The Revised NAFTA Deal Will NOT Fund Trump’s Border Wall, Directly or Indirectly

Lori Wallach

Lori Wallach Director, Publi Citizen's Global Trade Watch

Note: In his Oval Office address, Donald Trump again falsely claimed that somehow his revised North American Free Trade Agreement (NAFTA 2.0) will fund his border wall.

Donald Trump keeps repeating the ludicrous claim that somehow the revised NAFTA will fund his wall even though it remains unclear if the deal will be enacted and if it is, the text does not include border wall funding directly nor would it generate new government revenue indirectly given it cuts the very few remaining tariffs, not raises them.

A back of the envelope calculation reveals a new 20 percent tariff would have to be imposed on all imports from Mexico to put the money  to construct the wall into the U.S. Treasury and that money would come from importers, not the Mexican government. All imports into the United States from Mexico have been duty free for more than a decade, meaning that NAFTA trade does not generate money from Mexican importers for U.S. government coffers and nothing in the NAFTA 2.0 changes that.

So much for Trump’s great negotiating skills, given its obvious that trying to connect NAFTA to funding for his wall decreases the likelihood Congress passes the revised NAFTA, even if Trump’s NAFTA-wall-funding claims are entirely without merit.

Perhaps the strongest evidence that nothing in NAFTA 2.0 forces Mexico to pay for Trump’s border wall is that Mexico, which has made clear it will not pay, signed the deal.  

 

###

Posted In: Union Matters

Union Matters

A Just, Inclusive and Sustainable Economy

From the AFL-CIO

This week, labor leaders from across the country descended on New Orleans to map out the path ahead for our movement. From trade and public education to equal pay and paid leave to back pay for federal contract workers and bargaining power for all, the AFL-CIO Executive Council tackled the issues that will define working people’s fight for economic justice in 2019 and beyond.

Sending waves through Washington yesterday, the Executive Council’s most notable decision was its announcement that, “if the administration insists on a premature vote on the new NAFTA in its current form, we will have no choice but to oppose it.” Here are a few highlights from the statement:

  • Trade policy must be judged by whether it leads to a just, inclusive and sustainable economy....By that measure, the North American Free Trade Agreement (NAFTA), which has driven the outsourcing of so many good jobs, has been a catastrophic failure. More than 850,000 U.S. jobs were shipped overseas under NAFTA between 1993 and 2013.
  • By design, NAFTA distorted power relationships in favor of global employers over workers, weakened worker bargaining power and encouraged the de-industrialization of the U.S. economy.
  • After a quarter-century of this race to the bottom, workers in all three NAFTA countries find it more difficult to form unions and negotiate collective bargaining agreements.
  • The NAFTA renegotiation requires strong labor rights provisions and strong enforcement provisions that as of today are not yet in the agreement.
  • The current effort by the business community to pass the new NAFTA is premature, and if it continues, we will be forced to mobilize to defeat it, just as we mobilized to kill the Trans-Pacific Partnership.

***

More ...

New NAFTA Must Create an Economy for All

New NAFTA Must Create an Economy for All