The Trump administration’s new “politically managed trade” deal with Mexico is worse than NAFTA in myriad ways, not the least of which is that Canada is excluded, The Wall Street Journal wrote in its editorial.
“We’ll reserve judgment until we see the fine print, but on first inspection, this is half a NAFTA that contains some improvements, but is notably worse in many ways,” the WSJ wrote in reaction to Monday’s announcement.
The deal is better than President Donald Trump’s threats to pull out of the current NAFTA agreement altogether, but the flaws are glaring, the WSJ writes.
Three of the issues:
- The “deal strips current protections from most U.S. investors in Mexico.”
- “The deal also imposes new red tape and costs on the auto industry to punish imports.”
- Canada, so far, is not involved.
The Journal ripped the Trump administration’s request to strip protections from U.S. investors as “economic nonsense.”
“Countries other than Venezuela are smart enough not to send in the police to occupy a plant or hotel. They’ll use regulation to favor domestic competitors,” the WSJ wrote.
Trump figures “that if U.S. companies are more vulnerable to foreign abuse, CEOs will keep their money at home.”
Further, the Trump administration waited too long to strike; there’s not enough time to hash out details and get this sent to Congress prior to the midterms when Democrats very likely could be running the House.
“The deal announced Monday has moving parts and there is still time to make improvements before it is signed and sent to Congress. We’re glad to see Mr. Trump step back from the suicide of NAFTA withdrawal, but on the public evidence, so far his new deal is worse,” the Journal concluded.
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