ASP’s Andrew Holland has sent a letter to the Senate Finance Committee regarding the June 20th hearing on Current and Proposed Tariff Actions Administered by the Department of Commerce. In the document, Holland maintains that openness in trading steel and aluminum must be maintained for the sake of national security. He explains:
Protectionism drives global competition and undermines confidence in American leadership. The seeming arbitrary application of tariffs on allies and partners makes those countries less likely to help when America needs it. Trade bolsters national security through shared values by encouraging free exchange. Trade is not only an engine of economic growth, it also encourages people to share ideas, business practices, and culture.
This letter was written as a response to the call for insight that the Senate Finance Committee requested, and details how other issues in international trade should be examined in the context of the U.S. energy marketplace. In particular, the importance of NAFTA is highlighted:
NAFTA has allowed for exponential growth of energy infrastructure across North American borders. Through mechanisms such as the Investor State Dispute Settlement (ISDS) and policy measures like Article 605, rules exist that protect the market from unfair and illegal business practices … With the upcoming elections in Mexico and the volatility of the OPEC marketplace, this is a pivotal moment requiring a robust NAFTA agreement. NAFTA ensures a secure North American energy transfer system, free of political pressure or market manipulation. Now is the time for our leaders to protect American energy security, protect the ISDS mechanism and ensure that energy products flow freely and fairly across North America.
To learn more about NAFTA and its importance in North American energy security, you can read ASP’s report “NAFTA: Building North American Energy Security” here.