President Ronald Reagan was fond of borrowing from the words of John Winthrop when referring to America as that “shining city on a hill.” Like Winthrop, Reagan was describing the America that he imagined. An America that was free, was respected around the world, and that bridges, not walls, would create shared prosperity with our neighbors. It was a far cry from today’s political rhetoric that’s not only dividing a country and its neighbors, it’s also dividing a political party.
It’s no secret where President Trump stands with regards to the North American Free Trade Agreement. In fact, late on Wednesday he changed his mind against what he’d said earlier that day in favor of terminating NAFTA altogether. For now, at least, he’s willing to renegotiate the terms of an agreement that he’s been referring to as a “horrible deal for the United States.” But if the new deal does not benefit U.S. workers and U.S. companies, he’ll terminate the agreement for good.
Taking a step back into time, the origins of NAFTA go all the way back to Nov. 13, 1979, when then-California Gov. Reagan outlined his vision of a North American free-trade zone during a speech announcing his candidacy for the presidency.
We live on a continent whose three countries possess the assets to make it the strongest, most prosperous and self-sufficient area on Earth. Within the borders of this North American continent are the food, resources, technology and undeveloped territory which, properly managed, could dramatically improve the quality of life of all its inhabitants.
It is no accident that this unmatched potential for progress and prosperity exists in three countries with such long-standing heritages of free government. A developing closeness among Canada, Mexico and the United States — a North American accord — would permit achievement of that potential in each country beyond that which I believe any of them — strong as they are — could accomplish in the absence of such cooperation. In fact, the key to our own future security may lie in both Mexico and Canada becoming much stronger countries than they are today.
To date, NAFTA has generated billions of dollars to the U.S. economy and created millions of jobs for U.S. workers. In fact, the U.S. Chamber of Commerce estimates that NAFTA supports 14 million U.S. jobs. In totality, the agreement generates more than $1 trillion in trade among the United States, Canada and Mexico. It also drives down competition from overseas companies from China and India, and keeps manufacturing and the selling and purchasing of goods in one centralized location: North America.
According to the Office of the U.S. Trade Representative, Mexico is the United States’ second-largest trading partner. More than $583 billion is traded every year — that’s $1 million every minute going back and forth between our two economies.
We’re not Canadian, Mexican or American; we’re North American, which is why it’s so important economically for the United States to maintain a positive, meaningful and respectful relationship with Mexico.
Contrary to political rhetoric, NAFTA is anything but a horrible agreement for the U.S. economy and for the U.S. worker. In fact, it’s quite the opposite, and all the data backs that up.
Let’s make sure we never lose perspective of the great prosperity that NAFTA has created. And may we always remember the words of President Reagan during his farewell address to the nation, when he said:
I’ve spoken of the shining city all my political life, but I don’t know if I ever quite communicated what I saw when I said it. But in my mind, it was a tall, proud city built on rocks stronger than oceans, windswept, God-blessed, and teeming with people of all kinds living in harmony and peace; a city with free ports that hummed with commerce and creativity. And if there had to be city walls, the walls had doors and the doors were open to anyone with the will and the heart to get here. That’s how I saw it, and see it still.”
Mark Vargas (@MarkAVargas) is a contributor to the Washington Examiner’s Beltway Confidential blog. He is co-founder and president of Licentiam. He is also a government affairs and public policy adviser.
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