Saying it was the worst deal ever, President Trump pulled the U.S. out of the Trans-Pacific Partnership. His next step is to start renegotiating the North America Free Trade Agreement – NAFTA. Creighton University Economist Ernie Goss says that is cause for concern.
Goss says, “That is because you invite retaliation and just in our own self interest in Nebraska and the mid-section of the country depend heavily on the export of food and agriculture. That is usually the first form of retaliation. He says pretty soon you have something like the Smoot-Hawley that ushered in the depression of the 1930’s.”
Goss says private deals with other countries but must be done carefully – especially when threatening sanctions. He says Nebraska producers need these markets. He says we are talking about $3 billion in food and agriculture products for the state alone and almost $8 billion in total experts. Goss says when you start trade battles agriculture is usually the first to get hit because it is the most sensitive to sanctions.
On a more positive note, Goss says 2017 is going to be better economically for Nebraska than 2016. He says any increase in exports would be good for the state’s economy and the U.S. economy as well.