This is a topic we have previously discussed. The current status is unfortunately what CTH previously predicted…. The consequences here are very serious.
Representative Denver Riggleman (R-Va.), a member of the House Financial Services Committee, claims a significant number of House Democrats are ready to vote to approve the USMCA trade deal. However, Nancy Pelosi is holding back the vote.
Everyone agrees that passage of the USMCA would provide leverage for the U.S. position in both China and EU trade negotiations. Representative Andy Barr says despite a likely 300+ vote of support, he believes Pelosi is stalling to block that exact leverage.
As we previously pointed out, the October 21st election in Canada will be an influence.
Justin Trudeau made an agreement with Pelosi to stop the Canadian Parliament from considering ratification. If Trudeau loses the election, his replacement will likely move more quickly to ratify the USMCA, this will be a defeat for Pelosi. However, if Trudeau wins, he will help keep the pressure off Pelosi by simultaneously stalling ratification in Canada.
This dynamic has yet to play out.
Senator Jodi Ernst, a member of GOPe leadership, appears to be sending the message that USMCA will not pass until after the 2020 presidential election. Ernst is a Decepticon in AG clothing; but generally, the outlook of McConnell, Cornyn, Thune and Ernst are more accurate.
The U.S. multinationals on Wall Street do not want the USMCA to pass because they don’t want President Trump to have leverage that allows him to continue the fight against China and the EU. It is a simple dynamic, USMCA ratification makes the Wall Street prior investments in China worth less.
The UniParty Message on USMCA:
The strategy to deal with each of the three primary negative trade elements (China, NAFTA, and the EU) is clear within President Trump’s trade reset.
- Bilateral deals with ASEAN partner nations and simultaneous crushing tariffs on China deals with one problem. China’s removal of U.S. wealth and jobs is halted.
- The construct of the USMCA, and country of origin for source material and strict enforcement mechanisms, deals with the second problem: NAFTA’s fatal flaw.
- An reciprocal and barrier removing agreement between the U.S. and U.K; which can open a tariff free trade highway between North America and Europe; creates the leverage for Trump (benefit for Johnson) that begins to deal with the EU problem.
In the big picture President Donald Trump has purposefully stalled the process of supply chain globalization and cheap labor evaluation. Trump is resetting global manufacturing supply chains, with U.S. incentives for relocation. This is bringing wealth and jobs back into the United States (and North America).
In essence Titan Trump is engaged in a process of: (a) repatriating wealth (trade policy); (b) blocking exfiltration of wealth (main street policy); (c) creating new and modern economic alliances based on reciprocity (bilateral deals); and (d) dismantling the post WWII Marshall plan of global trade and one-way tariffs (de-globalization).
In all of these efforts U.S. multinational corporations, big companies on Wall St, are heavily opposed to President Trump because they have invested in those overseas operations. Those companies facilitated the loss of U.S. manufacturing jobs.
There is also now a clear alignment between those Wall Street multinationals, and democrats like Nancy Pelosi. Wall Street’s ability to pay Pelosi and political leadership to protect their multinational interests; in combination with corporate promises of funding to Pelosi’s party; has created the unholy alliance of united interests.
That’s why Nancy Pelosi instructed Justin Trudeau to stall the Canadian ratification of the USMCA. That’s the motive behind why Pelosi is working to stall, perhaps even eliminate, the USMCA ratification in the House. This is also why Pelosi reacted so quickly to the framework of a deal between President Trump and British Prime Minister Boris Johnson.
It is a political strategy and calculation for Speaker Nancy Pelosi, and Minority Leader Chuck Schumer to attempt to sink the U.S. Main Street economy. Weakening Trump’s China confrontation; blocking the USMCA; and impeding a trade agreement between the U.S. and U.K. are part of that calculation.
This is why we are seeing Wall Street, and the media pundits therein, openly cheering for an economic recession for exactly the same purpose.
The aligned interests of Wall Street, media pundits and Democrats are all contingent upon harming the U.S. economy. That is how severely ideological modern democrats are.
The democrats are willing to destroy Main Street in order to retain power.
There are trillions at stake.