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Trump Nafta Blueprint Raises Concerns in Canada and Mexico

WSJ Original article ›
LyrArc Article Gist
The Trump administration's early proposal for NAFTA moves away from campaign pledges to completely renegotiate the treaty, instead taking the approach of working to improve the U.S. trade position in relation to Mexico and Canada. It includes seven objectives for tougher rules for labor and the environment favored by Democrats in Congress, and it also has support from Republicans with its effort to update NAFTA for changes in technology and in other areas since the accord was signed during the Clinton administration. The area in which U.S. and Mexican business are wary is one in which the Trump administration still seeks to keep the option of imposing protective tariffs, and a border-adjusted tax to level playing field for differences in taxes, as well as other measures to protect American jobs and interests. Because any renegotiated NAFTA also has to pass both houses of Congress this proposal took into account the different constituencies and interests for this issue. Robert Lighthizer, trade representative under president Reagan is likely to become the next U.S. Trade Representative and lead negotiator. We first profiled Lighthizer in a group in Lyrarc for pointing to the need for a level playing field in trade. As early as 2010 Lighthizer argued in op-ed articles that globalization and trade practices should ensure a level playing field for the U.S., and was covered in Lyrarc.


Robert Lighthizer and other experts call for trade and globalization practices that work for the U.S.

01/06/2010

The failure of the establishment of both parties in the USA to take action in the face of the loss of 5.6 million jobs in the last decade, with $4.3 trillion in trade imbalances. An issue which resonates with voters in the US and could lead to a fundamental realignent of American attitudes to globalization and free trade. The feeling that the free-trade deck is stacked against the USA by Asian countries. China's efforts to keep the yuan dollar exchange rate at levels that favor exports. China's accumulation of over $3 trillion in dollar reserves that are parked mostly in Treasury's that keep U.S. interests low. Distortons in the global economy from the failure to rebalance the world economy hurts China and the U.S.

Grouped Articles

The Obama-Romney Tariff

Wall Street Journal 10/04/2011

US-China trade relations: Speak less softly, carry a stick

Economist 09/25/2010

Taking On China

New York Times 09/30/2010

Americans Sour on Trade

Wall Street Journal 10/02/2010

The Engine That Pulled Us Out of Recession

Wall Street Journal 03/19/2015

What’s Our Duty to the People Globalization Leaves Behind?

New York Times 01/26/2016

Trans-Pacific Partnership Trade Agreement- winners and losers

04/07/2011

A study by Prof. Petri of Brandeis University, shows economic output going up by 0.4% by 2025 or $77 billion for the U.S. as a result of the TPP agreement. Biologic drugs, with long term patent protection, software engineering services, high tech industry are the winners, losers are the Detroit auto industry facing higher imports, light manufacturing in textiles and paper, and some heavy manufacturing sectors. Douglas Irwin of Datmouth and other experts say it is not clear how much of the benefit will affect consumers and businesses in the U.S. Most of the tariff cut gains are already made and import duties as a percentage of total imports are down to 1.4% today. Experts say 4/5th of the benefits for the U.S. are not from tariff cuts but from new rules for trade in services, and new rules for investment and commerce. The agreement brings together Pacific area countries, including Canada, Australia, New Zealand, Chile, and Japan, Malaysia, Singapore and Vietnam. Agriculture is protected in Canada especially in Quebec, and in Japan, which means tough negotiations to open up this sector. Politically the TPP is a response by the U.S. and Japan to the Infrastructure Investment Bank set up by China with support from Europe and India.

Grouped Articles

Pacific Trade Deal Likely to Have Narrow Reach

Wall Street Journal 08/01/2015

Auto-Parts Dispute Taps the Brakes on Pacific Trade Deal

Wall Street Journal 09/04/2015

Why You May Soon See More Goods Labeled ‘Made in Vietnam’

Wall Street Journal 10/19/2015

Utah Senator, Crucial Ally for the Pacific Rim Trade Deal, Is Now Its Main Hurdle

New York Times 11/12/2015

McConnell warns that trade deal can’t pass Congress before 2016 elections - The Washington Post

Washington Post 12/11/2015

Trans-Pacific Trade Pact Would Lift U.S. Incomes, but Not Jobs Overall, Study Says

New York Times 01/25/2016

How Mexico's 40 free trade agreements reaching 60% of world markets helps Mexico win auto manufacturing foreign investment in 2015

03/18/2015

VW Audi decided to use Mexico instead of the U.S. state of Tennessee for a $1.3 billion manufacturing plant investment in 2015, not just because of low manufacturing cost, but also because it can export more easily from Mexico. The U.S. has fewer free trade agreements than Mexico.

Grouped Articles

Why Auto Makers Are Building New Factories in Mexico, not the U.S.

Wall Street Journal 03/18/2015

Mexican Auto Production Sets Record in April

Wall Street Journal 05/07/2015

Wariness as Auto Industry Eyes Mexico for Growth

New York Times 07/22/2015

Ford to More Than Double Mexico Production Capacity in 2018

Wall Street Journal 02/08/2016

After Michigan Loss, Hillary Clinton Sharpens Message on Jobs and Trade

New York Times 03/09/2016

Free Trade Loses Political Favor

Wall Street Journal 03/10/2016

U.S. workers and trade unions

01/04/2009

Grouped Articles

Concessions Foreshadow a Tough Year for Unions

Wall Street Journal 01/04/2009

Unions Suffer Latest Defeat in Midwest With Signing of Wisconsin Measure

New York Times 03/09/2015

After Michigan Loss, Hillary Clinton Sharpens Message on Jobs and Trade

New York Times 03/09/2016

Labor's Coming Class War

Wall Street Journal 01/04/2011

Public-Worker Unions Steel for Budget Fights

Wall Street Journal 02/14/2011

Scott Walker's False Choice

Wall Street Journal 03/04/2011

Workers aid legislation passed by the U.S. Congress to protect workers along with fast track trade authority in June 2015

06/26/2015

Grouped Articles

House Backs Workers Aid on Heels of Trade Bill

Wall Street Journal 06/26/2015

After Michigan Loss, Hillary Clinton Sharpens Message on Jobs and Trade

New York Times 03/09/2016

More Wealth, More Jobs, but Not for Everyone: What Fuels the Backlash on Trade

The New York Times 09/28/2016

Trump Nafta Blueprint Raises Concerns in Canada and Mexico

WSJ 03/30/2017

U.S. Congressional opposition to giving trade promotion authority to president Obama, and fast track for TPP, other free trade pacts

02/26/2015

Grouped Articles

Lawmakers Introduce ‘Fast Track’ Trade Bill, Triggering Democratic Discord

Wall Street Journal 04/17/2015

TPP: Momentum on Trade Deal Bolsters U.S., Japan Efforts to Counter China

Wall Street Journal 04/17/2015

A Lift for Free Trade

Wall Street Journal 04/17/2015

Deal Reached on Fast-Track Authority for Obama on Trade Accord

New York Times 04/16/2015

Obama Tries Tough Sale of TPP Trade Deal to Fellow Democrats

Wall Street Journal 04/18/2015

Obama Promotes Benefits of Trade Deals to Workers and Smaller Businesses

New York Times 02/26/2015

Former World Bank chief Zoellick's proposal for economic and trade policies in U.S. president Obama's second term

02/05/2013

Zoellick says the U.S. should provide leadership in economic and trade policies to revive growth in the global economy.

Grouped Articles

Obama to Assert Unilateral Agenda

Wall Street Journal 01/27/2014

In Second Term, Obama Is Seen as Using ‘Hidden Hand’ Approach

New York Times 07/15/2013

Obama Promotes Benefits of Trade Deals to Workers and Smaller Businesses

New York Times 02/26/2015

Robert Zoellick: A New U.S. International Economic Strategy

Wall Street Journal 02/05/2013

Obama’s Trickle-Up Economics

The New York Times 09/16/2016

World Trade Set For Slowest Yearly Growth Since Global Financial Crisis

WSJ 09/27/2016

The changing environment for trade unions in the U.S. 2010-2016

03/09/2015

Grouped Articles

Unions Suffer Latest Defeat in Midwest With Signing of Wisconsin Measure

New York Times 03/09/2015

Unions Declare Partial Victory Against Obama’s Pacific Trade Deal

Wall Street Journal 06/15/2015

After Michigan Loss, Hillary Clinton Sharpens Message on Jobs and Trade

New York Times 03/09/2016

Trump era confronts organized labor with gravest crisis in decades

Washington Post 12/09/2016

Trump Nafta Blueprint Raises Concerns in Canada and Mexico

WSJ 03/30/2017

Comparitive advantage, free trade, jobs and the role of manufacturing in the U.S.

07/01/2010

Grouped Articles

Does America Need Manufacturing?

New York Times 08/24/2011

Andy Grove: How America Can Create Jobs

BusinessWeek 07/01/2010

Americans Sour on Trade

Wall Street Journal 10/02/2010

Bayer: Pressure on Prices Has Bad Side Effects

Wall Street Journal 02/07/2012

A part-timer boom, or blip? - The Washington Post

Washington Post 07/16/2014

Why Manufacturing Still Counts in the U.S. Economy

Wall Street Journal 01/14/2015

The debate over NAFTA, TPP trade agreements and loss of U.S. jobs in 2016

09/23/2016

Grouped Articles

The Trans-Pacific Partnership, Explained

09/23/2016

More Wealth, More Jobs, but Not for Everyone: What Fuels the Backlash on Trade

The New York Times 09/28/2016

Presidential Election Live: Hillary Clinton and Donald Trump Vote, but a Changing Electorate Will Decide

The New York Times 11/08/2016

Donald Trump Poised to Put Pressure on Nafta

WSJ 11/21/2016

Inside Donald Trump’s Economic Team, Two Very Different Views

WSJ 11/21/2016

Trump Nafta Blueprint Raises Concerns in Canada and Mexico

WSJ 03/30/2017

U.S. trade with China in 2000-2011 and the impact on cities and counties in the U.S.

09/25/2010

Three American researchers have completed a study on the impact of U.S. trade in the decade 2000-2011 with China, a period of exceptionally high growth of about 12% in China and a surge in imports into the U.S. The study shows counties in the 75th percentile in import levels experienced a surge in unemployment and government payments to support the unemployed. Nobel Prize winner Michael Spence points out this was an exceptional period and no theory in textbooks can account for the changes taking place because the growth rate in China was unprecedented.

Grouped Articles

Tallying the Toll of U.S.-China Trade

Wall Street Journal 09/27/2011

US-China trade relations: Speak less softly, carry a stick

Economist 09/25/2010

Americans Sour on Trade

Wall Street Journal 10/02/2010

In Tepid Wage Growth, a Potent Sign of a Still-Fragile Economy

New York Times 05/05/2014

U.S. Trade Gap Widens on Surging Imports

Wall Street Journal 05/06/2015

Campaign Season’s Anti-China Tone Is Likely to Cloud Meeting With Obama

New York Times 03/30/2016

The conflicting objectives of Japan and Mexico, Canada, UAW and the U.S., relating to auto parts and components during negotiations for the TPP

09/04/2015

Japan uses China and Thailand as part of its supply chain. Mexico has made gains under NAFTA it does not want to lose with large imports of cheap Chinese auto parts. The U.S. auto industry is somewhere in the middle and the UAW trade union wants to preserve American jobs. The different interests of Canada, Mexico, Japan and the U.S. make it harger to negotiate aspects of the ATT related to the auto industry. The auto industry in the U.S. is not a significant beneficiary from passing of the TPP.

Grouped Articles

Auto-Parts Dispute Taps the Brakes on Pacific Trade Deal

Wall Street Journal 09/04/2015

McConnell warns that trade deal can’t pass Congress before 2016 elections - The Washington Post

Washington Post 12/11/2015

Ford to More Than Double Mexico Production Capacity in 2018

Wall Street Journal 02/08/2016

After Michigan Loss, Hillary Clinton Sharpens Message on Jobs and Trade

New York Times 03/09/2016

Donald Trump Lays Out Protectionist Views in Trade Speech

WSJ 06/28/2016

What the New GOP Means for Wall Street

WSJ 07/19/2016

Lawrence Summers on free trade and the backlash in the 2016 U.S. presidential election

04/11/2016

Grouped Articles

What’s behind the revolt against global integration? - The Washington Post

Washington Post 04/11/2016

Donald Trump Lays Out Protectionist Views in Trade Speech

WSJ 06/28/2016

What the New GOP Means for Wall Street

WSJ 07/19/2016

More Wealth, More Jobs, but Not for Everyone: What Fuels the Backlash on Trade

The New York Times 09/28/2016

Trump Nafta Blueprint Raises Concerns in Canada and Mexico

WSJ 03/30/2017

The Trump administration's proposal in 2017 for changes to the NAFTA treaty with Mexico and Canada

03/31/2017

Grouped Articles

Trump Nafta Blueprint Raises Concerns in Canada and Mexico

WSJ 03/30/2017

Donald Trump’s Recent Policy Reversals Reflect Business Influence

WSJ 04/14/2017

Why Donald Trump Decided to Back Off Nafta Threat

WSJ 04/27/2017

Trump Sends Nafta Renegotiation Notice to Congress

The New York Times 05/18/2017

For Amazon, Now Comes the Hard Part

WSJ 06/18/2017

Canada’s Trump Strategy: Go Around Him

The New York Times 06/22/2017


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