April 28, 2017

Is the End Near for NAFTA?

That depends on whether Trump wants to scrap the deal or renegotiate. He’s held both positions.

Since being signed into law by Bill Clinton in 1993, the North American Free Trade Agreement has been a political whipping boy for various interests. In particular, one group of Americans has never warmed up to the opportunities NAFTA could have provided.

That sting was felt by those who saw the maquiladoras lined up along the border between the United States and Mexico. These duty- and tariff-free assembly plants were a constant reminder to those whose livelihoods were being erased by a southward stampede of American manufacturing. Thanks to NAFTA, companies could now crank out products once made in the Rust Belt with a significant cost difference thanks to the cheaper labor in Mexico. Meanwhile, those fortunate enough to get a job in these factories could begin to make their way up Mexico’s version of the economic ladder.

On the other hand, some estimates say NAFTA supports 14 million American jobs, and has generated $1 trillion in trade between the three nations.

A number of politicians over the years have attempted to curry favor with protectionists by running against NAFTA, but none were more forceful or outspoken while being successful than Donald Trump. There’s little doubt that thousands of onetime laborers and factory workers took to heart Trump’s promise to repeal or at least renegotiate the trade pact with more favorable terms for America, and those votes may have made the difference in states like Pennsylvania, Michigan and Wisconsin.

Promising to address the issue in his first 100 days and actually governing are two different things, though. Factor in Trump’s tendency to shift positions on the fly, and you get what one Canadian trade group’s director of government affairs called Trump’s “typical way of doing things — saying completely unreasonable things as a negotiating posture.” Thus, it was only a matter of a few hours — and conversations with both Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto — before the president’s initial threat to drop NAFTA entirely softened to a vow to renegotiate the pact while reserving the right to withdraw and negotiate separate bilateral deals with each nation.

Having separate deals rather than one common market seems to be Trump’s true preference anyway. Trump showed this by withdrawing from the Trans Pacific Partnership. Then again, just Thursday he threatened to terminate a bilateral trade agreement with South Korea, calling it too “a horrible deal” that’s left America “destroyed.” So who knows.

As a deal struck in the days before more recent technical advances like iPhones, Google, and virtual retail, where even a tiny shop has the capability to sell products to far-flung corners of the world, there are many observers who believe a renegotiation of NAFTA could rejuvenate the free trade movement and enhance economic freedom. They also see it as an opportunity to make the deal more of a trade agreement, eliminating many of the sidebar issues negotiators insisted on including, such as environmental mandates or labor regulations.

On the other hand, there are those who feel that the U.S. should adopt a “Buy American, Hire American” stance on trade and immigration. Trump issued an executive order regarding that very thing last week. Others call that “dangerous nonsense” and argue it isn’t a viable solution at the moment because (A) the last thing the world economy needs is a trade war that America starts, and (B) adopting a protectionist approach to trade and — to a lesser extent — immigration will only lead us in that direction. To lead in a market, one must first be able to compete in it. Companies that corner a domestic market often become complacent and lag far behind globally.

Yes, NAFTA has problems. Witness the recent Trump move to place tariffs on Canadian softwood because the administration argues our northern neighbor is subsidizing its industry at America’s expense. For its part, Canada also puts its own tariff on American dairy products, so we aren’t talking about a completely free trade zone here. Broad areas of commerce between the three nations, particularly in energy and technology, are exempted from NAFTA.

Whichever way the Trump administration eventually decides to go, the prevailing wisdom is that NAFTA isn’t long for its present form. If he can master the art of this deal, Donald Trump may set the precedent for American prosperity in a global economy for the next couple generations. Because whether you agree with his trade positions or not, it’s clear his message is “America first.”

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.