NAFTA Up In The Air As The TPP Makes A Comeback
President Trump is meeting with Japanese Prime Minister Shinzo Abe today. Trade is a major topic of discussion. President Trump was elected, in part, on the biggest economic nationalist base in recent memory. His campaign promised to renegotiate the North American Free Trade Agreement (NAFTA), and completely pull out of President Obama’s Trans-Pacific Partnership (TPP).
Since coming into office, Trump has attempted to re-negotiate trade policies with individual countries, industries, and companies in mind. In recent months, Trump has raised tariffs on aluminum and steel imports, challenged China on alleged intellectual property theft, and worked out a car deal with South Korea.
But in a surprising change, Trump announced last week that he’d consider signing TPP anyway. Even though the TPP’s proposals are more liberal than Trump promised for a re-negotiated NAFTA, Canada and Mexico are part of both agreements. That means that certain agreements need to be revisited. There’s also pressure to complete NAFTA negotiations before Mexico’s elections in July and U.S. midterm elections in November.
To discuss the intersection of Trump’s economic policy, NAFTA, and the TPP, we’re joined by Phil Levy, senior fellow on the global economy at the Chicago Council on Global Affairs.