A commentary. See the link
https://www.expressnews.com/opinion/editorials/article/Editorial-Trump-trade-record-mixed-USMCA-good-15560813.php
Commentary by Jorge Canavati
The original article in the SA Express newsprint version says "Trump trade record mixed: USMCA good, China less so”. The Canavati version says that the government trade record is poor. Threatening the world with tariffs and at the same time applying tariffs has hurt the economy of the United States and the U.S. consumer. In addition, U.S. exporters, such as in the agricultural sector, have been hurt by retaliatory trade war strikes from countries such as China. The government then subsidizes U.S. companies hurt by the trade war with tax paper money. Go figure. Th express news editorial also talks about an Oxford study that shows the trade war with China reduced the U.S. GDP by .3 %.
Clearly, China have not been on the up and up on some issues and there are ways to deal with this. But attacking trade hurts the United States in many ways. Since the beginning of recorded history, trade is the world’s binder and connects humanity. As trade relates to the United States in economic terms, trade is critical to America's prosperity - fueling economic growth, supporting good jobs at home, raising living standards and helping Americans provide for their families with affordable good and services.
Another major mistake was pulling out the Transpacific Partnership. Pulling out of trade agreements of this magnitude and threatening with tariffs as a fix does not help anything. And adding insult to injury, no one has cared to explain all this to grass roots U.S. This was one of the issues why NAFTA was unpopular, no one talked to grass roots communities about it in any significant way. The USMCA is not a new trade deal, it is a tweak of an old trade deal to accommodate the standards of our times. Many were surprised that July 1, the day of the agreement implementation came with little fanfare. Not many cared. It is hard to care, when two of three governments in this “partnership” have protection tendencies.
All these goings on should be of deep concern for Texas since it is the trade powerhouse of the United States. The Express News editorial mentions Canada and Mexico are the biggest export markets for Texas. Well, yes of course. But in the same phrase it uses the words “trade” and “exports.” Exports are only 50% of trade. Trade includes imports as well. A country cannot export unless it imports. Importing is not a dirty word. Imports are a key driver of jobs in the United States. I study the Texas-Mexico regional trade behavior. This activity alone is exemplary to the world. It is a well-oiled machine of trade balance. We do not even have to go as far as to look at the USMCA as whole. The Texas-Mexico alliance is a powerful economic region with the savvy and abilities to sell the region’s goods and services to the world.
The United States is one of the top three foreign trade countries (imports and exports) in the world. Excellent. But there is much more to be done. The government has tremendous tools at hand to promote and sell U.S. goods and services to the world. Two of which are 1) the foreign commercial Service of the Dept of Commerce and 2) the EXIM Bank. I know both and I can tell you that both works. Shifting the federal budget around and pumping more into trade activities would work wonders. ####