Trump Killing Nafta Could Mean Big Unintended Consequences for the U.S.
Ending the deal would hurt American manufacturers. For consumers, backing out might mean price increases on everything from cars to fruits and vegetables
1. America's biggest export market would be jeopardized
U.S. goods exports to Canada and Mexico have quadrupled since Nafta took effect in 1994, rising to about $550 billion last year. That’s more than sales to China, Japan, the U.K., Germany, South Korea, Brazil, India, Russia and Hong Kong combined.
2. Jobs already gone wouldn't return
"If we didn’t have Nafta, would things like clothing and automobiles that are produced in Mexico be produced in the United States? No," said David Gantz, who teaches trade law at the University of Arizona. "They’d be produced in China or somewhere that the labor costs are a lot lower. One needs to look at what the alternatives would be."
3. The American economy overall would lose
Hufbauer estimates that Nafta trade growth makes the U.S. $127 billion richer each year, not only because of the boost to American exporters but also because of these benefits to U.S. consumers. That's about $400 per person.
"It’s not always visible to people because much of the benefit is at the checkout counter," Hufbauer said.
4. American drivers could pay more for gasoline
Nafta gives the U.S. preferential access to oil, limiting the scenarios in which Canada can restrict energy exports to the U.S. If the U.S. didn’t import oil from its Nafta partners, it could do so at higher cost from other countries, some of which aren’t as friendly to the U.S. as Mexico or Canada.
https://www.bloomberg.com/news/arti...mean-big-unintended-consequences-for-the-u-s-
Anyone who thinks Canada and Mexico don't have leverage ... think again.
