Question
2018 saw the replacement of NAFTA by the USMCA, at the time this article was written. The writers start by reiterating the advantages NAFTA has
2018 saw the replacement of NAFTA by the USMCA, at the time this article was written. The writers start by reiterating the advantages NAFTA has given the US. Free trade has traditionally benefited the American economy by improving its capacity to compete on the world stage and by generating a significant number of job possibilities. Additionally, the USMCA will restrict consumer choice and entrepreneurial freedom with various policy reforms (such the lowering of trade barriers). These limitations may increase costs for US consumers and diminish US manufacturing's ability to compete internationally. The authors offer four policy suggestions in light of this.
First, the North American Competitiveness Council should be expanded to include the business sector and civil society, according to the US government. This supports efforts to increase regional competitiveness through cooperation among North American nations. Second, Congress needs to pass legislation to restructure the application process for cross-border infrastructure permits. The authors claim that the cancellation of the presidential license would be the optimum solution because the licensing procedure for current infrastructure is time-consuming, impedes the flow of products and services across the nation, and raises the cost of goods. Third, the United States government should cooperate with Canada and Mexico to promote market-driven infrastructure construction and finance.
Similar to the second point, this one encourages infrastructure development to lower product prices and boost global competitiveness. The authors propose that North American nations cooperate to make infrastructure investments along a shared border. Fourth, put a regional strategy for workforce development into action. This strategy intends to provide a set of workforce training requirements that the US, Canada, and Mexico can all adhere to. The ultimate objective is to lower hiring and training expenses while raising production.
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