Mexico Sending Lethal Drugs into America: President Trump
His critics believe that Trump has hardly any knowledge about any subject including NAFTA and he keeps tweeting randomly without articulating his thoughts.
By Rakesh Raman
President Donald Trump – who is a strong proponent of economic protectionism – has once again warned that NAFTA (North American Free Trade Agreement) was a bad deal for America.
Trump believes that the U.S. agreement with Mexico and Canada has resulted in loss of jobs for Americans and many local companies have gone abroad.
“We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A.” Trump said in an early-morning tweet today.
We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed. Also, Canada must..
— Donald J. Trump (@realDonaldTrump) March 5, 2018
Trump also said that Mexico must stop sending drugs into the U.S. “They have not done what needs to be done. Millions of people addicted and dying,” Trump tweeted without substantiating his claims.
…treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying.
— Donald J. Trump (@realDonaldTrump) March 5, 2018
His critics believe that Trump has hardly any knowledge about any subject including NAFTA and he keeps tweeting randomly without articulating his thoughts.
[ President Trump Threatens to Withdraw from NAFTA. But Why? ]
NAFTA is an agreement signed in 1994 by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America.
It ensures elimination of most tariffs on products traded among the three countries: Canada, Mexico, and the U.S. From America’s standpoint, it is a bipartisan initiative—negotiated by Republican President George H.W. Bush and passed through Congress and implemented under Democratic President Bill Clinton.
According to an independent think tank Council on Foreign Relations (CFR), the agreement encouraged a more than tripling of regional trade, and the cross-border investment between the three countries also grew significantly.
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Yet, according to CFR, NAFTA has remained a target in the debate over free trade, largely because it is accused by some as leading to a shift in production, and jobs, to Mexico. This has reference to Trump’s unsubstantiated claims.
In a detailed report CFR said that economists largely agree that NAFTA has provided benefits to the North American economies. Regional trade increased sharply over the treaty’s first two decades, from roughly $290 billion in 1993 to more than $1.1 trillion in 2016.
And contrary to Trump’s gut feeling, the American economy has benefited from NAFTA. The CFR report reveals that Canada and Mexico are the two largest destinations for U.S. exports, accounting for more than a third of the total.
If, as per this data, NAFTA is working fine for all the partner countries, then why does Trump want to change it unnecessarily?
By Rakesh Raman, who is a national award-winning journalist and social activist. He is the founder of a humanitarian organization RMN Foundation which is working in diverse areas to help the disadvantaged and distressed people in the society.
