1,037,900 Jobs Deficit
(CNS News) – U.S.-majority-owned multinational enterprises
employed 1,106,700 in Mexico in 2012 (the latest year on
record), according to data released by the U.S. Bureau of Economic
Analysis, but Mexican-majority owned enterprises employed only 68,800 in the
United States that year.
That means that U.S.-controlled multinationals employed
1,037,900 more people in Mexico than Mexican-controlled multinationals employed
in the United States.
Put another way, multinational enterprises that had a
majority U.S. ownership employed 16 times as many people in Mexico as
Mexican-controlled multinationals employed in the United States.
Forty-nine percent of the jobs–546,500 of 1,106,700–that
U.S.-controlled multinationals maintained in Mexico in 2012 were in
manufacturing, according to the BEA. (See Table 5.2 in the August 2014 BEA
report “Activities of U.S. Multinational Enterprises in 2012.”)
Those 546,500 Mexican manufacturing workers employed by
U.S.-controlled multinationals included at least 100,000 in transportation
equipment manufacturing, 71,300 in food manufacturing, 53,700 in computer and
electronic products manufacturing, 34,000 in machinery manufacturing, 32,200 in
chemical manufacturing, 30,500 in electrical equipment, appliances and
components manufacturing, 18,600 in primary and fabricated metals
manufacturing.
Of the 68,800 that Mexican-controlled multinationals
employed in the United States in 2012, 56,200 were in
manufacturing, according to the BEA.
The 546,500 that U.S.-controlled multinationals employed in
manufacturing in Mexico was almost 10 times as many as the 56,200
Mexican-controlled multinationals employed in manufacturing here.
The overall number of workers that U.S.-majority-owned
multinationals employ in Mexico has been increasing.
The BEA has published the total number of all
Mexico-based employment by U.S.-majority-owned multinationals (including banks)
since 2009. In that year, U.S.-controlled multinationals employed about 969,000
in Mexico—or 137,700 fewer than the 1,106,700 they employed by 2012. (The BEA
has not yet published numbers for 2013 and 2014.)
By contrast, Mexican-controlled multinationals employed
about 52,000 in the United States in 2009—or 16,800 fewer than the 68,800 they
employed by 2012.
In the four years from 2009 through 2012, U.S.-controlled
multinationals hired 8 net additional employees in Mexico for each net
additional employee that Mexican-controlled multinationals hired in the United
States.
In 1993, the U.S. Congress approved the North American Free
Trade Agreement (NAFTA) using a fast-track procedure. The agreement, negotiated
by the Clinton administration, was designed to remove tariffs between Mexico,
the United States and Canada. Under fast-track, Congress was allowed to approve
the deal by a simple majority vote in both houses and neither house was allowed
to consider amendments to the deal. NAFTA took effect at the beginning of 1994.
In the four years leading up to and including 1994,
according to data published by the Census Bureau, the U.S. ran a surplus in its
bilateral trade in goods with Mexico. But in each of the 20 years since then
(1995-2014), according to the Census Bureau, the U.S. has run a trade deficit
with Mexico.
The overall volume of bilateral U.S.-Mexican trade in goods
has increased massively during that time period, but the balance of trade has
shifted dramatically in Mexico’s favor.
In 1993, the year before NAFTA took effect, the U.S.
exported $41,580,800,000 in goods to Mexico and imported $39,917,500,000. Thus,
the U.S. ran a 1993 trade surplus of $1,663,300,000 with Mexico.
Similarly, in 1994, the first year of NAFTA, the U.S.
exported $50,843,500,000 in goods to Mexico and imported $49,493,700,000—running
a surplus of $1,349,800,000.
In 1995, the U.S. trade in goods with Mexico slipped into
the red. The U.S. exported $46,292,100,000 to Mexico and imported
$62,100,400,000—for a deficit of -$15,808,300,000.
In 2014, the U.S. exported $240,248,700,000 in goods to
Mexico, but imported $294,074,100,000—running a trade deficit of
$53,825,400,000.
That deficit was almost 40 times larger than the last trade
surplus the U.S. ran with Mexico in 1994.
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