LAFAYETTE, La. (KLFY) – In President Trump, in his campaign, spoke about eliminating the North American Free Trade Agreement, or NAFTA, which sets trade rules between the United States, Canada and Mexico.
Implemented in 1994, LSU Agricultural Economics and Agribusiness Assistant Professor Michael Deliberto said changes to NAFTA shouldn’t affect sugarcane all that much, but could affect exporting rice out of Louisiana.
“Almost 70 percent of the rice we export goes into Mexico. NAFTA has worked to establish to large market share for American rice,” Deliberto said.
However according to UL-Lafayette Economy Professor Deergha Adhikari, changes to NAFTA won’t affect Louisiana’s economy too much. Adhikari said he is concerned for the nation’s economy as a whole.
“There are so many concerns about what he is talking about because NAFTA had been good for all three countries. I have found it’s good for the U.S. economy,” Adhikari said.
According to the outgoing U.S. trade representative, U.S. manufacturing to Mexico and Canada increased 258 percent with NAFTA.
“Anything we do to interfere with might have a negative impact on the US economy,” Adhikari said
“Anything that’s got the potential to improve that would be welcomed but you wouldn’t want to do it in a way that would curtail any kind of market shares or if you allow anyone else to import more than they should,” Deliberto said.
As of now President Trump has not officially signed an executive order to renegotiate NAFTA.