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Trump pulls U.S. out of G-7 statement, accuses Trudeau of being 'dishonest'
Topic Started: Jun 9 2018, 09:28 PM (859 Views)
StillCrazy1
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!!!!
clone
Jun 11 2018, 11:33 AM
Opinionated
Jun 11 2018, 10:22 AM
Yeah, I'm not buying what you're selling.
First, the essential problem with NAFTA was an evolution 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.]

more...
Remind everyone where Carrier moved its production plant/factory to (from Indiana) again?
Ever notice the only 2 people Trump refuses to speak ill of are Stormy Daniels and Vladimir Putin?
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Robert Stout
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Katoblue
Jun 13 2018, 09:41 PM
TRUDEAU waving the White Flag! lmao Trump was right again! we are Winning too much President Trump!

Trudeau's Cabinet Member also praised Trump on Treaty with NOKO



Canada is prepared to relook at, revise NAFTA: Canadian Cabinet member

https://youtu.be/sbvQxwCQs6Y




If Trudeau relents and waves if big white flag, that would be so very French of him........... :biggrin:
Jesus can raise the dead, but he can't fix stupid
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Realitycheck
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Chump's dementia is progressing nicely: https://www.cnn.com/2018/06/15/politics/donald-trump-fox-news-interview/index.html
Religion in general and xianity in particular, is the worst scourge, the foulest plague to ever beset mankind.
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estonianman
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Realitycheck
Jun 15 2018, 02:33 PM
Good. Canada annexation when?

The day of the rake is coming leaf. :lol:
MEEK AND MILD
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Robert Stout
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estonianman
Jun 18 2018, 07:07 AM
Realitycheck
Jun 15 2018, 02:33 PM
Good. Canada annexation when?

The day of the rake is coming leaf. :lol:
When the USA annexes Canada, most Canadians will need to be put in reeducation camps.............. :shakeshead:
Jesus can raise the dead, but he can't fix stupid
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