Sen. Ron Johnson urges resolution of NAFTA, focus on China in trade disputes

Discussions are set to resume this week on free trade in North America. 

Talks between Canada and the U.S. will continue after failing to reach agreement with the North American Free Trade Agreement (NAFTA) last week.

Wisconsin Sen. Ron Johnson has said concluding talks with a deal on NAFTA is essential.

“I’ve been trying to, you know, carry out my responsibility and making sure the administration is aware of the problems, the damage being done by the trade war and encouraging them to conclude these trade deals as quickly as possible,” Johnson said. “Be done with Mexico and hopefully Canada signs on, and we can move forward, and really address the main problem, which is China.”

Johnson agrees with President Donald Trump’s goal of inking better trade deals to pursue international trade without tariffs. But, he says, while tariffs continue, consumers can expect to pay higher prices for many goods.

The U.S. had previously reached agreement with Mexico on a revamped NAFTA.

Canada has hesitated to sign onto the agreement, and Trump has suggested the U.S. would be better off if Canada was left out of the new deal. Canada is by far the biggest export market for Wisconsin dairy agricultural products.

“If we continue to maintain the high tariff rates on imported steel and aluminium, domestic suppliers, that’s allowed them to increase their prices to 30 to 40 percent,” Johnson said. “That just increases the price of goods to every American consumer.

“And that’s what people need to understand in tariffs in general. Tariff is just a different name for a tax on consumers.”

From January to December 2017, Wisconsin exported more than $3.5 billion worth of agricultural products to 147 countries — an increase of 3.63 percent compared to the year before.

Top Five Markets for Wisconsin Exports – Agricultural Products
Country, $ Value Export, % Growth

• Canada, $1.45 billion, (+1.45%)
• Mexico, $412 million, (+14.2%)
• China, $299 million (+27.62%)
• Korea, $178 million, (+.33%)
• Japan, $146 million, (-0.81%)