Free Trade and Japan

Current negotiations between the U.S. and Japan indicate that Japan is unwilling to take major steps toward reducing its trade surplus with the U.S. Fortunately, a large reduction of this surplus can nevertheless be accomplished by shifting U.S. imports from Japan to Mexico. With the aid of NAFTA plus the other favorable economic factors that now prevail, much of what is now purchased from Japan can gradually be obtained from Mexico. Since Mexico buys $110 from the U.S. for every $100 we buy from Mexico, and since Japan buys only $45 for each $100 of its exports to the U.S., such a shift in sources of imports would add greatly to the total number of U.S. manufacturing jobs. Over time our exports to Mexico could be reasonably expected to rise from their present level of $40 billion to $100 billion. This would be more than double what we now sell to Japan. It would also eliminate our trade deficit with Japan.

This potential for U.S. job growth could be realized more easily with NAFTA because that agreement would make it much easier for the U.S. to export to Mexico.

THEODORE A. ANDERSEN

Professor of Finance, Emeritus, UCLA

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Regarding “No Liberty Means No Deal,” by Ernest F. Hollings, Commentary, Oct. 7:

Sen. Hollings’ notion of helping Mexico reform before consummation of a common market for the Americas is not a good course for the U.S. First, who knows how many billions and how long our government would have to assist Mexico to achieve the democratic and economic reform, let alone a common market like ours. In addition, whether we assist the Mexican government to reform or not, the seeds of capitalism have already spread in Mexico since the country has experienced continuous economic growth. This wave of economic progress will prompt Mexicans to demand political and economic liberalization sooner than expected. Therefore, it is unnecessary for us to require the government to change. Overall, Hollings might have a good intention but the idea is just not feasible for our government.

YUKEN LAN

Irvine

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On a recent trip to Montreal, the topic of NAFTA came up in a conversation with two new Canadian friends. They offered what I thought was a cynical opinion: “American dollars, Canadian resources, and Mexican labor.” It’s bothered me ever since, especially because I consider NAFTA an agreement that will benefit the three countries, and any burdens must be borne equally.

I laud Jorge A. Bustamante’s idea of “NALTA”--a trilateral accord on labor migration (Commentary, Oct. 6). He correctly points out Mexico and the United States will have conflicting definitions of cross-border migration. We Americans need to push aside the anti-Mexican rhetoric and examine this issue carefully in order to forge a new economic partnership. Although the realization of such an accord is hard to imagine, we must have the forethought to try.

ROBERT FOLEY

Long Beach

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Re NAFTA: We know where the jobs will go. Tell us exactly where and how the jobs will be created here. What kinds of jobs will they be and who will get them? The ones who lost theirs?

SARAH GOLDOWITZ

Los Angeles