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Democrats' trade myths

February 29, 2008|By Steve Chapman

We're not the only country facing that phenomenon. China makes everything these days, right? But between 1995 and 2002, it lost 15 million manufacturing jobs.

Even if the candidates don't want to acknowledge the gains of the last 14 years, it's hard to see how they can blame NAFTA for economic troubles in Ohio or elsewhere. The whole idea was to eliminate import duties in both the United States and Mexico (as well as Canada). What everyone forgets is that we got the best of that bargain, since our tariffs were very low to begin with.

Critics complain that while exports to Mexico have risen, imports from Mexico have risen even faster. But that's not because we embraced free trade. It's because our economy has been more robust than theirs. Prosperous consumers buy more goods than struggling consumers. Absent NAFTA, the trade imbalance with Mexico would be bigger.

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The candidates' broadsides require them to ignore not just a wealth of evidence but the overwhelming consensus of experts. Gary Clyde Hufbauer, an economist at the Peterson Institute for International Economics in Washington, estimates that 90 percent of the people in his profession regard the accord as a good thing.

Mrs. Clinton is also in error, but on the question of which candidate has more consistently and vehemently denounced the accord, Mr. Obama has opened up a clear lead. Now there's a race to the bottom.

Steve Chapman is a columnist for the Chicago Tribune. His column appears weekly in The Sun. His e-mail is schapman@tribune.com.

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