NAFTA Agreement

The logic and mathematics involved with the answer to Wilbur Ross’ analyzation of the benefits or detriment of the NAFTA agreement on the US are pretty much simple. According to the Commerce Secretary, there is an increase of imports to the United States from the agreement. However, if there are fewer American parts in these goods coming to the United States, then the increase of imports balances it out and actually makes up for the trade deficit. That is the A to Z logic in their rebuttal. The mathematics that support this logic say that American imports to the US are up from 40 billion to 300 billion a year. So, what this boils down to is an increase of imports from 10 billion to 46 billion from Mexico. While the same can be said for Canada. But, the bottom line is Ross wants to see more jobs within the United States economy. And to this end he is proposing stricter measures when it comes to how the U.S. acquires manufactured goods. Basically, Trump’s idea suggests to build a trading damn around the United States which would stop a uneven flow, as he sees it, of cash moving out and coming in to make a reserve of manufacturing jobs.

Basically, this tug a war between the Trump presidency and what appears to be the Canadian and Mexican nation states can be summed up in three words. Rules Of Origin is the part of the NAFTA treaty that determines where the goods that enter into the United States via North American nations come from. Under the proposed NAFTA treaty that Trump pushes for, basically 85 per cent of everything that comes into the US would be from Canada or Mexico and vice versa. In theory this is supposed to keep international trade and Manufacturing within American borders. The only problem with this line of reasoning is that the United States, Canada and Mexico are no longer living in the bubble that once was. Due to advances in communication, the globalization of economies and basic human expansion, cutting itself off from the rest of the world is the worst thing any country can to do right now.

The bottom line is that the United States no longer remains the only big boy on the block, and there are connections being made every day outside of NAFTA that do not depend on its discriminating nature or exclusive taste. As a matter of fact, the North American Free Trade Agreement is what brought many options to the US regarding automobile purchases and things of that nature. Killing this agreement only gives other countries reason and rhyme to say, “Good luck United States. We’ll take our business elsewhere”. And, what that boils down to is less jobs and economic strength for the nation. So, the remaining question for president Donald Trump and Commerce Secretary Wilbur Ross is will their plan be a good turn or leave the U.S. burned.