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  • Writer's pictureAIM Team

NAM: Missouri manufacturers and workers rely on North American trade

Data taken from NAM graphic linked at the bottom: NOTE: Associated Industries of Missouri is the sole designated partner organization of the National Association of Manufacturers (NAM) in Missouri.

Trade is important for Missouri, helping Missourians sell more of what we make to more customers around the world. More sales create more good-paying jobs and a stronger economy across the state. Missouri’s ability to sell more American-made products to Mexico and Canada is tied directly to NAFTA. In fact, Missouri manufacturers sell nearly one-fifth of their total manufacturing production to Canada and Mexico.

Canada and Mexico represent less than 4 percent of the global economy, but they are big purchasers of Missouri goods, purchasing substantial portions of Missouri’s foreign sales of major manufactured goods, supporting well-paying jobs in communities across Missouri. 1 out of 5 Missouri manufacturing firms export to Canada or Mexico and 71% of these firms are small to medium size firms that help support local economies. 1 out of 8 manufacturing jobs in Missouri depend on exports to Canada or Mexico.

Without NAFTA, Missouri’s manufactured goods exports to Mexico alone could face a minimum of $84 million to $556 million in extra taxes (compared to zero tariffs today). As a result, many of Missouri’s manufacturers and the workers and communities they support could lose sales as competitors from Europe and Asia continue to enjoy zero tariffs. The result will be less manufacturing production and fewer good-paying American jobs in Missouri and throughout the United States.

Talks are currently proceeding to modernize NAFTA. There are several changes to NAFTA that would greatly boost manufacturing competitiveness, including strong Investor-State Dispute Settlement (ISDS) provisions.

Associated Industries of Missouri stated in an email to President Trump’s staff in the White House, “We believe the NAFTA must include strong Investor-State Dispute Settlement (ISDS) provisions. ISDS enforcement is a core element to protect the United States against the theft, discrimination and unfair treatment of U.S. property overseas. It is also important to ensuring continued U.S. energy security and protecting millions of American jobs.  As you are re-negotiating the NAFTA, we ask you to please include strong ISDS provisions in the agreement.”

An improved deal would prevent the negative economic effects of a bad deal or unilateral withdrawal, but it also makes things better in the United States by raising standards, strengthening enforcement and ensuring American companies and American workers are treated fairly.

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