In: Operations Management
In terms of job loss, North Carolina is one of the states most adversely affected by the United States-Mexico-Canada Agreement (USMCA). Assume hypothetically that North Carolina is considering a 25% tariff (tax) on all foreign-manufactured textiles and furniture items imported into the state. The tariff's purpose will be predominately protective in nature, designed to protect and advance textile and furniture manufacturers in North Carolina and to create jobs. In a 250- to 500-word (double spaced Word document) original paper, advise the lawmakers in North Carolina of the CONSTITUTIONALITY of such a tariff and what other alternative remedies are available, if any.
It is important for the government of North Carolina to understand that USMCA is the trade agreement between three countries USA Canada and Mexico so that any type of duties, tariffs, quotas can be removed to boost the trade between these countries. But when this agreement came into existence the most of the workforce intense business shifted to Mexico due to lower wage rates in the country than in the USA. But this treaty has a safety valve in which one country reimposes some sort of tariffs if there is a lot of loss in trade and shift of business from one country to another. However, it is important that a 25% tariff which is imposed by North Carolina has to be approved by Congress as it is the Congress that regulates the tariffs and business among the different countries as per the Constitution of the country.
As the basic nature of the tariff imposed by the government of North Carolina will be protective in nature and to advance the interests of the textile and furniture in the states so that more jobs can be generated thus it is no limitation as far as constitutionality of the tariff is concerned.
In order to motivate the people of the state to start working in the textile and furniture industry, the government has to provide the impetus and subsidy for those who establish the business in this industry. As the tariff of 25% is not so huge but initially, it could appear to be quite high and it will take a lot of time for the state to come to the position of pre-treaty situation. Once the benefits of the tariffs started to show up. In order to provide more benefits to the people to work in those areas, the government can provide the land, utilizes, easy loans at a lower rate than the market value.
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