@MichiganRoss Linda Lim: #NAFTA Renegotiation Won't Impact Trade Deficit as It's the Result of US Domestic Policy

Article ID: 679453

Released: 11-Aug-2017 3:05 PM EDT

Source Newsroom: University of Michigan

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  • Credit: University of Michigan

    Linda Lim, professor emeritus of strategy at the Ross School of Business.

Linda Lim, professor emeritus of strategy at the Ross School of Business, has focused her research on the political economy of multinational and local business in Southeast Asia, including international trade and investment environment, and the influence of domestic politics, economic policy and culture on business structure, strategy and operations.

"As Treasury Secretary Steve Mnuchin said back in February, the TPP which President Trump pulled the US out of is a good starting point for NAFTA renegotiation. That is, arrangements which would have been secured with Canada and Mexico under TPP but are now unavailable could be negotiated with these two partner countries under NAFTA.
These include tougher labor and environmental standards and intellectual property rights protection, restrictions on currency manipulation, provisions for digital trade and investor dispute settlement--all of which were included in TPP and are now on the table for the NAFTA renegotiation.

"What is new under the Trump administration (i.e. not in the TPP) is the goal of reducing the US trade deficit, which cannot be done by trade measures or any NAFTA renegotiation but will be the result of US domestic fiscal and monetary policy that is as yet uncertain."

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