“I think what’s most interesting is that fact that, if the Republicans are now abandoning free trade, for the first time ever in our memory, we’re having a presidential campaign where neither side is for free trade, which I think bodes really badly for our allies abroad…”
“They’re looking at a race where the country, with both parties, is now moving against free trade. They’d always assume that the United States would be the one country that would rise above the most narrow economic nationalism and save the idea of free trade. That’s not going to be true come January 2017, and that will change the whole international landscape…”
Source: National Review
Chriss W. Street writes: Russia’s invasion of Crimea is a tipping point event that will further spur the American oil boom. The European Union (EU) and United States in 2008 threatened to slap economic sanctions on Russia for invading Georgia. But after a while the criticism faded and threats of sanctions were quietly dropped, because the EU is almost entirely reliant on Russia for energy supplies.
While oil production cut America’s trade deficit by hundreds of billions of dollars, the greatest boon has been in tapping America’s immense natural gas reserves.
A similar situation is unfolding today as the EU and U.S. are again making empty threats that they will stop exports of Russian oil and gas as punishment for invading the Ukraine. But due to the latest humiliation by the Russians, a consensus is emerging that will demand the United States and its North American partners “drill, baby, drill” for national security.
Twenty years ago on January 1st, the United States, Mexico, and Canada implemented the North American Free Trade Agreement. The volatile Persian Gulf at the time supplied 35% of U.S. oil, and most “experts” argued the world was approaching “peak oil” extraction point where supply would then dwindle rapidly. Although many Americans label NAFTA a failure, it was highly successful in generating greater economic cooperation to prioritize and develop North America’s vast energy resources.