: There is no evidence whatever that a wealthy country
    cannot only grow wealthier but can actually create jobs and raise
    incomes unless it expands trade and promotes the growth of the global
    economy. Why? Because if you have a stagnant economy, when, as you know,
    you can move money around the world in a millisecond--technology can be
    adapted around the world, management can be moved around the world--if
    you have a stagnant economy and poorer countries are growing with new
    manufacturing, that means that people in richer countries will work
    harder for less money.
        That is exactly what has happened in the United States for 20 years.
    A lot of hourly wage earners have worked harder for lower wages. But
    guess what, it's happening everywhere. If you look at Europe where
    there's no growth today, if you look at France even when they had
    growth, the unemployment rate in the last 5 years never going below 9.5
    percent, it is clear that a wealthy country can only grow wealthier in
    terms of jobs and income at a time when the global economy is growing
    and they are selling more of their products and services beyond their
    borders as well as within their borders. Nobody has ever been able to
    demonstrate the contrary to me in the modern world.
        So therefore, one of our biggest problems in America today is no
    growth in Europe, no growth in Japan. One of our biggest opportunities
    is that Latin America, including Mexico, is the second fastest growing
    part of the world. And it's right here handy, and they like to buy our
    products.
        The second thing I want to say is this: A lot of the problems people
    have with this NAFTA agreement they have because they believe that the
    present relationships we have with Mexico have encouraged people,
    because wages and cost of production are lower there, to go to what is
    called the maquilladora area. It's right across the American border in
    Mexico. If you produce there, you can send your product back into our
    country duty-free. We created that several years ago since we wanted to
    help Mexico grow. But in the 1980's when the global economy got really
    tough and the screws were tightened on company after company after
    company, a lot of people said, ``Okay, we'll move down there.''
        Now, here's the second reason I'm for NAFTA. All the problems
    associated with the maquilladora issue will get better if we adopt it,
    and they won't if we don't. That is, forget about selling razor blades
    in Mexico. Just imagine what's going on to the plants that have moved
    down there. If this agreement passes, labor costs in Mexico will go up
    more rapidly, environmental costs will go up more rapidly.

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    Their requirement that products sold in Mexico be produced in Mexico
    will be reduced. We'll go from selling one to 50,000 or 60,000 American
    cars in the first year this agreement goes into effect. Their tariffs
    will go down.
        So I understand the resentments, the fears, the insecurities of
    people, probably a lot of them who work within 20 miles of this plant.
    But we've got to read the agreement. The agreement makes those problems
    better, not worse. And that's the other reason I'm for it.
        Finally, just let me say this: There will be some people who will be
    dislocated. There always are. If you have a trade agreement, just as
    President Kennedy recognized in 1962, there always are. I intend to ask
    the Congress to literally revolutionize the unemployment and the
    training system in this country.
        You know, the average person who loses their job today does not get
    called back to the same company. That's the way it was for 40 years.
    It's not true anymore. The average person who loses a job today has to
    go find a job with a different company. Often it's a very different kind
    of job.
        I agree with what Senator Kerry said: It's one thing to talk about
    changing work seven times in a lifetime and another thing to do it. If
    every one of you stays with Gillette until you retire, I'll bet you
    anything you'll have to change what you do. If every one of you stays
    with this company--some of you are quite young--for 20, 30, 40 years,
    you know as well as I do, 10 years from now the nature of your work will
    be different than it is today, even if you have the same employer. Isn't
    that right?
        I know how different these machines are. How long ago was it when
    there wasn't anybody on an assembly line reading a computer? How long
    ago was it that you had to do all your quality checks visually and it
    took longer and not as well? I mean, the world is changing.
        So as cruel or tough as it is, we can't pretend that it's not going
    to happen. You could--if we can't get all our titles straightened out,
    you could give us all--we could all shift and take one another's job and
    we couldn't repeal the changes. They're going to happen.
        So we have to decide, are we going to make these changes our friend
    or our enemy? Or are we going to have more Gillettes or more plants
    close down? Are we going to find more markets so we can secure the jobs
    we've got, add more jobs, and so companies can afford to give pay raises
    to their employees, or not? That is what is at stake.
        There are a lot of misconceptions about Mexico. A lot of people say,
    ``Well, we've got a trade surplus with them now, but only because
    they're buying our plant and machinery so they can put up plants that 5
    years from now they'll be shipping all this stuff back here, and we'll
    have a trade deficit.'' Let me tell you something: 40 percent of the
    dollar value of our exports in the entire world are in capital goods,
    that is, things that can be used in manufacturing; 60 percent in
    consumer products. But in Mexico, only 33 percent of their purchases of
    our products are in capital goods; two-thirds in consumer products, like
    razor blades; two-thirds--more than the global average. That country now
    is the second biggest purchaser of American products. There's 90 million
    people there, and they're handy.
        And you say, ``Well, what do they get out of this deal?'' I'll tell
    you what they get out of this deal. If we adopt this deal, it will be
    safer and more secure and more attractive for Americans to invest in
    Mexico, not along the border to export to America but down in Mexico
    City or over in Vera Cruz or in other places to put them to work making
    products for themselves. And that's good for you, too. Why? Because if
    more of them have jobs and the more income they've got, the more
    products of ours they can buy.
        Now, we have a trade problem in America today, but it's not with
    Mexico, and it's not with Latin America. Tiny Colombia has increased
    their purchases of American products 69 and 64 percent in the last 2
    years. What's our trade problem: $49 billion trade deficit with Japan;
    $19 billion trade deficit with China; $9 billion trade deficit with
    Taiwan. We've got a $5.7 billion trade surplus with Mexico, and we're
    worried about them, when they want to buy more of our products?
        Look, the people that are against this have legitimate fears and
    resentments and anger. There were a lot of workers that were thrown in
    the streets over the last 15 or 20 years. We have gone through two
    decades when a lot of hourly workers never got a pay raise. We are
    having a tough time creating jobs and income. But we don't want to cut
    off our nose to spite our face. We can't let this trade agreement become
    the flypaper that catches all those fears, because it will make it
    better not worse.

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        So I say, if you believe that, because you know what the experience
    of this company is, I want you to sit down and write a letter, not a
    pressure letter but a nice letter. Really, just two lines, to the
    Senators, to the Congressmen, or collect them all up and send them here
    and let them send them in. But they need to know that there's somebody
    out here in Massachusetts, somebody out here in south Boston, somebody
    in the entire United States that's going to make a living out of this
    deal, that understands that we're going to get more jobs and higher
    incomes and more opportunities if we do this. Because if we turn it
    away, it's really going to be a terrible thing.
        You know, we actually get a trade advantage over the Japanese and
    the Europeans in Mexico if this passes? And if it fails and they still
    need the money to develop their country, what are we going to do, what's
    Gillette going to do in Mexico if they turn around and give that trade
    advantage to somebody else? If they offer this same deal to somebody
    else, I'll guarantee you the Japanese, the European Community would take
    this deal in a heartbeat. This is a good deal. It is no accident that
    the Ministry of Trade in Japan has come out against this deal. It is a
    good thing for us.
        So I ask you to talk to your friends and neighbors, talk to the
    people who are worried about it, tell them their fears are well-founded,
    but they don't have anything to do with this agreement. This agreement
    will make it better. And meanwhile, we will keep working to build the
    security that Americans need.
        We've already had more private sector jobs come into this economy in
    9 months than in the previous 4 years. We're tackling the health care
    issue. We're tackling the deficit issue. Interest rates are at a 30-year
    low. We are moving in the right direction. But I'm telling you, nothing
    I do as your President within the borders of the United States can
    create more jobs and higher incomes unless somebody buys the stuff we
    produce. And that requires us to expand our market. Help us to do that
    by personally telling the Members of Congress you'd appreciate it if
    they vote for the NAFTA agreement.
        Thank you, and God bless you all.

    Note: The President spoke at 3:20 p.m. on the factory floor. In his
    remarks, he referred to Alfred M. Zeien, CEO, Gillette Co.