Economics
What You Don't Know About Nafta
The free-trade deal is taking the blame for huge job losses. But its true effects on workers and competitiveness are far more complicated
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Trade hawks hunting for the corporate villains behind the flight of U.S. manufacturing jobs to Mexico might find General Electric a handy target. In the 14 years since the North American Free Trade Agreement dismantled most barriers to trade and investment between the U.S., Canada, and Mexico, GE has sent thousands of U.S. jobs making everything from refrigerators to electric meters to Mexico. Today, the conglomerate and its joint-venture partners employ 30,000 Mexicans at 35 factories.
GE (GE) is moving higher-value work, too: It now hires an engineer a day at its 1,050-staff engineering and design center in Queretaro. Starting pay there is one-third of U.S. salaries.