Apr 18, 2019

FP on USMCA Report: Lower Trade Barriers are Key to Economic Growth

Post by Freedom Partners

Arlington, VA – The International Trade Commission (ITC) released a required report analyzing the impact of the proposed United States-Mexico-Canada Agreement (USMCA) to replace the North American Free Trade Agreement (NAFTA) and Freedom Partners Chamber of Commerce addressed the development.

 

Freedom Partners Executive Vice President Nathan Nascimento issued the following statement:

“U.S. trade more than tripled since NAFTA, providing another proof point that lower trade barriers go hand-in-hand with overall prosperity. The ITC report illustrates that, for greater growth, our leaders must move more boldly towards eliminating all barriers to trade. For starters, the Trump administration should immediately drop the steel and aluminum tariffs on Canada and Mexico and any plans to replace them with quotas. Moreover, it is critical that NAFTA remain in effect until a replacement is fully implemented.”

Background

Trade principles

  • The United States should eliminate all trade barriers, regardless of other countries’ trade policies, in order to provide Americans lower prices, more jobs and bigger paychecks, and to drive innovation through competition.
    • Individuals and businesses in a competitive market, not government bureaucrats or politicians, should guide trade decisions.
    • Punitive measures such as tariffs and quotas are an unjust government intrusion into the lives of hardworking Americans. They violate the property and associational rights of individuals and should all be eliminated.
    • Subsidies and other forms of government supports for powerful and politically connected businesses and industries do not create value. They punish consumers, burden taxpayers, insulate businesses from market competition, and should be eliminated.
    • Trade disputes should be resolved through existing international trade agreements and organizations.
    • While national security interests may be a consideration in trade policy, they should be used to restrict trade only when there is truly a narrow national security interest at stake, not as a workaround to impose tariffs.