Wednesday, May 6, 2020

Nifta Case Study - 1341 Words

Osiel Leon Wednesday 6:30PM 11/29/17 ECO 2013 Term Paper Trade Deficit? Introduction Since Trumps election campaign last year, Trump has made it stone clear of his America first policy. The president has repeatedly slammed various trade agreements, such as the 27-year-old NAFTA (North American Free Trade Agreement) pact, stating that they are designed to take away domestic jobs and has even tweeted calling it the worst deal ever made. NAFTA was originally developed with the sole intention of opening up the borders between Canada, Mexico, and the United States in order to increase trade and investments. Facts and reports have proven that the NAFTA has undoubtedly succeeded in these efforts by nearly doubling U.S. manufactures have†¦show more content†¦With the new talks additional provisions have been installed inured to modernize the agreement, such as including digital commerce, and implementing stricter labor and environmental standards. Many free trade advocates are untroubled by the talks as reversing the agreement would destroy 27 years of economic ad vancement, and extremely disastrous for the continent as a whole. Article #2 In the political battle of which trade agreements should be renegotiated, retained, or removed altogether, the Trump administration has taken actions in order to change the way the United States measures its trade deficit. The changes requested would make the countrys trading gap seem bigger than it had been in the past years. By manipulating the size of the gap, the Trump administration can over-dramatize the severity of the issue to gain support, use the modified information during trade negotiations, or even impose trade tariffs. Changes made include the exclusion of reporting re-exports, any goods first imported into the country, such as cars, and then transferred to a third country like Canada or Mexico, to the U.S. exports. This would give the illusion that the U.S. is importing more than what really is; inflating trading deficit numbers. Trump officials supporting this change state that the new approach would produce a more accurate picture of the value of the prod ucts produced in one country and consumed in another.Show MoreRelatedNifta Case Study747 Words   |  3 Pagescould force retailers to sell their products on clearance to beat foreign online competitors and further thinning profit margins. Without profit, U.S. companies will then be forced to either outsource their manufacturing companies overseas or worst case scenario, go out of business. However, Trump has proposed to tax U.S. companies that choose to build their plants overseas and add tariffs on goods imported from Asian companies that can manufacture goods at a cheaper rate. American retailers may

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.