Last updateFri, 19 Apr 2019 3pm


Manufacturing & The Economy

U.S. Trade Policy Endangers Texas Economic Growth

Dallas Fed economists are optimistic about the prospects for Texas’ growth in the short and medium term. However, worker shortages as well as U.S. trade policy, particularly regarding NAFTA, are issues that could negatively impact the outlook. Research by Dallas Fed economists indicates that the U.S. trading relationship with Mexico is substantially an “intermediate goods” relationship—part of integrated supply chain and logistics relationships that allow U.S.-domiciled companies to keep jobs in this country and increase their global competitiveness. Without these trading relationships, the U.S. would likely lose market share to other countries, particularly in Asia. 

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