Political economist Marc Melitz weighs in on what the United States has to lose when trade agreements come undone.
After President Trump withdrew the United States from the Trans-Pacific Partnership (TPP) trade agreement earlier this year, it seemed that NAFTA was next in his crosshairs.
But soon President Trump is expected to take a measured approach to the issue of trade and step away—at least temporarily—from his threats to dismantle the North American Free Trade Agreement (NAFTA) by signing an executive order calling for a comprehensive study of US trade imbalances. The Trump worldview has consistently blamed foreign trade deficits, especially those with China, for job losses here at home. He has wanted to take down NAFTA to purportedly save American jobs, calling it “the single worst trade deal ever approved in this country.”… Read more about Now That TPP Is off the Table, What's Next for NAFTA?