Georgia is an economically flourishing state and could be impacted either positively and negatively by the renegotiations with NAFTA.
Georgia was rated #1 in Business by Site Selection Magazine in 2017. However, as the political climate is rapidly changing throughout the United States, there is much at stake for agricultural producers and American families since this is a broad topic currently in congressional legislation. However, it is important to note that all of the states in the U.S. will be affected by trade policies. Moreover, a shift in bi-partisan politics has become prevalent, including political viewpoints on changing NAFTA agreements.
Agricultural analyst Daren Bakst states that the changing trade agreement under Donald Trump will improve the economy and produce more jobs; however, others argue that the changing trade agreements will harm the economy. The Trade Partnership is an “organization” composed of educated political analysts that specifically study the economy by providing accurate information about trade policy through current research projections and agricultural data. As Laura Baughman started out as a consulting firm in Washington D.C around 1991 and joined up with Dr. Joseph Francois and Dean Spinaker in 2001, together, they are the Trade Partnership, LLC.
President Trump argues that “reciprocal trade” will promote a free agricultural economy, and as a result, greater prosperity for all. Similarly, Daren Bakst projects positive outcomes as well.
Bakst states that “trade is often discussed in connection with how it affects countries, but, as a general matter, trade is truly about the freedom of individuals and businesses to voluntarily exchange goods and services with customers. American farmers and ranchers, just like other businesses, should be free to sell to customers all over the world. Further, consumers should be free to purchase goods and services that best meet their needs, regardless of national origin. Government-imposed barriers, such as tariffs, undermine these freedoms.”
Political analysts and researchers from The Trade Partnership, LLC (composed of Laura Baughman, Joseph Francois, and Dean Spinager) argue, “that renegotiation with NAFTA will decrease jobs in the United States as a whole, and give Canada and Mexico the opportunity to tax the United States, thereby decreasing United States jobs and agricultural exports/imports.”
The Trade Partnership, LLC analysts Francois and Baughman argue that the renegotiations with NAFTA will have a negative impact on export and import trade as well as job loss in the United States.
Baughman and Francois said, that “by re-imposing tariffs on U.S exports and imports which will reduce the competitive markets and as a result causing foreign markets to trade elsewhere. As a result, the U.S. would lose between 82,000 to 170,000 jobs.”
So how will these new trade policies impact Georgia?
At the academic economic summit last year for UGA’s school of business, Dean Ayers spoke to large masses of businesses that attended the event and his message was one that emphasized that businesses in Georgia will continue to flourish. However, since then, as the political climate is changing, for example, a “reciprocal trade agreement” with NAFTA by President Trump, could make analysts wonder what could this mean for the flourishing businesses in states such as Georgia. How will the new agreements with NAFTA affect booming transportation systems in Georgia’s metropolitan cities, ports, and railways? Moreover, what could this mean for American jobs?
Furthermore, the very idea and concept of “reciprocal trade” is still relatively new to our political system, while the idea seems to appear to benefit Americans, would it actually hinder trade with the international foreign trade markets that we have worked diligently to build and maintain? How will this be an advantage to American businesses in agriculture, commerce and export/import? Moreover, the concept of Trump’s reciprocal trade is more of an idea –
Hence, the “diplomacy of foreign trade” – moreover the current system with NAFTA was developed by acts of foreign diplomacy as our government system has worked diligently to grow in order to maintain a competitive market and improve relations between other countries; while foreign relations have been seen to evolve in positive ways at the federal and state levels. It could be that President Trump doesn’t understand this concept of diplomacy and continues to view the United States with a narrow class based system. President Trump’s idea of trade and security indicates tones of Isolationism. Moreover, a U.S government system with an “us and them” sentiment could end up being dangerously nationalistic which could lead to dangerous ideologies that in the past, we have worked hard to dissipate.
In sum, agriculture, commerce, international trade, export of goods in states i.e. Georgia could potentially cause a decline in business and transportation because of higher tariffs by other countries and the allocation of goods and funding may causes spouts of inflation and unemployment.
Sarah Elizabeth Bash is an artist and writer from Golden Isles area of Georgia. Sarah writes on local and state arena in all areas such as sports, arts and culture, politics, education and environmental topics.