One of the bigger stories over the past few days was Donald Trump announcing a new trade deal with Mexico. This means that NAFTA is finally entering the dustbin of history.
President Trump won a major victory on trade on Monday, supplanting the North American Free Trade Agreement (NAFTA) and replacing it with something far more beneficial. The new deal will help American workers and manufacturers. It’s also a win for Mexico.
One of the most fundamental parts of Trump’s campaign for president was his promise to change America’s deeply flawed trade arrangements. These deals left us with massive $500 billion trade deficits—a huge drag on the economy—and devastated forgotten communities across America that are dependent on manufacturing jobs.
Second only to the booming economy, Monday’s announcement of a deal with Mexico is the most visible manifestation of Trump’s fulfilment of his campaign promises. Last year, the USA had a large $71 billion trade in goods deficit with Mexico, owing in part to much lower worker pay. This new deal will limit Mexico’s ability to take U.S. manufacturing jobs by underpaying workers.
Another key part of the new trade deal increases the percentage of a car that must be made in North America to qualify for lower-tariff import into the USA. This will be a major boon to American automotive workers and that industry’s domestic supply chain.
This is an enormous win. NAFTA was a disaster for the United States. The reason why lots of good paying manufacturing jobs disappeared from the country was a direct result of that horrible trade deal.
Even though there has been all sorts of bad press about this from the Jew-run media, the markets reacted favorably to the news. This means that this news is a positive development and not a negative one.
But honestly, the trade arrangement with Mexico couldn’t have been any worse than it was with NAFTA. And now that Mexico has agreed to a new deal, it is likely that we will see Canada follow suit. The United States has the largest market in the world and other countries stand to lose if they are not allowed access to it.
Truthfully though, the biggest problem was with the trade relationship with Mexico as we had a much larger trade deficit with them versus Canada. That’s why it is good to see that an agreement has been struck to fix it.
“Consumer confidence pops in August to highest level since October 2000” https://t.co/1Gg5IOtbNa
— Donald J. Trump (@realDonaldTrump) August 28, 2018
This should be another big boost for the American economy which is doing better than it has in years thanks to Trump’s economic policies.
