Wednesday, March 7, 2018

The North American Free Trade War


The vast majority of President Donald Trump’s campaign was founded on the idea of American isolationism and exceptionalism. The United States was to be the sole focus of American politics from his inauguration forward. We would once again become the “great” nation that could squash any foe economically or otherwise. Focusing primarily on domestic concerns regarding the economy was what composed much of the stance President Trump took on when he began his tenure. He planned that we would only engage or cooperate with others if it was absolutely crucial to our own safety or success to do so. Now, President Trump is taking on the controversial opinion of how large a role we should allow the North American Free Trade Agreement (NAFTA) to play in our global economy.
The North American Free Trade Agreement was made between the United States, Canada, and Mexico regarding continental trade. President Trump is not very fond of the deal that was first proposed during the President George H. W. Bush administration. To President Trump, he sees NAFTA as a way for Mexico and Canada to cost us money while imposing stricter restrictions onto the United States and its exports. While there have been some disputes in the past regarding what products can cross the border for sale, NAFTA has not been brought up in the news as much as other multi-national groups or deals have been in the past. During the 2016 election cycle we heard quite a bit about the Iran-Nuclear deal or about NATO. Now our neighbors to both the North and to the South are to blame for our “$800 Billion Dollar Yearly Deficit,” according to President Trump’s Twitter.
President Trump has already insulted President Enrique Pena Nieto of Mexico with his threats of a border wall and calling illegal immigrants “rapists” and “criminals.” Now, we have denigrated Canada and its trade protocols as well. Like any multi-national agreement, NAFTA too has its flaws but that does not mean we should not support it, as well as continued trade with our two closest neighbors. Treaties and agreements can always be remedied as history sees fit, but the critique should lie with the agreement itself and not the other nations involved. NAFTA is not merely an economic agreement regarding what products can be shipped to and from nations; it serves as a pact that we are connected to other countries and that economies other than our own matter as well.
There is nothing wrong with wanting the best economically for your country, especially when you serve as an example for the rest of the world as a financial powerhouse. Placing tariffs on steel and aluminum seems like a positive sign for economic nationalists who want evidence that President Trump is attempting to put “America first,” like promised. Sadly, these tariffs would only hurt American workers and businesses even more. Inevitably, this issue ties back into how President Trump chooses his words when speaking about other nations.
It is not in your best interests to insult the nations that physically touch you or those who are also economic powerhouses, such is the case with China. While I doubt President Nieto will ever genuinely enjoy working with President Trump in the next couple of years, our relationship with Prime Minister Justin Trudeau is not all lost. Choosing his words carefully has never been President Trump’s strong suit but claiming your “friends” have “taken advantage of the U.S” via NAFTA is not the smartest move.
President Trump’s announcement that he would place tariffs on steel and aluminum until a “new and fair NAFTA agreement is signed,” is not the best option for American workers. It does have the capability to scare some legislators into creating a more “fair” agreement. However, there are still many companies that function within the U.S. that could be hit pretty hard if their materials are suddenly more expensive or more difficult to obtain. Americans love the idea of all products being made right here in the United States of America. Realistically, if we were to rely solely on domestic production and materials, most of us could never afford to buy an iPhone, cars, or toys for our kids. International trade is necessary to maintain economic reliance on one another and ensure that you stay on one another’s good sides in case conflict does arise. If President Trump is not careful, we may lose valuable allies that lie directly beside us.

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