As if there weren?t enough risk in the world, the Trump Administration officials are going to re-negotiate the North American Free Trade Agreement, hopefully, without sacrificing earlier gains in agriculture and other areas.
Former Trade Adviser, Paul Drazek, is not convinced the new deal will be as good as the old one. He served in the Clinton Administration, when NAFTA was negotiated and implemented, and warns that any trade negotiation is a two-way street, and the U.S. will face tough NAFTA negotiators on both of its borders.
“The Mexicans and Canadians will be asking for conceptions from the United States. They are not going to do anything unilaterally. They can’t politically doing that without seeking some reciprocity from their products,” Drazek says.
New U.S. Trade Representative Robert Lighthizer notified Congress Thursday of the administration?s NAFTA plans, hoping for improvements in manufacturing, internet commerce, and environmental and intellectual property protections.
And USDA Secretary Sonny Perdue said he?s ?confident? the effort will result in a better deal for US farmers, ranchers and foresters.
And the downside that the White House has heard loud and clear from agriculture and food groups that the ?give and take’ of trade talks creates risks?Mexico and sugar and corn is one.
Drazek says, “You can see it in the charts. As soon as we limit imports of sugar Mexico limits of our corn syrups, it’s bound to happen.”
If Mexico or Canada hold the line, then political pressure to demand the right to put restrictions on imports could come from either country.
Drazek says, if this were to happen, agriculture would be the hardest hit of any sector of the US economy.
