Democrats Threaten NAFTA, But Pact Is Here to Stay

Candidates promise to re-open a free-trade agreement like NAFTA – to attract voters from states with high unemployment rate, where concern about the loss of high-paying manufacturing jobs is rampant. “Renegotiation would cause more problems than it would solve,” explains Andrew Schneider, associate editor of the Kiplinger Letter. In reopening the agreement, the US would not be alone in demanding changes: Mexico could seek more protections for migrant agricultural workers; Canada would want to remove a provision that gives US access to Canadian oil in the event of a global shortage; Mexico and Canada both have environmental complaints about the US. Besides, Schneider notes, renegotiation would not restore US manufacturing jobs, which were largely eliminated due to technological innovation and rising health-care costs. Complaints about NAFTA by Democratic presidential candidates do, however, signal that the US intends to put the brake on future trade agreements. – YaleGlobal