NAFTA, a view from Mexico: 'Don't Shoot Yourself In The Foot'

NAFTA deal, the things behind of the official negotiations....

" In April 2017, a group of Mexican executives filed into the Texas governor’s mansion in Austin for a meeting they hoped would help save a trillion-dollar trade deal.They had a simple pitch for their audience - Republican Governor Greg Abbott, a handful of business leaders and some party donors: it would be in Texas’ best interest to preserve the North American Free Trade Agreement (NAFTA). Abbott was just one of the prominent names on a list of dozens of American politicians and business executives that Mexico would carefully compile to help save NAFTA from the relentless attacks of U.S. President Donald Trump. Supplying them with up-to-date information on trade and investment flows, the Mexicans believed the Americans could persuade policymakers that scrapping NAFTA would hurt U.S. workers and companies. Rather than “be good to Mexico,” said Juan Gallardo, a prominent Mexican businessman who helped craft the strategy, the message was “don’t shoot yourself in the foot.” The inside story of Mexico’s efforts to stop Trump from killing NAFTA – and to preserve its essence in a reworked accord – comes from interviews with more than 20 Mexican and U.S. officials, lawmakers and executives involved in the process. After 18 months of talks and concessions by both sides, a deal was struck. Canada later signed on in what became known as the United States-Mexico-Canada Agreement (USMCA), which awaits ratification by lawmakers in the three countries.  .. (...) Abbott eventually sent a letter to Lighthizer defending NAFTA - emphasizing that Texas exported more than $90 billion of goods to Mexico annually and that nearly a million jobs depended on free trade with the NAFTA partners. In a second letter to Lighthizer, Abbott asked the Trump administration to “reconsider” its demand for a sunset clause that could have killed the new agreement in five years, a major Mexican concern. In the end, the clause was left out... (..) High among the list of prospective allies drawn up by Mexico were several top Wall Street executives, including Jamie Dimon of JPMorgan Chase & Co, Blackstone’s Stephen Schwarzman and KKR’s Henry Kravis. Dimon chairs the Business Roundtable, which, with the U.S. Chamber of Commerce, was viewed by the Mexicans as a powerful voice in support of NAFTA. The banking executive proved particularly effective, Mexican and U.S. sources said. Among others, a source familiar with the situation said, Dimon met with Kushner, U.S. Treasury Secretary Steven Mnuchin and Gary Cohn, Trump’s chief economic adviser until April 2018."

https://www.reuters.com/article/us-trade-nafta-insight/dont-shoot-yourself-in-the-foot-inside-mexicos-campaign-to-save-nafta-idUSKCN1S11C8?utm_source=twitter&utm_medium=Social

 

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Many American small businesses depend on exporting their products to Canada or Mexico under NAFTA. According to the US Trade Rep this trade supports over 140,000 small- and medium-sized businesses in the US...

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Just now, 50 shades of black said:

Many American small businesses depend on exporting their products to Canada or Mexico under NAFTA. According to the US Trade Rep this trade supports over 140,000 small- and medium-sized businesses in the US...

But, generally speaking, the net overall effect of NAFTA on the U.S. economy appears to have been relatively modest, primarily because trade with Canada and Mexico accounts for a small percentage of U.S. GDP.

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Some facts: NAFTA boosted U.S. economic growth by 0.5% a year. The sectors that benefited the most were agriculture, automobiles, and services. U.S. farm exports to Canada and Mexico went from $11 billion in 1993 to $43 billion in 2016; 25% of total food exports and supported 20 million jobs

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Are the cartels part of NAFTA agreement ? 😀

 

 

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 the trade partnership has no alternatives

 

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We need to reduce trade with China, and hold trade as a bargaining tool to promote freedoms there. Mexico needs pressure over all the border issues, drugs, cartels, the wall etc. 

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