Published
August 11, 2017
With a pork processing plant under construction, residents of Eagle Grove, IA, see first-hand the jobs and economic growth trade can bring to a community, Politico reports:
Unfortunately the economic situation got dicier after President Donald Trump pulled out of the Trans-Pacific Partnership (TPP) in January. Now, as other nations negotiate trade deals among themselves, American agricultural producers are on the outside looking in:
Other countries will get a competitive advantage over U.S. agricultural producers:
I bring up this story, because NAFTA negotiations will start up shortly, and American businesses and farmers want good deals that allow them to sell to more customers internationally.
Going into the negotiations, the Trump administration wisely staked a “do no harm” position that preserves market access and rules that have been working well for a few decades. Now, the U.S., Canada, and Mexico have the opportunity to modernize and update the successful 23-year-old agreement to fit how the North American economy operates today.
Take e-commerce for example. Right now, American companies selling products online to Canadian or Mexican consumers have to pay duties on items as small as a t-shirt or a pair of shoes:
Raising the threshold would, as the U.S. Chamber explained, “simplify entry requirements and reduce transaction costs for American small and medium-sized businesses, making them more competitive in the Canadian and Mexican markets.”
Recently Commerce Secretary Wilbur Ross correctly wrote, “[W]hen given a fair chance to compete, Americans can make and sell some of the best, most innovative products in the world.”
Trade with Canada and Mexico supports 14 million American jobs, and if NAFTA is successfully modernized, more opportunities will be available for American companies, farmers, ranchers, and workers. Lowering trade barriers and opening markets will result stronger economic growth, higher-paying jobs, and stronger communities.
Hear the voices of small businesses owners who depend on trade atFaces of Trade.
About the authors
Sean Hackbarth
Sean writes about public policies affecting businesses including energy, health care, and regulations. When not battling those making it harder for free enterprise to succeed, he raves about all things Wisconsin (his home state) and religiously follows the Green Bay Packers.