The new NAFTA is now called USMCA which was implemented during the Trump administration. The USMCA is very similar to NAFTA. USMCA( NEW) has rules about where companies can house their digital property as well a new chapter on digital trade. This includes protections for consumers, assertion parties will facilitate electronic commerce, and protections for companies’ data assets. NAFTA( OLD) removed tariffs from most products moving across North America but had a major focus on three industries: automotive, textiles, and agriculture. Although these changes were small these changes are better because it benefits others in the business. It provides jobs and better wages for others. This will also be a huge gain in the economy.
The old NAFTA deal caused a lot our American jobs to be out sourced to Mexico like automobile manufacturing. "American" made cars are being made in Mexico and Canada for a cheaper cost of the manufacturer but this is hurting the American work force putting people out of jobs. With the new USMCA America comes first, meaning that Americans will be given more opportunities with jobs in manufacturing field. This is very important because these jobs are the back bone of America and the middle class. With this new deal we can begin to start to rebuild our middle class instead of just making the rich richer. Manufacturers will be incentivized to keep producing cars in America by tariffs to…
This new trade deal will lead to more jobs in the United States but with tariffs still in place on products on cars there will still be reductions in the economy with dead weight lost in the economy. Not to mention that since in this day in age for most Americans cars are a necessity so car dealers can put most of the tax burden on the consumers since they are essentially and inelastic good. Also the jobs being added to the US economy are first and second sector when in reality third sector jobs in services are better for the economy. So the jobs saved are better for political campaign but not better for the overall economy.
I think that since the revisions made to NAFTA were not as substantial as Trump aimed for, the effects will not be as drastic. While this article outlines that there are winners and losers, I do think that some of the provisions added were much needed. While I do think that NAFTA did need to be modernized, I also think that a lot of these negotiations (and strong-arming) were carried out so Trump could “fulfill” a promise to his supporters, many of whom are farmers. While car prices will likely go up, I think Americans will find greater value in the other benefits we will (hopefully) see, such as increased wages for American workers, stronger agricultural trade standards, etc.
Although changes to NAFTA seem to make North American economics more of concern for Mexico, Canada and the US, I believe that the increase in production, especially for automobiles, may lead to more protectionism in North America. The use of tariffs seems more coersive against member states outside of the USMCA. Taking a protectionism policies for North American may lead to problems associated with isolationism. Although Trump has promised this in his campaign, perhaps the US should be looking at globalizing as the world is becoming more interdepent. The focus should turn to all of the world instead of just with North America.
The new NAFTA is now called USMCA which was implemented during the Trump administration. The USMCA is very similar to NAFTA. USMCA( NEW) has rules about where companies can house their digital property as well a new chapter on digital trade. This includes protections for consumers, assertion parties will facilitate electronic commerce, and protections for companies’ data assets. NAFTA( OLD) removed tariffs from most products moving across North America but had a major focus on three industries: automotive, textiles, and agriculture. Although these changes were small these changes are better because it benefits others in the business. It provides jobs and better wages for others. This will also be a huge gain in the economy.
The old NAFTA deal caused a lot our American jobs to be out sourced to Mexico like automobile manufacturing. "American" made cars are being made in Mexico and Canada for a cheaper cost of the manufacturer but this is hurting the American work force putting people out of jobs. With the new USMCA America comes first, meaning that Americans will be given more opportunities with jobs in manufacturing field. This is very important because these jobs are the back bone of America and the middle class. With this new deal we can begin to start to rebuild our middle class instead of just making the rich richer. Manufacturers will be incentivized to keep producing cars in America by tariffs to…
This new trade deal will lead to more jobs in the United States but with tariffs still in place on products on cars there will still be reductions in the economy with dead weight lost in the economy. Not to mention that since in this day in age for most Americans cars are a necessity so car dealers can put most of the tax burden on the consumers since they are essentially and inelastic good. Also the jobs being added to the US economy are first and second sector when in reality third sector jobs in services are better for the economy. So the jobs saved are better for political campaign but not better for the overall economy.
I think that since the revisions made to NAFTA were not as substantial as Trump aimed for, the effects will not be as drastic. While this article outlines that there are winners and losers, I do think that some of the provisions added were much needed. While I do think that NAFTA did need to be modernized, I also think that a lot of these negotiations (and strong-arming) were carried out so Trump could “fulfill” a promise to his supporters, many of whom are farmers. While car prices will likely go up, I think Americans will find greater value in the other benefits we will (hopefully) see, such as increased wages for American workers, stronger agricultural trade standards, etc.
Although changes to NAFTA seem to make North American economics more of concern for Mexico, Canada and the US, I believe that the increase in production, especially for automobiles, may lead to more protectionism in North America. The use of tariffs seems more coersive against member states outside of the USMCA. Taking a protectionism policies for North American may lead to problems associated with isolationism. Although Trump has promised this in his campaign, perhaps the US should be looking at globalizing as the world is becoming more interdepent. The focus should turn to all of the world instead of just with North America.