Modernize NAFTA, don’t ditch it
Washington Examiner
By
Linda Moore
January
29, 2018

The North
American Free Trade Agreement negotiations have reached a critical point. It is time for the U.S. to make clear we are
committed to staying in a new and improved deal that helps drive more economic
growth in the U.S.

Negotiators
from the U.S., Canada, and Mexico have been meeting since last week in Montreal
for the sixth round of talks to discuss many unresolved issues. Adding to the urgency of this round is a
looming self-imposed March deadline to finish the talks.

With
NAFTA, the stakes for America’s economy and workers are incredibly high. Following the Trump administration’s decision
to pull out of the Trans-Pacific Partnership last January, the NAFTA
modernization talks became our first and best opportunity to create a modern
free trade agreement that reflects the transformative changes that have
occurred in our economy over the past quarter-century, particularly in the area
of digital trade. Since NAFTA
negotiations began last August, however, there have been many worrying signs
from the administration about whether the U.S. is truly committed to remaining
a part of the pact.

There is
no doubt that the agreement needs an update. When it took effect 24 years ago, no one could
have predicted the extent to which digital trade would become the cornerstone
of the modern economy. Since then, the
internet has opened markets once out of reach to the local American
entrepreneur, torn down barriers to entry that prevented small businesses from
growing beyond their communities, and facilitated the transfer of data, goods,
and services at speeds once unimaginable. Between 2005 and 2014 alone, global
cross-border data flows grew by 45 times, generating $2.8 trillion in economic
value in 2014 — a greater impact on world GDP than global trade in goods.

Considering
the impact of these new technologies, we welcomed the Trump Administration’s
decision to come to the negotiating table in order to strengthen the agreement
and bring it into the 21st century. At
the same time, for all the improvements that can be made to NAFTA going
forward, the value it has already generated for the U.S. economy is impossible
to ignore, and an important reason why we should not exit the deal.

Since its
ratification, our trade with Canada and Mexico has more than tripled. They are our largest markets outside our
nation, accounting for over a third of our
total exports
. These markets have been a source of
opportunity, providing jobs for 14 million Americans. If the administration pulls out of NAFTA, it
will cost the U.S. jobs, stifle economic growth, jeopardize stock market gains,
and increase prices on consumer goods.

The
numbers make it clear: Stronger ties have allowed for shared prosperity to flourish
with our neighbors to our north and south. Now is the time to focus on what needs to get
done to improve NAFTA, not ditch it.

As the
talks continue today, the U.S. must send a clear message to our NAFTA partners
that the U.S. is committed to getting this deal done. We should come to the table with realistic
proposals and a desire to build momentum by finally achieving consensus in
areas where we have yet to bridge the divide.

One area
ripe for agreement and progress out of this sixth round should be digital
trade, where we should continue striving for the gold standard of rules that
the U.S., Canada, and Mexico previously agreed to as part of the Trans-Pacific
Partnership. This includes stronger
protections for the free flow of data across borders, robust safeguards for
intellectual property, customs modernization and fairness, intermediary
liability protections, and ensuring U.S. innovators have a level playing field
abroad to sell our best-in-the-world IT products, platforms, and services. Accomplishing this will help further increase
access to over 160 million customers across our borders for American job
creators and innovators, so many of whose goods and services are now digitally
delivered.

When it
comes to Canada and Mexico, nature made us neighbors, time has made us allies,
and the shared desire for peace and prosperity has made us trading partners. Walking away from NAFTA would jeopardize our
nation’s economic growth, weaken our relationship with two of our most
important allies, and cede important economic opportunities and leadership in
our own region to China and other competitors.

The
stakes have never been higher. As talks
continue, it is imperative that they demonstrate consensus can be reached and
meaningful progress made. Job creators
and workers in the U.S. need a win on NAFTA. Walking away would be a major loss.