Ted Cruz warns of ‘profound damage’ to U.S. economy if Trump kills NAFTA

The Toronto Star ^ | 10/31/2017 | Daniel Dale

[Sign Petition to Arrest Comey]

WASHINGTON—Texas Republican Sen. Ted Cruz warned Tuesday that the United States would face “massive economic costs” if President Donald Trump killed the North American Free Trade Agreement — but that Trump might go ahead and make that decision.

Cruz said “NAFTA has created millions of jobs across the United States,” and he said “Texans believe in international trade.” He expressed concern that Trump, whom he generally supports, would seek to use the ongoing NAFTA renegotiation to reduce trade and erect protectionist barriers rather than to expand trade.

Reducing access to the Canadian and Mexican markets, Cruz said, would “do profound damage to the American economy and to Texas in particular.”

“Which direction will the administration go? I will tell you candidly: I don’t know,” Cruz said at the pro-NAFTA U.S. Chamber of Commerce on Tuesday. His comments highlight the uncertainty surrounding Donald Trump’s intentions.

[central_va]

It's unconstitutional to tariff exports.

Section 9 "No Tax or Duty shall be laid on Articles exported from any State."

[juggernaut]

The headline is misleading, but, worse, Cruz used a straw man argument to make an obvious point. Not a good moment for Sen. Cruz....one of many.

[central_va]

Other countries ALREADY tariff our goods we ship them. Look up the tariff rates on any country we ship product. The average is around 6%. It is time we fight back.

[Lisbon1940]

He’s from Texas, like Gardasil.

[Alberta's Child]

Something to keep in mind here is that a wealthy jurisdiction is always going to have a tendency to maintain a "trade deficit" with those that are less wealthy. This is because a worker is always going to seek opportunities to produce things for customers with more money than he does -- not less. The landscaper who hires a bunch of Mexicans to work for him doesn't mow lawns in the neighborhood where the Mexicans live, for example. Instead, he brings them to a wealthy neighborhood where people own large homes and can't be bothered doing their own landscaping.

One of the biggest factors in the movement of production capacity from the U.S. to foreign locations has been the gradual diminishment of comparative advantages between different parts of the U.S. The textile, industry, for example, migrated from New England to the South decades ago because it was cheaper to produce textiles there. They moved overseas when the standard of living in the South improved so dramatically that it didn't have the same cost advantage over other parts of the U.S. that it had before.

Notice too that the wealthiest areas in the U.S. aren't the ones where the most things are produced, but where they have huge "trade deficits" with the rest of the country and the rest of the world. There probably hasn't been a car, a telephone or an ear of corn produced in New York City in several generations.

[Iscool]

Aww Ted...You just can’t break away from the GOPe and that North American Union...There’s a reason Trump won...And Teddy seems to think the American people who elected Trump aren’t smart enough to understand Nafta...

[ASA Vet]

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[central_va]

They moved overseas when the standard of living in the South improved so dramatically

I mean, God forbid, that the standard of living for Americans should EVER go up. Prosperity in the USA used to be a goal but now it is a crisis and an anathema.

You really are a true Free Traitor™ thru and thru.

[Iscool]

Political globalism threatens national borders and national sovereignty. Don’t be like so many and confuse that with free trade economics which in no way threatens national sovereignty or borders. In fact, countries that engage in free trade end up stronger nationally.

You got that right...Just look at China...

In Cruz's anti-America free trade rant he neglects to mention that Trump is anti-Nafta because it isn't FAIR trade...Why would any American be against FAIR free trade??? Trump wants to make Nafta FAIR trade and Cruz is against that...

[BobL]

“He’s from Texas, like Gardasil.”

Governor Perry gets the credit for that...but come to think of it, I don’t remember Cruz ever saying that he had an issue with it.

[Mariner]

“Would you agree?”

Yes.

But the NeoCons took over the party in 1988 and never looked back.

They made themselves the Orthodox Conservatives. Now the entire Republican Congressional Delegation is Neocon, Open Borders and Free Traitors.

The PaleoCons were marginalized, at least.

Now we’re back and we’re pissed. We are the new majority in this party and we’re taking it back.

[tiki]

Just SHUT your yapping mouth Ryan, you traitorous fool.

[Jim W N]

It’s either free trade OR fair trade. You can’t have both.

“Free” means no government interference and leads to economic expansion.

“Fair” means government-directed activity leading to economic contraction.

[kabar]

Sen. Cruz Amendment to Immigration Legislation to Increase H-1B Visas Cruz wants to increase H-1B visas by 500%.

[easternsky]

Yes where He was speaking from should have raised the Red Flag, and looks to me like He will be Running again, maybe this was his coming out Party, and I do not mean for Senate

[Nifster]

Ahhhh Teddy still at it....

[kabar]

Since the North American Free Trade Agreement (NAFTA) was signed in 1993, the rise in the U.S. trade deficit with Canada and Mexico through 2002 has caused the displacement of production that supported 879,280 U.S. jobs. Most of those lost jobs were high-wage positions in manufacturing industries. The loss of these jobs is just the most visible tip of NAFTA’s impact on the U.S. economy. In fact, NAFTA has also contributed to rising income inequality, suppressed real wages for production workers, weakened workers’ collective bargaining powers and ability to organize unions, and reduced fringe benefits.

[Alberta's Child]

There's nothing wrong with a high standard of living. It just has serious ramifications on the work you do and the place where you live.

I do fine for myself, but I have a low standard of living compared to the clients I work for. I absolutely recognize the challenges faced by people working in industries where they're engaged in an endless chase for a decent life even while they work producing things that are increasingly difficult for they themselves to afford.

I don't think that makes me a "Free Traitor," you jerk.

[Alberta's Child]

Since the North American Free Trade Agreement (NAFTA) was signed in 1993, the rise in the U.S. trade deficit with Canada and Mexico through 2002 has caused the displacement of production that supported 879,280 U.S. jobs.

I'm not sure I agree with that. Go back to the numbers I cited in Post #49. In 1994 the U.S. had $50 billion of imports and $50 billion of exports in its trade with Mexico. In 2015 it was $296.4 billion of imports and $235.7 billion of exports. Are you telling me that this resulted in a loss of 879,000 jobs?

[Iscool]

HOWEVER the 50+ unilateral trade agreements with other nations for material to manufacture was saving car manufacturers 2-3000$ per car.

Well that's dandy for the car manufacturers and their stock holders...But it sucks for thousands of Americans who lost their jobs to Mexico and its unilateral trade agreement partners...

And then the scoundrels not only won't pay their Mexican employees enough to be able to buy a vehicle they make, they still live in poverty...