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Nafta implementation act Form: What You Should Know

S. Economy in general, and the U.S. automobile industry in particular. However, in order to provide an understanding of the nature of trade policies, there is a general discussion of trade agreements in the “Chapter V: Trade and Economic Issues” section. In this Statement, the term, “NAFTA,” means the North American Free Trade Agreement (“NAFTA”). NAFTA is an international agreement among the United States, Mexico and Canada entered into on Oct. 13, 1993. With the agreement, the nations established a comprehensive economic and trade area in which the U.S. exports automotive parts and components to Mexico, Canada, and the Caribbean nations, and imports automobiles and parts manufactured in Mexico, Canada and the Caribbean nations. The NAFTA includes rules that facilitate the free flow of commerce between the United States, Mexico and Canada, and provides safeguards to protect U.S. consumers. It is the most sweeping free trade agreement in American history. NAFTA creates a new world order in auto sales. Auto industry exports to NAFTA countries have nearly tripled since 1992 after the trade agreement went into effect. (In 2002, U.S. auto exports to Mexico totaled 28 billion, an increase of almost 10 billion over the 1994 level.) However, most of the growth in trade between NAFTA participating nations does not take effect until later. U.S. automakers are especially strong with Mexico. In 1994, the United States imported the lion's share (80%) of parts and components for its vehicles sold in Mexico, and more than 90 percent of its imported vehicles were assembled there. The United States imported close to 3.5 billion worth of parts and parts products from Mexico in 1994. In March 2010, Auto News listed the top five automakers with the best Mexico sales and production. Toyota, Mitsubishi and Nissan ranked first, second and third, respectively. However, when it came to manufacturing vehicles in Mexico, the top five automakers were all Honda companies, General Motors, Ford and Chrysler. These five American auto companies now have a market share of over 40 percent in Mexico, and the United States has begun to see a significant growth of U.S. auto production in Mexico. Automobiles are the most import-dependent industry in the United States. In 1989, imports of cars and light trucks were 11.5 billion, and by 2004, this figure had increased to almost 52 billion.

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Thank you. Please be seated, ladies and gentlemen. We gathered here today to celebrate a great victory. It is a moment when our country has chosen to take the lead in shaping a new world of expanded trade and expanded opportunity. In a few moments, the president will sign the North American Free Trade Agreement (NAFTA). The arguments for and against this pact are by now too well known. Good men and women fought on both sides of this issue. We understand the concerns and fears of those who oppose this agreement. We respect their disagreement. However, let me state our simple conviction that NAFTA will be good for our country, good for working men and women, and good for the future of our hemisphere. Let me briefly acknowledge only a few of the many people who played a critical role in this team effort. The fight for NAFTA was an act of bipartisan leadership, bringing together lawmakers from both parties in both chambers. Those who worked to pass NAFTA are, of course, too numerous to list. But let me particularly acknowledge Speaker Foley, Republican Leader Bob Michel, Republican Whip Newt Gingrich, Representatives Rostenkowski, Hoyer, Fazzio, Matsui, Richardson, and Colby. On the Senate side, Majority Leader Mitchell, Republican Leader Dole, and Senators Baucus, Bradley, Dodd, Chafee, and Danforth. Senators Mitchell and Dole both had previous commitments and could not attend today. Furthermore, the members of the cabinet and their tireless staffs also played a critical role. I'd like to acknowledge Secretaries Christopher, Benson, Rice, Brown, Browner, Pina, Attorney General Reno, Secretary Cisneros, Madeleine Albright, Secretary SB Riley, Shillelagh, O'Leary. And special thanks to Secretaries Christopher, Benson. We appreciate what all of them did. NAFTA was also overwhelmingly supported by governors who know what job creation is all about. Several of them are...