Note: Today’s post is part of our “Editor’s Pick” series where we highlight recent posts published by our sponsors that provide practical knowledge and advice on timely and important supply chain and logistics topics. Today’s post is by Troy Ryley at Transplace where he recommends that we keep developing a North America that supports trade and builds a strong infrastructure and economy for Mexico, Canada and the U.S. (Note: A version of this article previously appeared in the Adam Smith Project, a new initiative on trade from the publishers of American Shipper.)
The North American Free Trade Agreement (NAFTA) and its effect on the United States has been a much-talked-about topic recently, and there exists a desire to either renegotiate or terminate NAFTA and implement additional taxes on goods that are made in Mexico and sold in the U.S. However, this would be an economic mistake for North America.
While there are some improvements that can be made to NAFTA, it’s on the right track to promoting free trade and driving economic growth for all of North America. Terminating NAFTA would not only eliminate the ultimate objective of free trade between the countries and increase the cost of goods, but would further damage Mexico’s already fragile economy and ultimately damage our entire North American “neighborhood.”