There has been a lot of talk about the U.S. pulling out of TPP, which Congress never ratified, and NAFTA. Politicians blame NAFTA for "stealing American jobs" and claim TPP will do the same. Manufacturing jobs were leaving the U.S.A. long before NAFTA. "G.M. opened its first factory in Mexico in 1935, assembling trucks in the capital from parts imported from the United States. After a 1962 Mexican law required foreign auto makers to increase the local content of their vehicles, G.M. built three engine and vehicle plants in the 1960's and 70's. The new plants, like similar factories built by Ford and Chrysler, assembled vehicles for the Mexican market. In the decades since, G.M. has continued to assemble vehicles in Mexico. But in the late 70's, in response to a 1965 law encouraging foreign manufacturers to produce goods here for export tax-free, General Motors changed strategy. ''G.M. began to see Mexico as a supplier for its U.S. vehicle assembly plants, and in the 1980's built an entire parts industry here,'' said Arnulfo Arteaga, a Mexico City professor who studies the auto industry. ''Now, Delphi's Mexican plants basically turn out parts once produced in the United States.'' http://www.nytimes.com/1998/06/24/business/international-business-a-20-year-gm-parts-migration-to-mexico.html
Bill Clinton is quoted saying this about NAFTA in the 90's prior to NAFTA: “But I have a secret for you. This is all happening now, before Nafta has gone into effect. You and I can argue about whether Nafta will have a positive effect or a negative effect, but here’s one thing I can tell you. Everything that you are afraid of happening with Nafta is already happening. That’s God’s honest truth.”…
Companies are going to do what is best for their bottom line, period. Today, a company can have their headquarters here in the states, and run operations in China, Vietnam, Mexico, where ever they want, and not upset the supply chain. If it benefits them to do that, that's what they'll do. "Pursuit of happyness" I think Ive heard before. People are free to run their companies how they want to. Its American capitalism. If tariffs are increased on other countries importing goods, then we will start a trade war, that doesn't end well for anyone. That's where Trade deals come in. They attempt to protect American jobs by opening the American market (lowering or getting rid of tarriffs for participant countries) while raising labor standards, environmental standards, which would make it less enticing for companies to go to in the first place. They also open up markets to U.S. made goods and increase sales. Trade deals also increase U.S. foreign influence. So, with that in mind, lets look at NAFTA, the boogie man of the last U.S. election.
So, why did the U.S. create NAFTA? The deal sought to protect intellectual property, establish dispute-resolution mechanisms, and, through side agreements, implement labor and environmental safeguards. It encouraged a more than tripling of regional trade and cross-border investment between the three countries also grew significantly. The hope was that freer trade would bring stronger and steadier economic growth to Mexico, providing new jobs and opportunities for its growing workforce and discouraging illegal migration from Mexico. For the United States and Canada, Mexico was seen both as a promising new market for exports and as a lower cost investment location that could enhance the competitiveness of U.S. and Canadian companies. It was also said to create hundreds of thousands of new jobs in the U.S.
Did NAFTA accomplish those goals? 1. Regional trade increased sharply (PDF) over the treaty’s first two decades, from roughly $290 billion in 1993 to more than $1.1 trillion in 2016. In 2014 Canada and Mexico ranked first and second for U.S. exports. 2. It did create the NAFTA free trade commission for trade dispute settlements. (which helps with intellectual property) trade with Mexico accounts for five million U.S. jobs, and over all the deal accounts for 14 million U.S. jobs. 3. NAFTA marked the first time that labor and environmental provisions were associated with an FTA. to effectively enforce its occupational safety and health, child labor or minimum wage technical standards. The labor laws aren't as strong as you'd want, but NAFTA including labor laws into a free trade agreement was a novel idea. 4. NAFTA didn't accomplish the slowing of illegal immigration like it was hoped. Turns out, companies that had moved to Mexico from the states, moved to China later on for cheaper labor, making immigration to the states attractive. Among other factors too. See the web address for more: http://www.nytimes.com/2007/02/18/weekinreview/18uchitelle.html 5. NAFTA did lower consumer prices here in the states. 6. NAFTA helped the U.S. auto sector compete with China. By contributing to the development of cross-border supply chains, NAFTA lowered costs, increased productivity, and improved U.S. competitiveness. This meant shedding some jobs in the United States as positions moved to Mexico, he argues, but without the pact, even more would have otherwise been lost. For more, see http://www.nytimes.com/2016/03/30/business/economy/nafta-may-have-saved-many-autoworkers-jobs.html?_r=0
Overall, I'd say NAFTA is a success. What about TPP? 1. Gets rid of taxes on American exports 2. elimination of forced labor in participant countries 3. abolition of child labor in participant countries 4. includes protections for intellectual property 5. It contains a dispute settlement framework 6. Eliminates trade barriers/tarriffs for the U.S. auto industry to sell in Japan 7. Helps workers in TPP countries to unionize 8. creates minimum wages in TPP countries 9. Increases access to internet and the freedom to use the internet throughout TPP countries 10. It gives TPP countries greater access to American made goods, making it less likely they'll buy from the Chinese, our biggest global competitor.
So, if you see things as I do, that globalization is inevitable, and that pulling out of NAFTA and TPP will only put the American economy behind, and possibly in a recession, consider writing this letter to your congressman:
To the honorable _____,
I live in your district, and I have some concerns regarding the U.S. economy I would like to share with you. President Elect Donald Trump has said that he wants to pull out of NAFTA. 1. NAFTA has helped save our auto industry from going to China, 2. Mexico and Canada are two of our biggest trading partners, accounting for 1 trillion dollars worth of trade per year, and 3. NAFTA supports 14 million jobs here in the United States. President Elect Trump has also said that he will pull the U.S. out of TPP, which is designed to help the American worker by increasing U.S. exports, increasing human/worker rights in TPP nations (including minimum wages and unionization), and increases access for the U.S. auto industry to Japans market. It also helps us compete with China by bringing TPP business to the United States. Please do what you can to support these trade agreements, for the sake of the American economy and the American worker.
Thank you for your time,
___________
My other Sources:
http://www.forbes.com/sites/stevedenning/2016/03/08/should-we-blame-trade-agreements-for-loss-of-jobs/#57f331a74320
https://ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-nafta
http://fortune.com/2016/09/27/presidential-debate-nafta-agreement/
https://www.washingtonpost.com/news/fact-checker/wp/2016/05/09/history-lesson-more-republicans-than-democrats-supported-nafta/
https://www.bloomberg.com/view/articles/2016-08-25/bill-clinton-stopped-at-nothing-in-fight-for-nafta
http://www.cfr.org/trade/naftas-economic-impact/p15790
https://www.fas.org/sgp/crs/row/R42965.pdf
http://www.latimes.com/world/mexico-americas/la-na-pol-trump-mexico-20161109-story.html
https://waysandmeans.house.gov/the-surprising-true-story-of-nafta/
https://ustr.gov/tpp/#ensuring-a-free-open-internet
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