    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
    [July 11, 1997]
    [Pages 942-943]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Transmitting the Study on the Operation and
    Effect of the North American Free Trade Agreement
    July 11, 1997

    To the Congress of the United States:
        I am pleased to transmit the Study on the Operation and Effect of
    the North American Free Trade Agreement (NAFTA), as required by section
    512 of the NAFTA Implementation Act (Public Law 103-182; 107 Stat. 2155;
    19 U.S.C. 3462). The Congress and the Administration are right to be
    proud of this historic agreement. This report provides solid evidence
    that NAFTA has already proved its worth to the United States during the
    3 years it has been in effect. We can look forward to realizing NAFTA's
    full benefits in the years ahead.
        NAFTA has also contributed to the prosperity and stability of our
    closest neighbors and two of our most important trading partners. NAFTA
    aided Mexico's rapid recovery from a severe economic recession, even as
    that country carried forward a democratic transformation of historic
    proportions.
        NAFTA is an integral part of a broader growth strategy that has
    produced the strongest U.S. economy in a generation. This strategy rests
    on three mutually supportive pillars: deficit reduction, investing in
    our people through education and training, and opening foreign markets
    to allow America to compete in the global economy. The success of that
    strategy can be seen in the strength of the American economy, which
    continues to experience strong investment, low unemployment, healthy job
    creation, and subdued inflation.
        Export growth has been central to America's economic expansion.
    NAFTA, together with the

    [[Page 943]]

    Uruguay Round Agreement, the Information Technology Agreement, the WTO
    Telecommunications Agreement, 22 sectoral trade agreements with Japan,
    and over 170 other trade agreements, has contributed to overall U.S.
    real export growth of 37 percent since 1993. Exports have contributed
    nearly one-third of our economic growth--and have grown three times
    faster than overall income.
        Workers, business executives, small business owners, and farmers
    across America have contributed to the resurgence in American
    competitiveness. The ability and determination of working people across
    America to rise to the challenges of rapidly changing technologies and
    global economic competition is a great source of strength for this
    Nation.
        Cooperation between the Administration and the Congress on a
    bipartisan basis has been critical in our efforts to reduce the deficit,
    to conclude trade agreements that level the global playing field for
    America, to secure peace and prosperity along America's borders, and to
    help prepare all Americans to benefit from expanded economic
    opportunities. I hope we can continue working together to advance these
    vital goals in the years to come.

                                                          William J. Clinton

    The White House,

    July 11, 1997.