December 28, 2016

DONALD WHO?:

Trump could hit a brick wall on NAFTA (DOUG PALMER 12/28/16, Politico)

"You want to get rid of NAFTA?," U.S. Chamber of Commerce Tom Donohue asked in an interview with Fox News earlier this year. "NAFTA is 14 million jobs in the United States."

Meanwhile, the National Association of Manufacturers calls NAFTA "a boost to U.S. manufacturing competitiveness."

"We look forward to working with government officials - the incoming administration, leaders in Mexico and Canada - on possible improvements to reduce barriers and improve U.S. manufacturing competitiveness given the agreement is now over 20 years old," Linda Dempsey, vice president of international economic affairs at the manufacturers group, said in an email. "At the same time, it is critical not to put at risk the 2 million U.S. manufacturing workers whose jobs rely on U.S. exports to Canada and Mexico."

So far, Trump has offered few details about what changes he'd like to make to the pact, other than threatening to withdraw from it entirely unless Mexico and Canada agree to new terms. Business groups are hoping they can convince him to instead "fix" the agreement in ways that will benefit them.

In an ironic twist, many business groups hope Trump will steal ideas from another trade agreement -- the Trans-Pacific Partnership -- as he seeks to upgrade NAFTA. That should be possible since both Canada and Mexico are part of the 12-nation deal that Trump is vowing to jettison on his first day in office. They'd like to see rules similar to those in the TPP covering digital trade and the movement of electronic business data across borders, concerns that didn't exist when negotiators crafted NAFTA.

Posted by at December 28, 2016 7:50 AM

  

« RIGHT ABOUT THE MAN, WRONG ABOUT THE STRENGTH OF THE FUNDAMENTALS: | Main | WINNING THE WoT: »