THE IMPACT ON U.S. BUSINESSES AND FARMERS
Analysis from The Trade Partnership from U.S. Census Bureau and UNCTAD’s Trade Analysis Information System data shows the following costs of not having NAFTA:
Analysis from The Trade Partnership from U.S. Census Bureau and UNCTAD’s Trade Analysis Information System data shows the following costs of not having NAFTA:
U.S. businesses and farmers exported $570 billion in goods to Canada and Mexico in 2015. Without NAFTA, Canada and Mexico could have assessed new tariffs or taxes averaging 3% — or up to $15.5 billion — on those U.S. goods exports, triggering reductions in U.S. exports.
The same analysis shows the following costs of not having NAFTA for key sectors, the result of which would make American goods less competitive in Canada and Mexico relative to producers from other countries that have their own FTAs with Canada and Mexico — like Japan and the EU — and causing U.S. exports to decline:
U.S. food manufacturers exported $25 billion in food products to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $3.8 billion in extra tariffs — including tariffs averaging 28.3% on meat products and 22.0% on dairy products.
The U.S. auto industry exported $80 billion in vehicles and vehicle parts to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $3.6 billion in extra tariffs — including tariffs averaging 9% on finished autos.
The U.S. textiles and apparel industry exported $10 billion in fabrics, textiles and apparel to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $1.1 billion in extra tariffs — including tariffs averaging 17.9% on apparel.
U.S. chemical manufacturers exported $51 billion in chemicals to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $1.1 billion in extra tariffs — including tariffs averaging 4.8% on paints and coatings.
U.S. plastics and rubber product manufacturers exported $20 billion to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $956 million in extra tariffs — including tariffs averaging 5.4% on rubber products.
U.S. farmers and ranchers exported $15 billion in farm products to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $657 million in extra tariffs — including tariffs averaging 6.6% on oilseeds and grains.
U.S. metal and metal products manufacturers exported $44 billion to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $590 million in extra tariffs — including tariffs averaging 6.7% on fabricated metal hardware.
U.S. electrical equipment manufacturers exported $29 billion in lighting, appliances and other electrical equipment to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $551 million in extra tariffs — including tariffs averaging 6.7% on lighting equipment.
The U.S. computer and electronics industry exported $69 billion to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $515 million in extra tariffs — including tariffs averaging 4.4% on audio/visual equipment.
U.S. machinery manufacturers exported $49 billion to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $508 million in extra tariffs — including tariffs averaging 3.1% on HVAC and refrigeration equipment.