Saturday, June 15, 2019

Trump was right to threaten Mexico with tariffs

His threat of tariffs pushed Mexico to work harder to stop the Central American caravans, and the migrants who hope to exploit immigration law loopholes in order to receive asylum in the United States.

Immigration and trade policy must kept completely separate? Seriously? When one of Nafta's selling points is a promise that prosperity in Mexico will keep Mexicans home? All the same, I hope Trump doesn't whip out the tariff threat again.

More than a quarter of a century after Nafta's creation, each year Mexico still sends roughly 80 percent of its exports to the United States - even though Nafta's creators promised that Nafta would turn Mexico into an export platform that enabled American producers to reach new foreign markets.

Given Mexico's heavy dependence, retaliating by rejecting the USMCA would mean Mexico cutting off far more than its nose to spite its face.

So why wouldn't boosting tariffs eventually achieve the president's immigration aims? Why wouldn't it be more effective than the new USCMA in bringing back more of the jobs and factories he wants to repatriate to the United States from Mexico? It might, but Trump also has another option which is economically more promising and politically more divisive.

The US, Mexico and Canada should grant duty-free privileges only to goods made, or almost entirely made, within North America.

' Candidate Trump alluded to this during a 2016 visit to Mexico City.

https://spectator.us/trump-threaten-mexico-tariffs/

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