Post-China Trade Visit, NAFTA Talks Resume…

Generally speaking the corporate media have yet to have an honest outline about the fatal flaw within NAFTA that allows China, ASEAN nations and the EU to exploit previous investments in Canada and Mexico as a back-door to the U.S. market.

In a generalized aspect, the recent visit of top U.S. trade and economic policymakers to China was part of Trump’s exploration into the larger dynamic of bi-lateral trade between the U.S. and China knowing full well the NAFTA flaw remains unaddressed.  Without addressing the loop-hole (aka ‘fatal flaw’) any modernized NAFTA deal is moot; and by extension the foundation for any future trade deal between the U.S. and China is too byzantine to manage.

It is in China and the EU’s interests to continue exploiting the NAFTA access.  It is in Canada and Mexico’s interests to retain the subsequent investment influx.

It is in multinational corporate and Wall Street interests to continue the scheme. However, it is also entirely against U.S. Main Street interests.  Hence, NAFTA loggerheads reigns supreme; and in my opinion, we are soon to see President Trump cut the Gordian knot.

WASHINGTON (Reuters) – Senior Canadian, U.S. and Mexican officials trying to rescue slow-moving talks to update the NAFTA trade pact met on Monday in a new bid to resolve key issues before regional elections complicate the process.

With time fast running out to strike some kind of deal on the North American Free Trade Agreement, the three member nations are still far apart on major points.

Discussions in Washington will center on one particularly contentious area — the U.S. demand for tougher rules of origin governing what percentage of a car needs to be built in the NAFTA region to avoid tariffs.

Other challenges include the future of the pact’s dispute-resolution mechanism and a U.S. proposal for a sunset clause that could automatically kill the deal after five years.

“We will be working all week on this,” Mexican Economy Minister Ildefonso Guajardo told reporters after talks with U.S. Trade Representative Robert Lighthizer.

Asked how long he would be staying in Washington, he replied: “We will be here for as long as necessary”.

Sources close to the talks suggest there is a creeping feeling of pessimism going into the new round of negotiations because of gridlock on critical matters.  (read more)

 

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93 Responses to Post-China Trade Visit, NAFTA Talks Resume…

  1. DanO64 says:

    Winning.

    Liked by 16 people

    • fleporeblog says:

      Dan this is WINNING on steroids! I will explain why.

      From the article linked above:

      Guajardo earlier told El Heraldo newspaper that if a deal could not be reached, “we would be operating what some analysts have called ‘Zombie NAFTA’ … (one) that isn’t dead and isn’t modernized”.

      THIS IS THE MOST CRITICAL PIECE IN THE ARTICLE!

      Business executives complain that uncertainty over the future of the 1994 agreement is hurting investment.

      It is unclear where the United States might give ground to win a quick deal. The Trump administration has embraced confrontational policies in its dealings on trade.

      Our President and his Killers understand that uncertainty will ultimately kill NAFTA over a period of a few years. It has already started!

      Listening to the interview above, the reporter states at the end that the longer their is uncertainty with NAFTA, the more likely companies are going to open up businesses in the USA 🇺🇸 instead of Canada 🇨🇦!

      Mexico 🇲🇽 is in far worse shape than Canada 🇨🇦. Not only is a Marxist about to take over as President, they as a country are well on their way to 30,000 murders this year. It would set a dubious record. Corporations will get the hell out of Mexico as quickly as humanly possible to come back to the US.

      10) foxnews.com/world/2018/04/…

      From the article linked above:

      Mexico’s most popular holiday hotspot has become overrun with drug gangs, as violence in the tourist party town escalates to unprecedented levels.

      Cancun has seen 14 murders in just 36 hours — the highest ever in the country’s recorded history, according to Noticaribe.

      The latest violence on April 4 saw 14 people killed and at least five others left with gunshot wounds, in six separate instances in the party town.

      onenewsnow.com/national-secur…

      From the article linked above:

      As Mexico prepares to vote for a new president this summer, Mexican drug cartels are warning politicians to “drop out or be killed,” and the murder rate shot up 20 percent after 7,667 were violently killed in the first quarter this year.

      Our President and his Killers have already won when it comes to NAFTA. We will not relent an inch on our demands. If they are dumb enough to go for it, NAFTA 2.0 will occur. If not, UNCERTAINTY will be the ultimate demise for NAFTA 1.0.

      Liked by 23 people

    • Jedi9 says:

      Interesting new video by BPS is very telling on how Chinese are not capable of original thought, logic and has contributed nothing in the way of modern science. Thus the need to steal others intellectual property rights in order to stay competitive in this fast changing world.

      Liked by 4 people

      • Lindenlee says:

        My uncle lived in Asia for 25 years, while VP of Dow for Australasia. He said the same thing about ALL Asians. The social structure prevents the innovative thought.

        He also said that the social constructmof “other”, “gaijin (foreign devil)”, supported theft of intellectual property as OK. When Dow created a joint venture with Korean Pacific Chemical, the S. Korean company took everything that Dow shared with them for agricultural chemicals for three years, then kept everything and kicked Dow out of the country after they increased their food sufficiency substantially. And it was OK, because Dow was “gaigin”, not as evolved, not “us”. This pervades Chinese thinking as well. John hated doing business with the Chinese, they cheated at everything, brazenly.

        Liked by 1 person

  2. Brian L says:

    I’d say time to rip off the band-aid, but it’s more like time to stitch up a gushing wound.

    Liked by 6 people

  3. Wayne Robinson says:

    China is trying to manipulate our President through NK. / ghis guy is just a tool

    Like

    • Jedi9 says:

      Yes true! It won’t work though because NAFTA is something they can’t do anything about, they publicly deny any back-dooring trade mechanisms through NAFTA and does not factor into the bi-lateral negotiations between the two Super Powers! This why Trump will eventually will win this one, forcing China to go to Europe to shore up their loses by trying to renegotiate their deals with the EU! The writing is on the wall!

      Liked by 5 people

  4. treehouseron says:

    I heard dumbass Neil Cavuto on the radio today (XM stream of Fox Business) arguing till he was blue in the face about how embarrassing it was that the top dawgs all went to China and didn’t come back with an agreement. Andy Puzder put him in his place, explained that they went over there as a show of respect to China, but of course they weren’t going to get a deal on the first trip.

    Then, Cavuto switched tactics, and started arguing that he can’t tell if President Trump supports capitalism, so businesses are uncertain about the future. Puzder reminded him that every single metric of business optimism is through the roof and they just cut taxes nearly in half.

    Cavuto’s retort was that President Trump isn’t a true capitalist, because he once used the bankruptcy laws.

    Liked by 37 people

    • treehouseron says:

      Here’s the video if anybody wants to laugh along. Don’t be mistaken, Cavuto is not playing Devil’s Advocate, he’s playing chamber of Commerce Advocate

      Liked by 10 people

      • treehouseron says:

        At 3:11 when Cavuto makes his argument Trump’s not a Capitalist , Pudzer looks at him like he’s crazy, LOL

        Liked by 19 people

        • wheatietoo says:

          I love Andy Puzder…he’s great.
          Such a shame that we didn’t get to have him as Labor Secretary.

          And I really like your “dumbass” label for Cavuto.
          Dumbass Cavuto.
          It’s really the nicest thing I can say about him.

          Liked by 8 people

          • treehouseron says:

            He REALLY knows business too, so his opinion on what America’s businesses are thinking is dead on they money because of how he turned Hardees around.

            Liked by 4 people

      • Elizabeth Carter says:

        I really liked Pudzer. I wish Cavuto had not interrupted him so much by talking over him.

        Liked by 5 people

      • Alan Dryer says:

        I see Cavuto playing devils advocate here. I never watch the guy, so I don’t know his leanings with President Trump, but I certainly do not see a massive attack and I do see great support, at the end of the interview, for a book that supports President Trump. I could be wrong, but it appears to me that people who are posting on this site are giving Cavuto the same kind of treatment that they perceive he is giving President Trump.

        Like

        • treehouseron says:

          Alan, if you’ve never watched Cavuto you don’t see it, believe me, he can’t stand President Trump and talks trash about him all day every day. You can’t say you never watch him, and then say he’s being treated unfairly, come on.

          Liked by 5 people

    • The Boss says:

      Cavuto is a eunuch. All talk, no action.

      Liked by 13 people

    • motreehouse says:

      Cavuto garners an immediate switch of the channel for Me

      Liked by 13 people

    • Bert Darrell says:

      It seems as if some people, like Cavuto, get paid millions to show how limited their mental abilities are. Cavuto has been a talking head in the financial media for decades, first at CNBC, now at FoxBusinessNews and hasn’t learned a thing. He’s just a tongue mover.

      Liked by 8 people

      • Kate says:

        Bert, I remember Cavuto arguing with Bill O’Reilly regarding oil monopoly and pricing at the pumps, I don’t believe Bill had much regard for Cavuto’ mindset.

        Liked by 2 people

      • highdezertgator says:

        he pretends to not know things….
        David Mamet famously said: “In order to continue advancing their illogical arguments modern liberals have to pretend not to know things…”
        (also applies to CoC_talking heads) and Democrats pretending to be Republicans

        Liked by 2 people

    • jeans2nd says:

      Cavuto – what a putz.

      Mr Puzner just finished a new book, “The Capitalist Comeback: The Trump Boom and the Left’s Plot to Stop It,” and spoke at Heritage, last week iirc, about the Trump Capitalist Boom.

      Cavuto is arguing with the wrong opponent. Puzner never loses. At least not until the Senate Dems stopped Mr. Puzner’s nomination for Labor Sec.

      Liked by 12 people

    • Bugsdaddy says:

      _ isn’t a true capitalist because he used bankruptcy laws-

      Oh, you mean like all these other wonderful capitalist companies he said were so great for using bankruptcy to “come back and fight another day”?
      http://www.foxnews.com/transcript/2017/09/20/cavuto-stay-humble-it-will-really-come-in-handy.html

      Like

  5. litlbit2 says:

    These on going discussions on trade reminds me of a dedicated father or mother(PDJT and his little friends) talking about why they are not getting another ice cream cone after leaving the ice cream party. Their(NAFTers)responses are as child like as children 👶

    Liked by 8 people

    • annieoakley says:

      Sometimes the parent just has to say NO! and mean it.

      Liked by 6 people

    • treehouseron says:

      I was thinking the same thing earlier about CNN. Scott Adams was pointing out how every article on CNN is some variation of CNN claiming that President Trump lied. So they’re obsessed with what they perceive as a lie against the truth, this week. That’s their latest strategy.

      It’s kind of like when kids reach that certain age where they’re obsessed with everything being true or a lie. The ‘i’m going to tell” phase, or when they start becoming obsessed with whether Santa is real or not. When you tell them “I think there’s a cow out in the yard!” and their reaction is “NUH UH!”

      President Trump is making all of enemies revert back to being children before him.

      Liked by 12 people

  6. 4sure says:

    Hope Trump throws NAFTA in file 13 where it belongs. He can then negoiate bi-lateral trade agreements which is what we should have with all trade partners.

    Liked by 10 people

    • treehouseron says:

      He’s been complaining about NAFTA since BEFORE it was signed. He knows more about it than any of us and has been publicly planning on sh** canning it for 30 years.

      I mean… I GUESS we can all still act like we don’t know what he’s going to do… but…. it’s pretty obvious 🙂

      Liked by 19 people

      • Minnie says:

        Agreed, so we can imagine how the lesser informed eat up narrative from tools like Cavuto.

        I smell an awakening approaching from over the horizon.

        BIGLY!

        Liked by 7 people

    • RM13 says:

      Real question is before midterms, after midterms. Shaking that tree before midterms may not be a good idea, but I don’t know how voting public will feel about it – especially when misrepresented by media.

      And yes, I am fully against NAFTA, we need to reverse the sucking sound.

      Liked by 2 people

    • Fools Gold says:

      The magic word here is reciprocal and I absolutely love that word! It’s sorta like when you help out that sorry ass brother-in-law over and over after he quits a job for no reason and then expects help when they turn the electric off and he absolutely gives nothing in return. You know the kind, their takers, the liars and the thiefs. No more of that schitt bro. and F ya!

      Like

  7. Paco Loco says:

    It’s the US and Japanese automakers with manufacturing plants in Mexico that want to keep the percentage of Chinese parts as high as possible. Using cheap Chinese parts, coupled with $6/hour Mexican labor, lowers the overall manufacturing cost substantially compared to an “all US” made product. This is the perfect example of Globalization which has destroyed US manufacturing.

    Liked by 9 people

    • Paco Loco says:

      and labor.

      Liked by 4 people

    • mikey says:

      Yep…I’m surprised Mexico doesn’t use illegal aliens to haul the vehicles on their backs to cut shipping costs on their way to the USA to get on the welfare wagon….oops I forgot, the illegals are all booked up by the cartels hauling drugs here.

      Liked by 3 people

    • Globalization is all about converting countries into open-air prisons and using the prisoners on slave wages to make things for export and sale in the USA at obscene profit margins.

      It’s all based on tyranny and slavery.

      Liked by 5 people

  8. grlangworth says:

    Leave NAFTA before the elections.

    Liked by 2 people

    • wheatietoo says:

      I’m not sure it can be done that quickly.

      Unfortunately, there is a time-table built into NAFTA that must be followed.
      Right now they are in the ‘negotiation’ phase of the time-table.

      If we don’t get what we want in the negotiations…then we can declare “That’s it, we are exiting NAFTA.”
      Then, I think there is a waiting period until the thing is finally dead.

      Liked by 6 people

      • usayes says:

        You’re right Wheatie – 6 mos wait after announcement… but no worries – it will be killed. There’s no yield on rules of origin, MX and CND have zero leverage. Maquilas will close and businesses that are currently in MX or CND will come to (or come back to) the USA. Winning. It’s simple – the rules of origin were what permitted the backdoor from China (and other Asian countries) and that door is being slammed shut and I do mean SLAMMED. No new NAFTA is going to re-open that door.

        On another note, I cannot abide the Wall Streeter Fox screechers – Cavuto, Liz Clayman, S Smith and Gasparino — they get it wrong almost all the time.

        Liked by 7 people

        • zorrorides says:

          usayes and wheatie,
          Isn’t it a shame about Mexico and Canada? USA volunteers to let CanMex earn a ton of money by making industrial parts, essentially saying, “Here’s part of the USA GDP, you two can have it for free. Build up your manufacturing and we’ll treat you as especially well-favored neighbor nations. You should be proud of your abilities.”

          CanMex had a golden opportunity to make parts and assemble them, and USA WOULD HAVE BOUGHT THEM, EVEN THO CHEAPER CHINESE PARTS WERE AVAILABLE! Talk bout financeering big bucks versus the Main Street style wealth-building.

          These people are stupid. Just let them go be free of USA entanglement. And Puerto Rico too.

          Liked by 1 person

  9. wheatietoo says:

    The lies and lamentations of the globalist lackeys is a clear indication of how panicked they are.

    The globalist puppet-masters are behind all of the machinations to ‘Get Trump’.

    As Sundance has told us…there are Trillions At Stake.
    The globalists are against everything that our President and his Wolverines are trying to do for us.
    And they will stop at nothing to keep things the way they are.

    Liked by 13 people

    • President Trump’s message to Congress after his NAFTA Exit Announcement:

      We will immediately impose Chinese Sanctions to end the Chinese use of End-Run Exports to America through Mexico, Canada and other countries.

      We will now redirect our Trade Team’s efforts to negotiate Bilateral Deals with Japan, Korea and India.

      Given the importance of the Mid-Term Elections, I will now focus on electing a Congress that will fund the Wall, approve my Appointments and support the restoration of America’s Manufacturing Economy.

      I will consider post-NAFTA Bilateral Trade Deal proposals from Mexico and Canada once the next Congress takes office in 2019.

      At that point, I look forward to meeting with the USCOC to review how they plan to fund the return of Globalist Corporate Members they abandoned in Mexico.

      Liked by 5 people

    • GB Bari says:

      Thats why they all are financing the efforts to smear him personally and politically. And the screaming against him is going to get even worse as we approach mid terms. So this is no time for weak knees. Do not be surprised as claims against PDJT become even more outrageous than before on the usual eneMedia shows. (My solution is – I don’t watch ’em.)

      Liked by 4 people

      • Jedi9 says:

        I caution though, that Trump is a real threat to their interests. I really pray for his safety and that he has a security detail that ultimately he trusts. It is what got Kennedy killed which on several fronts he was threatening very powerful rich elites economic interests.

        Liked by 3 people

  10. Pam says:

    For those talking about Cavuto, just remember he is definitely NeverTrump. POTUS is only looking out for our best interests. He is America first with no apologies. I love that!

    Liked by 16 people

  11. Deplorable_Infidel says:

    “gridlock on critical matters.”

    How about OUR trade representatives printing out a few choice CTH posts that SD so lovingly laid out so that a sixth or eighth grade student with good reading skills (somebody taught them phonics) could comprehend them.

    Hand them out and say, “This is what we are doing”. Nothing else matters because PDJT is determined to MAGA, like we were 50-75 years ago.

    It would save a lot of valuable time.

    Liked by 2 people

  12. Earl & Pearl Tourist says:

    I wonder how many talking heads are getting side perks to advance the CoC program?
    Audits would be very interesting indeed.
    Just watched Geraldo go to bat on the Skakel murder conviction. Sure it was a 6-figure performance.

    Liked by 2 people

  13. Li'l D in the Big D says:

    Further in the article we find:

    “Mexico’s main auto sector lobby has described the latest U.S. demands, which include raising the North American content to 75 percent from the current 62.5 percent over a period of four years for light vehicles, as “not acceptable.””

    What part of NORTH AMERICAN Free Trade Agreement does the Mexican auto sector lobby not comprehend?

    Liked by 6 people

    • Paco Loco says:

      The Mexican auto sector = Detroit.

      Liked by 2 people

        • Lindenlee says:

          I keep thinking about those cheap Chinese parts in American family cars carrying children… How many pets had to die before we found out about melamine in pet food? How many blistered feet beforemwe discovered that Wal-Mart flip-flops were made with acid that burned skin? And how many devastating accidents will we have, with families injured, maimed or dead, before we stop this “cheap parts is good” crap?

          Come to think of it… Was that Southwest plane that came apart put through its annual maintenance check in China? Inquiring minds want to know.

          Liked by 2 people

        • Lindenlee says:

          I am not an expert in trade, but from what I read (and SD discussed), the real poison pill in TPP was in the dispute resolution process. It eviscerated our national ability to have ANY input, as a sovereign nation, as that resolution, which is half of the real workings of a trade agreement. Everything would be decided by big multinationals. Death to our interests, for sure.

          Therefore, of COURSE, Obama would LOVE that agreement! The more that these totalitarian Communists can move the centers of power and decision-making away from the peons like us, the better. A death sentence, for sure.

          Liked by 3 people

    • Response: “OK, 85%”

      Liked by 4 people

  14. TexasDude says:

    We all were sold a pile of BS with NAFTA and so-called free trade. The money is being made in other ways, in my opinion.

    I was talking the other night to someone from Ontario Canada. He worked on the line in a Chrysler plant. He was unionized. He stated he made good money even to live in Ontario. He was less than 30 years old.

    On average, Canadian auto workers make $34/hr US. Mexican auto workers make $3/hr.

    It is estimated that with benefits Cansdians really make $77/hr. Mexicans? Well, no unions.

    If $$ really was the issue all manufacturing jobs would have gone South.

    So, the money is being made elsewhere.

    And it is at the expense of US workers!

    Liked by 5 people

    • Lindenlee says:

      Those high-paying union jobs will not come back at that wage, however. The cars must be able to be bought by an average American buyer, and that means lower wages and benefits. The unions are going to have to accompdate that. And the workers are going to have to stop toking and guzzling on lunch hour, making them useless after 1 PM.

      Liked by 1 person

  15. Bill says:

    When are politicians going to learn that Donald Trump IS NOT a politician. He is a Businessman and executes strategy like the US Military would.

    The President has told the world EXACTLY what changes are planned during the 2016 candidacy and Trump has kept is word on most goals and is moving forward with the rest!

    Slow walking NAFTA changes are simply going to result in significant damage to Mexico and Canada’s economies. When Andres Manuel Lopez Obrador wins the Mexican elections, businesses will flee back to the United States (as Andres Manuel Lopez Obrador adviser threatened to nationalize any Mexican business that does not comply.) Justin Treadeau’s problems are well know already.

    Liked by 1 person

  16. jeans2nd says:

    And…Mexico makes the first move –

    Joint Statements to the Press With Mexican Foreign Secretary Luis Videgaray
    https://www.state.gov/secretary/remarks/2018/05/281916.htm

    Notice NAFTA is the first thing both Sec Pompeo and the Mexican guy mention.

    Mexico is wasting no time. Poor Princess Sparkly Rainbow Twinkles.
    Boy that Mexican guy sure talks alot. Sec Pompeo – paucity of words, makes his point, shuts up. Another VSG.

    Liked by 2 people

    • Coldeadhands says:

      Friends don’t invade their neighbors, exploit their social safety nets & criminalize their communities.
      Friends don’t pocket hundreds of millions of dollars worth of foreign aid then repay that generosity with a steady stream of addictive drugs. Friends? Really?

      Liked by 2 people

  17. MAGAKAG2020 says:

    Been a long time comin’……

    Liked by 1 person

  18. Jedi9 says:

    Gridlock on critical matters will remain so! There is no hope for either nation to offer anything that will be fair to US interests! IMO, and knowing Chinese culture like I know my own is the perfect play to announce the end of NAFTA and sticking it to the Chinese using their own methods of doing business! While Trump sings Xi’s praises, but sticking to China with a smile on his face! This is Chinese way, and about time they receive a dose of their own medicine! In other words this is how they have been business, give the appearance that they offer a fair deal while being deceptive to exploit further so Karma would smile on the most fortunate, this time is the US’s turn! I so want a victory against China, knowing economics is all that matters to the Chinese, stabbing them in the heart with this would definitely help stem the tide of their aggressive buying power that has seen countries like Canada and Australia seen ridiculous rises in housing prices due to them buying everything up!

    Also to any of those who argue: “0h but so much is invested in Canada and Mexico” blah, blah, blah! So then they won’t mind then when negotiating a deal on a bi-lateral basis then, right? Seems turn about is fair play for everyone! I hope Trump delivers on this because and negotiated arrangement on keeping NAFTA alive will simply be prolong our own demise long enough for another Administration to come and repeat the process all over again! Let’s get on with it, kill The elite Politicians golden goose cook it up like a turkey dinner and invite our friends to come over and enjoy the meal in great delight knowing our enemies like Tom Donahue will be gnashing their teeth in sleepless nights! This would indeed be special! Armageddon special at a store near you coming soon!

    Liked by 2 people

  19. westernwhere says:

    I went and reread the Caputo article.

    If they already have everything, texts, emails, and Live Journal posts aready…

    Then there is nothing worth having. If there was they would have acted or leaked something.

    DJT DGAF because he knows Muller and the rest of the plotters are just dead men walking.

    This is truly an amazing piece of history we are witnessing.

    Liked by 1 person

  20. MVW says:

    So, Trump’s negotiation team went to China and fleshed out the lay of the land. Like key points of China’s vision and strategy were investigated. Now NAFTA can be defined. Then China will send their team here. I think that is the read.
    Based on what China started recently, India, Asia, Europe contacts it looks like China is accelerating consumerizing the rest of the world to replace the US, or at least to reduce their 95% reliance.
    Next, the is the accelerating militarization of the China sea, buildout of their Navy, and stealth fighter, bomber, railgun, etc to challenge US superiority.

    So, China has to use their US treasuries to counter increased US imports. They can increase oil and coal imports from the US to increase imports. That hurts Venezuela, Russia, Iran, etc.

    What to do with factories idling? Europe. Europe (Germany) will get screwed.

    Behind it all is China’s goal of Tiawan reunification. Everything, literally Everything is targeting that.

    Was NKorea traded for Taiwan?

    Like

    • MVW says:

      China is about China, and China sees Taiwan as China. NKorea is a bunch of mountains and starving people with no economic value. It is a bargaining chip made useful by giving them nukes and making a lot of noise.

      Like

  21. beigun says:

    When was the last time the leaders of China and North Korea met twice in one year?

    You have to go back many decades, maybe this is the first time? What’s up?

    Clearly, there is a big move afoot. Did Trump and Xi make a “Grand Bargain” on peace in Korea, with the North and South along for the ride?

    A Peace Treaty among the Koreas, based on denuclearization and ENFORCED by the US and China, could lead to reunification and economic development instead of military conflict.

    Imagine the DPRK modernizing like China? Imagine the change in only 10 years if the DPRK follows China’s path to economic transformation? A big change for US military bases in the Far East is coming, yet Japan has refused to have bilateral free-trade agreement talks with the US for over one year as Mike Pence was stiffed by Aso, just like all American administrations have been for over 50 years (think beef, steel, autos, apples, rice…ad infinitum). Time to wake up and smell the green tea in Tokyo. But instead of adapting to change, look for Abe to be the outlier by insisting that a resolution on Japanese people abducted over 40 years ago (and very likely deceased) holds any peace agreement in check.

    China is will probably agree to select tariffs on “made in Japan, assembled in China” exports to the USA. The US negotiators will soon realize that just as in Mexico, the Japanese manufacturing base in China is huge.

    US trade deficits in Asia;

    60 consecutive years with Japan
    30 consecutive years with Korea
    20 consecutive years with China

    Japan is going to be a big loser in Trump’s trade reshuffle of NAFTA and China. The US is negotiating with Canada, Mexico, and China, but Japan will be the toughest nut to crack since they have benefited the most for the longest period of time with “global trade imbalances” that have permitted Japan’s trading companies (Japan Inc.) to monopolize the Japanese economy. Bussiness in Asia is tough, and then there is Japan. China, on the other hand, will negotiate and accept Trump’s main theme regarding trade: reciprocity.

    Trump is making historical big power moves on trade and defense. The post-WWII “liberal world order” of overseas US bases for “global security” trumping US economic interests is finally over. This paradigm shift will be hard for DC think tanks to absorb, just like the fall of the Soviet Union.

    Like

  22. Sunshine says:

    CANADA, Ontario: Auto sector in trouble.

    Justin Trudeau is kicking in $110 Million and the Ontario government also $110 Million to help Toyota avoid layoffs, many thousands of jobs were in jeopardy.

    In return, Toyota promised to invest $1.4 Billion within coming years.

    Liked by 1 person

    • MVW says:

      Fle’s theory of NAFTA’s uncertainty driving business investment away from Canada to the US did not take into account Canadian subsidies being used to offset the uncertainties.

      Until NAFTA is settled, China is settled, NKorea is settled, and we see what happens with poor little orphan Taiwan, we won’t have any idea what is really, really, truly going on.

      I would bet China would go completely NKorea + 100% reciprocal US trade for a Taiwan reunification plan, like the Hong Kong reunification. Unfortunately, that is irreversible (a Taiwan reunification) whereas reciprocal is reversible.

      Never trust a communist. Never trust the muslims. Both are deals with the Devil.

      Liked by 1 person

      • MVW says:

        Hard to know from my arm chair, though, if idiot Obama or the Clint-Shrubs have already given Taiwan away. It may be moot, but I think Trump can foot drag & worry Xi, so there might still be a bargain to be made.

        I don’t think China would give NKorea away without Taiwan.

        Like

      • Sunshine says:

        Giving $200 Million to the Toyota plant before finalizing the NAFTA details was not a wise move in more ways than one. Toyota threatened to move its plant to Mexico, is what happened.
        I’ve seen provincial governments heavily subsidizing companies to save jobs only to have these companies shut down a year or two later.

        Like

  23. A2 says:

    In addition to Saudi Arabia , other mideast states, Bahrain and UAE, support the President’s decision on the Iran deal.

    Like

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