Washington~ Today, the Coalition for a Prosperous America (CPA) submitted written comments to the Office of the US Trade Representative (USTR) urging that the US should not be afraid to walk away from NAFTA if an agreement that substantially improves economic and job outcomes for the US cannot be achieved. USTR will hold a hearing on the administration’s NAFTA (North American Free Trade Agreement) renegotiation plans on June 27, 2017.
“CPA is pleased the US Trade Representative is throughly rethinking NAFTA and trade agreements in terms of trade deficits and growing US production and jobs rather than simply achieving ‘free trade’,” said Stumo. “Our testimony includes the newest thinking on the causes of our poor trade performance and stagnation. We recommend a focus upon unilateral American action on currency and tax reform which, according to the data, have the greatest potential to benefit our economy and employment.”
“CPA is pleased the US Trade Representative is throughly rethinking NAFTA and trade agreements in terms of trade deficits and growing US production and jobs rather than simply achieving ‘free trade’,” said Dan DiMicco, CPA Chairman. “Our testimony includes the newest thinking on the causes of our poor trade performance and stagnation. We recommend a focus upon unilateral American action on currency and tax reform which, according to the data, have the greatest potential to benefit our economy and employment.”
CPA’s official comment stated, in part (read the full version here):
The US needs to rethink trade agreements and unilateral trade policy options to better connect them with improved trade performance through increased US production, wages, and broadly shared economic prosperity. The NAFTA renegotiation process is a chance to do so. …Currency manipulation/misalignment and global consumption tax distortions are more meaningful to US trade deficits and economic health than trade deals and should be addressed first. America’s overall objectives for NAFTA renegotiation should include (a) reducing the trade deficit, (b) growing the US goods production base, (c) improving wages and (d) growing our economy.The United States should not be afraid to walk away from and terminate NAFTA if our national economic interests are not achieved. Tariff rates will not rise due to mere NAFTA withdrawal without further government action. US law, which was supplanted by NAFTA and other trade agreements, can fill most all gaps left by any elimination of NAFTA rules especially given America’s market power derived from being the world’s largest economy and importer.
“A revised NAFTA that achieves little but a TPP (Trans-Pacific Partnership) cloning is not worthy,” said Michael Stumo, CEO of CPA. “Our testimony discusses how a post-NAFTA world could rely upon existing or future US laws and rules that were displaced by trade deals to govern our trade relationships. Voters outside of the DC echo chamber are unafraid of a decision to walk away from NAFTA, trade with foreign nations on our terms, and reclaim our sovereignty.”
About CPA: The Coalition for a Prosperous America is the nation’s premier organization working on the intersection of trade, jobs, tax and economic growth. We represent the interests of 2.7 million households through our agricultural, manufacturing and labor members.
Contact: Paola Masman, Media Director
202-688-5145 ext 2, [email protected]
