ECONOMICS: A FREE-TRADE ACCORD WITH MEXICO? : Key Vote Due on Controversial Issue

President Bush has proposed a free-trade agreement with Mexico designed to spur more international commerce with America’s southern neighbor and create a broad free-trade zone that includes Canada as well.

With the plan sparking vigorous opposition from environmentalists and organized labor, Bush has offered some concessions. Congress plans to vote on the proposal’s future sometime next week-specifically on whether to authorize negotiations under a special “fast-track” procedure. This would prohibit crippling floor amendments when lawmakers ultimately vote on the contents of the accord.

The Major Issues:

JOB LOSSES

OPPONENTS

Opponents say the accord would encourage U.S. firms to export jobs to Mexico to take advantage of cheaper labor there.

SUPPORTERS

Supporters concede some U.S. jobs would be lost but say the economy would gain thousands more as a result of increases in U.S. exports.

ENVIRONMENT

OPPONENTS

Environmentalists warn that U.S. firms would flock to Mexico to escape harsher U.S. environmental regulations-adding to overall pollution.

SUPPORTERS

Backers argue the only way Mexico can toughen its environmental rules is if it is able to increase its exports enough to be able to afford to clean up its environment.

IMPORT SURGE

OPPONENTS

Critics contend that reducing trade barriers will open the United States to a flood of cheap Mexican imports that will undercut domestic goods-particularly in agriculture.

SUPPORTERS

Proponents argue that any rise in imports will be more than offset by increases in U.S. exports to Mexico, which will need more heavy machinery and factory equipment.

IMMIGRATION

OPPONENTS

Opponents charge that liberalizing current restrictions will spawn a flood of illegal immigration-and increase pressures for easing current immigration laws.

SUPPORTERS

Supporters counter that the accord would help stem the immigration tide-by improving conditions at home so Mexican workers aren’t tempted to try to flee to the United States.

POLITICAL REFORM

OPPONENTS

Those opposing the accord argue that Washington should not offer Mexico new trade benefits until the ruling party overhauls the political system there.

SUPPORTERS

Backers argue that increased economic benefits will encourage political reform by making the government more secure-and thus more inclined to broaden democratic opportunities.