How does this work and how is Mexico ripping the US off?

How does this work and how is Mexico ripping the US off?

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commondreams.org/views/2014/01/10/after-20-years-nafta-leaves-mexicos-economy-ruins
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renegociating nafta would harm canada and mexico more than it would harm the USA

Works fine and no one is ripping anyone off. Trump can't change trade agreements without senate, and they wont touch NAFTA. Don't buy into the blind Trump train. He's your president yes(not mine), but don't blindly follow his logic, always question leadership.

If anything, the USA is ripping Mexico off. You can bet your ass that the US is doing everything they can to keep the minimum wage in Mexico as low as possible.

It's not. NAFTA has been nothing but a boon for all of our economies.

And he can choose the next SCOTUS Justice and the one after that. The craxies in the Senate who only care about Rowe vs Wade will just let him have his protectionist measures and hedge all their monies or put them in the Cayman's and blame him for the economic disaster in 4 years,

For the most part the US is ripping off both Canada and Mexico.

I mean Canada is one of the most sued governments in the world because of NAFTA. The US doesn't even follow portions of NAFTA because lol fuck you.

Because Mexico can happily undercut American manufacturers. And does; most 'AMERICAN CARS FULL OF FREEDOM' are made in Mexico and shipped over the border.

So what? How does that negatively affect America as a whole and not some shit hole town in some flyover state?

You mean, American corporations close their factories in the US and open new ones across the border.

seriously, Ricardo has been over this. 200 fucking years ago. nobody's ripping anyone off. using comparative advantages is a boon to everyone involved.

Mexico has a value added tax, America doesn't.

> value added tax - a tax on the amount by which the value of an article has been increased at each stage of its production or distribution

So
>mexican importer buys american products
>when they sell it, government charges 18% vat on difference
>american importer buys mexican products
>no import dues, federal government collects no tax

They also have free trade agreements with some countries America doesn't. Japan would send all of the components for TVs to Mexico, they'd get assembled there and then shipped to America. If they came right from Japan there would be import dues.

The falling peso means corporations will only invest more in Mexico. Republicans love big businesses more than americans.

> free trade

Mexico and Canada can ship goods to the USA with zero tariffs.

It doesn't really effect things with Canada because they are on an even playing field with the USA.

It heavily effects USA and Mexican economics. Everything is cheaper in Mexico, because the quality of life and opportunites are much shittier. Mexico can pay a worker as little as $3/hr.

SO they make goods for much less than USA and ship them and sell them here. USA companies can't compete and they have to close. Many USA cars are made in Mexico now.

BUT if Donald Trump is correct, you could impose say a 20% to 30% tax on any goods coming into the USA from Mexico. Mexico has almost no choice but to play ball. We are their biggest consumer, and they will still make $, but less so. The tax goes straight into the US goverments pocket AND because of the increased price, American companies can be more competitive with Mexico. More jobs here, less jobs going to Mexico.

It makes sense. I wouldn't impose a massive tariff on Mexico, but I would rework the deal a little. No one else is buying Mexicos shit. So they can play ball with us or go even deeper into poverty.

that would also increase the prices american consumer have to pay as tariffs cuts competition and just creates overpriced goods because imports are restricted.

NAFTA was done by Clinton my retarded friend

evidence?

Why does it only contain 3 NA countries?

...

>free trade maymay

yeah, but no VAT on exports, so it's not like the Mexican government is benefitting on the back of the US. and the US could levy VAT anytime they want.

The prices elevate to american level, so our companies now stand a chance. Prices go up, but more americans have jobs

Republican controlled House and Senate, smartypants. Doesn't matter who signed it because trickle down ensures that only the rich get rich. Mexicans in Mexico are taking American jobs and there's nothing Republicans will do about it because they don't own shares of ignorant rednecks.

Prices would go up first and it would take a while for manufacturing jobs to enter the US market. In fact, the most likely outcome is the manufacturing being shipped to Honduras or Guatemala, not back to the US.

>Ricardo
>comparative advantage
>not refuted countless times
I hope you're not being serious.

mexican here, nafta consist on the 3 state agreeing that they are allowed to put their business on the others as much as they like while splitting the income to raise the economy of each state however since it started in 2004 canada and usa have been anally raping mexico by putting wallmarts and many other chain bussnies into mexico (mostly on border cities) ruinning local business and canada taking almost all of our minerals and precious stones, while leaving little to nothing of income to mexico, but you guys get to enjoy our pollo loco wey.

>you guys get to enjoy our pollo loco wey.
to be fair we all now vacation on your beaches, but only because we like Mexicans more than our own southern rednecks, dope-smoking hippies, and aging retirees that have taken over our beaches.

>America as a whole
>Not recognizing that America is reducible to the sum of its parts

The evidence is that the US economy is so large that we can't even tell if there was a benefit from NAFTA. It has benefited Canada and Mexico greatly, so likely it hurts us.

>muh zero-sum game

Free trade usually benefits all. Since nafta American exports have increased, prices and production costs have decreased, export related jobs have been created, among other things.

Nobody's ripping anybody off. We're in a race to the bottom is all.

>tariffs protect jobs
>free trade is unfair
>US is raping Mexico, Mexico is raping the US, everyone is raping everyone when two parties engage in mutually beneficial business while minimizing costs and barriers to trade
I though this tired meme died 200 years ago.

Free trade means no tariffs, which means industries compete on an even footing. In developing countries like Mexico where the standard of living is a lot lower they accept much lower pay, which means low cost of manufacture. In the end manufacturing gets outsourced to developing countries and it "destroys" the manufacturing industry.

And what happens to American exports when American companies are forced to use more expensive American manufacturing? Works well within the US, but say goodbye to any remaining American made exports because tariffs work both ways. Also the cost of living is increased.

>Mexico will play ball
I've seen this phrase used a lot which implies Mexico is "exploiting" the US and will "give in" if you "negotiate tough" with it. What is Mexico going to do - institute a minimum wage?

>some shit hole town in some flyover state?
Gee how did Trump win eh?
You idiots never learn. Cant wait til your precious 'Cali' and every narcissistic freak living there sinks into the sea
The dems were supposed to be our party, then they start ignoring us and suck off inner city minorities and faggot middle class white people and wonder why theyre losing elections. Not just here, but in Europe too.

"American level" is currently NAFTA level. And your companies stand a chance only within the US. Tariffs absolutely destroy the US manufacturing ability to compete in the global economy. The world economy isn't going to want goods that are tariffed in and out from the US.

commondreams.org/views/2014/01/10/after-20-years-nafta-leaves-mexicos-economy-ruins

>Free trade means no tariffs

In theory yes, in practice not even close.

If that were true it wouldn't take years to negotiate "free" trade deals. Buried in all these deals are clauses that protect certain industries. I'm in Canukisatn so let take TPP and Canada as an example. Our dairy and egg industry is exempt from TPP because it's a supply managed (think centrally planned soviet shit) system which would be destroyed if it had to compete with the US. It's a huge pile of give and take with every country trying to protect their own industries while exploiting, for lack of a better word, other countries weaker industries to come out on top.

>Everybody's ripping everybody off.

FTFY

"America as a whole" you say while really only thinking of all the opressed poor MINORITIES

lmao @ liberals not understanding democracy and doing everything to please the minority in a country like they were a fucking protected group, the brown aristocracy

All those shithole towns and states cared enough to vote Trump in, so evidently it affects us quite a lot.

It's only been refuted for developing countries with an abundance of labor. Not for capital intensive countries like the US. If anything, the US is cucking mexico rn by not allowing them to build up their institutions and industries because they cant compete with Americas. NAFTA was bad for US manufactoring that requires a lot of labor but has benefited high tech manufactoring like Boeing and others that are based in the west coast. The US is still in the top 2 for manufactoring in the world and is producing now more than ever. The workers in the rust belt loose their jobs but everyone else wins and desu the benefits outweigh the costs. The only problem is that the benefits are spread throughout the economy and the costs are felt by few.

>tfw mom and dad works in an american company here in mexico
>tfw afraid

Enough to get us Trump.