Printer Friendly

MERRILL LYNCH REPORT: NAFTA LIKELY TO BOOST ECONOMIES IN ALL U.S. REGIONS; TEXAS, CALIFORNIA, ARIZONA COULD BE AMONG BIGGEST BENEFICIARIES

 NEW YORK, Nov. 4 /PRNewswire/ -- Expanded trade with Mexico has already helped to create 400,000 new U.S. jobs since the mid-1980s, and if the recent past is any guide, a vast majority of states will further benefit from ratification of the North American Free Trade Agreement (NAFTA).
 These are among the findings of a new Merrill Lynch research report, co-authored by International Economist Stephen R. Waite and Investment Strategist Frank A. Fernandez.
 Since 1987, 48 of the 50 states have increased exports to Mexico, while 42 have seen their exports to Mexico rise as a percentage of total exports, according to the report.
 Certain states such as Hawaii, Massachusetts and Nevada already have benefited considerably from trade with Mexico, while Texas, California, Arizona, Michigan, Illinois and New York could be among the biggest future beneficiaries of more open Mexican trade, the report states.
 The report cites numerous reasons why NAFTA is likely to benefit all regions of the United States:
 MIDWEST
 "The Midwest, with its concentration in manufacturing of industrial machinery and transportation equipment, could be a big beneficiary of Mexico's growing infrastructure needs.
 "For example, Illinois' exports of industrial machinery and computers to Mexico rose 345 percent to $508 million between 1987 and 1992. Meanwhile, Mexico's emerging demand for new and used cars and trucks, coupled with the 10-year phase-out of high Mexican tariffs on U.S. automobiles, could be a boon to Detroit in coming years."
 WEST
 "The Western states, with a strong advantage in high-technology and agricultural products (especially processed foods), are likely to see their exports to Mexico continue growing under NAFTA.
 "Arizona's exports of food products, for instance, soared nearly 3,000 percent to $63 million between 1987-1992.
 "California's exports of industrial machinery and computers and electric and electronic equipment -- by far the state's largest sectors -- rose by 169 percent and 247 percent, respectively."
 EAST
 Eastern states, as well as those in the West, "should benefit significantly from Mexico's growing demand for services, including accounting, legal, financial and other services.
 "America possesses a strong international advantage in services. Last year, the U.S. had a $60 billion trade surplus in services with the rest of the world."
 SOUTH
 While the South has been cited as the region most vulnerable to more open Mexican trade, "it is difficult to argue that the South as a whole will...even be a net job loser.
 "Textile mill producers in North Carolina, for example, saw their exports to Mexico rise almost 950 percent to $33 million between 1987-1992.
 "Over the same period, South Carolina's textile mill industry shipped $10 million worth of goods to Mexico, a 471 percent increase since 1987.
 "Meanwhile, exports from South Carolina's apparel industry rose 62,171 percent to $43 million."
 The report concludes: "We believe the benefits of the NAFTA far exceed the costs (while) the economic and foreign policy consequences of rejecting it are far-reaching and serious.
 "Approving the NAFTA will create thousands of U.S. jobs, raise living standards in the U.S., Mexico and Canada, and foster the development of an open trading system."
 -0- 11/4/93
 /NOTE TO EDITORS: Copies of the report, and interviews with its authors, are available on request./
 /CONTACT: James Wiggins, 212-449-7280, or Fred Yager, 212-449-7355, both of Merrill Lynch/


CO: ST: IN: FIN SU: ECO

LG-GK -- NY038 -- 0613 11/04/93 10:30 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 4, 1993
Words:562
Previous Article:TMM AND APL WILL PARTNER IN THE PACIFIC
Next Article:PLAINS RESOURCES REPORTS NET INCOME FOR SECOND STRAIGHT QUARTER
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters