after announcing the intention of increasing tariffs on wood imported to the US from canada, the trump administration followed this with an announcement that his administration was laying the groundwork for pulling out of the north american free trade agreement (NAFTA). today the wall street journal reports that the trump administration has announced that it is not pulling out of nafta. since wilbur ross is commerce secretary we are wondering whether he can take credit for the announcement of the pullout or the reversal?
we at a blog about whatever are very much free trade. in the classical liberal (with a small “l”) sense. and we are big fans of adam smith, the father of capitalism who embraced free trade. we believe the term fair trade is a nothing word. laissez-faire capitalism has been a success. it is one reason that when the berlin wall fell in 1989, people from the then west germany did not make a mad dash to the then east germany (GDR).
getting back to nafta. we think that canada did a good thing by allowing visa free travel to canada for mexicans. we would like to see the usa move in a more friendly direction with its south american neighbors. the announcement of the intention to shutdown nafta, drove the pesos down and prompted mexico to announce it would re-think how it dealt jointly with international security issues with the united states. as statistics have proven, the number of mexican citizens emigrating to the usa has dramatically fell between 2009 and 2014. so obviously this reversal pre-dates trump. and the people crossing the mexican boarder are mostly from south american and central america.