Lunes, 19 Noviembre, 2018

USTR Moves Forward with NAFTA Renegotiation

Malita Javier | 24 May, 2017, 12:43

President Donald Trump has frequently denounced the North American Free Trade Agreement, promising either to renegotiate it with extreme prejudice or terminate it altogether. It was created to remove tariff barriers and facilitate the cross-border movement of goods and services among the three countries.

The senators noted that NAFTA has led to "tremendous growth" in USA trade with Mexico and Canada, and that it has "integrated cross-border supply chains that benefit US employers, and more than tripled USA exports of goods, including agricultural and manufactured goods, and services". "For example, digital trade was in its infancy when NAFTA was enacted".

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Gary Hufbauer, senior fellow at the Peterson Institute, said the United States could seek modest "technocratic" changes, including provisions to update NAFTA to reflect technologies that have emerged since the original agreement was negotiated. Lighthizer told reporters, "As a starting point for negotiations, we should build on what has worked in Nafta and change and improve what has not".

"While NAFTA has been an overall positive for American agriculture, any trade deal can always be improved", said Agriculture Secretary Sonny Perdue in response to the announcement. When the rules are fair and the playing field is level, USA agriculture will succeed and lead the world. "For years, politicians have called for the renegotiation of this agreement, but President Trump is the first to follow through with that promise". During the 1992 presidential campaign, independent candidate Ross Perot famously predicted a "giant sucking sound" as NAFTA pulled US factory jobs south of the border into Mexico. It's why we recently announced the creation of an undersecretary for trade at USDA, because as world markets expand, we will be an unapologetic advocate for American agriculture. "The North American Free Trade Agreement has been successful, with significant volumes of trade in produce flowing north and south across borders".

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"Given that the agreement is more than two decades old, there are areas in which NAFTA will benefit from strengthening and modernization", the letter states. -China trade relationship. Small as it was, and despite Trump's campaign promises, that agreement expanded trade. He said the negotiations will seek to support higher-paying jobs in the U.S. and grow the country's economy by improving opportunities to trade with Canada and Mexico.

"Despite the risks, there's an opportunity here to get better trade rules in place that will set the gold standard for trade agreements going forward, without hurting wheat farmers and their importing customers", said David Schemm, NAWG president.

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