Looks like we are getting ready to sign a replacement trade agreement for NAFTA which despite some criticism was effective at increasing trade among the three countries.
These things should probably be revisited every few years to include things that weren't considered previously, like the tremendous growth in electronic components we have seen since the first NAFTA.
Might be some increased opportunities for our dairy farmers but mostly it seems like it was tweeks with the main provisions still intact.
Trade is an equalizer and that's one of the reasons for the trade deficits we see.
The United States started out quite a bit ahead of Mexico and somewhat ahead of Canada in wealth and spending power.
So we could buy more than they could.
Eventually the money we spent increases their buying power so they can buy more of our exports.
Its not mysterious or nefarious, its simply economics.
This is true of most of our trading partners.
Eventually it evens out but it takes some time for that to happen.
No comments:
Post a Comment