ManattJones CEO Discusses NAFTA Renegotiations
“US Dem Pres Candidates’ Anti-NAFTA Rhetoric Raises Concerns”
Dow Jones International News
February 29, 2008 – ManattJones Chairman and CEO James R. Jones spoke to Dow Jones International News about the risks associated with renegotiating the North American Free Trade Agreement.
According to Dow Jones, presidential candidates Barack Obama and Hillary Clinton are threatening to pull the United States out of the NAFTA treaty if labor and environment portions of the pact cannot be renegotiated. The two senators made their claims during a presidential debate in Cleveland.
Trade experts told Dow Jones that the gains from any negotiation talks will likely be modest and could carry risks.
"I think this was something they had to say in Ohio, it's something they can use once they're in office as a way to revisit the issue of strengthening the labor and environmental institutions," said Jones, who was U.S. Ambassador to Mexico when NAFTA took effect. "But it doesn't require a total unraveling of the treaty."
One concern is that bringing everyone back to the table could backfire – namely, the United States could face difficult demands from Canada and Mexico.
"The reason I would argue against doing that is you open up all the negative political pressures in all three countries," said Jones.
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