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The Congress proposed and passed a motion detailing 22 new safety standards that would be met by Mexican trucking companies to operate in the United States.The punitive tariffs imposed by the Mexican government do not bear economic benefits for the United States.
On the one hand, his administration has continued to use the WTO by bringing new cases against other countries—including China, for example, which the United States claims has violated the letter or the spirit of various WTO agreements.
At the same time, however, Washington has also denounced WTO decisions that have gone against the United States as examples of judicial overreach and has blocked the appointment of new jurists to the WTO’s appellate body.
Increased competition from Mexican companies involved in trucking services would result in lower charges in road transportation.
It is also argued that the policy would result in significant savings in cross-boarder trade.
If it doesn’t, we can assume that Trump plans to abandon the institution by ignoring it.
[.] The final area to pay attention to will be how Trump deals with the trade deficit. In his mind, the trade deficit measures the extent to which other countries have been taking advantage of the United States.
The North American Free Trade Agreement (NAFTA) is aimed at reducing the costs incurred by nations in transportation of goods by road. The policy is expected to increase efficiency in transportation of goods to member states.
The time spent in unloading and reloading of goods from Mexican trucks to American trucks was a great impediment to fast movement of goods.
The punitive measures imposed tariffs amounting to 2.4 billion USD. Some of these were wine, almonds, grapes and pears.
Exports from California were also affected by the 20 percent tariff imposed by the Mexican government.