Secretary Wilbur Ross Outlines MAGAnomic Phase-2 Trade ‘Reciprocity’…

Commerce Secretary Wilbur Ross talks about the importance of trade “reciprocity”.  As Wilburine outlines phase-2 MAGAnomics is only just beginning the reciprocity discussion.

Additionally, Secretary Ross talks about the issues with Chinese steel trans-shipment and the reason for Steel and Aluminum tariffs to be global in order to address China’s use of proxy nation states to continue dumping.   In this interview Ross begins to outline the fine points behind the pending 2018 trade negotiations. It is going to take a lot of repeated effort to awaken the larger U.S. electorate to the issues.

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.]

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.

EXAMPLE: If the U.S. remained in NAFTA all TPP nations would engage in trade discussion knowing there was a Canadian and/or Mexican option to gain access to the U.S. market.  Therefore, despite the size of our market, we could never negotiate a better trade agreement than the deal existing between Canada, Mexico and their TPP partner nations.

President Trump, Commerce Secretary Wilbur Ross, Trade Adviser Peter Navarro and U.S. Trade Representative Robert Lighthizer well understand this structural problem.  ONLY Trump, Ross, Mnuchin, Navarro and Lighthizer are willing to confront this problem.  If Trump had lost the 2016 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/leveraging 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)

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This entry was posted in ASEAN, Big Government, Big Stupid Government, Canada, China, Decepticons, Donald Trump, Economy, Election 2018, Election 2020, energy, Environmentalism, European Union, media bias, NAFTA, President Trump, Taxes, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

70 Responses to Secretary Wilbur Ross Outlines MAGAnomic Phase-2 Trade ‘Reciprocity’…

  1. fleporeblog says:

    Here is our damn reality that our President and his Killers understand! The gap between exports and imports is widening each and every month. That is a reality. You want 3% GDP sustained year in and year out, we have to shrink this damn gap. There is absolutely no other way to do it.

    From the article linked above:

    The U.S. trade deficit widened to $56.6 billion in January, up $2.7 billion from $53.9 billion in December and more than even the deepest estimate. The median economic forecast called for the trade gap to widen to $55.1 billion.

    Exports were $200.9 billion in January, $2.7 billion less than December. Imports were $257.5 billion, down less than $0.1 billion from December imports.

    THIS IS OUR REALITY FOLKS!

    The trade deficit is a net negative for first-quarter (1Q) economic growth as measured by gross domestic product (GDP).

    The politically-sensitive U.S. trade deficit with China rose $1.5 billion as exports decreased $1.3 billion to $10.5 billion and imports increased $0.2 billion to $46.0 billion. The deficit with members of OPEC increased $2.0 billion as exports fell $1.2 billion to $4.1 billion and imports rose $0.7 billion to $6.6 billion.

    We have been getting our asses handed to us for the past 28 years! This tweet from our President says it all!

    We are at war! There is no and ifs or buts about it!

    Liked by 15 people

    • Ain’t it nice to have D.C. run by REAL self-made business men and women who understand how REAL business works and not by a bunch of latte-sipping-crustless-toast-eating-academic duschnozzles who only understood how business was suppose to work based upon models?

      Aaaaaaaaaaahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh…………..

      Breath deep that great awakening of MAGA

      Liked by 19 people

    • fleporeblog says:

      Here is Mexico 🇲🇽 joining in on the fun at our expense!

      Liked by 9 people

      • duchess01 says:

        Sneaks! * Sad Face *

        Liked by 4 people

      • simicharmed says:

        Thanks! VERY well stated! Your tweet (among a few others), needs to multiplied daily and re posted until every computer/smartphone screen in this country has burn-in!

        Liked by 1 person

      • fleporeblog says:

        This use to surprise me and get me really angry 😡! Not anymore because it is our current reality that our President and his Killers are fixing for our country.

        Like

      • WSB says:

        Why have the exports suddenly increased? Hurricane replacement cars? Or is Mexico flooding the market? Even if they are, who are creating these orders?

        Liked by 2 people

        • fleporeblog says:

          I have no damn clue but it builds our Cold Anger but more importantly our President who is going to do something about it!

          Liked by 2 people

        • Bugsdaddy says:

          Because American consumers are finally buying. This surge is the effect of the “immediate” need to fill the shelves (so to speak). Once our own industry ramps up and expands you will see the imports decrease and the exports increase. This is the unfortunate situation the globalists have thrust upon us by closing down domestic production. It will take time to recapitalize.

          I like your reports Fle, but because of the drain on American production capacity over the last 30 years+, I’m afraid it will be late 2018 at best before we see the hoped for reduction in imported goods.

          What we will see very soon is the offset of imports vs. exports as the production of petroleum products results in significant exports to offset the current imports of other products.

          Liked by 1 person

          • WSB says:

            I just heard that one of the steel factories has infrastructure ready to accept 500 workers to be reinstated, so there is some hope that those factories which have military security capabilities can gear up quickly.

            Americans can do it if the regulations are dropped. This may have been PT’s reasoning behind his early actions.

            Like

    • zorrorides says:

      TY, Mr Lepore, for adding a numbers analysis to the explanation by our Sundance and Wilburine of Commerce Ross. Pretty sure the article is complete now, but I’ll read the other reader comments for more gems.

      Liked by 2 people

    • Ono says:

      Oct 8 2008…the market crashed.

      A month later Barry was president elect

      A month later the port of Los Angeles and Long Beach were empty of any cargo ships.

      Residents of San Pedro were standing on street corners begging for work

      A month later the export corridor between the Long Beach freeway and the Harbor freeway consisting of mega warehouses and shipping/export was vacant, the economy was destroyed.

      China has since expanded their docks five times

      Nothing leaves LA

      One thing for certain comes in…Crappy China products. Go to Home Depot and look for something made in USA

      If it doesn’t say made in USA…Don’t buy it

      MAGA

      Liked by 2 people

  2. The Boss says:

    Wilbur is all over tariffs and trade like white on rice.
    (White rice matters!)

    Liked by 5 people

  3. littleanniesfannie says:

    Twinklesocks has made his bed. Time to crawl in! Now to the southern border. Make the agreements with the Wall in mind!!

    Liked by 1 person

  4. fleporeblog says:

    Thank you 🙏 God for giving this country we all love here at CTH once last chance!

    Liked by 11 people

  5. littleanniesfannie says:

    Sundance—hope you’re feeling chipper today! God bless you!

    Liked by 5 people

  6. Scout says:

    The panicky cultural marxist MSM in UK, Canada, Australia and New Zealand are refusing to publish or run commentary on this type of information. It’s a sad thing to see the Anglosphere media captured by the same international neo marxists who thought they permanently owned US policy since Obama..
    Then there was Trump.

    Liked by 3 people

  7. duchess01 says:

    “I think the American people will feel much better when they see the actual details rather than hallucinating about them.” Secretary Ross (paraphrasing) LOL

    Liked by 5 people

  8. wheatietoo says:

    Liz Clayman is fortunate that Wilburine is even talking to her.
    So I wanted to slap her when she interrupts him!

    Despite Liz’s attempt to put her own globalist spin on the conversation…our Wilburine dominated the interview and used the truth to set the record straight.

    I love our Secretary Wilbur Ross!

    Liked by 7 people

    • duchess01 says:

      Agree, wheatie! And – where does she get off asking him about Gary – Secretary Ross put her in her place after that one!

      All too frequently, the press asks questions of the wrong person – methinks!

      Liked by 4 people

      • wheatietoo says:

        She was trying to do a ‘gotcha’ question on him…and failed.

        Charles Payne reported yesterday, that Gary Cohn was assembling a group of his globalist buddies for a meeting with the President…to pressure the Pres to change his mind on the tariffs.

        I think that’s what brought it to a head.
        Our President probably told Cohn that it time for him to move on, and allowed him to announce a face-saving ‘resignation’.

        Liz is a diehard globalist shill, who drools over Warren Buffet every chance that she gets.

        Liked by 4 people

        • NJF says:

          Uggghhh. She’s a female Neil Cavuto! She and Gasbag Gasperino are the worst.

          Liked by 2 people

        • duchess01 says:

          OoooooH – but…but…but – aren’t they all on the side of the globalists, wheatie?

          I really detest that smug attitude – Wilbur is no fool – you cannot get him to make a verbal snafu – even when they try to spin it – he takes back control of the narrative – and set them right!

          I cannot wait until they are all sued for slander – so sick of the lies!

          Liked by 1 person

    • simicharmed says:

      Yeah, Liz was breathing heavy, likely sweating and spitting while Wilbur was speaking…

      Liked by 1 person

    • Bonitabaycane says:

      wheatietoo: Wilburine is steamrolling every interviewer who supports the Globalist talking points. He presents undeniable facts and an America First argument that leaves his opposition without a rebuttal. He may be my favorite in this Administration, after our President, of course. 🙂

      Liked by 5 people

      • doit4atlas says:

        He IS my favorite! Knows his stuff inside and out and speaks so perfectly about it. He might be my favorite cabinet member of all time! LOL

        Liked by 2 people

  9. ladyliberty11 says:

    Trade geek. Trade geek.

    Sundance, bless you. You are the best source, nay, an amazing source and font of wisdom on all things regarding U.S. trade and economics. Hamilton reincarnated!!

    Never thought I would love getting into the weeds about trade and the U.S. economy, but you make it so much fun and easy to understand.

    You have turned an over-the-hill, math challenged lady into a trade geek.

    Hope you are feeling better. You are an immeasurable treasure of this great Republic. Thank you.

    Liked by 10 people

  10. simicharmed says:

    It’s rather nauseating watching/listening to these media folks, with their same talking points, painting tariffs as some negative and destructive event – it NOT! I have a feeling many more citizens of this country are more involved in the future of the USA – Trump winning the election in 2016 tells me that our patriotic society understands MSM propaganda more that it did in 2008 and 2012. That makes me happy and hopeful all patriotic citizens will show up and VOTE-MEGA during the 2018 midterms!

    Liked by 2 people

  11. REALLY? Hershey’s kisses? Fear mongering over Hershey’s kisses? Now I’ve seen everything….and that purple color was a subliminal leftist sign. But my point is, Yeah, let’s throw away thousands of jobs and billions of dollars for our economy so a bag of candy doesn’t go up a couple cents? WTAF? Just show’s you how desperate they are. They were using the beer to fear monger until Ross started explaining to people that it would raise the price 1.5 CENTS…LOL! Can’t make this stuff up folks! MAGA!

    Liked by 3 people

    • PS says:

      Yeah, and it wasn’t too long ago, I could get lunch at Wendy’s for under $5, now it’s $8. After we deal with NAFTA raising vegetable prices, “Fight For $15” and Obamacare raiding labor costs, we need someone to work on EPA ethanol in our gas driving up beef prices, maybe we can get some “deflation” to bring food costs back under control.

      Liked by 2 people

  12. PremAmerica says:

    Anybody else notice that Graham Ledger of OANN had gone full RINO with his nasty anti-Tariff and especially nasty anti-Ross Tweets?

    You just never know who might be “not your friend” do you?

    Liked by 2 people

    • All Too Much says:

      There are others being exposed now, as well.
      Maybe Ledger can be at the top of a ledger. [sorry]
      More will reveal themselves.

      Like

    • Ono says:

      OANN is based out of San Diego CA.

      They are as good as it gets, but there is a rat in any neighborhood.

      Mexico has made billions off Ca manufactures that moved to Mexico too avoid EPA restrictions.

      Any oil based product except gasoline has been cut back to minimal quantities at huge price or totally outlawed. Manufactures move to Mexico where there are no environmental restrictions, as in China, as in India, as in everywhere except the USA.

      Grahm has been bought and paid for.

      Like

  13. Disgusted says:

    Would someone please identify this Liz woman for those of us with no idea who she is or why she has been given access to Mr. Ross? I thought at first it was Joy from The View having a good day! Same affect. Same effect on me.

    Like

    • wheatietoo says:

      Liz Claman has been a business news pundit for decades.
      She started out on other channels, such as CNBC.

      I’ve heard her called “the most famous boobs in business” because she was known for wearing low-neckline dresses and blouses.


      .

      My husband once told me that guys watched Liz Claman in the hopes that she would lean over…which she did at times.

      She is a leftist, who cheered on Bill Clinton’s efforts to offshore our jobs and industries.
      She cannot be trusted.

      Liked by 1 person

  14. NJF says:

    Dobbs just mentioned that Charles Payne had Peter Navarro on and he said, “Mexico and Canada have 30 days to get their act together.”

    Anyone catch it??

    Liked by 4 people

  15. TwoLaine says:

    I, for one, am sick of hearing about this hurting our “allies”. Mexico and Canada are not our allies. They are our enemy. On so many fronts.

    Anyone who doesn’t understand that has their head up their…

    GIT-R-DONE!

    Liked by 3 people

  16. All Too Much says:

    Since becoming a regular reader here, I have learned more about some very important issues, such as the above, than I ever thought I would, or thought I would want to. I’m old enough that I trolled the Chicago Democrat Convention riots as a mere youth, so I figured my political and economic learning days were past. Was I ever wrong.

    The Sundance education is priceless.

    Liked by 11 people

  17. TwoLaine says:

    As to the Hershey’s Kisses, who gives a damn? Really?!!!!!!!!!!!!!!!!!!!!!!!! What a stupid, stupid, stupid, non-argument.

    Liked by 1 person

  18. zorrorides says:

    People like Graham Ledger and the editorial writers at The Oklahoman (ie, everyone but me, you, Charles Payne and Lou Dobbs) have just been sipping the common knowledge about tariffs all their lives. They’ve just been handed a red pill and are going “Uhhh”. Of course it’s possible for tariffs to be handled badly, but that is not the case here. Trump tariffs are a marvel of Goldilocks ‘just right’.

    In six months, most of those folks who disappoint us will understand this new trade policy is another well-coupled car in the wonderful Trump Train.

    I am all-aboard !!

    Liked by 2 people

  19. zorrorides says:

    If Mexico and Canada were smart, they would ask VSG PDJT to design a NAFTA just for us three nations, and accept whatever he offers them. Mr Trump would graciously help them if they would ask to join The America First Agreement including America’s Friend-North and America’s Friend-South.

    But they won’t so too bad for them.\
    Zorro

    Liked by 2 people

  20. G. Combs says:

    Bill Clinton’s selling out of the USA.

    1. China’s Tiananmen Square massacre takes place on Jun 04, 1989 and the USA placed sanctions on China

    2. Bill Clinton presidential term: January 20, 1993 – January 20, 2001

    3. China Bribed Clinton link to get full access to the US market and US technology including nuclear weapon and ballistic missile technology.

    4. This is the interactive chart for China’s GDP google link

    YEAR —— GDP in Trillions (current US$)
    1980 — 0.191
    1985 — 0.309
    1987 — 0.273
    1989 USA imposes sanctions – Tiananmen Sq
    1990 — 0.361
    1994 Clinton extend to China’s most-favored-nation status
    1995 — 0.734
    2000 — 1.2
    2001 Clinton helps China enters WTO
    2005 — 2.3
    2010 — 6.1
    2015 — 11.1
    2016 — 11.2

    4. More important China’s GDP PER PERSON takes off. google link

    YEAR —— GDP per capita (current US$)
    1980 —- 194.81 USD
    1982 —- 203.34
    1885 —- 294.46
    1987—- 251.81
    1993 —- 377.39
    1995 —- 609.66
    2000 —- 959.37
    2005 —- 1,753.42
    2007 —- 2,695.37
    2010 —- 4,560.51
    2012 —- 6,337.88
    2014 —- 7,683.5
    2016 —- 8,123.18

    or

    https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcQzVcCX-wtJAoVq_wPybu7aXrLzgal0ecdSe_0AbLVfiXU6Je8D0w-he7SA

    Notice India and China’s economies takes off as US technology and manufacturing are exported. The US economy becomes stagnant. This is what President Trump wants to reverse.

    Liked by 1 person

  21. William F Buckley's Ghost says:

    From Wiki: Claman was born to Canadian parents in Beverly Hills, California, on December 12, 1963, and she is one of five children. Her family is Jewish, Her father originates from Russia,[1][2][3] and her mother is of Romanian descent.[4] Her late[5] father, Dr. Morris Claman, was a world-renowned urologist and associate clinical professor of urology at the UCLA School of Medicine. Her mother is actress June Beverly Claman (née Faibish).[2][6] Claman attended Phillips Academy in Andover, Massachusetts where she was a disc jockey for the school radio station, WPAA, and then attended Beverly Hills High School where she was a friend of Peter Schiff. She has been friends with fellow Fox News reporter Claudia Cowan since the second grade.[7]

    After a brief stint at UC Santa Cruz, Claman graduated from UC Berkeley with a Bachelor of Arts degree in French language. She also has a Certificat Supérieur de Français from the Sorbonne.

    Like

  22. rsanchez1990 says:

    Speaking of repeated effort, we need to change the mantra from “free trade” to “reciprocal trade”, ie trade as free as the other guy wants to make it. You see anyone say “free trade”, counter with “reciprocal trade”. Repeat, repeat, repeat.

    Like

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