Chrystia From Canada Recaps Canadian Trade Position At the End of Wednesday…

The *tell* is within: “we have agreed not to conduct our negotiations publicly.”

Remember, U.S.T.R. Lighthizer, Jared Kushner, Secretary Ross and the U.S. team have never made a public comment about internal negotiations, ever.  The only trade team that has discussed the dialogue, and specifically their individual terms within the dialogue, is Justin from Canada’s team, specifically Chrystia Freeland.  This has been a weakness of team sparkle socks all along because it highlights their political prism.

So when princess rainbow sparkles and Justin back away from talking about their unicorn demands they are signaling a shift from a political prism toward a more economic-based set of determinations.  Essentially, their political approach has failed; they are weakened.


what both sides need” interpreted: Justin and Chrystia are trying to gauge the best retreat from the position of political damage. I’m going to hold-off on expanding consequences to Canada joining until I see if they *actually* do join. However, the biggest part of the U.S./Mexico agreement would eliminate Canada’s ability to use the NAFTA loophole.

The auto-sector (rules of origin) requirements are factually more difficult for Canada to meet than Mexico. Auto companies in Canada will have to change their supply chain completely because Canadian auto assembly plants have a higher content of Asian parts.

Here’s the part of the new agreement that applies:

The United States and Mexico have concluded substantive discussions on new rules of origin and origin procedures, including product-specific rules for passenger vehicles, light trucks, and auto parts. This update to the rules of origin will provide greater incentives to source goods and materials in the United States and North America.

Key Achievement: Increasing Regional Value Content Rule

This deal encourages United States manufacturing and regional economic growth by requiring that 75 percent of auto content be made in the United States and Mexico.

The rules will:

Incentivize billions annually in additional United States vehicle and auto parts production.

Help to preserve and re-shore vehicle and parts production in the United States.

Transform supply chains to use more United States content, especially content that is key to future automobile production and high-paying jobs.

Close gaps in the current NAFTA agreement that incentivized low wages in automobile and parts production.

If Canada joins on to the above agreed terms, they will save most of their current auto-manufacturing.  However, many Canadian car manufacturers will likely have to open ancillary component manufacturing to meet the rules-of-origin threshold; that will likely lead to more component manufacturing and assembly in the U.S.

Think about it? If you are a company supplying an auto manufacturing plant currently in Canada: where are going to safely put your facility (physical plant expansion), given the renewed regulatory and compliance process; and the nature of a six year review for trade-deal continuance?  Answer: In the U.S.

In addition to the above, to join the U.S-Mexico agreement Canada will have to:

  • open their telecommunications and banking sector (eliminate non tariff barriers).
  • eliminate soft-wood (lumber) and aeronautics subsidies.
  • begin a process of lowering their assembly use of Chinese/Asian goods.
  • eliminate protectionist tariffs on dairy and farm products.

The bottom line is that Canadian workers will gain considerably if Justin and Chrystia sign on to the current deal.  Yes, it would require several industries within Canada to restart (Steel, Aluminum, Coal, etc.); however, that’s a benefit to the Canadian worker, not a loss.

The big challenge is within the protectionist barriers Canada would have to give up.  Liberal Canada likes to have governmental control over several segments of their economy; loosening regulations and opening up to a free market means less control for the planning authority…. you know, that pesky free enterprise thing.

This entry was posted in Canada, Donald Trump, Economy, media bias, Mexico, NAFTA, President Trump, Uncategorized, USA. Bookmark the permalink.

227 Responses to Chrystia From Canada Recaps Canadian Trade Position At the End of Wednesday…

  1. Joe says:

    The ultra smug, self satisfied expressions that Freeland & Trudeau are extremely limited to shltlibs.

    I believe that a dopamine high is part of the reason.

    I live in the SF Bay Area and that expression, always preceded by some sort of virtue signaling, is VERY common here, but I NEVER see it on conservatives.

    Liked by 2 people

  2. Trey Dawg says:

    The *tell* is within: “we have agreed not to conduct our negotiations publicly.”

    So maybe having Justin run to a podium and slam our President before he even leaves the airspace was not so good a decision????

    Liked by 3 people

  3. Old School says:

    Eat humble pit once but it’s better than staying hungry always…


  4. Wee2low says:

    “Team sparkle socks”. Priceless

    Liked by 2 people

  5. Louis Genevie says:

    sundance, many thanks for your explanations of the new US-Mexican pact and so many other complex situations in the world. All your efforts are greatly appreciated.

    Liked by 2 people

  6. rbrtsmth says:

    Any updates from our tightly-packed-sausage fashion plate?

    Liked by 2 people

  7. Wayne Robinson says:

    Children jocking for recognition as an adult / CANADA is being led by snowflakes . These idiots will destroy Canada sams as Oboma destruyed America . Thank God for President Trump . He has notyet ordered a date by date record of everything that was done by Zeros admin but has nearly destroyedeverything bozo touched already . I was verynearly right . Ihad told my wife that within 18 months everything zero did would be undone . Very nearly done already


  8. Who is John Gault? says:

    SD, thank you for all you do, I lose track of time but I believe I discovered the tree house about a year ago. My go-to site by a wide margin!

    Wondering about chinese steel and aluminum with the new Mexico deal and potentially with Canada. Content requirements rise from 62.5% to 75% and I understand there are some changes to how content % is calculated. Are those the only new barriers to the chinese steel? Just wondering how much, if any, room that still leaves for Chinese steel to make it’s way into the U.S.?


  9. Mom says:

    That’s it, Trudeau is cooked in 2019.

    Right now, “Indigenous Groups” (“First Nations”, aboriginals, whatever…I can say that, I have that DNA too) are holding a live press conference on both national news channels. An appeals court has overturned approval of the Trans Mountain pipeline expansion, saying the National Energy Board did NOT consult properly with “Indigenous Groups”. At the same time, Kinder Morgan shareholders have voted to sell said pipeline to the Trudeau government for billions. Trudeau said we were buying it back at the end of July.

    This is a twinning of a pipeline from Alberta to the BC coast, to sell Alberta product to Asia, to get world price, instead of the heavily discounted price selling to the US.


  10. MVW says:

    Sacrifice auto, face tariffs on everything else? LOSE.
    TPP… what can Canada do about that???? Will they have to leave that? It would seem so.

    What a mess. What a political mess. Quicksand everywhere. Justin is not smart enough to navigate, and neither, obviously, is Princess Wide&broad-purple-bottom, Chrystia.


    • MVW says:

      What about capital goods that go into manufacturing, could Canada go 100% offshore?

      Does 75% US-Mexico become 75% US-Mexico-Canada? That is not as promising as two 75% bilateral deals.

      Not to worry, though, Trump & team will get a MAGA deal.


  11. Let's Roll says:

    So middle school – Princess Sparkle and Justin Too Tight Britches. “..negotiate privately now…”

    Adults in the room Canadians should move on from this sad, no good thinking pair of buffoons.


  12. Mickjt says:

    The Canada Economys Socialist Model, is built on Quicksand…Twinkle Sparkle Purple Large rear end and Eyebrow Boy are Toast.

    Liked by 2 people

  13. daughnworks247 says:

    I will never understand how Khrystia has a job. There are 500 people who comment here who would be better. When it comes to the USA side, however, none of us (except Sundance) can match the Team of President Trump, Ross, Lighthizer, Navarro, Mnuchin, and even Koala Bear Kudlow. We are truly blessed.

    Liked by 3 people

  14. tonyE says:

    I don’t think it will be so hard for the Canadian auto production to move to a NA supply chain.

    Most (all?) of those companies produce a lot of car in the US already, so should be a matter of switching sourcing. Also, many of those Tier 1 and 2 contractors also have facilities in the US already, so it won’t be hard at all.

    If Sparkles and that woman would sit and think they’d realize that sourcing locally from Canada, Mexico and the US is actually a very good thing for our three economies and workers.

    Trump is really offering a true WIN-WIN-WIN deal.

    MAGA, MCGA and Make Mexico Lindo!


  15. czarowniczy says:

    Noon news was reporting – quickly and without fanfare – the Trudeau is saying a deal can be ready by Friday ‘if it’s good for Canada’. And there’s the hook being set, Trudeau knows he’s attacking a mountain with an ice cream scoop so if both Canada and the US can announce the deal’s good for both of them Trudeau may be ready to cave – al we gotta do is help him save face.


  16. Today Chrystia came out to talk to reporters in the afternoon break, not about negotiations of course because she doesn’t do that, just to let the Candian reporters know that her team had prepared some issues for she and Lighthizer to make some decisions……and “Because I used to be a journalist and I know how hard it is seeing you waiting out here and boiling, we have brought you some popsicles.” (Canadian press literally collectively aw’s). And Chrystia departs the stage.

    Is this a preemptive ploy for favorable press when Trudeau is forced to say no to the U.S./Mexico take-it-or-leave-it terms? She just said last night that “we” won’t be negotiating in public but here she is coming out to the press again today to give an “update” and buy off the Canadian press with popsicles. Guess we’ll find out tomorrow. I don’t know by what time Friday we have to start the 90-day notice, 9AM or 5PM but I can’t wait to find out.


  17. Michael says:

    “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win”
    ― Sun Tzu, The Art of War


  18. Peppurr says:

    Popsicles?? and the “awwwws” from Press? I guess this is what you get with Adults agst Kids negotiations. This is pathetic.


  19. evermench says:

    As a Conservative Canadian I pray for the downfall of supply management and look forward to the return to free markets. We’re so messed up and regulated in this country we don’t even allow inter-provincial trade of any significance. No wonder we can’t strike any trade deals with other countries. And people like to call us capitalist. LOL what a joke.

    Liked by 2 people

  20. ATheoK says:

    “Canadian workers will gain considerably if Justin and Chrystia sign on to the current deal. Yes, it would require several industries within Canada to restart (Steel, Aluminum, Coal, etc.); however, that’s a benefit to the Canadian worker, not a loss.”

    A) End princess justy’s dreams of a tyrannical socialist Canada?
    B) End princess justy’s reduced CO₂ emissions?
    C) Restart blue collar jobs that empower roughnecks, laborers and skilled trade workers? Basically, all of those dirty grotty people who actually perform physical work. Princesses justy and chrysti would be so grossed out.

    When is Canada’s next election? Maybe, Canadians, the real hard working Canadians throughout their provinces will elect a real leader.


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