Urging Congress to continue to support NAFTA.
The resolution highlights that NAFTA has enabled cross-border manufacturing and distribution, making it possible for companies to optimize pricing strategies and establish competitive advantages across North American markets. The methodology of supply chains that traverse borders has allowed Texas businesses to remain globally competitive, generating nearly 382,000 jobs in the state and contributing to economic prosperity across the United States. Furthermore, it mentions that nearly 42,000 Texas companies are engaged in exporting, with significant increases anticipated in the demand for Texas natural gas exports to Mexico.
SCR38 is a concurrent resolution that urges Congress to continue its support for the North American Free Trade Agreement (NAFTA). Introduced by Hinojosa and others, the resolution outlines the significant economic benefits that Texas has derived from NAFTA since its inception in 1994. It emphasizes that NAFTA has eliminated tariffs between the United States, Canada, and Mexico, thus creating one of the largest free trade zones globally. The bill asserts that Texas has greatly benefited, with its exports to Mexico growing substantially, which currently stands as the state's top export market.
While SCR38 is largely supportive of NAFTA, invoking a positive sentiment around its contributions to state and national economies, it implicitly acknowledges the challenges that have arisen since NAFTA’s implementation, such as job displacements in initial years. The resolution points to the adaptability of Texas border cities that have diversified their industries and have witnessed overall improvements in employment rates. However, it does not directly address ongoing debates regarding trade policy and critiques surrounding job losses in certain sectors as a consequence of free trade agreements, focusing instead on the overall benefits experienced under NAFTA.