Much of the product in question is produced in Northern Mexico where unemployment is high. Any harm to these producers will have a twopronged effect on the United States First. there are many coproduction arrangements with American companies and these companies will suffer as a result of this action. Second. any economic problems will only increase pressures to emigrate. probably illegally. to the United States. . The Mexicans argue that the agreements were negotiated when they were particularly vulnerable to unfair trade charges. As a result of devaluations and/or termination of subsidies. they are no longer so vulnerable and they wish to liberalize or terminate their agreements.
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emigrate