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NAFTA Renegotiations to Begin August 16
As the Trump administration prepares to renegotiate NAFTA, VI and industry leaders are calling on policy makers to consider a number of key elements in any future agreement, including basic private property rights outlined in the constitution. Any future agreement should ensure:
- Investor-state dispute settlement (ISDS) is included in an updated NAFTA.
- Rules of origin are modernized in close consultation with industry, and in ways that make them more efficient, reduce red tape and incentivize usage.
- U.S. innovation and intellectual property are protected, by raising standards to U.S. levels and modernizing enforcement.
- U.S. companies will continue to have access to government procurement in Mexico and Canada.
Industry groups are also reminding policy makers consider the impact rule changes on the supply chains of domestic manufacturers. For example, U.S. vinyl resin manufacturers are net exporters with America’s largest trading partners, contributing to an industry trade surplus with Canada, Mexico and China. Additionally, U.S. vinyl resin exports account for approximately 35% of total sales and the number is expected to grow by more than 30% by 2019. These facts must be given careful consideration as negotiators move forward.
Additionally, a recent study by the National Association of Manufacturers showed that “U.S.-manufactured goods exports to Canada and Mexico support the jobs of more than 2 million men and women at more than 43,000 manufacturing firms across the country. Average manufacturing wages of $81,289 in 2015 were approximately 27 percent higher than overall average nonfarm wages, and export-related jobs pay on average 18 to 20 percent more than jobs not related to exports.”
If you have an example of how NAFTA is helping your business or how it could be improved, we want to hear from you. Please email us at email@example.com.