After years of negotiation and repeated postponements, the North
American Free Trade Agreement (NAFTA) has been completed and now
awaits congressional consideration. As if on cue, a torrent of
opposition has erupted.
The most surprising aspect about the NAFTA debate is the
criticism by some conservatives. Opposition to the NAFTA is
understandable on the part of protectionists, champions of
increased government regulation, and those who unashamedly seek to
advance their own fortunes at the expense of the national interest.
But for conservatives, there should be little dissension. All the
existing empirical data regarding U.S. trade with Mexico, as well
as basic economic theory stretching back over 200 years to Adam
Smith, shows that the NAFTA is good for the U.S. This is why Ronald
Reagan, Margaret Thatcher, and Milton Friedman, to name only some
of the most prominent conservatives, strongly support the
agreement, even with its admitted flaws. As Thatcher told a U.S.
audience recently, America has "nothing to fear" from the
NAFTA.
Why, then, is there such strong and growing opposition among
conservatives? In large part, much of this opposition can be traced
to insufficient familiarity with the terms of this complex
agreement. The hundreds of pages of dense text make it a formidable
obstacle, and most commentators have chosen to rely on general
summaries of its content, along with word of mouth, for their
understanding. Thus, they are insufficiently prepared to counter
the propaganda and outright fabrications put forward by opponents.
As more conservatives become familiar with the actual text of the
NAFTA and its side agreements on labor and environmental issues,
they are likely to become more supportive. An objective reading of
the text and consideration of the evidence reveals that the NAFTA
will:
Create American jobs
Economists are virtually unanimous in their conclusion that the
NAFTA will have a strongly positive impact on job growth throughout
the U.S., with most estimates in the hundreds of thousands.
Opponents' predictions of a net job loss are backed by no evidence
whatsoever.
Make America more competitive abroad
America has two choices with the NAFTA: to become more
competitve abroad with it, or to become less competitive without
it. With the NAFTA, American companies can become more competitive
in foreign markets by taking advantage of Mexico's lower-cost
labor, much as the Japanese have long done through co-production
arrangements in other East Asian countries.
Not endanger American sovereignty
The NAFTA's labor and environmental commissions cannot supersede
U.S. or state laws nor do they have any power to compel any action.
Neither do they have subpoena or independent inspection powers;
they are limited to "recommendations." The U.S. retains complete
control over the content and enforcement of its own laws.
Help stem the tide of illegal immigration, slow the influx of
illegal drugs, and better secure America's border with Mexico. As
Mexico's economy grows, fewer Mexicans will migrate to the U.S. in
search of employment. Moreover, there is nothing in the NAFTA that
will exacerbate the illegal drug trade; removing tariffs on
tomatoes is not likely to endanger U.S. security. In fact, U.S.
cooperation with Mexican border patrols will increase under the
NAFTA.
Many of the concerns of conservatives about the labor and
environmental side agreements stem from what the Clinton
Administration originally proposed, not what was actually
negotiated. In that sense, many conservative critics of the NAFTA
are fighting battles that have already been won and warning against
dangers which never actually materialized. For a close reading of
the recently released texts of the side accords reveals that the
actual damage to the NAFTA's free trade provisions was far less
than feared. This does not mean that they are entirely harmless:
they do set bad precedents and have the potential to be
strengthened at some future date. Therefore, a high priority for
the next free trade administration should be to remove them. But
for now they contain little more than empty phrases and little or
no enforcement power. If anyone has cause to oppose the NAFTA, it
is those protectionist groups who eagerly expected a real advance
toward managed trade and more government regulation. They did not
get it, and that is why Ralph Nader and the AFL-CIO and their
lobbyists in Congress are so bitterly opposed to the NAFTA.
Lack of Confidence
Unfortunately, outdated and inaccurate information about
the NAFTA and the side accords is only one of the sources of
conservative opposition. At its core is a more serious problem: a
lack of confidence in the U.S. and a growing pessimism regarding
its ability to compete in the world.
A lack of confidence in the U.S. is nothing new for those on the
left, many of whom do not hide their distaste for American society
and whose penchant for government regulation creates a bias in
favor of barriers against the outside world. This negative image of
America, and the accompanying national paralysis it engendered,
enjoyed increasing currency until Ronald Reagan's presidency
largely dispelled it.
What is new is that it has now been taken up by many
conservatives, whose reading of the NAFTA is distorted by this
defeatist world-view. Seen through their eyes, the U.S. needs to
erect new and higher barriers to shield itself from an array of
threats. They believe that the easy U.S. primacy is now over, and
increasingly the U.S. will not be able to compete in the world.
In trade, protectionists on the left and right loudly proclaim
the need for the U.S. to tilt the rules in its favor. For them, a
fair contest is to be avoided at all costs because their assumption
is that the U.S. would always lose. The government, therefore, must
take control, not just of trade, but of an ever-widening array of
activities to ensure an equitable outcome.
But if conservatives believe in anything, it is in human liberty
and in the workings of the free market. Conservatives are pledged
to remove the constraints that governments seek to impose,
regardless of whether these are derived from ideological reasons or
at the behest of organized interests. Conservatives know that there
is no need for the U.S. to adopt a defensive crouch. All that
America needs to prevail in global trade is open access to foreign
markets. Protectionism, regardless of whatever imaginative
rationale is put forward for it, is an admission of defeat.
America's Self-Image
The NAFTA debate is not merely an argument about a trade
agreement; it is also a fight over the self-image of the U.S. and
this country's role in the world. The result will be either a
confident embrace of the future or the beginning of what may become
an endless retreat. Liberals and protectionists may oppose the
accord, and given their beliefs it is understandable that they
should do so. But conservatives cannot do so without betraying
their fundamental principles.
The U.S cannot hide from the world, and there is no reason
conservatives should want to. Adopting a bunker mentality is the
surest way to undermine America's role in the world and to sabotage
her ability to pursue and defend her interests. If there is
anything to fear it is those who, in the name of protecting the
U.S., would erect constraining barriers and foist upon Americans a
ruinous self- image of weakness and victimization. The costs it
would impose cannot be measured in dollars, although these would be
substantial. Far more damaging would be its corrosive effect on
America's image of itself.
Conservatives should heed Ronald Reagan, who wrote recently,
"When it comes to freedom and prosperity, Americans have never been
content merely with the status quo or allowed limitations to be
placed upon us. Today we must realize the competitive challenge of
the global economy and step right up to our rightful place as
leader." "The North American Free Trade Agreement," says Reagan,
"can bring us that victory."
Douglas Seay, former Deputy Director of Foreign Policy and
Defense Studies.