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NAFTA Renegotiation
Article

NAFTA Renegotiation

Separating Fact from Fiction


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Editorial Rating

8

Qualities

  • Controversial
  • Overview
  • Hot Topic

Recommendation

One of Donald Trump’s banner campaign promises was to revamp or eliminate the North American Free Trade Agreement (NAFTA), which he called “the worst trade deal” in US history. He blames NAFTA for the loss of US manufacturing jobs. Soon after the election, the White House set a renegotiation in motion. However, the Brookings Institution’s Amanda Waldron makes the case that the effort to revise or toss the agreement may be misguided and potentially dangerous. getAbstract recommends this succinct but cogent article to trade experts and to executives whose companies would bear the impacts of changes to NAFTA.

Take-Aways

  • The Trump administration has signaled that one of its major objectives in renegotiating the North American Free Trade Agreement (NAFTA) is to cut the US trade deficit.
  • Since its inception in 1994, NAFTA has created benefits that outweigh its drawbacks.
  • The deficit with Mexico is an outcome of fully integrated supply chains that allow US companies to offer consumers substantially reduced prices for products as diverse as cars and groceries.

About the Author

Amanda Waldron is a digital media manager at the Brookings Institution.