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Monday, March 5, 2018

The Aims of Renegotiating NAFTA

NAFTA, North American Free Trade Agreement, has been on the minds of many Republicans and a number of Democrats as well. While not a bi-partisan issue it does have the eyes and ears of many. The current administration is seeking to renegotiate the terms of NAFTA to make it more fair to American businesses.

The details are still sketchy but what they are discussing is the need to ensure companies don't leak to the south (Mexico) in search of cheap labor. Likewise law makers will want to ensure that more manufacturing is centered within the U.S. as well as protect against issues related to copywrite/patent violations and product "dumping".

I'm a believer, through my own research, that international trade is an absolute must and that trade agreements and treaties are an important part of ensuring American businesses have what they need to manufacture products and have receptive countries that are willing to import our products.

Access to materials and open boarders allows for the two way street needed to enhance local production. As an emerging advanced economy we need cheap quality materials to build new and exciting products as the highest value is not often in the mining process but the creation and production process.

Furthermore, our trade agreements should ensure that our products can be sold in any of our partnering countries without penalties. It isn't enough anymore to produce products for American consumers and a global agenda is needed.

Whatever the actual outcome there should be three focuses

-Access to markets
-Cheap materials and capital
-Protections from copying and dumping

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