We keep hearing about renegotiating the compact known as NAFTA between the USA, Canada, and Mexico. Just what does this pact entail? How does it impact the various states? This article has some interesting information.
The bottom line is this—any NAFTA renegotiation should acknowledge that Canada and Mexico are as much partners in production as they are trade competitors. As Richard Baldwin has written
, the three countries compete together as “Factory North America” against similar regional production networks in Europe and East Asia. Currently, tariff-free trade allows these supply chains to operate relatively seamlessly across North America. Improvements can and should be made to NAFTA that maintain and strengthen these supply chains; recognize that U.S.-based firms rely on intermediate imports; and enhance economic growth at the state and national levels.
Full piece @ How US states rely on the NAFTA supply chain | Brookings Institution
The bottom line is this—any NAFTA renegotiation should acknowledge that Canada and Mexico are as much partners in production as they are trade competitors. As Richard Baldwin has written
, the three countries compete together as “Factory North America” against similar regional production networks in Europe and East Asia. Currently, tariff-free trade allows these supply chains to operate relatively seamlessly across North America. Improvements can and should be made to NAFTA that maintain and strengthen these supply chains; recognize that U.S.-based firms rely on intermediate imports; and enhance economic growth at the state and national levels.
Full piece @ How US states rely on the NAFTA supply chain | Brookings Institution
