Obama Restores Nafta

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Posted by Tina

In a move signaling President Obama’s willingness to cooperate with the right, and repair some of the damage his party’s policies have had on the economy, the rules for trucking between Mexico and the US under NAFTA were restored last Thursday with a few minor security provisions added. Inspection standards have been tightened and thorough background checks on drivers will be required.

In 2009 Congress closed the program down. How will this positive move by the President effect the economy and jobs? Investor’s Business Daily has a few ideas in the following editorial:

“Truck ‘Timeout’ Ends” – IBD

Restoring the truck program will help restore U.S. trade to its normal pre-recession vigor, with a freer flow of goods and services between the U.S. and Mexico. It gives the U.S. a fighting chance of doubling exports in the next five years, one of President Obama’s goals.

For U.S. companies, that means transport costs will fall by some $400 million. They won’t have to pay two trucking companies for a single shipment to Guadalajara, with all the added cost that entails.

It will also make U.S. companies more competitive, because they’ll be able to take better advantage of the shorter distances between factories and consumers and pass on the savings to consumers. This will be an advantage for both countries over their Asian rivals.

Perhaps best of all, the truck program restoration opens the door to ending $2.4 billion in punitive tariffs that Mexico slapped on 99 U.S.-made products in retaliation for the truck shutdown.

Well…this might actually work to restore a few jobs! According to a US Chamber of commerce estimate, 28,000 jobs were lost when trucking between our nations was shut down.

The unions won’t be happy but this was a wise move for the overall economy…good move Mr. President.

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One Response to Obama Restores Nafta

  1. Quentin Colgan says:

    Wonderful.
    Two-thirds of Americans oppose NAFTA.
    Obama is Bush’s third term. He doesn’t follow the wishes of the people, either!

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