The U.S.-Mexico-Canada trade deal is up for renegotiation in July and fair-trade groups want major changes to provide additional economic gains to states like Mississippi.
The Magnolia State exports billions of dollars in products to Mexico and Canada, including transportation equipment, computer and electronic products and chemicals. President Donald Trump replaced the North American Free Trade Agreement with the U.S.-Mexico-Canada Agreement during his first term.
Katie Hettinga, Rethink Trade program policy analyst for the American Economic Liberties Project, said a new report from her team shows the agreement does not live up to the president's promises.
"Trump said the deal would create hundreds of thousands of American jobs, that offshoring would end and U.S. industry would be revitalized, that the deal will fix our giant trade balance," Hettinga outlined. "The USMCA simply has not delivered."
The Trump administration has used fluctuating tariffs to try to improve the trade deficit. Administration officials often argue recent approaches are designed to compel companies to relocate jobs to the U.S. The report found manufacturing jobs are down and trade deficits have ballooned with both Canada and Mexico.
Economic analysts noted more American companies are relocating their manufacturing facilities to Mexico, where wages remain far below those in the U.S. and China. Hettinga hopes the new agreement promotes transparency.
"We recommend that the United States reinstate mandatory country of origin labeling so that consumers can make informed decisions about where their food comes from," Hettinga underscored. "In addition, include all stages of food production in food rules of origin."
The authors want the negotiations to support higher wages in Mexico, saying it would disincentivize offshoring, strengthen Mexico's domestic market and increase demand for U.S. exports. The report also recommended changing provisions of the trade deal to give farmers the right to repair their own equipment.
Source: Public News Service
