Future of the North American free trade regime
In a review of the future prospect of NAFTA, the questions that arise are whether it will fade away or it will endure the test of time and thrive eventually? The representative of the three member countries still remain optimistic that the trade union will still work. However, there plenty to sort through regarding the future fate of NAFTA based on the current logistic and political trend. NAFTA will soon have a new look. It is possible that the reality will not end up matching the rhetoric that is been created by Trump and the White House (Lavin, Frank et al). Conversely, moderation will probably prevail in the future. There are many deals that need to be negotiated in the new deal which were not previous and this will make it impossible for United States to reach the end of the deal. Therefore, it is possible that NAFTA will endure in the future.
Prospects of deepening NAFTA
The most likely outcome of deepening NAFTA is that US trade deficit will go up and the economic growth of the country will slow both in the short and long run. This is due to the fact firms in North America are deeply integrated in the supply and value chains. Another reason is the elevated share of US value-added in the imports from Mexico and Canada. Correspondingly, partners in the trade union are likely to drive up the cost of production in the United States and eventually reduce the country global competitiveness (Lavin, Frank et al.). In this regard, deepening NAFTA will have a suppressing effect on United States exports as well as other partners in the trade union
The most likely outcome of deepening NAFTA is that US trade deficit will go up and the economic growth of the country will slow both in the short and long run. This is due to the fact firms in North America are deeply integrated in the supply and value chains. Another reason is the elevated share of US value-added in the imports from Mexico and Canada. Correspondingly, partners in the trade union are likely to drive up the cost of production in the United States and eventually reduce the country global competitiveness (Lavin, Frank et al.). In this regard, deepening NAFTA will have a suppressing effect on United States exports as well as other partners in the trade union