The NAFTA Negotiations: Put a Check on US Irrationality

Published in Nishinippon Shimbun
(Japan) on 28 August 2017
by (link to originallink to original)
Translated from by Stephanie Chiu. Edited by Margaret Dalzell.
No matter how you look at it, the Trump administration’s many demands are so unreasonable they’re destroying the entirety of the process.

The United States, Canada and Mexico have begun renegotiation of the North American Free Trade Agreement. In the first meeting, it was clear there was a divide between the U.S., which relentlessly pursued its own national interests, and Canada and Mexico, which sought to keep the U.S. in check. Hoping to reach an agreement by the end of the year, they’ve made arrangements for at least four more meetings, but the selfishness of the Trump administration knows no bounds. Thinking only of reducing its own trade deficit, the Trump administration continues to press its irrational trade policies onto the other two countries.

It’s highly possible that the course of the negotiations may have a negative impact on Japanese businesses that are expanding to Mexico in hope of exporting to the U.S. The Japanese government should put pressure on each of these three countries by appealing to the United States' self-respect and to Canada and Mexico’s fortitude.

NAFTA came into effect in 1994, and in 2008 it led to an increase in the gross domestic product of approximately $21 trillion (2,300 trillion yen) due to the annulment of various trade restrictions. Since his election campaign, Donald Trump has insisted that because of NAFTA, production bases have ended up relocating from the U.S. to Mexico, where wages are low. He states that this led to a loss in employment and an increased trade deficit − hence the implication that the U.S. simply needs to withdraw from the agreement.

In order to reduce its trade deficit and rejuvenate the state of its manufacturing industry, the U.S. is placing a high priority on the following two points during the renegotiations.

The first point is the amendment of the Rules of Origin, which determine to what percentage a product must be made from domestic parts before domestic tariffs are eliminated. Currently, for motor vehicles, tariffs are eliminated as long as over 62.5 percent of the product is supplied domestically. However, the U.S. aims to raise this percentage and increase the amount of American material used in order to increase employment. The other point the U.S. is aiming for is the introduction of a currency clause, which is an opposing measure that would guard against foreign currencies weakening and stems from their goal of reducing their trade deficit.

However, both points miss the mark. The biggest reason the U.S. manufacturing industry has declined so much is due to developments in automobile automatization and computerization. In addition, improving the balance of trade does not stem from exchange policies and reducing foreign trade, but from expanding foreign trade.

Of the Japanese businesses expanding to Mexico, there were more than 1,100 that concentrated on automotive-related production. In the upcoming renegotiations, the production networks of Japanese businesses will also be forced to undergo reconsideration. This is no time for Japan to remain on the sidelines.



NAFTA交渉 理不尽な米国に歯止めを

 どうみても、米トランプ政権の諸要求は無理筋で大局観を欠く。

 米国、カナダ、メキシコの3カ国による北米自由貿易協定(NAFTA)の再交渉が始動した。初会合では執拗(しつよう)に自国の国益を追求する米国と、それをけん制しようとするカナダ・メキシコの溝が鮮明になった。年内妥結に向け少なくとも4回会合を開くというが、自国の貿易赤字削減を金科玉条に2国に理不尽な通商政策を迫るトランプ政権は身勝手に過ぎる。

 交渉の行方は対米輸出拠点としてメキシコに進出している日系企業にも悪影響を及ぼしかねない。米国には自重を、カナダ・メキシコには毅然(きぜん)とした対応を、日本政府はそれぞれ強く促すべきだ。

 NAFTAは、1994年に発効した自由貿易協定で、2008年には関税が撤廃され、域内総生産(GDP)は約21兆ドル(2300兆円)に達する。トランプ大統領は選挙期間中からNAFTAの影響で、賃金の安いメキシコに米国から生産拠点が移り、雇用が失われ、貿易赤字も増えたと主張し、離脱すらほのめかしてきた。

 再交渉の場で、米国は貿易赤字削減と米製造業復権のため、次の2点を強く求めているようだ。

 一つは域内の部品をどの程度使えば域内関税をゼロとするかを決める「原産地規則」の見直しだ。自動車の場合、全部品の62・5%以上を域内で調達するのが条件だが、米国はこの比率を引き上げて米国製部品の使用を増やすことで雇用拡大ももくろむ。もう一つは対抗措置として他国の通貨安誘導を防ぐ「為替条項」導入で、米国の貿易赤字削減が狙いだという。

 しかし、どちらもお門違いだ。米国で製造業雇用者が減少した最大の原因は自動化・機械化の進展だ。また、貿易収支の改善は為替政策や貿易の縮小ではなく、貿易の拡大で進めるのが筋である。

 メキシコへ進出している日系企業の拠点は、自動車関連を中心に1100を超す。今後の交渉次第では、日系企業の生産網も見直しを余儀なくされる。日本も傍観している場合ではない。
This post appeared on the front page as a direct link to the original article with the above link .

Hot this week

Russia: Will the US Intervene in an Iran-Israel Conflict? Political Analyst Weighs the Odds*

Spain: Trump-Musk: Affair, Breakup and Reconciliation?

Venezuela: The Devil in Los Angeles

Germany: If You’re Not for Him, You Should Be Afraid*

Switzerland: Trump’s Military Contingent in Los Angeles Is Disproportionate and Dangerous

   

Topics

Russia: Will the US Intervene in an Iran-Israel Conflict? Political Analyst Weighs the Odds*

Cuba: Summit between Wars and Other Disruptions

Germany: Resistance to Trump’s Violence Is Justified

Germany: LA Protests: Why Are So Many Mexican Flags Flying in the US?

Spain: Trump-Musk: Affair, Breakup and Reconciliation?

Switzerland: Trump’s Military Contingent in Los Angeles Is Disproportionate and Dangerous

   

Germany: If You’re Not for Him, You Should Be Afraid*

Austria: Trump Is Playing with Fire. Does He Want the Whole House To Go up in Flames?

Related Articles

Cuba: Summit between Wars and Other Disruptions

Germany: Resistance to Trump’s Violence Is Justified

Germany: LA Protests: Why Are So Many Mexican Flags Flying in the US?

Spain: Trump-Musk: Affair, Breakup and Reconciliation?

Germany: If You’re Not for Him, You Should Be Afraid*