The Impact of NAFTA on the U.S. Textile Industry Essay -- Essays Paper

The Impact of NAFTA on the U.S. Textile Industry When the North American Free Trade Agreement went into effect in 1994, many expressed fears that one consequence would be large job losses in the US textile industry as companies moved production from the United States to Mexico. Opponents of NAFTA argued passionately, but unsuccessfully, that the treaty should not be adopted because of the negative impact it would have on employment in the United States, particularly in industries such as textiles. A glance at the data four years after the passage of NAFTA suggests the critics had a point. Between 1994 and mid-1997, about 149,000 US apparel workers lost their jobs, over 15 percent of all employment in the industry. Much of this job loss has occurred because producers have moved production to Mexico. Between 1994 and 1997, Mexico's apparel exports to the United States trebled to $3.3 billion. In 1993, the US jeans maker, Guess?, sourced 95 percent of its product domestically. Now it gets about 60 percent of its clothing from o utside the United States, with Mexico as one of the biggest suppliers. Similarly, in 1995, Fruit of the Loom Inc., the largest manufacturer of underwear in the United States, said it would close six of its domestic plants and cut back operations at two others, laying off about 3,200 workers, or 12 percent of its US work force. The company announced the closures were part of its drive to move its operations to cheaper plants abroad, particu...