End of NAFTA trade agreement would be costly for Delaware

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A new  50-state economic analysis  prepared for Business Roundtable reveals terminating the North American Free Trade Agreement (NAFTA) and re-imposing tariffs on exports and imports eliminated by the agreement would have a  negative impact on Delaware that would total nearly $1 billion.

The study indicated the trade barriers would result in a net loss of 1.8 million American jobs. 

The study – prepared by Trade Partnership Worldwide, LLC – shows that in Delaware alone, scrapping NAFTA would eliminate 5,538 jobs within a year and limit the competitiveness of small businesses across the state.

The analysis also finds withdrawal from NAFTA would:

  • Reduce Delaware businesses’ exports to Mexico and Canada by more than $121 million, as higher tariffs make Delaware companies less competitive.
  • Lower Delaware output by more than $479 million, limiting future growth.
  • Shift economic activity away from North America and benefit economic competitors, increasing GDP and employment in countries like China.
  • The total impact of nearly $1 billion for Delaware  is higher than states with comparable populations.

 For more information about how NAFTA benefits Delaware and the entire country, visit BRT.org/nafta-facts.

 

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