Why Are Politicians Attacking NAFTA?

NEW YORK — Editor’s note: “International Business Corner” is a weekly column written by Joan Keston that provides information for people involved in or considering international operations. Keston is an international business consultant. Over the next several months she will be writing about important issues that international businesses face as they compete in the 21st century global business environment. This article addresses the recent political speeches addressing NAFTA.

RALEIGH, N.C. - I have been hearing much rhetoric in the presidential campaign, especially coming from Senators Hillary Clinton and Barak Obama, that NAFTA is the root of our economic woos in the U.S.; that our jobs are being outsourced because of NAFTA. I wish that the cause were that simple.

NAFTA

NAFTA stands for “North American Free Trade Agreement” and the member nations to NAFTA are Canada, Mexico and the US. The issue of free trade and regional trading blocs are complicated subjects that can not be adequately addressed or understood in the context of the International Business Corner. However, the outsourcing of jobs and the future of the US economy is a subject that concerns us all, and should not be addressed by our politicians with an emotional, vote-getting objective. Shame on them for using NAFTA as a scapegoat!

We have all felt the effects of the outsourcing of manufacturing and hi-tech jobs to India and China. The last I checked, NAFTA was an agreement among the North American countries, which do not include China and India, nor our neighbors in Latin America. While there are some adjustments that might be necessary to that Agreement, we can hardly blame NAFTA for the outsourcing of jobs to China and India.

Free Trade

Free trade is not the correct topic to be discussing when we are addressing the BRIC (Brazil, Russia, India, China) countries and their effects on 21st century global economy. While free trade issues will affect how we all work and trade together, it is not the reason why the BRICs are projected to be part of the top six economies in the world over the next several decades.

We Need Responsible Leaders

Instead of preying on our emotions and talking about reverting back to happier times, our politicians and leaders should help our businesses navigate the complicated global economy by identifying areas for US businesses to develop and focus, and by providing incentives and education so that we can maintain a vibrant place in the 21st century global economy. Being competitive globally and surviving in the global economy is a daunting and challenging task for many of our small and medium sized businesses; the very businesses that provide jobs to the overwhelming majority of US citizens and residents. It’s time our leaders in DC stopped being arrogant and stepped up to the plate with the truth and leadership.

About the author: Joan Keston is the Managing Principal of Keston & Associates, Ltd., an international business consulting firm located in Raleigh, NC, and a Partner at Paladin and Associates, Inc. She has 25 twenty-five years of experience with mature as well as entrepreneurial companies, domestically and internationally, coupled with an executive managerial and legal background. Her firm facilitates international business transactions, and assists companies establish, grow and integrate their international operations. She can be reached at (919) 881-7764 and jkeston@kestonassociates.com.