Trump to Announce Plans for Renegotiation of NAFTA: Five Ways to Improve the Agreement

1/23/2017 Mexico Institute Forbes Blog

trump-inaugurationPresident Trump’s road to victory was built on a promise to fight on behalf of the American worker to keep manufacturing jobs in the United States. Rightly or wrongly, Donald Trump and many other Americans put much of the blame for the immense challenges being faced by the working class on NAFTA and other free trade agreements.

The newly updated White House website states, “President Trump is committed to renegotiating NAFTA.” However, “if our partners refuse a renegotiation that gives American workers a fair deal, then the President will give notice of the United States’ intent to withdraw from NAFTA.” Media reports suggest an executive order for a NAFTA renegotiation may be imminent.

An outright withdrawal from NAFTA would be incredibly costly. A Wilson Center study recently found that nearly five million U.S. jobs depend on trade with Mexico, and a good number of them would be put at risk were the agreement to be scrapped. At this point, U.S. and Mexican companies have invested many billions of dollars in each other’s economies to build up a globally competitive regional manufacturing platform upon which cars and other products are jointly manufactured with parts and materials from suppliers dispersed across the continent.

Read more…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s