Trump Reaches Revised Trade Deal With Mexico, Threatening to Leave Out Canada
President Trump has been working towards a new NAFTA (North American Free Trade Agreement) for a while now, and on August 27th, 2018 has been able to reach an agreement with Mexico that updates some of the policies that in Trump’s opinion, no longer fit the standard of what the U.S. needs for trading. This trade deal has become quite the controversy due to the fact that Trump is not afraid to let go of Canada as apart of NAFTA if they do not sign onto this deal. One of the main factors of this deal is moving up to 75% of automotive production into North America, using more local resources, to reduce labor and a material costs for manufacturers. Leaving Canada out of this deal is a very unpopular opinion, that NAFTA should no longer stand if Canada is no longer involved. Most Mexican officials have stated that they would definitely prefer if Canada signed on.
This article is significant towards trading in the United states because it could and most likely will change our trading with Canada if they deny the signature. From the information in the article, mostly everyone agrees that excluding Canada from the reformed NAFTA is not the smartest or even legal option, except President Trump. Many officials state that widespread businesses supply to all three countries in the alliance that works fairly as of now, and is Canada were to be removed, it could cause the U.S. to lose companies that the U.S. gains trading recognition/resources from. Canada has claimed that they will only sign if the deal is good for the country and the middle class. If Canada does not sign, Trump suggests that he will not resist to charge tariffs on exported goods, which gives Canada another reason to agree.
This compares to when the U.S. and Canada first formed the Canada-U.S. Free Trade Agreement ironically because, at first NAFTA began by this agreement, with Mexico eventually being added due to their similar needs. This time in history, Canada, which was the original trading partner with the U.S. is threatened to be removed, when Mexico seems to be the more suitable choice if a country were to be re moved.
(I accidentally highlighted and now it wont undo, sorry!)
ReplyDeleteEmma Burkey:
ReplyDeleteThis article brings up a common theme of the past two years: no one agrees with a bad decision, but Trump. He does not understand the impact on American lives if Canada isn't a part of this deal. Trump's solution to the possibly problem is to put tariffs on Canada; this only adds to the tariffs the U.S. is dealing with in China. It would not put the U.S. into more trading conflicts.
Yeah I agree the U.S. has enough enemies as it is so eliminating Canada could seriously jeopardize a lot of our lives but that's not something trump takes into consideration. I mean the man was more worried about his percentages then John McCain's death. He's just everywhere he doesn't need to be because right now we need him to change but I don't know if that's possible.
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