U.S. Recession Hurting Neighbors
Partners with the U.S. in the North American Free Trade Agreement, both Canada and Mexico send more than 85% of their exports to the United States, much of it by truck.
At the peak of the recent economic boom, the two countries sent more than $2 billion total per day across the U.S. border.
But as the slowdown has taken hold, U.S. consumers have cut their spending, and as a result, Canadian and Mexican businesses are seeing their profits decline, as are the trucking companies that rely on these imports for some of their business.
To combat this problem, the United States and Canada last week agreed upon a border action plan in an effort to reduce delays while maintaining safety. (Click here for the related story.). This plan could boost trade the two countries.
Meanwhile, the U.S.-Mexico trade situation could improve with the opening of the border to Mexican trucks. Congress recently agreed to a compromise that would give Mexican trucks access to U.S. highways. (Click here for the related story.)
However, reduced exports are continuing to hurt the economies of both countries every day, the Times said.
In Mexico, the reduction in trade has been compounded by lower oil prices. Mexico ships much of its petroleum output to the United States.
Meanwhile, Canada has been engaged in a bitter fight with the United States over lumber shipments and tariffs – one of the country’s top exports.
In addition, the dramatic drop in tourism since the Sept. 11 terrorist attacks has hurt all three nations, but they are still hopeful there will be a recovery sometimes in 2002, the Times said.
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