Jan 24, 2018

NAFTA's Sixth Round of Renegotiations

Chad Reese Staff writer

This week marked the beginning of the sixth round of North American Free Trade Agreement (NAFTA) renegotiation talks.

Why it’s important: As Senior Research Fellow Daniel Griswold has pointed out, the passage of NAFTA was followed by a significant increase in two-way trade between participating nations, and “real automotive manufacturing output, including parts and final assembly, has more than doubled since NAFTA went into effect.”   

How NAFTA can be improved: Despite its success, there is room for improvement. Griswold recommends that NAFTA negotiators preserve the agreement, but move to:

  • Protect data transfers
  • Bar the forced localization of servers
  • Add protections to reduce abuses of antidumping duties
  • Liberalize services trade, including shipping

Watch: Senior Research Fellow Christine McDaniel spoke with CBC News about the potential effects of trade policy on retail jobs and tax revenue.

Learn more: Senior Affiliated Scholar Robert Krol’s research takes a deeper look at policy uncertainty and its effects on trade and the economy. He wrote earlier this week that trade agreements like NAFTA have made America better off.

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