NAFTA

As President-elect Obama fills his Cabinet and top-advisor positions, he has not yet named a U.S. Trade Representative, but, as CEI noted, he purportedly has offered the job to Rep. Xavier Becerra (D-CA). Becerra had joined the chorus to redo the North America Free Trade Agreement, even though he did vote for the trade pact in 1993.

To revisit NAFTA and try to include protectionist measures would be a huge mistake. What many NAFTA critics may not realize is that the trade agreement benefits all three countries — the U.S., Canada, and Mexico — and the U.S. has some sweet deals from NAFTA.

Take a look at just one benefit the U.S. would stand to lose if NAFTA were rewritten. It’s likely that the Canadians would try to renegotiate the extremely preferential treatment the U.S. receives in energy imports from Canada. (Canada by far is the U.S.’s largest provider of crude oil and petroleum imports. Mexico has usually been the second.)

Under NAFTA, the U.S. is guaranteed a regular supply of oil and gas from its Northern neighbor at preferential prices except in very limited circumstances.

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