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Entries in NAFTA (12)

Thursday
Nov302017

How to Keep NAFTA Dressed for Success

U.S. Chamber of Commerce

November 30, 2017

Textile and apparel executives, and their U.S. workers, are nervously eyeing the ongoing negotiations to modernize the North American Free Trade Agreement (NAFTA). Concerns around possible job losses in this sector are running high and rising.

If you had read those statements in the mid-1980s, you might assume this sector was hoping trade talks would unravel, due to threats of foreign competition. Some still believe that to be the case, but they are mistaken.

What a difference a generation makes.

To understand why NAFTA helps the U.S. textile and apparel industry compete, you need only understand one number: 97.

That is the percentage of clothes that are purchased every year by Americans and produced offshore. We still make clothes here in the United States — primarily for fast turns, for the military, and for special programs — and we always will. But the bulk of our clothing is sewn offshore.

Asian countries own a good chunk of that 97%. Six of our top ten clothing suppliers are in Asia with China leading the way at about 40% market share. But the other four top suppliers are in the Western Hemisphere, and they include Mexico — one of our two NAFTA partners.

Read on...

Thursday
Nov162017

Terminating NAFTA Would Devastate American Agriculture: The View of a Wheat Farmer

U.S. Chamber of Commerce

November 16, 2017

On average 50% of wheat grown in the United States is exported around the world, making trade a vital market to myself and fellow wheat growers. Our main message in North American Free Trade Agreement (NAFTA) re-negotiations is “Do no harm.”

NAFTA is one of our most important trade agreements. Just last year alone, Mexico was our largest export market with about three million metric tons of wheat and is consistently in the top ten. Prior to NAFTA, U.S. wheat was subject to high tariffs and other trade barriers in Mexico. With zero duties and lifted tariffs, exports to Mexico increased by 400% ten years after implementation of NAFTA, compared to ten years prior to NAFTA.  

While we hope calls for withdraw are just rhetoric, we are taking this threat very seriously. In fact, threats alone have already hurt U.S. wheat. When it comes to commodities, if a customer is unsure of the reliability of their source, they will look to our competitors. Mexico has done just that after a trade mission to Argentina and Brazil in May which led to Mexican millers purchasing Argentina wheat. The first shipment purchased by eight companies will be made in late December and will be 30,000 metric tons of wheat as a trial.

Monday
Sep112017

NAFTA's Impact On Cattle, Protein Trade

CattleFax

September 11, 2017

Trade representatives of the United States, Mexico and Canada declared “progress” but unveiled no breakthroughs at the most recent second round of talks to revise the North American Free Trade Agreement (NAFTA). Warnings have been expressed from U.S. agricultural producer organizations about the harm that would come from blowing up the decades-old trade arrangement.

When it comes to cattle imported into the U.S. from Mexico and Canada, combined is just over a million head per year, or about two weeks of cattle slaughter. When looking at all proteins -- beef, pork and poultry -- to stop all trade with Canada and Mexico would put 250 million pounds back on the U.S. market net. Yet it could have a significant impact on the market individually, such as poultry as we export significant amounts to Mexico.

The NAFTA talks are expected to last at least through the end of this year, with venues rotating among the three nations. The just-concluded five-day session in Mexico City followed an initial round last month in Washington.

 

Thursday
Aug172017

NAFTA Helps Small Business Manufacturers Grow

U.S. Chamber of Commerce

August 17, 2017 

Nearly two decades ago, Drew Greenblatt purchased a small manufacturing business in Baltimore, Maryland. Since then, he has nearly doubled the number of employees at Marlin Steel Wire Products. Over that same period, he doubled the firm’s sales. Then he doubled that. Then he doubled it again.

In large measure, Greenblatt’s success and Marlin Steel’s growth have been fueled by exporting the company’s wire baskets, wire forms and sheet metal products to customers abroad, with more than a quarter of the company’s revenue now stemming from international sales. Looking at it another way, seven of the Marlin Steel’s 29 workers’ jobs are directly tied to the company’s exports.

Greenblatt would like to see that number continue to grow.
From a business perspective, the foremost goal of U.S. trade policy should be to tear down barriers so companies like mine can start exporting to new markets … Free trade agreements have helped us accomplish this in the past and will help our business grow in the future.
No trade deal, Greenblatt adds, has been more critical to the company’s success than the North American Free Trade Agreement, commonly known as NAFTA.

Tuesday
Apr252017

With NAFTA, Mexico and the U.S. build things together 

The Dallas Morning News

April 25, 2017

Since NAFTA was signed 24 years ago in my hometown of San Antonio, U.S. trade with Mexico and Canada has more than tripled, and there is no question that Texas has benefited the most. With easy access to two of the busiest U.S. ports of entry via land and sea — Laredo and Houston — it is no surprise that Texas exported more than any other state in 2014, almost $300 billion-worth to countries worldwide. Across the U.S., all but ten states depend on Canada or Mexico as their largest export markets.

While "free trade" has been blamed for job losses in many parts of the nation, as of 2014 nearly five million jobs across the U.S. depend on trade with Mexico. These jobs are not just in Texas. In 2015, Mexico was the first or second export destination for 30 out of 50 states.

Read on...

Tuesday
Apr112017

NAFTA has staying power, especially if Texas supporters keep speaking out 

The Dallas Morning News

April 11, 2017

Geronimo Gutierrez Fernandez, Mexico Ambassador to U.S.In one of his first acts in Washington, President Donald Trump pulled the United States out of the Trans-Pacific Partnership, a controversial trade deal involving a dozen countries.

Unwinding the North American Free Trade Agreement with Mexico and Canada would be much tougher, even if Trump wants to go there.

That’s no accident. Before NAFTA took effect 23 years ago, Mexico was angling for more than easy access to U.S. consumers, which is usually the primary goal for a developing country.

Mexico wanted an accord that would also benefit the U.S. and Canada, and strengthen economic ties among all three countries. Such multi-sided trade deals are more stable and durable, and that’s helpful when there’s a change in popular opinion -- or elected leaders.

NAFTA has created impressive growth in trade and jobs, especially for Texas. But it’s also spawned large networks of suppliers and manufacturers whose goods often criss-cross the border before final assembly.

Read on...

Tuesday
Mar212017

Don’t End NAFTA. Fix It.

Politico Magazine

March 21, 2017

When looking for a model economy, Washington would be wise to look no further than Texas. The “great American jobs machine,” as we're affectionately known, has been the economic engine that pulled our country out of the recent recession, singlehandedly adding more than one million jobs to the American economy. In fact, if Texas were its own country, we would be the 10th largest economy in the world.

Now, with pro-growth Republicans in control of Congress and the White House, leaders are beginning to consider proposals to lift our economy out of a sluggish recovery. But as we work together to jumpstart our factories and farms across the country, let’s keep in mind what my state has gotten right.

Trade has been a cornerstone of the Texas economy, with no partner more important than Mexico.

As our largest export market, Mexico has an extraordinary economic relationship with Texas. Trade with our southern neighbor supports hundreds of thousands of jobs in my state and provides more goods at a better price for Texas families. More than a third of all Texas merchandise is exported to Mexico – meaning our farmers, ranchers and small businesses have found no shortage of customers south of the border too.

Read on...

Thursday
Jan122017

Donald Trump and the rising reshoring movement

TRG International

January 12, 2017

In June 2015, Donald Trump, then the Republican frontrunner, threatened to slap a 35% tariff on Ford’s cars and trucks made in Mexico if the automaker went ahead with plans to move its production of small cars from the US to Mexico. The feud between Mr. Trump and Ford was a highlight of his repeated pledges to bring manufacturing jobs back to the US. Mr. Trump also made it very clear that he opposes free trade agreements like TPP (Trans-Pacific Partnership) and will renegotiate NAFTA (the North American Free Trade Agreement).

Fast forward to 2017, Ford just announced on Jan 03 that it will cancel plans for the US$1.6 billion plant in Mexico and instead invest in expanding its facilities in Michigan, IL. And TPP is now dead in the water when both the White House and congressional leaders gave up on passing it. Is reshoring, the practice of bringing outsourced production back to home countries, becoming a major trend that will reshape the future of global manufacturing? And should emerging economies be concerned?

Read on...