Publication

This bulletin explores the potential economic and political implications of the US renegotiating the NAFTA Treaty. While NAFTA’s overall economic impact has been difficult to assess, the text’s author believes that foreign investment in the US and increased competition have contributed to job losses and increased wage pressure within America’s manufacturing sector. Despite these problems, however, renegotiating NAFTA may prove risky, as deteriorating trade and investment relations could lead to higher prices and inflation.