Oct 03, 2018
Trump Administration Should Not Dismantle NAFTA Until USMCA Deal Ratified and Implemented
Post by Freedom Partners
Arlington, VA – Freedom Partners, Americans for Prosperity (AFP) and The LIBRE Initiative today sent a letter to the Trump administration cautioning them to hold intact the North American Free Trade Agreement (NAFTA) until the United States-Mexico-Canada Agreement (USMCA) has been fully ratified and implemented. The groups also urge the administration to eliminate the Section 232 tariffs on steel and aluminum imports from Canada and Mexico in light of the recent agreement.
Freedom Partners Executive Vice President Nathan Nascimento, AFP President Tim Phillips, and The LIBRE Initiative President Daniel Garza said the following in their joint letter:
“Withdrawal from NAFTA prior to ratification and implementation of USMCA would trigger devastating negative economic consequences for our country. It would subject America to higher tariffs and reduced market access in trade with Canada and Mexico.
“With the USMCA secured, now is the time to eliminate the tariffs on these Canadian and Mexican products — and to secure agreement that they will eliminate their own retaliatory tariffs in response.”
Benefits of American Trade with Canada and Mexico:
- Trade with Mexico and Canada supported 11 million U.S. Jobs In 2016. (“The United States Has A Real Economic Stake In Negotiations To Modernize NAFTA,” Business Roundtable, 2018)
- The U.S. exported $496.8 billion in goods to NAFTA partners during 2016, 36 percent more than in 2006 when the U.S. exported $364.4 billion in goods to NAFTA partners (current dollars). (“Trade In Goods With Mexico,” Census Department, Accessed 9/17/18), (“Trade In Goods With Canada,” Census Department, Accessed 9/17/18)
- In 2016, Canada was the top market for U.S. exports, while Mexico was second. The two countries accounted for 34% of total U.S. exports in 2016. (“The North American Free Trade Agreement (NAFTA),” Congressional Research Service, 5/24/17)
- U.S. trade has more than tripled since NAFTA took effect and increased more rapidly than trade with the rest of the world. (“The North American Free Trade Agreement (NAFTA),” Congressional Research Service, 5/24/17)
- The total value of goods traded between NAFTA partners was roughly $1.1 trillion in 2016, up from more than $293 billion during 1993 (current dollars). (Table A-1, “The North American Free Trade Agreement (NAFTA),” Congressional Research Service, 5/24/17)
- Some estimates conclude NAFTA – once fully implemented – added up to $80 billion to the economy or several billion dollars per year. (James McBride & Mohammed Aly Sergie, “NAFTA’s Economic Impact,” Council On Foreign Relations, 10/4/17)