Dallas Fed Says NAFTA May Benefit From An Update

Alan Scaia
June 18, 2018 - 7:48 am
Robert Kaplan

Credit: Alan Scaia, 1080 KRLD

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DALLAS (1080 KRLD) - The head of the Federal Reserve Bank of Dallas says NAFTA may benefit from an update but he says technology is costing the U.S. manufacturing jobs, not deals that benefit other countries.

Robert Kaplan says the U.S. lost manufacturing jobs to other countries 15 years ago, but now, those jobs have become obsolete.

Kaplan says seventy percent of imports from Mexico are just supplies. He says companies in the U.S. then use those supplies to make finished products.

The head of the Federal Reserve Bank of Dallas says NAFTA may need an updatem but the U.S. and Mexico help each other compete with the rest of the world. Kaplan says fewer companies are sending jobs to Mexico. He says those jobs are becoming obsolete with new technology.

Kaplan says most of Mexico's exports are just pieces of products that are finished at factories in the U.S.

He says a trade deficit with China poses a greater threat to the nation's economy.​