Does NAFTA help or hurt New Hampshire?

During his trip to Canada this week, New Hampshire Governor Chris Sununu said that the North American Free Trade Agreement (NAFTA) needs updates, but should stay in place.

NAFTA eliminates most tariffs on products crossing the borders between Mexico, the United States, and Canada.  The agreement was signed by George H.W. Bush in 1992 and went into full force under President Bill Clinton in 1994.   

President Donald Trump has said more than once that he wants to revise NAFTA to make it more favorable to the United States.  Trump, like other NAFTA opponents, argues that the low cost of labor in Mexico draws jobs away from the United States.

“When you forced workers in America to compete with workers earning $1 a day overseas, our whole standard of living goes down,” Trump said outside a closed New Hampshire factory last June. 

On the other hand, when products can move between Mexico, the United States, and Canada without tariffs, it increases overall economic activity and lowers prices for consumers.

So has NAFTA ultimately helped or hurt New Hampshire?

According to the nonprofit Public Citizen, New Hampshire has lost about one-quarter of its manufacturing jobs since 1994.  Of course, new technology and cheap labor in China have both contributed to that loss of manufacturing jobs. 

Jobs lost only due to trade agreements can be estimated by applications to the federal Trade Adjustment Assistance (TAA) program, which gives laid off workers training and temporary income assistance.  Since 1994, 208 New Hampshire companies applied for TAA for 15,120 employees.  The federal government approved assistance for 141 of those companies, representing 12,082 employees. 

These lost jobs may be offset by jobs supported by an increase in exports, however.  According to the International Trade Administration at the U.S. Department of Commerce, 18,281 jobs were supported by goods and exports from New Hampshire in 2015.  

In addition, New Hampshire exports are growing.  Once again according to the International Trade Administration, exports from New Hampshire to countries with free trade agreements have increased 38% over the past decade. 

New Hampshire’s top two export markets are Mexico and Canada, the countries in NAFTA.

Do you think NAFTA is good for New Hampshire?  Share your opinion in the comments below.