NAFTA FINAL APPROVAL ASSURED IN WAKE OF HOUSE VOTE

The U.S. House of Representatives last week approved the North American Free Trade Agreement 234-200, assuring final approval of the treaty. President Clinton had to make many concessions to individual congressmen to snatch a come-from-behind victory on Nafta, which will create the world's largest free trade zone when it takes effect Jan. 1. Only a week or so before the Nov. 17 vote, the administration was 30 votes shy of passage in the House. The final tally had 132 Republicans and 102

Nov. 22, 1993

4 min read

The U.S. House of Representatives last week approved the North American Free Trade Agreement 234-200, assuring final approval of the treaty.

President Clinton had to make many concessions to individual congressmen to snatch a come-from-behind victory on Nafta, which will create the world's largest free trade zone when it takes effect Jan. 1.

Only a week or so before the Nov. 17 vote, the administration was 30 votes shy of passage in the House. The final tally had 132 Republicans and 102 Democrats voting for Nafta and 156 Democrats and 43 Republicans voting against it.

The measure now goes to the Senate, which is expected to approve it easily. Last week 49 senators were on record supporting the agreement, 22 were opposed, and 29 were undecided. Only 51 votes are needed for Senate passage.

Nafta, negotiated by the Bush administration, removes trade barriers and lowers tariffs on 6,000 goods sold among the U.S., Canada, and Mexico during the next 15 years.

It will make the sale of U.S. oil services and supplies in Mexico easier but not allow foreign ownership of Mexican oil and gas reserves, which is banned by that country's constitution.

REACTIONS

Clinton said, "Tonight's vote is a defining vote for our nation. In an economy where competition is global and change is the only constant, we simply cannot advance the security of American workers by building walls of protection around our economy or by pretending that global competition isn't there. Our only choice is to take this new role head on-to compete and win."

To win votes, Clinton agreed to restrain U.S. imports of orange juice, winter vegetables, sugar, peanut butter, and wheat.

U.S. labor unions, assisted by some environmental groups, fought hard to defeat Nafta. Despite two side agreements that give the U.S. added assurances on labor and environmental issues, those groups believe Nafta will cost the U.S. too many jobs and result in more pollution along the U.S.-Mexican border.

Mexican President Carlos Salinas de Gortari called the House vote a "direct rejection of protectionism and of those who fear the future." U.S. ratification was critical for Salinas' program to open the Mexican economy to foreign capital and win greater access to the U.S. market.

The Mexican Senate still must ratify the accord, but it is controlled by the ruling Institutional Revolutionary party, and passage is expected.

Canada's Parliament has approved Nafta, but Prime Minister Jean Chretien's new government has not yet acted to make the agreement law. The U.S. and Canada already have a free trade agreement.

In his election campaign, Chretien pledged to renegotiate parts of Nafta. He is expected to raise a number of Nafta issues when he meets Clinton at the Asia-Pacific Economic Cooperation forum in Seattle, the "Pacific Rim" summit.

OIL INDUSTRY PLEASED

The American Petroleum Institute said, "We believe Nafta will benefit our country.

"That is why we supported it and why we are pleased that the House has voted its approval.

"Even so, there remains the need for future international agreements to permit oil companies in the U.S. to be able to make the same kinds of investments in Mexico that Mexican companies are already allowed to make in the U.S."

Nicholas Bush, Natural Gas Supply Association president, said, "Nafta will increase opportunities for use of clean burning natural gas to improve the environment. Thus, passage of the treaty marks a very positive step toward achievement of our nation's overall economic and environmental goals."

Mike Baly, American Gas Association president, said, "Gas industry executives in Mexico, Canada, and the U.S. may speak different languages, but we speak with one voice in our commitment to cooperation to improve the environment through increased use of clean natural gas. Nafta will enable us to work together with our neighbors to the north and south to achieve those goals."

Baly said Nafta will encourage similar cooperation between the U.S. and other nations.