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NAFTA: The Pros, the Cons and the Compromises

Harvard Proffessors Reactions to Trade Pact Mixed:

The White House has agreed to several deals in a last-ditch attempt to gain lawmakers support for NAFTA.

An agreement with Mexico in recent weeks to protect Florida's sugar cane and citrus fruit, and an 11th hour concession to protect vegetable growers lured a majority of the 23-member Florida delegation.

The White House has made other concessions including protection of glass manufacturers, liquor companies and agricultural interests, according to the Boston Globe.

"I think these agreements weaken the treaty, but it's not a hollow treaty," said Martin.

But Davis called the treaty as it stands now a "partial retreat."

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In addition to the concessions, Marglin said that the lack of benefits for Mexicans weakens the treaty.

"The only sure thing is that it is going to put the last nail in the coffin for Mexican rural communities," he said. "The small farming communities will not be able to compete with the corporate large scale farms of Illinois and Iowa."

Marglin said although Mexico's small scale production largely satisfies its needs, Mexicans "do have to sell some of their produce to buy things they need from cities."

"The communities will be destroyed," Marglin said, because Mexicans are largely grain producers who will not be able to compete with the U.S.

He said that Mexicans will move to cities to find jobs--if unsuccessful, they will come North to the U.S.

"One way or the other, it will be a great dislocation," he said.

Still, he conceded that some Mexicans will benefit from the treaty.

"No doubt some Mexicans will benefit if they get jobs with U.S. firms that move to Mexico," Marglin said.

"But I don't think they outweigh the almost certain cost that will have to be borne by small farming communities is Mexico," he added.

The agreement, if approved by the Senate where it is considered a virtual lock, will take effect on January 1, 1994.

The treaty will eliminate almost all tariffs over a 15-year period, with industries facing the stiffest import competition given the longest time to adjust.

Tariffs on half of currently taxed products will be dropped immediately, as would all Mexican import licenses, which cover one-fourth of U.S. exports.

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