Infographics: NAFTA trade deficits and job creation
August 16, 2017 12:05 AM NPT
The first round of negotiations over the North American Free Trade Agreement (NAFTA) between the U.S. Canada and Mexico will take place August 16-20 in Washington D.C.
Open trade between the U.S., Canada and Mexico under NAFTA took effect in January 1994. Since then, the U.S. economy has created 32 million jobs. President Donald Trump says trade deficits are the central cause of U.S. manufacturing and economic woes. If reversed, they will create many jobs and reopen factories. Many economists say trade deficits don’t necessarily give the U.S. an advantage at the negotiating table and if reversed, may not add many new jobs due to automation.
One study by Ball State University says robots have replaced 87% of American manufacturing jobs. Only 13% have disappeared because of trade. Apparel making was hit hardest by trade, it said, and computer and electronics manufacturing were hit hardest by technological advances.