For Immediate Release
Office of the Press Secretary
September 4, 2001
Fact Sheet on NAFTA
NAFTA
"Increased trade and investment are cornerstones of a vibrant, expanding, and more comprehensive NAFTA, bringing about a truly remarkable expansion of trade and investment among our countries."
President George W. Bush
April 22, 2001
NAFTA implementation began seven years ago, creating the worlds largest free trade area. The agreement now links the U.S., Canada and Mexicos 406 million people, producing more than $11 trillion worth of goods and services.
NAFTA has enabled Mexico and the U.S. to
establish a solid, dynamic trading partnership. Mexico is
our second largest trading partner, with an average of $650 million in
goods crossing the border each day. Total trade between the
U.S. and Mexico was $261 billion in 2000, three times the 1993
pre-NAFTA average. U.S. foreign direct investment in Mexico in 2000 was
$8.9 billion, and is expected to be significantly higher in
2001. As our business cycles converge, both countries have
had sharp slowdowns in economic growth in 2001. Despite
this, trade between us remains strong, at $99 billion for the first
five months of 2001.
While trade relations are strong, there
are inevitable disagreements. NAFTA's dispute resolution process
provides mechanisms for citizens and governments to raise questions
regarding failure to enforce NAFTA's trade, environmental and labor
laws. U.S. investors have brought nine claims to dispute settlement,
with a settlement or award so far in five.
Several issues have proved
contentious. We remain committed to resolving those disputes
through open and frank negotiations. The administration has
pledged to work with Congress to see that the U.S. fulfills our
international obligations under NAFTA while ensuring U.S. labor and
environmental standards.
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