Americans Support Trade with Other Countries -

A Wall Street Journal/NBC poll recently asked voters "In general, do you think that free trade between the United States and foreign countries has helped the United States, has hurt the United States, or has not made much of a difference either way?"

43% answered that it helped, while only 34% said that it had hurt. This is the highest proportion to be supportive of trade since the Wall Street Journal started asking the question in 2010. While the country is obviously torn on the issue, there is a solid plurality that thinks freer trade helps the US develop and prosper. This is in sharp contrast to the national narrative of a growing and overwhelming rejection of free trade, a perception that appears to be false.

RECENT ACTIONS BY THE TRUMP ADMINISTRATION -

Against that backdrop, Commerce Secretary Ross met with Canadian Foreign Minister Chrystia Freeland on Thursday, and Mexican Economy Minister Ildefonso Guajardo Villarreal on Friday.

Ross then announced on Friday afternoon that he intends to begin the process of attempting to renegotiate NAFTA in the next few weeks. He indicated the administration would be looking at conducting separate talks with each nation, and then potentially breaking NAFTA up into two bilateral agreements, one between Canada and the US, the other between Mexico and the US. Mexican Economy Minister Guajardo Villareal unambiguously made clear at their joint press conference that the Mexican government's view is that discussions to replace a trilateral agreement should be held trilaterally, between all signatories to the treaty.

Ross also celebrated penalties being levied against Chinese telecom giant ZTE for trading with US-sanctioned North Korea and Iran. While that trade is legal in China, the US has banned companies doing any business in the US from doing any with those sanctioned nations. He presented the case as a symbol of the administration's commitment to zealous enforcement of trade laws. At the same time, the administration has not discussed adding the necessary staff to the agencies that would make higher levels of trade enforcement possible throughout the economy, making this case symbolic, but not an example of things to come.

THE WEEK LOOKING FORWARD -

The Asia/Pacific countries who are part of the Trans-Pacific Partnership agreement are still trying to determine their path forward after the Trump administration declared the US will abandon its leadership role in fostering trade and economic development in the region. Many are concerned that China will fill that vacuum, becoming along the way the primary regional power, replacing US influence which the new administration seems uninterested in protecting.

South Korea appears to be the first country that an emboldened China is attempting to intimidate. China's initial response to the recent deployment of US missiles to South Korea appears to be harassment of Korean businesses, which China seems confident will not result in consequences for China.

The White House has indicated that it will release its budget proposal this week, which will permit the American public to see if the Administration is serious about increasing trade law enforcement, or whether it is using the topic for political gain, while ignoring it in practice.

WHAT YOU CAN DO -

  • Start looking at the products you buy. Is the food from overseas, especially from Mexico? Did a Chinese company assemble your phone? Think about what it would mean for you to have 10-20% price increases in those goods as a result of tariffs, and then tell someone what you think, perhaps your local member of Congress!
  • Write a letter to the editor to your local newspaper, and discuss how much an increase in prices of imported goods would make life harder for you.
  • Call your state representative and mention your concern for local businesses if we withdraw from our trade treaties. While the states don't control trade policy, they can pass resolutions declaring their opposition to these actions by the Administration.

QUESTIONS TO ASK YOUR MEMBER OF CONGRESS -

  • Why do you think we'll get a better deal renegotiating a treaty with Mexico now than we did when we first negotiated it?
  • Do you think it's a good idea for the US if the rest of Asia finds trading with China to be easier than trading with us?
  • Does your Member of Congress know how many jobs in their district rely on importing things from overseas?

- Trade Policy Working Group, RISE Stronger

Have comments or something to add? Contact the RISE Trade Policy Working Group at [email protected]