President Trump has expressed that he feels that the prior NAFTA system was killing trade between Americans and other countries. It’s been an issue for a while now, causing many Americans to miss out on opportunities in international trade.
President Trump plans on creating a unique deal that would SUPPOSEDLY enhance the chances to improve those opportunities for everyone. It has needed to be improved for some time considering the way that trade has been in the past.
Currently, there is research to try to better understand how this has been failing the general population so badly before actions are taken further. The goal is to find the best plan for the future for the benefit of all participants.
As this was a part of President Trump’s campaign promise, he really must come up with something that stands out as an improvement. This was stated by Debbie Dingell, a Democrat from Michigan during a conference call that reviewed the release of the NAFTA changes to come. Otherwise, he would be breaking a promise to his constituents.
So far, all of the details are mixed. There’s nothing nailed down to facts, but things are going to be very different. One thing stands out above the other aspects is the prevalence of rules that guarantee corporate profits.
The Public Citizen trade expert named Lori Wallach claims that the rhetoric which President Trump has shared is not one of any high expectations: comparing it to a swamp. There are just general statements in the release, rather than details of specific changes.
While all of that is true, there is a mention of some positives in the release. It plans to include assurances that all of the countries in NAFTA will not be allowed to manipulate exchange rates in an unfair competition over the other countries.
Mexico and Canada have not been mentioned as being those that are involved in any manipulations, there is some concern about future inclusions with South Korea. I think the thing that concerns all of us is the chance that the NAFTA changes will include things that favor profits over common sense.
One of the House of Ways and Means Committee Chairman Kevin Brady, a Republican from Texas, stated that the future of NAFTA will be one which is laden with a more secure base of rules to ensure the safety of all participants.
Orrin Hatch, a Republican from Utah, of the Senate Finance Committee Chairman, stated that this new set of rules and the changes therein will help Americans to be better invested in global relations for profits.
A Democrat from Oregon of the Senate Finance Committee, Ron Wyden calls for a complete renegotiation of NAFTA. He also believes that the document fell short in two major areas. While the change is a good thing, it lacks in the following areas.
– It is hopeless because it is so vague.
– It does nothing to cover specific objectives.
– There is no mention of how to protect against currency manipulation.
One aspect that is certain regarding all of this is the fact that the intellectual property rights will be very guarded for American exporters. There will be clear rules and regulations to ensure this is so. That an important addition to the new rules and changes must be definitive.
It is true that work must be done for these changes to be made effective. Prior to sitting down, it must be hammered out for the better of all countries involved in the changes that are about to come from this administration. Considering the fact that changes have not been made in ages, it is simple to understand how the representatives feel. Change must happen for things to get better. President Trump has stated that the changes will be specifically aimed at improving opportunities for American and protecting intellectual property rights.
Here are only the few details we currently know about this, and they aren’t good.The one thing that is scary is that NAFTA version 2 could be too similar to TPP. Many progressives (including us), despise Trump, but gave him fair credit and praise when he destroyed the TPP. It looks like this new NAFTA could give the corporations an international court that over rules sovereign nation’s own local laws. This is scary because large multinational corporations could violate individual country environmental regulations. The other worrisome aspect, is that corporations could sue governments for not meeting expected profits. This happens to be most bizarre part of the proposed revised NAFTA guidelines, it is essentially socialism for large corporations, because it would make their investments risk free. If a company expects a $500 million profit in a 3 quarter time frame and they make $400 million, based on their own bad investment or incompetence, why should they be able to sue the government? (like I said this part of NAFTA v2 is the worst). The last part of this proposal includes no discrimination on participating countries of the trade deal, which would essentially eliminate American preference and hurt our workers even worse, because they could classify tariffs on other countries goods being imported as discrimination.
Hopefully this gets toned down a bit, the initial NAFTA is already harming us enough. If this ends up getting completed and passed as the current proposals stand, then there almost no point in abolishing the TPP in the first place since it holds most of those flaws.