The North American Free Trade Agreement has resulted in $2.7 trillion in in personal income in the ten U.S. and Mexico states that line the border, a new report reveals.
News Radio 1200 WOAI report the report comes out at a time when NAFTA, which was denounced as a 'bad deal' by President Trump on the campaign trail, and has been questioned by the leftist candidate who is now leading in the polls in Mexico's upcoming Presidential election, is being renegotiated. The Federal Reserve Bank of Dallas says uncertainty over the future of NAFTA is one of the major black clouds looming over Texas' otherwise robust economy.
"Not only the border cities like Laredo, McAllen and El Paso, but cities like San Antonio do so much when it comes to trade with Mexico," Cuellar told News Radio 1200 WOAI's Michael Board.
In his study, prominent Texas economist Ray Perryman reveals that expanding border trade will bring 700,000 new jobs into the economy and nearly $70 Billion in annual gross product in the United States. It also reports that increased trade will result in an additional 100,000 new jobs and $5 Billion will be added in annual gross product in Mexico.
“I have said time and time again that limiting trade between the United States and Mexico would eliminate American jobs and hurt the economy,” Cuellar said. “Both countries rely on each other heavily for trade, retail, and tourism. That is why it is important that we modernize NAFTA and strengthen Texas’ relationship with Mexico to optimize prosperity."
While advocates of free trade say it is critical to upgrade NAFTA, which was signed in 1992, before the era of e-commerce, and before Mexico deregulated its oil industry, they stress that the benefits of NAFTA and of free trade in general are immense, and the negotiations must reach a positive conclusion and not be derailed by political considerations.
PHOTOS COURTSEY: US REP HENRY CUELLAR