Nike Free Trade Agreements

Nike Free Trade Agreements

But critics say that labor standards added to previous trade agreements, such as the North American Free Trade Agreement (NAFTA), have not improved working conditions for workers abroad. Canada and Mexico have both indicated that they are ready to start discussions on the 23-year-old NAFTA update. Insisting on a trade compensation mechanism between the United States and Mexico or insisting on a specific tax on imports of Mexican products to offset the country`s domestic VAT would put the pact in trouble, said Scott Lincicome, an international trade lawyer at White-Case in Washington. Obama urged Congress to give it pro-trade authority, also known as the “fast track,” which would require lawmakers to vote “yes” or “no” to a proposed agreement without any change. In the absence of such trade power, many observers believe it will be difficult to conclude the TPP negotiations, which most congressional Democrats reject. But for years, Fair-Labor supporters have seen the company as a flagship of why free trade agreements like the TPP hurt the United States. They relocate jobs to low-income foreign workers, where labour rights are scarce. “I`m glad we have responsible adults around Trump who will make things better for America without harming trade,” Miller said in an interview. “Wilbur said he supported optimizing NAFTA and didn`t blow it up.” In addition, the company should have a plan to relocate production from China to the United States or other cheap countries as a result of a trade war between the United States and China. If President Trump responds to his threat to end trade with China, it would mean a financial disaster for Nike [ 9].

Not only would Nike no longer be able to sell Chinese-made products to the United States, but China could also respond by limiting U.S. companies` access to the Chinese market. Even if the president takes a more modest approach and delivers on his campaign promise to raise Chinese tariffs to 45%, Nike would likely have to find other sites for the production of goods [10]. Where possible, Nike should reduce its commitment to the supply chain in China and develop a supply chain restructuring plan that will be implemented in the event of a trade war.


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