Arizona could be negatively affected if Trump withdraws US from NAFTA
Dec 1, 2017, 5:05 AM | Updated: 11:35 am
(AP Photo/Steven Senne)
PHOENIX — If President Donald Trump withdraws the country from the North American Free Trade Agreement, it could be Arizona that would suffer the most.
According to a recent U.S. Chamber of Commerce analysis, Arizona was ranked among the states that would be hit the hardest if the nation was removed from the trade agreement with Mexico and Canada.
The withdrawal would put more than 230,000 jobs that depend on trade with the two countries at risk and would cause extensive job losses in the metal and ores, engines and turbines, and vegetables and melons industries.
According to the analysis, 47 percent of Arizona’s exports go toward customers in Canada and Mexico and generate more than $10 billion in revenue.
In addition, 96 percent of Arizona’s metal and ores, 91 percent of the state’s engines and turbines and 77 percent of the vegetables and melons are exported to either Canada or Mexico.
Vegetables are also among the top agricultural export in Arizona, according to the U.S. Department of Agriculture. But if the U.S. withdrew from NAFTA, they could face tariffs up to 20 percent in Mexico.
Arizona would not be the only state that would suffer from the loss of NAFTA: Michigan, Wisconsin, North Dakota, Texas, Missouri, Ohio, Iowa, Indiana and Nebraska would also be affected, the analysis found.
Trump said in April that he would not “terminate NAFTA at this time” but would instead look to renegotiate the 23-year-old trade deal with Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau.
But concerns have been raised by the United States’ trade representative after he said five rounds of talks in Mexico City presented a lack of progress in NAFTA’s renegotiation.
Robert Lighthizer said earlier this week that he saw no evidence Canada or Mexico are willing to accept changes proposed by the U.S. team.
He said that without a rebalancing of the agreement a satisfactory result will not be reached.
A trilateral statement released by the three countries said progress was made on a number of chapters in the treaty, but does not provide specifics.
The pact members have scheduled the next round of talks for Jan. 23-28 in Montreal, Canada.
The Associated Press contributed to this report.