This morning, the White House announced a new “understanding” with Mexico, related to ongoing talks about the North American Free Trade Agreement (NAFTA).
Competitive Enterprise Institute Fellow Ryan Young expressed skepticism about today’s announcement.
“NAFTA is not perfect, but in this case it is better to leave well enough alone. There are some parts of NAFTA that could be improved through renegotiation, such as eliminating trade-unrelated provisions concerning energy policies and environmental and labor regulations. These non-trade issues should be treated separately. Unfortunately, the Trump administration instead seems interested in making cars more expensive for American consumers. The President seeks to raise trade barriers in an agreement intended to lower them, and Congress should block his efforts.
“The administration is clearly uninterested in free trade, and the time is likely too short on Mexico’s end to reach a reasonable deal before its own populist administration, under Andrés Manuel López Obrador, takes power December 1.”