January 9, 2017
With chatter coming from the President-elect about building a wall between the United States and Mexico, the Federal Reserve of Dallas’ Jesus Canas examined the impact of the North American Free Trade Agreement on the Texas economy. The article, which came out in the Dallas Fed’s Q4 2016 “Southwest Economy” focused on the benefits and challenges of NAFTA for Texas’ border cities.
On the plus side, Texas exports reached $247 billion in 2015, due to its proximity to the border. Manufactured goods exports supported an estimated 990,000 jobs in Texas at the same time. And the border cities have taken part in production sharing, in which companies locate some operations in Mexico. On the negative side, close to 710,000 jobs were lost between 1994 and 2014, due to NAFTA.
But Canas pointed out that the border cities have ended up growing, while unemployment has decreased, thanks to the more open trade policies and borders.
For comments, questions or concerns, please contact Amy Sorter
For advertising information, please contact Joni Margotta