The transition to a new administration in Washington will certainly bring change to the country and US rail industry. We’re optimistic their policies will promote economic growth and regulatory relief for the rail industry and broader economy.
President-elect Donald Trump’s campaign positions for lower business taxes, encouraging domestic oil and gas production, reconsidering regulations impacting coal while increasing the use of clean coal, and implementing a national infrastructure program should bring new growth to the economy.
New presidential appointees may be more pro-growth and pro-job creation. Pending Surface Transportation Board proceedings harmful to rail sector investment and future capacity, and Federal Railroad Administration proceedings on crew size and electronically controlled pneumatic brakes braking might be reconsidered, shifting regulatory focus toward needed capacity, cooperation and productivity.
The North American Free Trade Agreement is good for the US, supporting about 14 million US jobs. There has been a net increase in US jobs, with private-sector employment rising 30 percent since NAFTA implementation. The US remains the world’s largest manufacturer, with US manufacturing output up 80 percent in 25 years. US agricultural exports to Mexico and Canada grew 330 percent since 1993, with exports to Mexico up 390 percent. Trade agreements resulted in automakers investing $52 billion in US facilities.
We understand that any reshaping of US trade policies will involve a process, including a study on ramifications of withdrawing from NAFTA. While NAFTA allows a member nation to withdraw with 180-day notice, it must be with both member countries — not one or the other.
We will continue to be involved in this discussion with the new administration, Congress and others, and remain optimistic about economic growth in North America.