{"id":18647,"title":"What Is Going to Happen, if Trump Withdraws from NAFTA?","link":"https:\/\/bst-europe.eu\/de\/globalization\/what-is-going-to-happen-if-trump-withdraws-from-nafta\/","date":"14. M\u00e4rz 2018","date_unix":1521026744,"date_modified_unix":1644496105,"date_iso":"2018-03-14T11:25:44+00:00","content":"

NAFTA’s Impact<\/h2>\n

In 1991, the US, Canada and Mexico signed the free trade agreement NAFTA. Back then that was an influential and important step for overall trade.\u00a0 The closely integrated value chains among the 3 countries meant NAFTA had a big influence on productivity for all three.<\/p>\n

For 20 years, efficient production networks were developed cross-border: the production process for finished goods was divided among the players and completed in many single steps. In the process, intermediate products crossed borders often several times.<\/p>\n

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Effects of Withdrawing from NAFTA<\/h2>\n

Raising import tariffs for goods imported into the US by terminating NAFTA would mean higher prices for imported Mexican or Canadian products for US consumers and businesses. The result: decreased demand for Mexican and Canadian products and lower output of these products, leading to lower employment and lower incomes in all 3 countries.<\/p>\n

See the full story in the first video of our series GED insights<\/em> that deals with US-protectionism and its results:<\/p>\n

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