AUSTIN – Today, the White House announced a preliminary United States–Mexico Trade Agreement that modernizes NAFTA.
The Texas Public Policy Foundation commends the Trump administration and encourages efforts to make trade more free.
“While the devil may be in the details which aren’t all known yet, this bilateral trade deal between the U.S. and Mexico is important for trade certainty for Mexicans, Texans, and all Americans,” says TPPF’s Senior Economist Vance Ginn. “It’s time to now include Canada in a trilateral trade deal so that the livelihood of people won’t be at risk.”
However, a provision that appears to be included in the U.S.-Mexico agreement addressing the “rules of origin” for auto parts, and mandated higher wages for auto workers, could raise the price of automobiles, Ginn warns.
“This could be a strain for auto consumers and employers,” he said. “However, the trade certainty that comes with this pro-growth agreement – and extension of any sunset to the deal – are vital for prosperity supported by trade with Mexico.”
For more information, please contact Alicia Pierce at [email protected] or 512-472-2700.
Texas Public Policy Foundation is a non-profit free-market research institute based in Austin that aims to foster human flourishing by protecting and promoting liberty, opportunity, and personal responsibility.