Summary of the Article
There was a meeting for NAFTA and it didn’t go as well
as the Canadians thought it would. Trump called the relationship between him
and Prime Minister Justin Trudeau “testy”. Also, NAFTA is now called U.S.M.C.A.
Most of the Canadians are mad not about the name change but because of other
things that Trump has said and proposed to Canada. Canada is one of the U. S’s
biggest importer of their goods and biggest source of international travelers. The
relationship started to take a turn when the U.S. took action stating that the tariffs
on steel and aluminum would go to Canada as well. To American citizens, we don’t
know how it affects the Canadian citizens but the Canadians were mad about this
proposed tariff. Then in August, Trump announced a deal with Mexico on NAFTA
and suggested that Canada wouldn’t be included. Trump also would hit Canada would
with a 25% tariff on their car exports if they don’t “negotiate fairly”.
My Solution to the Problem
What Trump did to the Prime Minister Trudeau was wrong and shouldn't have done what he did. Instead of trying and imposing tariffs to get what Trump
wants, he should be trying to come to an agreement that both Canada and the
U.S. can come to terms with. Both countries right now are not going to be happy
with their terms of trade and should try and work out some agreement. As of
now, Trump “patched” the U.S.M.C.A but didn’t really give Canada a say in their
defense and made Prime Minister Trudeau and his cabinet even more mad at President
Trump. Another proposal that could be the Trudeau should have spoken about the
possible export tariff and could have came to a lower export tariff (10-15%) but
I don’t know if president Trump would have listened to the negotiation.
I support President Trump's creation of the U.S.M.C.A. The previous NAFTA organization was functional yet inefficient at maximizing the U.S.'s terms of trade, whereas the new structure is centralized on the well-being of the United States. While the discussions of tariffs have been extensive and burdensome, the threats have forced both Mexico and Canada to reconsider their previous positions in order to preserve their own domestic terms of trade. The main goal of the tariffs and restructured trading agreement is to discourage the consumption of imported goods while exporting a larger quantity and dollar value of exports in order to increase our terms of trade. In the restructured agreement we have increased our exports of agricultural products, machinery, and military hardware. The new agreement also increased the market share of U.S. dairy farmers by limiting Canadian dairy products and U.S. auto workers by making production in low-wage nations less affordable for large producers. In addition to increasing U.S. well-being, U.S.M.C.A. also reduced the world-price (within the organization) of lumber to increase the quantity of Canadian lumber exports and increase their terms of trade.
ReplyDeleteI agree with Alan in that the way Trump as gone about these 'negotiations' (there really was not much negotiation at all) the wrong way. President Trump, instead of trying to come to an agreement with Canada, has instead been trying to power his way into getting what he wants. While sometimes the threat of tariffs on another country's exports is a good tactic to use to help our own terms of trade, I do not think that this situation shoud ave been handled this way. The U.S. has had a good relationship with Canada, so instead of posing threats, President Trump should have negotiated with Canada so that both countries can be happy in their trade agreement. Instead, if this kind of 'negotiating' continues, it will probably hurt both countries' terms of trade in the end.
ReplyDeleteWhile President Trump's tactics may seem crude, he has effectively increased our terms of trade by forcing other nations to compromise. While it would be beneficial for all nations to collectively experience increasing terms of trade, improving ours will be vital to helping other nations improve theirs as well.
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