President Donald Trump holds so much leverage in any negotiations with trade partners, especially Mexico, it is quite staggering to contemplate.
♦ TRADE – An awakening electorate and economic voters throughout the United States are quickly recognizing a simple truth:
The scope of U.S. leverage is exponentially stronger in bi-lateral trade deals.
The United States is the largest economic market in the world. Multilateral trade deals with bundles of nations benefit the smaller fish within the deal. However, direct one-on-one “bilateral trade deals” always benefit the biggest fish, because the biggest fish holds all the leverage.
Donald Trump has been talking about this for decades. Our massive market provides all the leverage needed for trade terms favorable to Americans. “Take it or leave it”, a phrase only for the entity holding the strongest hand. However, frustratingly our national leadership has approached historic trade as if we hold a responsibility to lessen our own national value to the benefit of other nations.
♦ Context – All of the economic activity within every European Union state combined does not exceed the economy of the United States.
With Brexit accomplished – simply the possibility of a mutually beneficial trade deal between the U.K (May) and the U.S. (Trump) is enough to provide Theresa May with leverage to scare the E.U. into trade terms beneficial for Great Britain.
This brutal reality frustrates liberals in the UK to no end. This reality also annoys the globalists within the EU who gnash their teeth in similar angst.
To accomplish her objective Prime Minister May needs President Trump much more than Trump needs May. But Trump wants Brexit to succeed, so he’ll do all he can to fulfill the leverage request and be overly generous in that regard.
Ideologically PM May knows pro-Brexit Trump will assist, generously, easily. Politically the UK moonbats also know this. Ergo the liberal loons ramp up the insufferable criticisms against President Trump that are tonal, not policy based.
Look at any EU leftist media and you will see their shouting between the lines: ‘curse you villain’. U.S. President Trump is the existential threat to moonbats in the EU.
♦ Additionally, the Mexican Government knows they have absolutely zero leverage against the T-Rex powerhouse known as Trump and the economy of the United States. Not slight leverage, ZERO leverage. That was why Mexican billionaire Carlos Slim (owner of the New York Times) held a presser today and begged the people of Mexico to support President Peña Nieto.
A trade deficit of $60 billion/yr. A Mexican economy with 80% export dependency to the U.S.; and $25 billion in transactional U.S. to Mexico remittances subsidizing it’s citizenry.
It’s not even a question that President Trump holds all the leverage during this phone call:
The United States President Donald J. Trump and Mexican President Enrique Peña Nieto spoke by phone this morning for an hour. The call was mutually arranged by their teams.
The two had a productive and constructive call regarding the bilateral relationship between the two countries, the current trade deficit the United States has with Mexico, the importance of the friendship between the two nations, and the need for the two nations to work together to stop drug cartels, drug trafficking and illegal guns and arms sales.
With respect to payment for the border wall, both presidents recognize their clear and very public differences of positions on this issue but have agreed to work these differences out as part of a comprehensive discussion on all aspects of the bilateral relationship.
Both presidents have instructed their teams to continue the dialogue to strengthen this important strategic and economic relationship in a constructive way. (White House)