This research paper analyzes the North American Free Trade Treaty (NAFTA) and other possible Western Hemisphere trade pacts in terms of political party support. In November, 1993, NAFTA was approved by the Congress after a divisive political battle during which traditional party alignments were shattered. NAFTA was passed primarily because of Republican support. The controversy over NAFTA produced a profound split in the Democratic Party which the Clinton Administration overcame with difficulty. Since 1993, the prospects for extension of NAFTA to other Latin American nations have been jeopardized by the rise of domestic protectionist and neo-nationalist sentiment within both parties which has been fueled by negative developments in the Mexican economy and posturing by the parties in anticipation of the 1996 presidential campaign.
The policy issue in 1993 was whether it was in the interest of the United States to implement NAFTA and today it is whether NAFTA should be extended to Chile and other nations in the Western Hemisphere. Pursuant to President Bush's Enterprise for the Americas Initiative in 1990, the Bush administration, Canada and Mexico entered into NAFTA in December, 1992. NAFTA, as it was finally approved by the House of Representatives by a vote of 234-200 on November 17, 1993 and by the Senate on November 21, 1993 by a vote of 61-38, became effective on January 1, 1994. It contained the following essential provisions:
1. Reductions in tariffs and other restrictions on trade among the United States, Canada and Mexico which were to be phased in over a 15 year period. The reductions between the United States and Canada were not the main subject of controversy since NAFTA merely accelerated duty reductions under a previously existing free trade treaty. The percentage of U.S.-Mexico trade which would be free of tariffs was as follows:
U.S. imports from Mexico U.S. exports to Mexico
Pre-NAFTA ...