Today marks the one-year anniversary of the Trump Administration initiating talks to modernize the North American Free Trade Agreement with Mexico and Canada. While the agreement has been a success for all parties involved, there are many places where the agreement can be improved. Bryan Riley, the Free Trade Initiative Director at the National Taxpayers Union, offered this statement:
It has been a full year since the Trump Administration first sat down with Canada and Mexico to begin North American Free Trade Agreement (NAFTA) renegotiations. NAFTA has been a tremendous success for the American economy, but the Trump Administration is right that it is in need of an update.
While there have been bumps in the road with our trading partners, it appears we may be on the cusp of a final agreement.
As the administration moves forward in the coming weeks, it is imperative that a modernized NAFTA reflect progress toward President Trump’s stated goal of zero tariffs, zero non-tariff barriers, and zero subsidies.
A modernized NAFTA must also meet the objectives laid out by Congress under the Trade Promotion Authority statute.
Among other things, an improved NAFTA will protect Americans against having their property expropriated by Mexican or Canadian officials. It will make sure U.S. taxpayers get the best deal in government procurement contracts while preventing Canada and Mexico from blocking U.S. businesses that provide government services. An improved NAFTA agreement will give the United States the flexibility to leave NAFTA in the future without being subject to an arbitrary “sunset clause”; will provide Americans with ongoing access to fresh fruits and vegetables from Mexico; and will not include protectionist domestic content regulations that would increase car prices. An improved NAFTA will include strong enforcement provisions to make sure Canada and Mexico play by the rules.
On this one-year anniversary, the administration should be congratulated for its perseverance in working towards a final agreement that will hopefully result in a stronger, modernized NAFTA that embraces President Trump’s goal of zero tariffs, zero non-tariff barriers, and zero subsidies.