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The Trump administration decided this week not to renew its trade agreement with Canada and Mexico.
The White House claims the agreement has been unfair to the United States.
A lot has changed in the Rio Grande Valley within the past 30 years since the now-terminated North America Free Trade Agreement was signed between Canada and Mexico.
Mexican products come into the U.S., and in return the U.S. sends products Mexico needs.
Adrian Gonzalez is in the middle of it all. He’s a U.S. customs broker, the middleman for foreigners wanting to sell their product in the U.S.
“And trade brings more benefits and economic benefits in terms of restaurants and gas stations and stores,” Gonzalez said.
This week, the Trump administration announced it’s stepping back from its trade agreement with some of its largest trading partners, Mexico and Canada.
Gonzalez says he was expecting this.
“Since the beginning of the Trump administration, there has been a total revamp of U.S. trade policy,” Gonzalez said.
On Wednesday, the White House announced it wants the United States-Mexico-Canada Agreement to be reviewed yearly.
President Donald Trump says he wants the pact to be more fair to the U.S.
“If they change the rules every single time, then that means every single year you have to be replanning how to cross back and forth,” South Texas College Economist Teo Sepulveda said.
Sepulveda said it could impact future warehouse construction in the Valley.
“Because if they’re changing the rules so often, then it actually makes no sense for you to expand heavily, let’s say make millions of dollars in investments, when rules are going to be changing every single year,” Sepulveda said.
Several new warehouses have been popping up at the Pharr Produce District in Las Milpas over the past few years, but Sepulveda says he’s concerned that if there’s constant changes to the agreement between the U.S., Mexico and Canada, it might make it hard for these businesses to plan ahead.
Gonzalez believes reviewing the agreement could provide both countries with the products they need. He also feels it means the agreement will get renegotiated in a more timely manner.
“The rules to give products favorable treatment will be harder to comply with, it will be harder, that means more value added in the region, more requirements, more things to do so that the product is in compliance,” Gonzalez said.
U.S. Trade Representative Jamieson Greer said the Trump administration will continue to work with Canada and Mexico to address what the U.S. believes are the agreement’s shortcomings.
Watch the video above for the full story.
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