Trump has shifted the trade paradigm — for the worse | TheHill

USMCA’s emphasis is on “balanced” and “reciprocal” trade, not free trade or open markets. The U.S. is clearly targeting the trade deficit.

Gone is the old paradigm’s emphasis on creating opportunities for U.S. commerce, with companies free to choose how best to allocate production and trade flows.

The old paradigm held an implicit belief that what was good for American business was good for America and American workers. The “New Model Trade Agreement” seeks to rein in the tendency for U.S. companies (who have morphed into multinational corporations) to outsource production to countries with low wage costs.

What’s good for General Motors is not always good for American workers, and the New Model Trade Agreement serves as a counterweight to U.S. companies that outsource and downsize U.S. production.

Source: Trump has shifted the trade paradigm — for the worse | TheHill

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