The North American Free Trade Agreement, also known as NAFTA,
was a hot topic during the most recent debate between the
two senators, who are battling to become the Democratic Party's
presidential nominee.
Both candidates said they would renegotiate the free trade
agreement between the United States, Canada and Mexico.
"I will say to Mexico that we will opt out of NAFTA
unless we renegotiate it," said Clinton.
"We need to use the hammer of potential opt-out as leverage
to get environmental and labor standards enforced," Obama
said.
Obama also said, "I don't think NAFTA has been good
for Americans, and I never have." He has accused Clinton
not being consistent on trade.
"Senator Clinton also said I'm wrong to point out that
she once supported NAFTA. But the fact is, she was saying
great things about NAFTA until she started running for president,"
Obama said.
What is NAFTA?
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NAFTA creates a free trade zone between the United States,
Mexico and Canada. |
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NAFTA was signed into law in 1994 during President Bill Clinton's
first term in office. The law eliminates most tariffs -- or
import taxes -- on goods and services bought or sold between
the three countries: Mexico, Canada and the United States.
And while most economists believe NAFTA has been good for
the American economy as a whole, it has hurt some industries
and regions.
In Ohio, where many factories have closed and unemployment
is high, labor groups say NAFTA sent U.S. jobs to foreign
competitors.
The Wall Street Journal reported that the state has lost
more than 200,000 manufacturing jobs since 2000.
Thea Lee, policy director of one of America's biggest unions,
the AFL-CIO, says NAFTA resulted in poorer conditions for
workers because company owners could threaten to move factories
to Mexico if the union did not agree to lower wages and fewer
health benefits.
But not all economists blame NAFTA for Ohio's economy woes.
Ned Hill, economic development professor at Cleveland State
University believes job losses were due to bad decisions by
the three big American car makers: General Motors, Ford and
Chrysler.
"That is not due to NAFTA. That is because of the failed
strategy of three companies," he told National Public
Radio.
The candidates' records
Although the Democratic candidates are sparring about NAFTA,
their voting records are virtually the same, National Public
Radio reported.
Neither was a member of Congress when it was enacted and
therefore did not vote on the law when it was originally passed.
And both Clinton and Obama have voted for most free trade
deals.
The Republicans
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Presumed Republican nominee John McCain does not support
renegotiating NAFTA. |
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Presumptive Republican
presidential nominee Senator John McCain of Arizona said any
attempt to renegotiate NAFTA could be seen by Canada as a betrayal
and could impact its military support in Afghanistan.
"One of our greatest assets in Afghanistan are our Canadian
friends. We need our Canadian friends, and we need their continued
support in Afghanistan," McCain said at a town hall meeting
in Round Rock, Texas.
The Democrats' plans to renegotiate would be a "betrayal
of the long years of negotiations that we agreed to,"
he added.
President Bush also joined the fray, noting that NAFTA has
had a very positive impact on the economy.
"You know, one statistic I think people need to know
is there's roughly $380 billion worth of goods that we ship
to our NAFTA partners on an annual basis," Mr. Bush said
the Canadian Press reported.
"And the idea of just unilaterally withdrawing from
a trade treaty because of, you know, trying to score political
points is not good policy," he added.
Why Ohio is important
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Several pundits have said that Hillary Clinton must win
Ohio on March 4 to remain in the primary race. |
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Stakes are high in Ohio
for the Democrats. Hillary Clinton needs solid wins in the delegate-rich
states of both Ohio (141 delegates) and Texas (193) to continue
to be viable, according to many political analysts.
Barack Obama has won 11 consecutive contests since Super
Tuesday last month and leads in the delegate count.
"I think, quite honestly, that if Obama wins Texas --
and I think it looks good for him there -- if he comes here
and wins Ohio, then I think it's over," syndicated columnist
Mark Shields told the NewsHour.
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