Reflecting on the USMCA Regional Free Trade Agreement’s Deadlock (II)

by Laura Lai/Comment

On the one hand, the Democrats have some reservations on the USMCA new trade deal. For example, Richard Neal (D-MA) was explaining in November 2018 that he needed to analyze whether or not the deal will really create jobs, particularly in areas with a job loss in the last two decades and a half, or whether or not the new deal addresses the workers’ rights and environmental protection. Furthermore, another Democrat, Ron Kind (D-Wis), had himself ‘serious questions' for the Trump Administration about the USMCA agreement.

On the other hand, there are Republicans bringing concrete examples of the way their states would benefit from the USMCA. For example the State of Indiana, whose two main trade deals are with Canada and Mexico and more than 17,000 jobs depend on this trade, let alone the fact that Indiana is second largest automobile manufacturer in the U.S and home to several car brands (to read more click here).  The State of Minnesota undertaking more than 70,000 farming operations exports mainly to Canada and Mexico (to read more, click here). The State of Colorado, which is quite in the middle of the United States, not necessarily in the vicinity of either Canada or Mexico, did a $2,7 billion trade with Canada and Mexico in 2017, mainly in processed food and machinery (to read more, click here). And the examples can go on with Missouri, Pennsylvania, Alaska and others.

Although the U.S. President Donald Trump and the Republicans hoped to have this deal ratified by the Congress before the Thanksgiving one week recess, the chances are quite small to have it ratified until the end of the year, due to the time and energy consuming impeachment procedure on which the Democrats concentrate mostly.

I can agree with the Representative Democrats need and will to assess the impact of a regional trade agreement on the Americans’ jobs, workers’ rights, environment protection. But this was last November. It’s already one year later and such an assessment should have had provided some results. Furthermore, with all due respect, I consider the assessment of jobs in those areas with a job loss in the last 25 years exaggerated and unfair towards both the citizens and Trump Administration. Generally speaking more than 12 million jobs depend on trade with Canada and Mexico, and more jobs can be added by the USMCA. It’s very much possible that not all newly created jobs to be in areas with a severe job loss in the last 25 years, but to my understanding this a U.S. deal with Canada and Mexico impacting the whole country, not necessarily an area or two, or mostly those areas with severe job loss. Furthermore, those areas with a severe job loss in the last 25 years can themselves develop businesses that can benefit precisely from this USMCA agreement and tariffs and barriers free commerce with Canada and Mexico. Besides, the Trump Administration is not responsible for the job loss in the last 25 years: In the last quarter of a century there were also U.S. Presidents coming from the Democrat-side. Let us remember that NAFTA – as imperfect as it looks now, and outdated as it still is – was signed into force by President Bill Clinton.

However, looking at the latest employment statistics released by the U.S. Department of Labor, I nurture this conviction that if Donald Trump could, through the USMCA, work out the unemployment also in those specific areas with a job loss in the last 25 years, he would. In my opinion, Donald is a person of a tremendous strong character and Donald Trump is the president, who delivers on his electoral promises under all circumstances: severe criticism, negative presscoverage of his Administration’s achievements, stigmatized by some, impeached by the others, and unpaid.

On July 15^th, 2019 the U.S. President Donald Trump proclaimed the ‘Made in America’ Day. This initiative is based on a simple work philosophy: whatever can be manufactured in the U.S. to be built and grown in the United States, such as: Zippo lighters made in Pennsylvania, Airstream trailers made in Ohio, Buck Knives made in Idaho, etc. (to be continued)