Wednesday, November 11, 2015

Killing NAFTA would hurt US companies and consumers

Donald Trump would kill NAFTA, North American Free-Trade Agreement in order to save US jobs. But doing so would make things worse, not better.

Our exports are up since NAFTA. Our economies are integrated - Manufacturers allocate different tasks to firms in the US, Canada and/or Mexico, using the comparative strengths of each. Cars being manufactured cross between the US and Canada, sometimes more than once!

Putting up Donald Trump's wall would break those relationships that have been developed and refined over decades. That would raise costs to the producers - and to us consumers.

See Mary Anastasia O'Grady at Wall Street Journal. (Might require subscription.)

Aat Wharton School of Business at U of Pennsylvania they go into all the pluses and minues. Their mesure of loss/benefit is closer, but still positive for the US. The authors are more worried about Mexico damaging its economic ties with US and Canada. Wharton

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