Greetings: I am writing to you today to ask for your help protecting and expanding Vermont's economy. As you know, the Trump Administration is currently negotiating the nation's participation in the North American Free Trade Agreement (I{AFTA). Vermonters enjoy a close and critical relationship with our Canadian neighbors. In fact, the province of Quebec is Vermont's largest trading partner with $5 billion in trade annually. That's why my administration has made strengthening our relationship with Canada an important economic priority, and we're already seeing results, I have long advocated, along with fellow governors and Canadian premiers, that we should focus on modernizing and strengthening NAFTA, not withdrawing from it. A recent study by the Business Roundtable (enclosed) suggests withdrawing from NAFTA would result in the elimination of over 4,200 Vermont jobs. Additionally, termination of the trade agreement would cause Vermont's economic output to fall by over $200 million. Our communities and employers simply cannot afford these impacts. I am asking you to join me in making your voice heard. Please contact the Office of the United States Trade Representative by emailing correspoldence@ustr.eop.gov and let them know how important NAFTA is to Vermont, your organizations and communities. Failing to renew the United States' commitment to NAFTA would undermine our businesses' ability to compete in this increasingly competitive global marketplace. Thank you for reaching out to our federal partners to express your support for renewing the nation's participation in NAFTA. Please do not hesitate to reach out to the Agency of Commerce and Community Development for additional informati 1o9 SrArE Srnser o TuB Pavu-roN o MoNrprLrER, vr 05609-0101 0 www.vERMoNT.cov

1. PHILIP B. SCOTT
Governor
g
State of Verrnont
OFFICE OF THE GOVERNOR
February 1,2018
Greetings:
I am writing to you today to ask for your help protecting and expanding Vermont's economy.
As you know, the Trump Administration is currently negotiating the nation's participation in the North
American Free Trade Agreement (I{AFTA).
Vermonters enjoy a close and critical relationship with our Canadian neighbors. In fact, the province of
Quebec is Vermont's largest trading partner with $5 billion in trade annually. That's why my administration
has made strengthening our relationship with Canada an important economic priority, and we're already
seeing results,
I have long advocated, along with fellow governors and Canadian premiers, that we should focus on
modernizing and strengthening NAFTA, not withdrawing from it. A recent study by the Business
Roundtable (enclosed) suggests withdrawing from NAFTA would result in the elimination of over 4,200
Vermont jobs. Additionally, termination of the trade agreement would cause Vermont's economic output to
fall by over $200 million. Our communities and employers simply cannot afford these impacts.
I am asking you to join me in making your voice heard. Please contact the Office of the United States Trade
Representative by emailing correspoldence@ustr.eop.gov and let them know how important NAFTA is to
Vermont, your organizations and communities. Failing to renew the United States' commitment to NAFTA
would undermine our businesses' ability to compete in this increasingly competitive global marketplace.
Thank you for reaching out to our federal partners to express your support for renewing the nation's
participation in NAFTA.
Please do not hesitate to reach out to the Agency of Commerce and Community Development for additional
informati
1o9 SrArE Srnser o TuB Pavu-roN o MoNrprLrER, vr 05609-0101 0 www.vERMoNT.cov
Tu,npHoNs: 8o2.828.3333 | Fax: 8o2.828.3339 r TDD: 8oz.Bz8.3345

2. Vermont Would be Harmed by
Withdrawing from NAFTA
By raising the costs of Vermont exports and imports, a U.S. withdrawal from NAFTA would
make Vermont businesses and farmers less competitive, resulting in losses of jobs and
production in the state and exports from the state to Canada and Mexico.
Vulnerable Vermont Export Sectors
EstimateddeclinesinselectexportstoCa na daa nd MexicoifNAFTAisterm inated
(SMillions)
Semiconductor Sugar& Dairy Travel
s&Parts Confections Products Services
lnd ustria I
Machinery
-
-$+
-s13 -Srr
-$2e
5231 million decline in Vermont exports to NAFTA paftners:
. -5778 million in Vermont exports to Canada
. -552 million tn Vermont exports to Mexico
Jobs Are Lost Exports Drop
-4,220 -LGyo
Output Declines
Estimated decline in
Vermont production if
NAFTA is terminated
Misc.
Foods
. Export Market: Mexico
. Export Value: $tZ million
. Higher Tariff Rate: Up to 50%
-$208 million
Estimated number of Vermont
jobs lost if NAFTA is terminated
Estimated decline in Vermont
exports to Canada and Mexico
if NAFTA is terminated
. Export Market: Canada
. Export Value: SZg million
. Higher Tariff Rate: Up to 10%
>U
-$ro
-s20
-$:o
'S4o
-$so
-$50
-Sro
-Sso
I
-544
-Szo
Vu lnerable Vermont Export Prod ucts
Estimated declinesinselectexportstoCa na daa nd M exicolf NAFTAisterm in ated
-$zz million
Chocolate and other cocoa
products
. Export Market: Mexico
. Export Value: Sgg million
. HigherTariff Rate: Upto2O%
Business
Roundtable'
-Sr+ million -$g million
lnfant foods (e.g., formulas) Milk and cream
For trade data on other states and the entire U.S. and a list of sources, visit BRT.org/nafta-facts.
For general information and inquiries, contact David Thomas: 202.496.3262; dthomas@brt.org.
BD