REPORT: Withdrawing From NAFTA Would Result In 1.8 Million Jobs Lost In United States In Just One Year
The Business Roundtable has released a report that concludes termination of the North American Free Trade Agreement (NAFTA) would result in the net loss of 1.8 million U.S. jobs within the first year. The study, which was conducted by Trade Partnership Worldwide, LLC, also found withdrawing from NAFTA would:
- Reduce U.S. exports to Canada and Mexico by 17.4 percent each and lower American companies’ global exports by 2.5 percent since higher tariffs would make American companies less competitive in the global market.
- Diminish American households’ purchasing power by almost $654 per household due to higher prices and lower wages caused by increased tariffs.
- Shift economic activity away from North America and toward our economic competitors, including China. These competitors would experience a GDP increase of 0.2 percent and a two million increase in employment.
Connecting the Dots will have a full update on the sixth round of NAFTA modernization talks in next week’s edition.
Metals Service Center Institute (MSCI) members who are interested in weighing in on the NAFTA deliberations should contact their representatives in the U.S. House and Senate to let them know how the elimination of NAFTA would affect their businesses, employees, and customers. Click here for contact information for every member of the House and here for senators.
Click here to re-read MSCI’s own NAFTA negotiating priorities.
In news that could impact the deliberations: last Friday, the U.S. International Trade Commission voted 4-0 against imposing tariffs on Canadian jets imported into the United States. See that story here. According to Reuters, the Mexican government also reacted negatively last week to the U.S. government’s decision to impose tariffs on washing machines and solar panels.