Trade Gaslighting – Every Financial Pundit/Writer Misleads or Omits Key NAFTA Construct Issue…

There is a key issue in every NAFTA discussion that is omitted purposefully.  The issue always hidden is that NAFTA is not a North American “Trade Bloc”.

Most people mistakenly equate NAFTA with other multi-nation trade partnerships like the EU (European Union).  The NAFTA partnership is nothing like the EU trade bloc; it is not even close.

Within the EU example, each nation is committed to only trade with outside nations on terms of agreement within the trade bloc.  All trade parameters must meet and comply with the terms within the EU trade agreements.  The terms of trade inside the group are connected to the same terms outside the group. It is an agreement between themselves and their commerce toward all other external nations.

However, in NAFTA, the Canadian and Mexican trade ministers can negotiate freely with outside nations.  There are no restrictive parameters on their independent decisions.  NAFTA is more similar to an access agreement with *only* terms of internal trade and commerce between the U.S., Canada and Mexico subject to the agreement. NAFTA is only an agreement between the U.S., Canada and Mexico and does not extend to external nations.

If France wanted to negotiate trade with China on a specific product -or sector- they have to comply with, and go through, the EU trade group.  China would have to apply the same terms to France as all other nations within the trade bloc.   However, if Mexico wants to negotiate with China on a specific product, they do not need to check with the U.S., they can cut any deal they want.  This is the basic issue underlining the NAFTA ‘fatal flaw’.

If the U.S. wanted to apply a tariff to Chinese cars the Chinese can work around the issue.

Chinese cars could be trans-shipped into Mexico and/or Canada for delivery under NAFTA to the U.S. market.  The only way to block this issue is to apply auto tariffs to Mexico and Canada.   This is currently the reason why Canada and Mexico are facing steel and aluminum tariffs.

As a consequence of NAFTA not being a trade-bloc, it has been exploited exclusively for access to the U.S. market.  Over the past 30 years Canada and Mexico have structured their manufacturing economy based on unlimited access to the U.S. market.  Mexico and Canada assemble foreign products shipped to them as parts, then send the finished products into the U.S. market.  Hence, Canada and Mexico demand high content of cheap foreign parts in any internal NAFTA manufacturing agreement. There is zero benefit to the U.S. worker or manufacturing base under this structure.

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.  However, with hundreds-of-billions already invested by the multinational banks and corporations – they are fighting to retain the status quo.

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 cheap 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.

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.]

Now, watch the gaslighting:

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This entry was posted in Big Government, Big Stupid Government, China, Decepticons, Dem Hypocrisy, Economy, Election 2018, European Union, Japan, media bias, NAFTA, Notorious Liars, President Trump, propaganda, Trade Deal, Typical Prog Behavior, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

137 Responses to Trade Gaslighting – Every Financial Pundit/Writer Misleads or Omits Key NAFTA Construct Issue…

  1. todayistheday99 says:

    So basically, if I get this right, NAFTA is designed so that Canada and Mexico are the pimps and USA is the exploited whore.

    Liked by 20 people

    • Minnie says:

      No!

      Never equate our Sovereign America with the likes of a lady of the evening, although those lost women may be redeemable.

      NAFTA, care of Georgie the Elder.

      President Trump has our country’s best interest at heart – America First.

      It’s a shame bushie heralded in this ridiculous agreement in the first place.

      Thank God that Mr. President is an astute businessman, capable of understanding the complexities of NAFTA.

      I believe that is the only way to stop it dead in its tracks and reverse the damage.

      Liked by 15 people

      • All American Snowflake says:

        Minnie, Minnie, Minnie. Did you know that the Statue of Liberty was modeled by a French Lady of the Evening? As the female officer in Red Sparrow said, “Don’t be so judgmental.” 😉

        Liked by 1 person

      • thedoc00 says:

        Not just Georgie the Elder but Bill Clinton who negotiated it and two congresses who approved it as well as two more presidents as well as congresses who let stand while American jobs were shipped off shore.

        Liked by 4 people

        • Rachel Guess says:

          And they ALL made a ton of money by bilking the US economy on it. NAFTA/CAFTA were never about *free trade* that was beneficial to Americans. I remember following it when NAFTA was first proposed, and HW set up multiple businesses to take advantage of it. It was approved under bj clinton, and then georgie jr. doubled down on it by forcing CAFTA through, further eviscerating US jobs.

          President Trump has the back of US citizens and is bringing our jobs back. If other countries want to play fair with their trade deals rather than raping the US economy they will be able to work out a deal that is beneficial to both countries, otherwise they will get run over by the Trump Train.

          Liked by 5 people

        • Lemmy says:

          Watch the smirks on the opponents faces:

          Liked by 2 people

      • I’m not sure what you mean about ‘bushie’ heralding this agreement. The agreement was signed by Bill Clinton with a majority of Republicans and a significant number of Democrats passing the bill.

        Like

      • oncefired says:

        Only way is to Kill NAFTA

        Like

      • Bud Klatsch says:

        I think I recall when Bush 43 was elected, he first met with Fox from Mexico and they jointly announced plans for expanded open borders, with no limitations to increase trade. The outrageous attack on 9/11 prevented this from happening as America focused on border control.

        Like

    • wheatietoo says:

      Yikes.
      I guess that’s one way to put it.

      But it’s more like…we gave Mexico & Canada the keys to our house.
      Then they have been selling copies of those keys to other countries.

      NAFTA was such a poorly constructed agreement, that it did not address that eventuality.

      NAFTA is based on the unspoken premise that all parties would conduct themselves with Honor…and not do the things that Mexico & Canada have been doing to us.

      Liked by 23 people

      • Minnie says:

        “NAFTA was such a poorly constructed agreement, that it did not address that eventuality.”

        Poorly constructed, by design?

        Our beautiful country began its perilous decline decades ago and NAFTA merely propelled it.

        Along with FISA and God knows what else.

        Speaking of which – how much more are we unaware of that happened under former administration watches (regardless of party affiliation).

        Thank God for President Trump 🙏

        Liked by 18 people

      • Minnie says:

        We know Mr. President nipped TPP in the bud, as well.

        🙏🇺🇸🦁🇺🇸🙏

        Liked by 14 people

        • G. Combs says:

          The main reason I voted for President Trump was TPP. The Trans-Pacific Partnership was the final knife in the back to US sovereignty. It was the ‘trade’ agreement implementing the UN Agenda 21 plan for our new totalitarian society run by transnational corporations.

          The Trans-Pacific Partnership would allow an international Tribunal to TRUMP THE US SUPREME COURT. The Trans-Pacific Partnership says ANY treaty signed by the USA is covered and gives enforcement to treaties that up until now had no teeth to force compliance. The Trans-Pacific Partnership would provide the teeth. Remember international law sees no difference between an executive agreement, a congressional agreement or an actual Constitutional treaty. This means all those treaties that Obummer, Clinton, the Bushes and others signed without Congressional agreement., like the UN small arms treaty and Paris Accord, all of a sudden could be enforced by an international tribunal with no regard to the US Constitution, Supreme Court or international sovereignty.

          The Sovereignty-Busting Trans-Pacific Partnership

          Trans-Pacific Partnership Synopsis FROM THE US GOVERNMENT

          JULIAN ASSANGE exposed TPP:
          “Only five of the 29 chapters are about traditional trade. The others are about regulating the Internet and what Internet—Internet service providers have to collect information.
          They have to hand it over to companies under certain circumstances. It’s about regulating labor, what labor conditions can be applied, regulating, whether you can favor local industry, regulating the hospital healthcare system, privatization of hospitals.
          So, essentially, every aspect of the modern economy, even banking services, are in the TPP.” — http://www.democracynow.org/2015/5/27/julian_assange_on_the_trans_pacific

          It also included ‘Global Warming’, allowing outside countries biding on contract like the US postal service, free no passport travel for all workers…

          This treaty literally strips the USA of sovereignty and allows totalitarian rule by Corporations and bureaucrats with a bit of help from NGOs to add a veneer of ‘democracy.’

          DISPUTE SETTLEMENT
          ” ….TPP Parties aim to have these disputes resolved through impartial, unbiased panels. … Panels will consider requests from non-governmental entities located in the territory of any disputing Party to provide written views regarding the dispute to panels during dispute settlement proceedings.

          Panels will be composed of three international trade and subject matter experts independent of the disputing Parties, with procedures available to ensure that a panel can be composed even if a Party fails to appoint a panelist within a set period of time. These panelists will be subject to a code of conduct to ensure the integrity of the dispute settlement mechanism.

          To maximize compliance, the Dispute Settlement chapter allows for the use of trade retaliation (e.g., suspension of benefits), if a Party found not to have complied with its obligations fails to bring itself into compliance with its obligations. Before use of trade retaliation, a Party found in violation can negotiate or arbitrate a reasonable period of time in which to remedy the breach….”

          Like

          • Fire Dog says:

            Good citations. In brief, everyone involved with the outlaw criminal behaviors were/are communist, socialist “operatives” of the Rothschild dynasty, better known for their MAFIA central banking schemes, and creation of communism and socialism ideologies in 1848 designed to destroy cultural morals and ethnics of all sovereign nations, insomuch that the MAFIA could easily FLEECE wealth, create FAKE WARS to genocide the world’s populations of its highest intelligence and physically fit DNA, and then summarily overthrow all sovereign nations for Rothschild’s dominion over the human race and planet Earth.

            But then God, Jesus, heard America’s righteous people’s repentant prayers for divine intervention; hence, President Trump was chosen and appointed the mission to Make America Great Again, and the world.

            We the People patriots must continue in repentant prayers against the slithering vipers until they are all caught up by divine justice.

            MAGA

            Like

      • ForGodandCountry says:

        NAFTA was implemented to:

        1) economically weaken the USA by destroying it’s middle class
        2) export it’s wealth

        You can decide the correct order of the two above.

        This was the “New World Order” that papa Bush kept on promoting.

        Liked by 24 people

      • cjacks2008 says:

        I remember Ross Perot telling it like it is back in the day, the MSM and politicians laughed at him……He knew, BILLIONAIRES have a way of “knowing things”…..:)

        Liked by 2 people

    • Curry Worsham says:

      The whores are the Auto manufacturers that set up shop in the giant whorehouses of Rancho Mexico and the Royal Canadian Bordel. The US (consumer) is the John.
      The giant sucking sound is, well …

      Liked by 4 people

    • Texian says:

      You are close.. Actually America’s own leaders pimped out Lady Liberty for their own enrichment; Kicked her to the curb and let the Mexican and Canadians have their way with her..

      While we may be angry at Mexico and Canada for its exploitation – who from America signed on for NAFTA, and who in America is currently trying to retain it? There are your culprits..

      Analogies aside – NAFTA damaged the United States in its ability for the Self Determination of its People, its Independence and its Future.. America’s own leaders along with a complicit congress and fake news msm did this.. A Treasonous Act..

      Should indictments occur, as Grant did in the Civil War they can only hope Sir Trump will offer them a blanket amnesty provided they forfeit their positions, return to their homes and refrain from any further acts of hostility toward the United States of America..

      Liked by 3 people

      • singular says:

        No amnesty.

        Liked by 1 person

      • MB224 says:

        I’ve recently decided the term “Economic Treason” needs to enter the lexicon and the legislatures of American politics and lawmaking. NAFTA is nothing short of Economic Treason.

        Liked by 3 people

      • Jedi9 says:

        No! You and me did this because we were asleep in TV land while the sell out was occurring by our leadership! We have no one else to blame but ourselves for the apathy we indulged in! If citizens are not willing to fight for what we stand for then sometimes you get the government you deserve! Expecting others to fight for us has been America’s Achilles heel for the better part of the last 40 years! Question is what are you going to do about it now?

        Like

    • Cisco says:

      Not to worry.
      While the Trump bashing goes on and on, President Trump is TCB.
      Winning, winning and J-O-B-S
      🛠🔧🔨⚒🔧

      Liked by 3 people

    • Maquis says:

      China is the pimp.
      Mex and Can are the whores.
      We are the ones screaming for penicillin.

      PDJT says abstistence works.

      Like

  2. billrla says:

    The U.S., Canada and Mexico have vastly different econonomies and demographics. Nore, unlike in Europe, has there has ever been a sense of a unified continental, political or cultural entity encompassing all of North America. It makes no sense for the U.S., Canada and Mexico to be joined at the hip on trade.

    Liked by 9 people

    • thedoc00 says:

      Nobody said they should “joined at the hip”. The problem is when a nation structures their economy to act as a conduit to undo the economy and import laws of a trading partner. NAFTA is a one way deal and that “way” points back across the US border.

      Liked by 10 people

    • nightmare on k st says:

      Globalism is meant to take power away from the people, and insulate the ruling elite from voters best interest, for the Globalist profit and power

      Liked by 6 people

    • singular says:

      Right, Bill.

      Like

  3. wheatietoo says:

    Option #2…is the way to go. Exit NAFTA!

    Option #1…is unenforceable. How can we trust Mexico and Canada to adhere to anything they agree to.

    NAFTA is an abusive relationship that we must get out of!

    I wish we’d stop calling all these countries “trading partners”.
    They are more like Trading Predators…because they all seek to prey on us.

    Liked by 26 people

    • Minnie says:

      Precisely!!

      Liked by 4 people

    • AH_C says:

      Think Hollywood figured that out yet? Oh wait, too late, the majority of stars are Canucks.

      Liked by 3 people

    • Trusting Canada or Mexico would be like trusting the FBI or DOJ. Just plain stupid.

      Liked by 6 people

    • WVPatriot says:

      I voted for Ross Perot — TWICE.

      His slogan was, “The giant sucking sound caused by America’s jobs being pulled into Mexico.”

      Liked by 6 people

      • USTerminator says:

        I voted for Ross Perot in ’92 too. But I was only worry about the Mexico cheap labor cost issue. Now I understood the “The giant sucking sound ” of jobs to China via Mexico and Canada. What a f*ck up BUSHES??? worst than Clinton.

        Liked by 7 people

        • Susan Bolle says:

          He was attacked and labeled as a know nothing which indicates that he was dead on.

          Liked by 1 person

          • USTerminator says:

            If Ross Perot won Presidency in 92. USA would be a much better country now. I truly believe it. Bill Clinton sold America to China for campaign cashes, I will never forget that.

            Liked by 3 people

            • G. Combs says:

              I will never FORGIVE that!

              Dante has the Ninth Circle of Hades (the worst) reserved for TRAITORS. There are an awful lot of ‘Americans’ headed there lead by the Clinton’s and the Bushes.

              Like

            • SouthernTrumpette says:

              If only Perot had become President this would be a totally different country ! I voted for him back then and read a book he wrote about the Iran hostages. After hearing what Perot had to say about Jesse Jackson I’ve always had respect for Jackson, despite disagreeing with him on his politics. In the book, Perot stated that Jackson understood that the U.S. wouldn’t back him up if he was exposed as trying to free the hostages….the U.S. would say Jackson was acting alone and leave him hanging in the breeze.
              Jackson went to Iran anyway.

              http://articles.latimes.com/1988-05-04/news/mn-2167_1_h-ross-perot

              Like

        • Jedi9 says:

          Yeah! The Bushes should burn in hell for all I care! It’s my belief that it was George’s CIA henchmen that threatened Perot into dropping out of the race!

          Like

          • USTerminator says:

            It did sound ridiculous at that time when Perot claimed it. But knowing what we know now about the Deep State. Perot was right then.

            Like

    • USTerminator says:

      PDJT Should announce exit NAFTA today. I think it would need 6 months to go in effect. Let see if Mexico and Canada want to negotiate then. Use China tactic, put fact in the ground first then let the clock works on your advantage.

      Liked by 3 people

    • fleporeblog says:

      Option #2 is actually already playing itself out and Canada 🇨🇦, Mexico 🇲🇽, RINOs, CoC, Globalist etc. realize it. As much as that wonderful presentation was about making sure Apprenticeship opportunities are available to Americans of all ages through a business/schooling model, it sent a MASSIVE MOAB squarely on the heads of those I referenced above.

      Our President and his Killers are being told by different Multinationals that if you have the workforce for us, conditions are optimal to coming back to the USA 🇺🇸. Energy production that will take off in 2019 and 2020 when we have 4 to 5 LNG terminals that can process and ship. We currently have one terminal. Deregulation has been incredible and the process is still 40% from being completed.

      Corporate Tax Rate of 21% with the real possibility of it being lowered to 20% with Tax Reform 2.0 and possibly as low as 15% when our Economy is steaming on all cylinders. Also a minimal one time repatriation tax for money brought back into our country and 100% expensing on new equipment bought.

      My late great father would always tell me that money talks and BS walks. The USA 🇺🇸 is where the action is at and the entire world is aware of it.

      There has already been a mass exodus from Canada 🇨🇦! We will see that in Mexico 🇲🇽 to even a larger extent once the Socialist assumes power on December 1.

      UNCERTAINTY in business is the worst thing in the world. That is exactly what is happening right now. Today our Wilburine started hearings on tariffs for cars, trucks and parts. Our President doesn’t bluff. They have 60 days left before he drops the bomb of all bombs on all their heads.

      20% tariffs on all cars, trucks and parts from every country in the world. Including Mexico 🇲🇽 and Canada 🇨🇦. $192 billion dollars is made outside the USA 🇺🇸 for having their cars, trucks and parts imported into our country. $96 billion dollars from Canada 🇨🇦 and Mexico 🇲🇽.

      That BITCH on the show that said our President think’s he can raise his hand and get everything he wants is going to be SHOCKED 😯 in less than 90 days!

      Liked by 8 people

    • Sy_N_Tist says:

      I think you blame Mexico and Canada too strongly. NAFTA was urged upon them by one of the vilest presidents we ever had. Bushset this up to benefit himself and family. … just like his pappy did with WWII.

      America is being intentionally looted by the ruling class. The only thing stopping it is

      🇺🇸🇺🇸President Trump 🇺🇸🇺🇸

      Liked by 1 person

      • wheatietoo says:

        While it is true that Pappy Bush set this up to benefit his globalist pals…Mexico & Canada were all too eager to be willing participants in our demise.

        Mexico and Canada have been unabashedly preying upon us and then feigning indignance when called out on it.
        I don’t see them as ‘innocent’ in this.

        Like

      • GB Bari says:

        No way are Mexico or Canada “victims” of being forced into NAFTA! The blatant fact that they are willing accomplices in exploiting the loophole is hard evidence of their opportunism.

        Like

    • MB224 says:

      Trading LEECHES is the word I use. I can’t wait to see Trump smack down this commie demagogue. I love how cool Trump is playing it as well. He knows what’s coming.

      Liked by 2 people

  4. booger71 says:

    Mexico can keep its diseased produce

    Liked by 13 people

  5. Angry Dumbo says:

    Bilateral trade is always more transparent and mutually beneficial than multilateral trade agreements.

    Liked by 3 people

  6. Elric VIII says:

    Remember the “giant sucking sound” of jobs headed south of the border? Nobody listened, or rather, the majority either didn’t care or had no effective means of stopping it. And now the chickens have come home to roost and the chicken coop is infested with weasels. Burn it down!

    Liked by 6 people

    • Sy_N_Tist says:

      Socialists are leeches. When the have reduced America to a bloodless corps, they will move on to thhe next victim. Socialism is a pestilence , a disease.

      Liked by 1 person

  7. BobBoxBody says:

    From what Sundance said earlier (or yesterday) it seems that we may have already exited NAFTA and are just waiting for the right time to give everyone the good news.

    Liked by 13 people

    • railer says:

      A slow motion exit is fine and it will likely bring capital investment back here over the long term, but I’d still rather have bilateral negotiated agreements now, approved by Congress. Absent those and new tariffs, the Chinese and EU can still take advantage of the existing NAFTA agreement. Trump has to slap down tariffs to execute his full strategy, on China, Mexico, the EU, Canada… all of ’em, and the Congress may attempt to block him absent fresh agreements. They’re scared to confront him right now, so he’s right to put it front and center, just before the election, and let the RINOs try and stop him if they dare. Flake and Corker can try since they’re gone anyway, but everybody else has to be careful. He should push this very hard right now.

      Liked by 4 people

      • Carrie2 says:

        BobBoxBody, ojala!

        Like

      • Carrie2 says:

        railer, they may continue doing business with the two countries but if the American businesses do not return to America, then the trade % will cause them to crash in any case. If smart businessmen/women, then they will head home.

        Like

      • Theresa Keys says:

        Gotta give it a little time for all the infrastructure, job training etc to happen. Everyone knows NAFTA is dead. The race is on for factories, machinery and workers and transport. It’s going to be like a gold rush with every business trying to relocate back to us and get up and running

        Like

    • GB Bari says:

      Hence the “gaslighting” comment just before the cocky brunette came on Varneys show and proceeded to illustrate severe cognitive dissonance..

      Like

  8. ForGodandCountry says:

    These people (clip) are either idiots or paid to be this stupid.

    Of course, I say that with the benefit of Sundance’s education and enlightenment.

    Should start a Trump College of Economics.

    Liked by 2 people

  9. 3%er says:

    NAFTA is the one issue our VSG has been talking about for decades ,it has decimated our manufacturing base .Sundance is spot on and in lockstep with our VSG.After NAFTA ,China and the WTO is next. I am so happy and impressed with our president. Cannot get enough winitamins

    Liked by 7 people

  10. This is the reason i hate to watch these pundits! She says NAFTA is working fine! For whom is it working fine? They all know more than POTUS! Business pundits! Just dummies!

    Liked by 3 people

  11. calbear84 says:

    Really enjoyed your analysis Sundance! So clear and simple it makes me wonder why I didn’t understand it already!
    Condensed version of video: WSJ Mary Anastasio O’Grady babbling incoherently for 4 minutes. Not talking about NAFTA.

    Liked by 9 people

    • Minnie says:

      Sums it up nicely 👍

      Liked by 3 people

    • Carrie2 says:

      calbear84, she lived there for a time. Spanish is easy to learn as so many words similar to English. However, I lived there for years for Mexican countries so I treat her blather for what is it just blather. Did she work in Mexican companies, did she get a permit to be there and another to work there, as I did? Mexico and Canada have cheated. Mexico is smarter than Canada and probably will work out a deal with Trump.

      Liked by 1 person

      • Paco Loco says:

        Mexico is already working with the US to reset the deal via a bi lateral agreement. They know that the NAFTA status quo is over. It’s likely Mexico will expand manufacturing to produce most of the auto parts that go into final assembly if there’s a NAFTA 2.0 agreement.

        Canada seems to have decided to resist renegotiation in favor of a tariff war they can never win. Toyota will simply go and build the RAV4s in the USA and that will be the end of the Canadian automobile assembly business.

        Liked by 3 people

  12. Phflipper says:

    Well, she did get ‘agua fria’ correct, after all she lived in Mexico all those years apparently.

    Liked by 1 person

  13. Carrie2 says:

    Goes to show so many don’t know what anything is, don’t want to learn or research or use a dictionary. So sad so many attended public schools and some 95% learned nothing!

    Like

  14. MaineCoon says:

    I laughed when Mary O’Grady (?) said that the Mexico P-elect hadn’t said anything about a bi-lat agreement with USA because she just hadn’t figured out that POTUS’ announcement was just giving Mexica a heads up on what’s coming down the pike.

    Liked by 3 people

  15. California Joe says:

    Whenever the MSM has someone discuss tariffs and President Trump’s trade position they never mention the high tariffs the European Union and China charge American products! It’s always left out of the discussion to intentionally mislead the viewer and make it seem President Trump is unilaterally instituting tariffs. As SD has pointed out many times these people have to pretend that they don’t know something.

    Liked by 1 person

  16. Curry Worsham says:

    “The President can’t just wave his arms…”
    Oh really? Ask Obama.

    Liked by 3 people

  17. HWJ - Woojung says:

    I have a couple of questions for Sundance (or anyone, for that matter), as I do not know the answers :

    1. In order for this assembly of cheap foreign products in Canada and Mexico (and subsequent shipment of finished products into the U.S.) to happen, Canada and Mexico would have to impose much lower tariffs on the cheap Chinese parts compared to the tariffs that the U.S. charges on these cheap Chinese parts. Otherwise, the U.S. companies can simply import the cheap Chinese parts directly into the U.S, and assemble them there. Now, I was under the impression that the U.S. (at least prior to Trump) had low tariffs on most Chinese parts/products. Am I mistaken about this? Does the U.S. impose a higher tariff rate on these Chinese parts than Mexico and Canada do?

    2. Other than automobiles, what other finished products are manufactured (or even assembled from foreign components) in Canada and subsequently shipped to the United States? Being from Canada, but spending half my time in the U.S., I am unaware of any finished product that is manufactured/assembled in Canada and subsequently shipped to the U.S. on any medium-to-large scale (other than automobiles, of course).

    Like

    • permiejack says:

      Top 9 Canadian exports
      Mineral fuels including oil: US$84.6 billion (20.1% of total exports)
      Vehicles: $62.3 billion (14.8%)
      Machinery including computers: $32.4 billion (7.7%)
      Gems, precious metals: $18.6 billion (4.4%)
      Wood: $14.1 billion (3.3%)
      Electrical machinery, equipment: $13 billion (3.1%)
      Plastics, plastic articles: $12.6 billion (3%)
      Aluminum: $9.8 billion (2.3%)
      Aircraft, spacecraft: $9.7 billion (2.3%)

      http://www.worldstopexports.com/canadas-top-exports/

      There is no breakdown of which country these exports are headed to. But you can see there is a sizable amount of manufacturing going on there.

      Liked by 1 person

      • permiejack says:

        Should add that 76% of all Canadian exports are to America.

        Liked by 2 people

      • GB Bari says:

        Or, a sizeable amount of assembly……

        Like

      • HWJ - Woojung says:

        From that same article .. it appears Canada has severe trade deficits in those Machinery and Computer categories mentioned in your list .. so still struggling to find evidence that Canada is dumping massive amounts of finished/manufactured products into the U.S. market:

        http://www.worldstopexports.com/canadas-top-exports/

        “Below are exports from Canada that are negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Canada’s goods trail Canadian importer spending on foreign products.

        Machinery including computers: -US$30.9 billion (Down by -2.9% since 2016)
        Electrical machinery, equipment: -$29.8 billion (Up by 10.4%)
        Vehicles: -$12 billion (Up by 273.9%)
        Optical, technical, medical apparatus: -$5.6 billion (Down by -2.5%)
        Pharmaceuticals: -$5.4 billion (Up by 79.3%)
        Articles of iron or steel: -$4.8 billion (Up by 20.0%)
        Knit or crochet clothing, accessories: -$4.4 billion (Up by 7.5%)
        Fruits, nuts: -$4.1 billion (Up by 3.9%)
        Beverages, spirits, vinegar: -$4.0 billion (Up by 5.7%)
        Clothing, accessories (not knit or crochet): -$3.6 billion (Up by 1.4%)

        Canada has highly negative net exports and therefore deep international trade deficits for computer data processing machines spanning myriad types and sizes. The machinery including computer category also includes bulldozers and similar heavy construction equipment.

        These cashflow deficiencies clearly indicate Canada’s competitive disadvantages in the international machinery market including computer-related goods”

        Like

        • permiejack says:

          What is not in that article is which countries their trade deficits are in. My guess is that like the USA, their deficits are with China. Motherboards, car parts, etc.

          Like

    • Jedi9 says:

      To answer your question 1:

      Chinese auto parts are brought into the USA without paying any tariffs! Their deals are exclusively with Canada and Mexico as well as the EU who also bypass tariffs by importing through the conduits they invested in such as manufacturing bases within these countries! They not only get cheap labor in Mexico, but they get tax breaks in Canada as well as charging the US more to export them into the US in exchange for creating jobs and political kickbacks! In particular China has Canada on a string and is Trudeau’s puppet master! They own so much of Canada’s resources such as commercial real estate and other entities like businesses that they really have no where to go when trying to make arguments on the contrary as it pertains to the ongoing negotiations with the US over NAFTA . Canada is virtually arguing for China’s interests and not Canada’s which is basically the tragedy for Canadians as they are being screwed over by feckless leaders who rather sell out to China than remain a sovereign country! Same thing has been happening to Australia with Chinese economic aggression in acquisitions of their national assets! China also has been dumping aluminium products into the US markets for quite some time and has recently been called out on it by Ross, as China has used Mexico and the NAFTA loophole as a way to import that as well by charging inflated prices well above market value. I remember a while back SD provided a picture of a stock yard where all this aluminium in question was piled up by the tons! It was all made by China’s owned companies that have set up shop in Mexico! I believe this particular issue involving aluminium dumping was filed as a complaint within the WTO if my memory is serving me right! Anyway I am all for getting rid of NAFTA and taxing China up the wazoo for everything! Both work for me anyway you slice it!

      Speaking of China on another note in terms of their economic aggression, remember they wanted to set up their telecom market here (China Mobile) and thank god they were denied! Imagine the Chinese having unfettered access to our trade secrets via their own mobile net work operating in the USA and spying on our companies? No freaking way! That would be the end of us it that were allowed to happen!

      Liked by 1 person

  18. Bert Darrell says:

    Leave it to a journOlist, whatever language(s) s/he may speak to totally misunderstand a treaty issue and misrepresent it as if she did understand it. Varney should have asked her what is Mexico going to do when cars assembled in Mexico are slapped with a 25% (or more) US import tax, and what are the assemblying companies going to do then. Bunch of maroons!

    Liked by 1 person

  19. Bert Darrell says:

    One more thing. She has no idea about what the new president of Mexico is actually going to do about currently illegal drugs but she felt free to describe it anyway.

    Liked by 1 person

  20. Jeff P. says:

    Option #2 is the Only option in my opinion. We owe Canadistan and Little Venezuela (Mexico) Nothing.

    Liked by 1 person

  21. “..Mexico has no interest in a bilateral trade agreement… Mexico thinks NAFTA is fine the way it is..” Yeah lady, we already know what Mexico thinks. What’s important here is what the US thinks. We have to get rid of NAFTA.

    Like

    • Comrade Mope says:

      At 1:58 speaking of the sunset clause: “Mexico is not in favor of that, Canada is not in favor of that, and the U.S. business community and republicans are not in favor of that. You would need all those different parties to agree to that.”

      Uh, no. The U.S. business community doesn’t have a vote.
      Any in the business community that opposes the removal of NAFTA should be investigated to make certain they are in full compliance with the Foreign Agents Registration Act.

      Like

      • G. Combs says:

        “…Any in the business community that opposes the removal of NAFTA should be investigated to make certain they are in full compliance with the Foreign Agents Registration Act.”

        OH I really like that. Start with Donahue and the Chamber of Commerce!!!

        Like

  22. Pyrthroes says:

    Quite likely, this Trump Administration will revamp NAFTA’s Grand Theft backdoor “loopholes” (carefully designed to welcome tariff-free convoys of double-trailers, North and South). But unless and until new provisions are institutionalized, ye auld Central Banking consortia will continue lurking in the wings, awaiting Act III to re-emerge in force.

    Personnel is destiny. As Stalin put it to Truman in Potsdam, 1946, “We don’t change the orders, we just change the guards.”

    Like

  23. Zippy says:

    “If this agreement [NAFTA] is signed as it is currently drafted, the next thing you will hear will be a giant sucking sound as the remainder of our manufacturing jobs – what’s left after the two million that went to Asia in the 1980s – get pulled across our southern border.” – Presidential candidate Ross Perot, 1993

    One of the claimed benefits of NAFTA – pulling Mexico out of poverty. Nope.

    Mexico’s wage crisis is so bad ‘that it violates what’s stipulated in the Constitution’
    Aug. 2, 2015

    http://www.businessinsider.com/mexicans-get-paid-less-for-their-work-than-any-other-developed-country-2015-7

    t the end of 2014, Mexico’s 16 billionaires were worth an average of nearly $9 billion.

    That same year, the bottom 20% of Mexicans — nearly 25 million people — were worth an average of $80.

    Economic hardship is widespread in Mexico, which is home to more than 120 million people, more than half of whom lived in poverty at the end 2012. Now inequality and wage disparity have emerged as further challenges to the development of Latin America’s second-largest economy.

    According to a study of the 34 member countries of the Organization of Economic Cooperation and Development, the gap between wages and hours worked is larger in Mexico than in any other member country.

    The gap in wealth and in wages is visible across Mexico’s economic strata. According to OECD figures, the country’s richest 10% earn more than 30 times what the poorest 10% make — making it the most unequal of the organization’s 34 countries. Mexico’s bottom 20% doesn’t make enough to eat three meals a day.

    OECD data show that Mexican workers labored 2,327 hours on average during 2014, far ahead of the 1,796 hours worked by Americans.

    Those workers, however, were only paid $12,850 (based on purchasing power parity) during the year, which ranks at the bottom of the OECD’s list. Estonia was second to last at $21,020. Americans earned $57,139 during the same period.

    Like

    • Zippy says:

      Nope, just hard working cheap labor, like the hard working cheap labor which doesn’t dare gripe about work conditions crossing our southern border to the glee of the Chamber of Commerce and Dems (new Dem votes).

      Like

  24. mostlyogauge says:

    Mary has no clue. She doesn’t know what President Trump is thinking. PDJT doesn’t tell anyone what he is going to do. PDJT uses feint and misdirection with much success. How anyone can take some of these people seriously is beyond me.

    Like

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