Some crises arise due to nature and others due to the nature of mankind and our society. Free trade is a dream of politicians, as long as their trade is freer than their competitors. This same problem is showing up in the negotiations on the North American Free Trade Agreement (NAFTA).
The trilateral agreement between the United States, Canada and Mexico was put in place in the 1990’s, during the Clinton Administration. 1992 presidential candidate Ross Perot predicted it would drain jobs out of the United States with a mighty sucking sound like water down the drain of a bathtub. Perot’s prediction wasn’t what happened in the overall sense.
There were more jobs created than lost and United States agriculture made out well as tariffs were lifted by countries to which they were selling. The U.S. still bought huge amounts from Mexico and Canada, so balance of trade remained negative, but remained the same with the rest of the world.
That concern, especially China, is top of mind for many government officials. A look at what may happen in the wake of NAFTA negotiations faltering in the program below.