320 Washington Street
Easton, MA
02357
7 April 2017
From: Matthew Macy
To: Secretary of
State Rex Tillerson
Thru: U.S. Department
of State; Bureau of Economic and Business Affairs
Subj: American
Trade Policy Within NAFTA
1.
The North American
Free Trade Association has provided the United States with the ability to
increase trade with both Mexico and Canada since its inception in 1994. Trade
has gone up and been eased with this alliance, and the trade deal has worked
well for the American economy. Businesses have witnessed great benefits since
NAFTA was approved by the Clinton administration, and our neighbors to the
north and south have had economic improvements as well.
2.
On the minds of
some economists and citizens is that the United States has not been ‘winning’,
so to say, in this trade deal. Jobs have left to relocate south of the border,
making Americans unemployed and looking for work. The auto sector has seen a
large decline in jobs, most of which have either gone to Mexico or become
automated. In addition, businesses have been taking advantage of this, as they
can threaten to create jobs outside the nation for lower wages to save money
and improve their profit margin.
a.
The number of
Mexican auto jobs has tripled in the two decades since NAFTA was incorporated,
from roughly 120,000 jobs up to over half a million.
b.
American
statistics show a steep decline as well, with a reported loss of 350,000 jobs
in the auto sector.
c.
In addition, the
trade balance between the United States and Mexico has slid precipitously- from
a $1.4 billion surplus at the time of signing to a $54 billion deficit, as of
2014.
3.
Removing loopholes
which big businesses can utilize to cut costs and force Americans out of a job
should be a key part of NAFTA in order to assist citizens who are seeking
employment and/or job security. Re-negotiating a clause or section into NAFTA
that would apply safeguards to American jobs would keep workers confident in
their employment opportunity and wage stability, as well as create an economic
boost for families that can now spend more money in the national economy.
4.
Implementing
change to aid the average citizen who works for or benefits off of trade
through the NAFTA agreement would improve lives, job stability, and earnings.
Keeping the American consumer happy and able to spend their hard-earned dollars
stimulates the national economy and promotes the positives of staying on as a
member of NAFTA.
Thank for your time and consideration on this important matter.
Thank for your time and consideration on this important matter.
An interesting critique of NAFTA. The memo articulated both the pros and the cons of NAFTA while citing possible improvements that could be made to the trade agreement while not totally scrapping it as Trump would.
ReplyDeleteThis was a very compelling call for a renegotiation of NAFTA.
Matt your post is good!
ReplyDeleteI like how you mention the benefits and negatives that NAFTA has created for us as a country.
The improvements you give are well thought out. I think that safeguarding American jobs is good but I feel that this may cause a price increase because of minimum wages that Americans would have to be paid. This is one possible counter I have for your solution. I do like your memo though and agree with it just think the possible counter needs to be addressed.
Matt,
ReplyDeleteThis was a really good memo and I love how you mentioned both the benefits and disadvantages (pros and cons) of NAFTA instead of only taking one side as well as not only giving the history of it but talking about NAFTA today. I agree with most everything you said and really like the part of removing loop holes for big businesses and think it's important so I'm happy you pointed that out.