Trump Vs NAFTA

In 2017 the United States parted ways with democratic President Barrack Obama. President Obama led our country for eight years with mixed reviews. We now have a new president who has shaken up the United States Political system, Donald J. Trump. President Trump has been very vocal about his criticism of the United States. One of his main points of criticism are America's trade agreements. The United States has free trade agreements with over twenty countries (McBride.) The biggest trade agreement that is currently in the works is the Transpacific Partnership (TPP.) President Trump attacked TPP as he campaigned across the country. He claimed it would take away jobs from the American people. On his fourth day in office he delivered his first of many promises. He left the Transpacific Partnership trade agreement. President Trump wanted to make sure his supporters were getting what they voted for. His campaign wanted to make America great again, meaning put Americans first. He wants to protect American workers from foreign competition. Now that TPP is off the table, there is conversations about renegotiating other trade agreements.

The biggest agreement the United States has right now is the North American Free Trade Agreement (NAFTA). With Mr. Trump leaving TPP other agreements are coming under fire. Many are speculating that NAFTA is hurting the United States economy. Trump's supporters are blaming NAFTA for jobs leaving the states. Another argument against NAFTA is the trade gap. The US-Mexico trade gap has gone from a surplus to a $50 billion deficit (Mcbride). Some economist believe that this huge deficit is to blame for many of the US economy's problems. President Trump and his supporters have made their feelings known about NAFTA. They despise NAFTA with President Trump calling NAFTA the "worst trade deal in history" (Gillespie.)

President Trump criticisms of NAFTA are valid. It is partly responsible for taking all of the American manufacturing jobs and sending them down to Mexico. Originally NAFTA was signed because its supporters believed it would actually boost American job growth. Bill Clinton signed the agreement with this in mind. Both sides of the political spectrum thought this would be the case. Sadly the reality is that hundreds of thousands of jobs have been sent to Mexico. For example the US car industry lost around 350,000 jobs since 1994. On the other hand Mexico's car industry saw an increase from 120,000 to 550,000 jobs (McBride.) It is very easy to see where those 350,000 jobs have gone: Mexico.

NAFTA does not deserve all the criticism it has received in the press. There has been a lot of good that has come from NAFTA. It has helped the United States be able to utilize globalization. The world is more connect than ever. The US needs to expand its economic reach. US companies benefit from having a cheap labor source right next to home. Instead of sending the jobs overseas, companies are sending jobs across the border. If one simply looks at just the amount of manufacturing jobs lost in the US in the last few years. It is easy to point fingers and blame something like NAFTA. In reality the issue is globalization. With easy access to any part of the world companies are going to move where the cost are lower. Countries like Mexico provide low cost labor right next to home. The good news is companies can keep their NAFTA has been responsible for creating jobs in the United States. Supporters of NAFTA estimate that fourteen million jobs rely on NAFTA (McBride.) That is not even factoring in the millions of jobs created from trade with Mexico and Canada. The US exports many products to our neighbors which is good for the United States' Gross Domestic Product. US exports to Mexico have almost tripled in the last few years (Herron).

In summary, I do not personally believe that NAFTA is not a parasite that draining the US of jobs. I feel that there is a much bigger issue at play that is affecting all countries not just the US. The bigger issue at play is globalization. Globalization has become more and more important in the ever evolving world of business. The United States is just trying to change with the times. No one has a lot of experience with the complexity of globalization. It is up America's politicians and business people to do what is best for the US as a whole. There will be many trials and tribulations but it is all part of the learning curve to become an economic power house in these times.

Gillespie, Patrick. NAFTA: What it is, and why Trump hates it. 15 November 2016. 25 February 2017.

Herron, Janna. Was NAFTA Really So Bad for the Economy. 28 September 2016. 25 February 2017.

Mcbride, James. NAFTA's Economic Impact. 24 January 2017. 25 February 2017.


 By Robert Baumner


Article Source: Trump Vs NAFTA