Results tagged “Mexican imports” from PlanetGreen.org

Another Broken Promise: The Repeal of NAFTA

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Assembly line.jpgWhen I voiced my support for President Trump shortly before the election back in November, I did so because of his stance on one crucial issue: trade. During the campaign, he unconditionally pledged to repeal NAFTA and work to bring manufacturing jobs back to the United States. However, since then, he morphed this obligation into an effort to "renegotiate" the baneful deal to protect U.S. interests to a greater extent, and only scrap it entirely if that proved impossible; and just this week, he removed even that possibility, promising only to renegotiate NAFTA in a limited way that would be unlikely to materially improve this country's economy.

Trump's renegotiation program is no longer expected to address the wider problem of American corporations outsourcing jobs to foreign factories - rather, it will merely further the chimerical goal of "fair competition" between domestic factories subject to stringent environmental regulations, labor laws, and taxes, and foreign sweatshops in which workers currently earn as little as $3.94 per day. Also, it is unlikely that anything will be done to curb Mexico's deleterious pattern of re-exporting goods, such as clothing or furniture, that originated in the United States as raw materials, such as cotton or timber.

Any changes to the trade deal are likely to affect only a few industries, without any significant impact on the attrition of domestic manufacturing or the availability of American-made products. The renegotiation may lead to the abatement of unfair trade policies placing tariffs upon U.S. dairy products but allowing the untrammeled duty-free flow of Canadian soft lumber into this country; and, possibly, the percentage of North American content required in untaxed auto parts could be raised. However, as time passes and the commitments of the campaign transform into conciliation and compromise, actual reform or repeal of the North American Free Trade Agreement - and actual performance of the promise that got Donald Trump into the White House - seems increasingly improbable.

A New Tariff in Town? Not a Bad Idea

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Recently, opponents of President Trump's plan to construct a wall along the Mexican border and finance its construction with a protective tariff on Mexican imports have voiced a concern that this tariff will lead to increases in the prices of automobiles, groceries, and many other necessary goods. However, in their haste to criticize these proposals, they have overlooked several facts that make both the wall and the import tax a national imperative.

First, the argument that tariffs will raise the cost of living in America is based on the specious assumption that our manufacturing and agricultural requirements will continue to be outsourced at the same rate after these plans go into effect. This exhibits a fundamental misunderstanding of the purpose and practical impact of protectionist measures. Clearly, the border tax is designed not to penalize U.S. consumers but to reverse the rapid attrition of the national labor market. Furthermore, the slowing of international trade may actually reduce the cost of many food items, since domestic farmers will easily be able to meet our consumers' needs and American purchasers will no longer have to compete with Chinese and Mexican wholesalers willing to buy up U.S.-grown grain at exorbitant rates. The return of well-paying manufacturing jobs will also increase the availability of basic necessities by restoring employment to pre-NAFTA levels and creating real career paths for Americans currently stuck in the service sector due to the paucity of domestic jobs. For all of these reasons, the imposition of protective tariffs will boost the national economy.

Additionally, those criticizing these plans on the grounds that they are allegedly inimical to our democratic ideals are ignoring one of our most important national values: self-reliance and the willingness to prioritize our common interests over the convenience of luxury imports. Leading up to the American Revolution, our ancestors were prepared to sacrifice their own comfort as consumers in order to further the cause of our independence by boycotting British-made goods and products subject to arbitrary taxation. Nearly two and a half centuries later, it is hard to believe that our citizens have not inherited their devotion along with their achievements; that during the short period of economic transition that will follow the implementation of these proposals, we will not gladly invest in our collective prosperity and accept any temporary inconveniences caused by the preservation of American jobs.

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