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Killing the Trade Golden Goose: Farmers Rattled by Trump’s NAFTA Rescinding Plans

Sunday, February 12, 2017 18:10
% of readers think this story is Fact. Add your two cents. / Mike “Mish” Shedlock / February 12, 2017

Cross-border trade with Mexico surged following NAFTA.

It’s fair to presume NAFTA is not the sole cause of the increase in trade, but it is fair to presume that NAFTA helped. Increased trade is a benefit to both parties, otherwise, the trade would not take place.

Trump now threatens to kill the trade golden goose and US farmers are in the crosshairs of the dispute. Any unraveling of NAFTA could hit deeply enmeshed cross-border food supply chains

Please consider US Farmers Rattled by Trump’s Mexico Plans.

Corn is the biggest of the US’s $17.7bn in agricultural exports to Mexico, a value that has risen fivefold since the countries signed the North American Free Trade Agreement. Mexico’s exports to the US have grown even faster to $21bn, led by fruits and vegetables such as lemons and avocados.

Farmers, traders and food executives on both sides of the border are therefore paying close attention to Donald Trump. The US president has pledged to revise Nafta, wall off the border and possibly slap Mexican imports with tariffs. Trade in agriculture could end up a casualty.


The post Killing the Trade Golden Goose: Farmers Rattled by Trump’s NAFTA Rescinding Plans appeared first on Silver For The People.


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