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Study: NAFTA has helped Utah businesses with exports

Farmers carry a banner with a message that reads in Spanish: "Mexico is better off without NAFTA, Stop! No more abusing the countryside," during a march protesting the North American Free Trade Agreement, in Mexico City, Wednesday, July 26, 2017. More than a thousand farmers from multiple Mexican states marched to protest against the treaty that they has allowed in lower-priced imported grains from the U.S. which farmers say have harmed their ability to make a living. (AP Photo/Rebecca Blackwell)

  | Aug. 17, 2017, 8:59 p.m.
| Updated: 8:58 p.m.

Utah’s economy has benefited significantly from the North American Free Trade Agreement (NAFTA), which is currently being renegotiated, according to a new study by the U.S. Business Roundtable.

The report by the nonprofit association of American CEOs found that Utah companies exported $3.1 billion worth of goods and services to Mexico and Canada in 2015, helping support 121,300 Utah jobs that year.

Exports of goods have increased by 104 percent since 2006, while the value of services delivered to Canada and Mexico in that time has gone up 55 percent.

The report also said that 86 percent of imports that Utah manufacturers and farmers took in from those two countries were used to make goods produced in the Beehive State more competitive in foreign markets.

“The numbers make it clear that Utah workers and businesses have benefited from NAFTA,” said Tom Linebarger, chairman of the Business Roundtable’s international engagement committee and CEO of Cummins, Inc., which manufactures and sells heavy-duty engines and power-generation products.

“Successful negotiations should expand on, and not diminish, the many benefits NAFTA already provides,” he added.

Francisco Kjolseth | The Salt Lake Tribune World Trade Center Utah president and CEO Derek Miller sees a need to renegotiate NAFTA to deal with new technology but believes the trade pact has been good for Utah.

World Trade Center Utah CEO Derek Miller shares Linebarger’s perspective.

“At more than 20 years old, it is time to renegotiate NAFTA to include things like information technology that did not exist when the trade agreement was originally created,” Miller said.

But, he added, “we need to be careful not to create protectionist policies that restrict the ability of Utah companies to access these important markets.”

Miller said international trade contributes $12 billion annually to the state’s economy and that Mexico and Canada are among Utah’s top five export destinations.

Trade representatives from the U.S., Mexico and Canada began renegotiating the trade pact on Wednesday.

In May, Linebarger sent President Donald Trump a letter outlining the group’s position.

“We believe that U.S. economic growth and jobs depend on … expanded trade opportunities with other countries,” he wrote. “High standard and modern trade agreements are critical tools to help American companies and workers access international markets for their U.S.-produced goods and services.”

Business Roundtable works to promote sound public policy. Among its suggestions were promoting e-commerce and digital trade, strengthening intellectual property protection and enforcement, and ensuring fair competition with enterprises owned and controlled by foreign states.