We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » La la la, I'm not listening ...
Perspective

La la la, I'm not listening ...

November 20, 2017
Toby Gooley
No Comments

As I write this in mid-November, the fifth round in the renegotiation of the North American Free Trade Agreement (NAFTA) is underway in Mexico City. With U.S. negotiators putting demands on the table that neither Canada nor Mexico could accept (such as requiring more U.S.-manufactured content for products to qualify for preferential duty treatment) concern is spreading that the Trump administration's positions are a prelude to a long-threatened U.S. withdrawal from the treaty.

Withdrawal from the treaty would unravel the cross-border supply chains that were developed over the 23 years NAFTA has been in effect, causing severe and likely permanent damage to the retail, automotive, and agriculture industries, among others. The current administration, however, does not seem to fully recognize the potential impact of such a move, and U.S. negotiators appear to be forging ahead without asking businesses whether the concessions they're demanding would actually be beneficial to them.

In fact, industries across a wide spectrum strongly oppose some of U.S. negotiators' demands. In early October, a U.S. Chamber of Commerce executive called some Trump administration proposals "highly dangerous" to the U.S. economy. Later that month, several automotive-industry groups formed the "Driving American Jobs" coalition to fight the White House's stance on renegotiating the treaty, including its demand that cars made in North America contain 85 percent NAFTA-origin content, up from 62.5 percent, with 50 percent of inputs manufactured in the United States, to qualify for duty-free treatment. (Opponents of the proposal have pointed out that the United States does not have the manufacturing capacity to meet that demand, and that U.S. automakers have invested billions of dollars in assembly and manufacturing plants in all three countries.)

It's important to note that agreement has already been reached in a number of areas, and negotiations at some industry-specific "tables" are moving along quickly. But it's disturbing that the administration is taking stances on matters like U.S.-specific content requirements, de minimis thresholds for formal customs entries, and a provision that would require renegotiation of most industry-specific rules every five years, that U.S. business clearly does not support. Last I looked, the purpose of a free trade agreement is to help business and industry, not harm them.

More frightening, perhaps, is that the White House and those who do its bidding apparently have given little or no thought to what would happen to consumers, businesses, and the economy as a whole should the United States pull out of NAFTA. The U.S. chief negotiator, U.S. Trade Representative Robert Lighthizer, admitted as much in October, when he told reporters that "we haven't done any analysis of that at this point."

Not long after the U.S. presidential election, I wrote in a column titled "Time for some scenario planning?" that "the opinions of those newly in power and the policy decisions they inspire have the potential to dramatically change the cost equation for the supply chains of manufacturers, retailers, importers, and exporters." If the executive branch doesn't start listening to what businesses have to say, then we could reach that point sooner than anyone thought.

Global
  • Related Articles

    Current events

    U.S.-Mexico trade relations to survive Trump's anti-trade rhetoric, Mexican official says

    Mexican approach to NAFTA renegotiation offers a lesson for the U.S., observers say

Contributing Editor Toby Gooley is a freelance writer and editor specializing in supply chain, logistics, material handling, and international trade. She previously was Editor at CSCMP's Supply Chain Quarterly. and Senior Editor of SCQ's sister publication, DC VELOCITY. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.

Recent Articles by Toby Gooley

National Forklift Safety Day 2022 connects safety with labor challenges

Navigating the new normal

On top of the (business) world

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing