Posted by on 3. Dezember 2020

When the U.S. government signed other trade agreements, job losses increased unabated. Author James Stuber explained the following industrial losses between 1990 and 2016: we must also take note of the centrality of Mexico and its re-export sector (Maquila) in intra-regional trade flows, as Mexico has specialized in assembling components for their re-exports to markets in North America. Monroy Gémez Franco (2014: p. 3-4) found that in 2011, when 81.9% and 75.6% of Mexico`s production of electronic and automotive components were destined for export, these sectors imported 68.5% and 45.2% of their intermediate consumption, respectively. Indeed, this is not an isolated case, the world trade in parts, modules and other electronic components now accounts for a significant share of intermediate goods trade, accounting for 20.3% of total trade in 2006 (Sturgeon- Kawakami, 2010: p. 4). Table 3: ICT Goods, Exports, China, US Billion and World Trade Share (%) The only hope we need to save production is to change the idea of free trade and adopt a „fair trade“ policy. To stop the decline of manufacturing, we must take into account the following: Bourdreaux theorized that a growing trade deficit is in fact positive, reflecting investor confidence. If a U.S. trading partner artificially oppresses its currency, the U.S. could see a larger deficit, „but this practice harms the trading partner, not the United States.“ While Apple is one of the largest and most important importers of products assembled in China, the company has mostly avoided tariffs on its main products during years of trade war. Economists seem to think that we could lose jobs and some industries, but overall, free trade leads to greater economic prosperity for all.

What these claims do not reveal is that manufacturing is being sacrificed to achieve the goal of growth and prosperity. Over the past 30 years, Republican and democratic leaders have systematically treated the manufacturing industries and jobs of American workers in exchange for promoting the interests of U.S. international investors. It`s Nafta. In the 1990s, with Bill Clinton`s rise to the White House, Democrats took the mantle of free trade. Republican President George Bush senior launched the North American Free Trade Agreement in 1991, which extended open markets.