Civic Register
| 10.15.17

300 Chambers Of Commerce Urge Trump to Keep U.S. In NAFTA

Join us and tell your reps how you feel!

What’s the story?

Over 310 state and local chambers of commerce have sent a letter to President Trump, urging him to update, but not end, the North American Free Trade Agreement (NAFTA).

Business leaders from all 50 states signed the letter, in which they claim that trade with Mexico and Canada "supports 14 million American jobs" and adds $1.2 trillion annually to the economy. They also point out that NAFTA’s been “especially beneficial for America’s farmers and ranchers.”

But in an interview with Forbes released on Tuesday, Trump said, "I happen to think that NAFTA will have to be terminated if we're going to make it good. Otherwise, I believe you can't negotiate a good deal."

Why does it matter?

During his campaign, Trump called NAFTA "the worst trade deal in the history of the world." In mid-July, the Trump administration released a lengthy list of objectives for the NAFTA renegotiation, which aimed to remedy the deal.

But Tom Donohue, the head of the Chamber of Commerce, has expressed concern with various U.S. proposals, including those for dispute resolution, auto parts, Buy American rules, and a sunset clause that could terminate NAFTA after five years.

"Let me be forceful and direct," Donohue said during remarks on Tuesday in Mexico City. "There are several poison pill proposals still on the table that could doom the entire deal."

McClatchy summarized both sides’ arguments, noting that "studies funded by groups aligned with unions say NAFTA has led to the loss of more than 800,000 U.S. jobs. Nonpartisan groups, including the Congressional Research Service…say NAFTA might have hurt specific U.S. sectors, such as auto manufacturing, but overall had a more modest effect on U.S. jobs."

Mexico and Canada are America’s two largest export markets, and also rank as two of the top three trading partners with the U.S.

"We recognize that this agreement is a quarter century old. It makes sense to modernize it," Glenn Hamer, president and CEO of the Arizona Chamber of Commerce, told McClatchy. “But for the love of God don’t do any harm to something that has been so economically beneficial to states all across America.”

In the letter, the local and state chambers of commerce "agree that we should move quickly to modernize" NAFTA. But they urge Trump to:

"Support America’s workers, farmers, ranchers, and businesses of all sizes by protecting and preserving the deep economic ties and benefits the U.S. continues to enjoy under NAFTA."

What do you think?

Negotiators from all three countries were in Washington, D.C. for a fourth round of talks. Canadian Prime Minister Justin Trudeau was also in town to meet with the President and pro-trade American lawmakers.

Add your voice to the mix.

Do you believe that NAFTA has been good or bad for American businesses? What would you change about the agreement? Hit the Take Action button and tell your reps, then share your thoughts below.

—Josh Herman

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(Photo Credit: AlexLMX / iStockphoto)