There is a key issue in every NAFTA discussion that is omitted purposefully. The issue always hidden is that NAFTA is not a North American “Trade Bloc”.
Most people mistakenly equate NAFTA with other multi-nation trade partnerships like the EU (European Union). The NAFTA partnership is nothing like the EU trade bloc; it is not even close.
Within the EU example, each nation is committed to only trade with outside nations on terms of agreement within the trade bloc. All trade parameters must meet and comply with the terms within the EU trade agreements. The terms of trade inside the group are connected to the same terms outside the group. It is an agreement between themselves and their commerce toward all other external nations.
However, in NAFTA, the Canadian and Mexican trade ministers can negotiate freely with outside nations. There are no restrictive parameters on their independent decisions. NAFTA is more similar to an access agreement with *only* terms of internal trade and commerce between the U.S., Canada and Mexico subject to the agreement. NAFTA is only an agreement between the U.S., Canada and Mexico and does not extend to external nations.
If France wanted to negotiate trade with China on a specific product -or sector- they have to comply with, and go through, the EU trade group. China would have to apply the same terms to France as all other nations within the trade bloc. However, if Mexico wants to negotiate with China on a specific product, they do not need to check with the U.S., they can cut any deal they want. This is the basic issue underlining the NAFTA ‘fatal flaw’.
If the U.S. wanted to apply a tariff to Chinese cars the Chinese can work around the issue.
Chinese cars could be trans-shipped into Mexico and/or Canada for delivery under NAFTA to the U.S. market. The only way to block this issue is to apply auto tariffs to Mexico and Canada. This is currently the reason why Canada and Mexico are facing steel and aluminum tariffs.
As a consequence of NAFTA not being a trade-bloc, it has been exploited exclusively for access to the U.S. market. Over the past 30 years Canada and Mexico have structured their manufacturing economy based on unlimited access to the U.S. market. Mexico and Canada assemble foreign products shipped to them as parts, then send the finished products into the U.S. market. Hence, Canada and Mexico demand high content of cheap foreign parts in any internal NAFTA manufacturing agreement. There is zero benefit to the U.S. worker or manufacturing base under this structure.
This exploitative approach, a backdoor to the U.S. market, was the primary reason for massive foreign investment in Canada and Mexico; it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to shut down that loophole and renegotiate NAFTA. However, with hundreds-of-billions already invested by the multinational banks and corporations – they are fighting to retain the status quo.
This loophole was the primary reason for U.S. manufacturers to relocate operations to Mexico. Corporations within the U.S. Auto-Sector could enhance profits by building in Mexico or Canada using cheap parts imported from Asia/China. The labor factor was not as big a part of the overall cost consideration as cheaper parts and imported raw materials.
From the POTUS Trump position, NAFTA always came down to two options:
Option #1 – renegotiate the NAFTA trade agreement to eliminate the loopholes. That would require Canada and Mexico to agree to very specific rules put into the agreement by the U.S. that would remove the ability of third-party nations to exploit the current trade loophole. Essentially the U.S. rules would be structured around removing any profit motive with regard to building in Canada or Mexico and shipping into the U.S.
Canada and Mexico would have to agree to those rules; the goal of the rules would be to stop third-party nations from exploiting NAFTA. The problem in this option is the exploitation of NAFTA currently benefits Canada and Mexico. It is against their interests to remove it. Knowing it was against their interests President Trump never thought it was likely Canada or Mexico would ever agree. But he was willing to explore and find out.
Option #2 – Exit NAFTA. And subsequently deal with Canada and Mexico individually with structured trade agreements about their imports. Canada and Mexico could do as they please, but each U.S. bi-lateral trade agreement would be written with language removing the aforementioned cost-benefit-analysis to third-party countries (same as in option #1.)
All nuanced trade-sector issues put aside, the larger issue is always how third-party nations will seek to gain access to the U.S. market through Canada and Mexico. [It is the NAFTA exploitation loophole which has severely damaged the U.S. manufacturing base.]
Begin, with the end in mind:… A critical component of MAGAnomic need:
A skilled American Workforce.
In anticipation of; and in preparation for; the Trumpian manufacturing, innovation, and industrial-era resurgence, today President Trump is hosting the “Pledge to America’s Workers” event. He has to get tens of millions trained and developed for our future.
President Donald Trump will sign an executive order “outlining immediate steps to address the vocational crisis” on developing new opportunities and set up a workforce council. The president will call upon industry leaders and the private sector to sign a pledge on helping advance workforce development. Anticipated start time 3:00pm EST
Begin, with the end in mind…. More than two years ago CTH began discussing the ramifications to a new emphasis on the economy outlined as a possibility of candidate Donald Trump’s economic policy outlook. Within the overall discussion we walked through the anticipated changes possible if A.) Trump won the election, and B.) Trump began instituting Main Street economic policy ahead of Wall Street policy (the past 30+ years). Today is the two year anniversary of that MAGAnomic prediction.
We discussed the new dimension that would occur between two economic engines (Main Street -vs- Wall Street) as three decades of policy shifted. CTH outlined statistical and measurable KPI’s that would become visible in the space between the policy shifts:
July 2016 – […] The demand for labor increases, and as a consequence so too does the U.S. wage rate which has been stagnant (or non-existent) for the past three decades.
As the wage rate increases, and as the economy expands, the governmental dependency model is reshaped and simultaneously receipts to the U.S. treasury improve. More money into the U.S Treasury and less dependence on welfare programs have a combined exponential impact. You gain a dollar, and have no need to spend a dollar. That is how the SSI and safety net programs are saved under President Trump. (link)
So let’s take a look at the measurable KPI’s via the Labor Department and the Federal Reserve (beige book) today in 2018:
“Unemployment lines across the U.S. last week were the shortest since December 1969, according to a Labor Department report Thursday that showed an unexpected drop in filings for jobless benefits. […] The Federal Reserve’s Beige Book, released Wednesday, showed momentum is building in the nation’s job market. “All districts reported that labor markets were tight and many said that the inability to find workers constrained growth,” it said.” (read more)
In the week ending July 14, the advance figure for seasonally adjusted initial claims was 207,000, a decrease of 8,000 from the previous week’s revised level. This is the lowest level for initial claims since December 6, 1969 when it was 202,000.
Fox News host Tucker Carlson sat down for an interview with President Donald Trump following a meeting in Helsinki, Finland, with Russian President Vladimir Putin. The interview aired in two parts:
Part 1 – President Trump discusses ‘very bad people‘ former CIA director John Brennan, FBI lovebirds Peter Strzok and Lisa Page being ‘exposed,’ the bipartisan call for conflict with Russia in Washington, NATO, Democrats and open borders.
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Part 2 (below) – President Trump discusses the new Mueller indictment, former President Obama ignoring DNC hacking, political bias in FBI, DOJ, German Chancellor Angela Merkel’s political troubles, European migration and Democrat obstruction.
President Trump is scheduled to meet with members of congress to discuss his Helsinki, Finland meeting with Russian President Vladimir Putin. The president is scheduled to deliver public remarks sometime around 2:00pm in relation to this meeting.
Update: The remarks by President Trump were not carried live as initially anticipated. Instead a pool report and video was provided after the remarks. Here’s the video:
At the conclusion of a day-long meeting(s) between the U.S. and Russia President Donald Trump and President Vladimir Putin hold a press conference from the State Hall of the Presidential Palace in Helsinki, Finland.
President Donald Trump and President Vladimir Putin hold a bilateral meeting in Helsinki, Finland. As customary the international media were permitted for the initial statements of both leaders.
President Trump introduces First Lady Melania Trump to Russian President Vladimir Putin. (Melania Trump is fluent in Russian). Following the brief introduction Finland’s President Sauli Niinistö and first lady Jenni Haukio join together for a brief photo session to document the historic meeting.
President Trump begins the day with a breakfast with the President of the host nation Finland.
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[Transcript] – Mntyniemi Residence – Helsinki, Finland – 9:54 A.M. EST
PRESIDENT NIINIST: Mr. President, ladies, gentlemen, it’s great to have you here.
PRESIDENT TRUMP: Thank you.
PRESIDENT NIINIST: — you are most welcome. We have done our utmost so that your visit and your negotiations here would be successful. And, like we see, even the sun is with us, although it begins to be far too warm, even here in the North.
But, once again, warm welcome. And we wish all the success in your meetings and negotiations with President Putin.
PRESIDENT TRUMP: Thank you very much. And we very much appreciate Finland. We very highly respect your country, our relationship has been a very good one, and our personal relationship has been very good.
And I enjoyed being with you a couple of days ago. NATO has, I think, never been stronger. And it was really — it was a little bit tough at the beginning, and it turned out to be love. It really was a great meeting that we had and brought everybody together, and, I think, very worthwhile.
But I appreciated your support and your help. And I will say, again, you’ve treated us beautifully. Thank you very much. Thank you.
Q Mr. President, what’s your message to President Putin today?
PRESIDENT TRUMP: I’m going to be seeing him in a little while.
Q But what are you going to say to him?
PRESIDENT TRUMP: We’ll do just fine. Thank you.
Q Mr. President, I’m from Finnish press. What was the (inaudible) choice to (inaudible) Finland as a meeting?
PRESIDENT TRUMP: Well, we think Finland is a great country. We had a fantastic meeting a few days ago; some of you were there. It was a very successful meeting. I think NATO has never been more together. People are now agreeing to pay, and we were having a lot of problem with a lot of people not paying, as the President will tell you. And they’re paying, and they’re paying more rapidly. And I think NATO has probably never been stronger than it is today.
So we had a fantastic meeting, and now we’re capping it with being in Finland. And the hospitality has been fantastic. Thank you.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
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