Donald Trump and NAFTA
WASHINGTON D.C. - October 15 Donald Trump called the North American Free Trade Agreement “the worst deal ever”, and wants a new negotiated deal, what happens if NAFTA fails.
Donald Trump declared that there would be a new NAFTA plan as he speaks against the current agreement. NAFTA has established many trade networks across Mexico, United States and Canada. Donald Trump’s dislike for the agreement asks the question of whether or not the free trade should be in place currently.
What would happen if NAFTA ends? First there would be no free trade among these North American countries and a relatively high tariff would be placed on future trade. The program has helped the United States corn industry as the U.S. exports much of its corn to Mexico currently without tariffs because of NAFTA’s agreement. If Trump were to exit or change NAFTA then there would be higher tariffs on the exports of the United States instead of the imports therefore all of the corn exports would be taxed. The United States would also have to pay more for products from Mexico and there may be a decrease in jobs in the United States as a result of the exit of NAFTA.
Because of NAFTA has been installed for years there has been an established connection between the neighboring countries in the agreement. These routes and networks of trade would be heavily affected if the agreement were to change. Especially the agricultural industry of the United States. The agricultural industry plays a vital role in Trump’s election as most of his support comes from states that rely on agriculture and Trump’s plan would affect those in the industry.
NAFTA also affects the citizens as its is believed that they have an increase in global trade and overall international competitiveness within the country. However because NAFTA has been in place for so long there is big business invested in what the agreement allows through free enterprise.
Trump himself has said that the free trade agreement has only benefited the countries of Canada and Mexico while only hurting the United States. There is little evidence to support this claim, as much of the U.S. agriculture business now revolves around NAFTA and not having it would hurt the factories and farms that benefit from it. And while Trump speaks against it he provides no new amends to the agreement and no new plan for “The worst deal”. And Trump has said he would like to reduce the trade deficit with those in the agreement.
While if the United States were to leave from the group there would be an agreement amongst the remaining two countries, Mexico and Canada would continue themselves to practice free trade. -current Mexican president Enrique Peña Nieto. Robert Lighthizer, has said that Trump hasn't foreseen what would happen if the agreement were changed but has instead been focused in getting the deal itself. Lighthizer also said that even if there is no new agreement the countries would do just find themselves. U.S. officials have noted that they haven't analyzed what would happen beyond the deal. Is it possible to make a decision without comprehending the repercussions? U.S. officials seem to think so.
