TESTIMONY OF HON. ALBERT C. ZAPANTA, PRESIDENT AND CEO, UNITED STATES-MEXICO CHAMBER OF COMMERCE
business association chartered in Washington, D.C. in 1973, is the leading binational business organization working to build mutually-beneficial trade and investment relationships in the Americas. Its mission is to promote business between the United States and Mexico.
The success of NAFTA and its impact on the U.S. economy cannot be refuted, with tri-national trade up by 245 percent since 1993. The U.S. is $127 billion richer each year due to the “extra” trade growth that results from the cooperation of the NAFTA partner-ships. As an example, Mexico is the largest market for the U.S. in energy while Canada is the biggest energy supplier, creating a combined $100 billion in energy goods and commodities. In 2016 the U.S. exported $231 billion to Mexico, which is more than it did to the UK, Germany, France and Italy combined, and nearly twice as much as it did to China. In agriculture, NAFTA provides the third largest destination for American-grown produce and crops.
It is also telling to note that the current $500 billion trade gap was created by the relocation of American manufacturing and technology-based business out of the NAFTA partnership. China accounts for more than 60 percent of the U.S. trade deficit, and petroleum accounts for more than a quarter of the balance.
over the last twenty years has seen a major break-through in the way trade is conducted in the Western Hemisphere. The approval of the North American Free Trade Agreement (NAFTA) in the 1990’s brought together the economies of the United States, Mexico and Canada, establishing the framework that created the world’s largest trade region, connecting 450 million people, and producing $17 trillion worth of goods and services annually.
region has experienced dramatic development with respect to consumption, production, distribution of goods, services, and persons. The hemisphere is in-deed repositioning itself and with the opening of the Northwest Passage in the Arctic and the expansion of the Panama Canal, NAFTA partners are finding a need for additional focus on incorporating these regions into trade discussions.
We must consider the notion of North America in the context of today’s present challenges, including security, global governance, and the quest for energy independence; while securing the safety of goods and people that expedite trade in a secure and efficient manner along our border, providing stimulus for job creation through all NAFTA partners, and incorporating the use of technology to maximize re-turns and encourage further investment and update the North American Free Trade Agreement to a fair and balanced partnership.
more than thirty years of shared border interests, common objectives, opportunities, challenges and old partnerships. It will be these partnerships that allow the United States to meet the challenges the current economy faces ranging from economic blocs, competitiveness, pricing in international markets, and years of strong collaboration support, business opportunities in the hydrocarbon sector, information technology, supply chain management, agriculture, and investments. The 2016 Presidential elections in the U.S., especially the heightened focus and debate on the impact of international trade, immigration and the growing concern relative to cyber and physical security in the hemisphere, prompted the Chamber to establish the North American Working Group initiative.
Working Group’s recommendations:
Protecting the U.S. and Mexico trade positions by implementing an innovative SMART Border, lever-aging technology, achieving an energy balance, reviewing trade agreements, workforce optimization and improving efficiency of smooth and timely transport of goods and persons;
Developing and implementing IT platforms to achieve efficiencies in border security and effective trans-border movements of people and cargo;
Achieving supply chain efficiencies and manufacturing with continued evolution of a shared economy with respect to trusted trader programs, pre-clearance programs, improvements in innovation and infrastructure.
Pursuing Public/Private Partnerships (PPP) to support mobile digital learning, skills development, job training, and expanding innovative financing to drive growth in all sectors.
