The New York Times is reporting Ms. Hope Hicks is resigning from her role as White House Communications Director to seek opportunities in the private sector.

This doesn’t come as a surprise considering 29-year-old Ms. Hicks was/is romantically involved with Rob Porter, the embattled White House Staff Secretary who was swamped in a controversy of accusations of abuse against him by former spouses earlier this month.

Hope Hicks was initially candidate Donald Trump’s personal aide, and one of a very small group organized within the initial presidential campaign headed by Cory Lewandowski.

Together with Lewandowski, Hope Hicks, Dan Scavino Jr., Michael Cohen, Michael Glassner, Brad Parscale and Jared Kushner were the team who powered through the political machine to win the GOP nomination and later the presidency.

According to the Times: “Ms. Hicks had been considering leaving for several months. She told colleagues that she had accomplished what she felt she could with a job that made her one of the most powerful people in Washington, and that there would never be a perfect moment to leave, according to White House aides.”  Her exact departure date is unknown.

(NYT) […] “Hope is outstanding and has done great work for the last three years,” Mr. Trump said. “She is as smart and thoughtful as they come, a truly great person. I will miss having her by my side, but when she approached me about pursuing other opportunities, I totally understood. I am sure we will work together again in the future.”

As communications director, Ms. Hicks worked to stabilize, to some extent, a fractious press department of about 40 people who were often at odds with one another in 2017. She maintained one of the lowest public profiles of anyone to ever hold the job, declining to sit for interviews or appear at the White House briefing room podium. That mystique added to the outsize attention she received.

“I quickly realized what so many have learned about Hope: She is strategic, poised and wise beyond her years,” said John F. Kelly, the White House chief of staff. “She became a trusted adviser and counselor, and did a tremendous job overseeing the communications for the president’s agenda including the passage of historic tax reform. She has served her country with great distinction. To say that she will be missed is an understatement.” (Link)

As U.S. Trade Officials meet with auto executives surrounding ongoing NAFTA sector negotiations, U.S.T.R. Ambassador Robert Lighthizer appears on Fox News to discuss ongoing trade initiatives with Laura Ingraham.

.

It’s challenging to discuss the basic ‘fatal flaw’ within a modern NAFTA in a short discussion segment; however, Ambassador Lighthizer, Secretary Ross and the newly positioned Peter Navarro have a strong position for withdrawal.

The essential problem with NAFTA is an evolution that took place over time.  In its current form NAFTA became an exploited doorway into the coveted U.S. market.  Asian economic interests, large multinational corporations, invested in Mexico and Canada as a way to work around any direct trade deals with the U.S.

By shipping parts to Mexico and/or Canada; and by deploying satellite manufacturing and assembly facilities in Canada and/or Mexico; China, Asia and to a lesser extent EU corporations exploited a loophole.  Through a process of building, assembling or manufacturing their products in Mexico/Canada those foreign corporations can skirt U.S. trade tariffs and direct U.S. trade agreements.  The finished foreign products entered the U.S. under NAFTA rules.

Why deal with the U.S. when you can just deal with Mexico, and use NAFTA rules to ship your product directly into the U.S. market?

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.

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 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.

If you understand the reason why U.S. companies benefited from those moves, you can begin to understand if the U.S. was going to remain inside NAFTA President Trump would have remained engaged in TPP.

As soon as President Trump withdrew from TPP the problem with the Canada and Mexico loophole grew.  All corporations from TPP nations would now have an option to exploit the same NAFTA loophole.

Why ship directly to the U.S., or manufacturer inside the U.S., when you could just assemble in Mexico and Canada and use NAFTA to bring your products to the ultimate goal, the massive U.S. market?

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.]

This is not direct ‘protectionism’, it is simply smart and fair trade.

Unfortunately, the U.S. CoC, funded by massive multinational corporations, is spending hundreds of millions on lobbying congress to keep the NAFTA loophole open.

The U.S. has to look upstream, deep into the trade agreements made by Mexico and Canada with third-parties, because it is possible for other nations to skirt direct trade with the U.S. and move their products through Canada and Mexico into the U.S.

Additionally, with Canada now joining TPP it has become impossible for the U.S. to remain in NAFTA and simultaneously conduct trade negotiations with TPP nations.

President Trump, Commerce Secretary Wilbur Ross and U.S. Trade Representative Lighthizer well understand this structural problem.  ONLY Trump, Ross, Mnuchin and Lighthizer are willing to confront this problem.  If Trump had lost the election, Clinton would have joined the multinationals and U.S. workers would have suffered greatly.

Lastly, the issue of Canada and Mexico making trade agreements with other nations (especially China), while brokering their NAFTA position with the U.S. as a strategic part of those agreements, is a serious issue that cannot adequately be resolved while the U.S. remains connected to NAFTA.

At the conclusion of Round #6, this was the direct issue at the heart of a very frustrated U.S.T.R. Lighthizer’s strongly worded response to Canada:

[…]  In another proposal, Canada reserved the right to treat the United States and Mexico even worse than other countries if they enter into future agreements. Those other countries may, in fact, even include China, if there is an agreement between China and [Canada]. This proposal, I think if the United States had made it, would be dubbed a “poison pill.” We did not make it, though. Obviously, this is unacceptable to us, and my guess is it is to the Mexican side also. (read full remarks)

So you see, if you just look at the pure economics of the options, and you remember that President Trump is constitutionally antithetical to anyone having influence over U.S. interests other than the American people inside the United States, you can clearly see there is only one-way this entire process ends.

Still no word on the turrets and sharks with lasers idea, but we’re holding steady…

SAN FRANCISCO (Reuters) – A U.S. judge on Tuesday sided with President Donald Trump’s administration and rejected an attempt by the state of California and environmental groups to stop the government from building a wall on the U.S. border with Mexico.

The lawsuit filed in a San Diego federal court alleged that Trump’s proposed wall violates federal environmental standards, as well as constitutional provisions regarding the separation of powers and states’ rights.

The plaintiffs asked U.S. District Judge Gonzalo Curiel to stop the administration from pursuing the barrier until it demonstrates compliance with environmental laws.

The wall, a key item for Trump’s political base of supporters, has become a sticking point in talks to keep alive a federal program that protects from deportation young people who were brought to the United States illegally as children.

In his latest budget proposal to Congress, Trump requested $23 billion for border security, most of it for building the wall.

Curiel said his decision on Tuesday was not based on whether the underlying decisions to construct the wall “are politically wise or prudent.” Rather, Curiel said the Trump administration had not exceeded its legal authority in pursuing the project.  (read more)