Poll: Executives Back Free Trade With Mexico

The heads of mid-size U.S. companies overwhelmingly favor a free-trade agreement with Mexico, according to one finding of a survey released Monday.

A survey of the 100 members of the American Business Conference found that 92% supported a free-trade agreement with Mexico. Eight percent had no opinion on the matter.

“None were against it,” said Barry Rogstad, president of the group. It is made up of chief executives of fast-growing companies with annual revenues of at least $25 million or income growth double that of the nation’s economic growth.

They include underwear maker Fruit of the Loom Inc., cable television’s USA Network and Pier 1 Imports Inc., the household import retailer.

President Bush, who is pushing for a free-trade pact with Mexico, says a continent-wide free-trade zone would make the United States, Mexico and Canada more competitive against Japan and Europe.

But the AFL-CIO and some in Congress fear that it will lead to loss of U.S. jobs to Mexico’s cheaper labor market.

American Business Conference officials said at a news briefing in Washington, however, that their figures show that overseas expansion ultimately leads to more jobs in this country.

Of the 67 firms that supplied data for a portion of the survey dealing with employment, 17 had no foreign-based workers. Those without employees overseas increased jobs in this country by 6.6% during the 1980s.

But the 50 firms with foreign workers increased U.S. jobs by 8.6% during the decade, according to the survey.

The survey compared business practices in 1981 and 1991 to projections for the year 2000.

Among the other findings:

* Sixty-one percent of business conference members said that by the year 2000, international business will be indispensable for their companies’ success.

* Seventy-two percent believe that the next decade will see liberalized international trade and investment.

* Only 34% think that American workers’ competence improved the past decade. Forty-one percent think it has declined.

* Of those who thought there had been a decline, 71% said their companies were becoming less dependent on workers and more dependent on automation.

“We’re taking significant interest in education and retraining,” Rogstad said.

EXECUTIVE SURVEY Here’s how American Business Conference executives responded in a survey of their views on the following issues:Competence of the U.S. work force, 1980-1990 No change: 25% Increasing: 34% Decreasing: 41% Overall international trade and investment environment over the next decade No change: 7% Worsening: 21% Improving: 72% Importance of international capital markets for future financial needs Decreasing: 2% No change: 38% Increasing: 60%Source: American Business Conference