President Trump Notifies House and Senate of U.S-Mexico Trade Modification…

On Friday we shared the press release from U.S. Trade Representative Robert Lightizer about his trade notification to congress. [HERE]  Here is the text of the letter from President Trump via The White House:

Dear Mr. Speaker:   (Dear Mr. President:)

On May 18, 2017, my Administration notified the Congress that I intended to initiate trade negotiations with Canada and Mexico.  Negotiations began on August 16, 2017.  Since that time, my Administration has worked hard with Mexico and Canada to reach a modern trade agreement that sets high standards for free, fair, and reciprocal trade.

I am pleased to report that in only 1 year, we have made dramatic progress toward such an agreement:

  • It will help American farmers by ensuring fairer market conditions and improved market access for United States agricultural products.
  • It will create a more level playing field for American workers — due in part to improved rules of origin for automobiles, trucks, and other products.
  • It will include the toughest and most comprehensive labor and environmental rules of any United States trade deal.  For the first time in North America, those rules will be enforceable — and they will be strictly enforced.
  • It will encourage innovation by providing new and improved protections for United States intellectual property.
  • It will contain the strongest disciplines on digital trade of any international agreement, and will provide a firm foundation for the expansion of trade in innovative products and services.
  • It will create a more level playing field for American service industries, including the critical sector of financial services.
  • It will provide the most robust protections against currency manipulation of any United States trade deal.
  • It will give United States policymakers new weapons against the harmful, market-distorting effect of state‑owned enterprises on private companies.

In short, this agreement is a great deal for the American people.  It sets a new tone for all trade agreements, proof of the high standard that my Administration will require of any country entering a new trade agreement with the United States.

I intend to enter into the agreement by the end of November 2018.  Accordingly, pursuant to section 106(a)(1)(A) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (**Public Law 114-26, Title I), I hereby notify the House of Representatives and the Senate that I intend to enter into a trade agreement with Mexico — and with Canada if it is willing, in a timely manner, to meet the high standards for free, fair, and reciprocal trade contained therein.

My Administration looks forward to continued collaboration with the Congress to develop legislation to approve and implement this agreement.



**I embedded the pdf link to the applicable law cited in the letter.

The laws are very complex around trade.  The law cited in the letter is below in pdf form for review.  The notification section (106) cited in the letter from the President is also broken out below.

Here’s the law:  SEC. 106. IMPLEMENTATION OF TRADE AGREEMENTS. (a) IN GENERAL.— (1) NOTIFICATION AND SUBMISSION.—Any agreement entered into under section 103(b) shall enter into force with respect to the United States if (and only if)— (A) the President, at least 90 calendar days before the day on which the President enters into the trade agreement, notifies the House of Representatives and the Senate of the President’s intention to enter into the agreement, and promptly thereafter publishes notice of such intention in the Federal Register.


This entry was posted in Canada, Donald Trump, media bias, Mexico, Trade Deal, Uncategorized. Bookmark the permalink.

150 Responses to President Trump Notifies House and Senate of U.S-Mexico Trade Modification…

  1. Stab, the unstoppable hero says:

    Best taco salad bowls in the country are made right here at Trump Towers.

    Liked by 23 people

  2. snarkybeach says:

    stick a fork in it, NAFTA is done!

    Liked by 12 people

  3. The Boss says:

    There should be no legislative pushback. After all, Mexico is represented by the democrats and the US by the GOP. Bipartisanship is truly alive and well! 🙂

    Liked by 15 people

    • gerkenstein says:

      Wrong…. Dems only represent Mexican criminals (as well as most other criminals).

      Liked by 3 people

    • MelH says:

      Patrick leahy (D) last night raged on and on about how Canada and the US depend on their wonderful trading partnership and how the whole country will be destroyed over this President’s foolish trade policies and his ignorance about EVERYTHING to do with the economy. He cited Virginia, in particular, as having an economy dependent on trade with Canada. He is also against the confirmation of the current SCOTUS nominee, kavanaugh.


    • As President Trump tweeted:
      Screw with this Mexico Deal, Congress, and I’ll cancel NAFTA.

      NAFTA will hang out there until the Mexico Deal takes effect.

      Liked by 4 people

    • Justah says:

      Wrong! When has there not been pushback? We just have to be ready for it.
      This is exactly what the ObamaTeam and the Democrats meeting with Trudeau & Freeland have been telling them… they have been promising Canada that they have a Law that will stop President Trump.

      I trust in Lighthizer, Kushner & the President- but there WILL be pushback.


      • Deplorable_Infidel says:

        “they have been promising Canada that they have a Law that will stop President Trump.”

        These are people that have reputations for lying.

        Revelation 21:8 But the fearful, and unbelieving, and the abominable, and murderers, and whoremongers, and sorcerers, and idolaters, and all liars, shall have their part in the lake which burneth with fire and brimstone: which is the second death.

        Liked by 2 people

  4. Summer says:

    “To develop legislation to approve and implement this agreement.”

    He needs approval? I am ignorant of these matters. Can Congress change anything within the agreement or disapprove and bury the whole thing? I know Freeland was lobbying the UniParty. What can we expect?

    Liked by 2 people

    • fleporeblog says:

      NO! Just notification.

      Liked by 9 people

      • Justah says:

        Lots of different notifications, including the reauthorization that Lighthizer did in July.
        The key is that they have to prove that the Presidents action is outside of previous law, and I don’t think the can do that based on both the NAFTA original Agreement, the Authorization Law and following the 2015 Law that Sundance posted.

        There is a Congressional Research paper on it that I posted last night in the last NAFTA thread. It gives there view on why President Trump cannot do this – but the paper is produced to answer a specific question and doesn’t take into account earlier Laws or the Original Agreements in Chapter 21.

        Step one was to follow all the specific notifications- which the are doing.

        Liked by 2 people

    • olderwiser21 says:

      Summer – from what I have read here on CTH, the President does not need the approval of Congress to enter into this trade agreement.

      Liked by 7 people

    • olderwiser21 says:

      P.S. – Summer – see Flep’s excellent post below..

      Liked by 2 people

    • Ditch Mitch says:

      thunder thighs was hoping Congress would block it. They cant. I posted the following when she came out for her Friday afternoon presser:

      Ditch Mitch says:
      August 31, 2018 at 2:00 pm

      Under U.S. Trade Promotion Authority rules, the president can only present a revised NAFTA deal for an “up-down” vote in Congress. He cannot present a totally new deal. A withdrawal-and-replace would be subject to a full vote.

      This is why it is so important [to Canada] for Canada to be a part of the US Mexico agreement. If Canada joins then the agreement will be considered a revised NAFTA deal and fast tracked through Congress. US Mexico deal will go through the full process (i.e., debate amendments etc.). Irregardless of Canada’s decision Congress will be notified NAFTA will be terminated and 90 days later There will be no more NAFTA.

      So it is Canada’s best interest to get in on a “revised NAFTA” agreement.

      Liked by 3 people

      • VoteAllIncumbantsOut says:

        What I fascinating about law… The uniparty sponsors it, votes and passes it.
        They just don’t abide by it!

        When you study law and become proficient with it, you use it against them!

        There is nothing they can do, all PDJT has to do is follow the law like he did and submit while keeping them in the loop on negotiations.

        Can congress quickly put together a bill stopping this? They sure can but we all know PDJT will veto it. It’s a win/win situation.

        Get ready for fireworks if and when Canada chooses another path, the uniparty will go nuts! “Impeach, Impeach……. He’s becoming a dictator”. Yada,yada,yada.

        Liked by 2 people

        • Ditch Mitch says:

          Vote, you make a great point. Bozo and his clowns thought they were getting over on the American people by passing EO’s essentially making law. Then Congress passes laws giving the Executive much more power (i,e, TPA, ACA etc.). Trump comes in and says I can change NoCare, no problem, leave NAFTA, no problem, use TPA to PDJT’s advantage, no problem. Cancel DACA no problem (except for the court, but that will be taken care of). Get out of the Iranian agreement, no problem.

          Guess they thought Cankles was going to win.

          Liked by 2 people

    • Summer says:

      Thank you all guys for your explanation. Let me see if I understand the situation correctly.

      So, if Canada agrees, aka surrenders unconditionally, then in Congress this becomes something along the lines of “just a modernized NAFTA, fellas, please sign below this line, thank you very much, may I have my pen back, have a pleasant day, pleasure doing business with you.”

      If Canada fails to join (which they most probably will), it goes to full hearings, demagoguery, amendments and all, with the UniParty trying their damnedest to sabotage the bilateral agreement with Mexico. Freelunch was probably urging them to do just that.

      But while they all screech and obstruct the clock is ticking and NAFTA dies in 90 days regardless.

      Then they still need to finalize the bilateral deal. Full vote.

      Is that a fair estimate ———- the new bilateral deal with Mexico might look totally different by that time, after going through all the lobbyists, I mean, Congress?

      Liked by 1 person

  5. M33 says:

    Promises Made.
    Promises Kept.

    God Bless President Trump!

    Liked by 15 people

  6. Minnie says:

    Thank you, Mr. President.

    We support you, we respect you, we love you!!

    M🇺🇸A🇺🇸G🇺🇸A 🦁

    Liked by 10 people

  7. Bendix says:

    This is an uplifting antidote to the thread about that Red Hen horrid family.
    The mother has more testosterone than the father and son together.

    Liked by 2 people

  8. fleporeblog says:

    What is so wonderful about this is that Congress can’t do a damn thing! They can cry a river for Canada 🇨🇦 but they can’t do anything to protect Canada 🇨🇦. The fact that Mexico 🇲🇽 agreed is huge. Everyone saw them being the country that would never get onboard. If AMLO had not been elected, the Mexicans would not have agreed to the deal because they would have partnered with Canada 🇨🇦.

    AMLO was elected by the everyday Mexican. They want a better life for themselves and their families. With this deal, they will be given that chance. Wages will increase not only in the Auto sector but also in the Energy sector and Steel and Aluminum since they no longer want to be a go between China 🇨🇳 and our country.

    SD has highlighted the reasons Canada 🇨🇦 will never join. Our President will notify Congress shortly that he is terminating NAFTA. At the point the six month window closes, he will put 25% tariffs on all cars, trucks and parts imported from Canada 🇨🇦. Within a month or so, all the factories in Canada 🇨🇦 will announce they are closing shop to either expand or build new factories in the USA 🇺🇸 as well as Mexico 🇲🇽.

    Our trade deal with Canada 🇨🇦 will be what was on the books in the 1970s.

    Liked by 33 people

    • olderwiser21 says:

      Thank you Flep – you are always so knowledgeable!

      Liked by 8 people

    • Kenji says:

      How out of my depth am I? I fully expected Trump to ally strongly with Canada … against Mexico, and push THEM into a corner. My oh my was I WRONG! Trump (and his team) really KNOW what they’re doing. Now, I am going to stop my “brilliant” strategerific musings … and just watch Trump knock it out of the park.

      Liked by 13 people

      • fleporeblog says:

        I was in the same boat as you. The election is what literally changed everything.

        Liked by 8 people

        • Kenji says:

          I consider you a fair sight more on top of these topics than I … but you are correct in that the transition from Trump-the-talkative-Candidate … to Trump-the-active-President is ..simply breathtaking. It’s like watching the Trump stock market BOOM BOOM BOOM since Nov.12, 2016 till Sept.1, 2018 … from DOW 18k to DOW 26k … making me feel like a Stock Market genius for doing nothing other than simply BE IN the market. All I did was VOTE for Trump, and encourage others to do so … and ALL this WINNING is raining down on me … as if I were some genius for avoiding HER at all cost.

          Liked by 4 people

          • Ditch Mitch says:

            And he takes full advantage of the stock market genius story at his rallies. Paraphrasing, “This guy tells me that when his wife saw that their 401k skyrocketed she told him he was a genius!” As you say Kenji simply be in the market.

            Gotta love what PDJT is doing.

            Liked by 2 people

      • Justah says:

        President Trump is more than a great businessman, more that a builder, more than a deal-maker …… he is a great salesman.

        The secret to a great salesman (or woman) is to listen, figure out exactly what the client wants and don’t bother them with Junk.

        Offer them what the really want.
        AMLO really wanted to improve Mexico’s Ecomomy, Providence Jobs, build industry and have livable wages. THAT IS EXACTLY what the Trade Agreement offers. Mexico doesn’t care about What ?Canada’s wants, as long as they get what AMLO promised.

        Liked by 2 people

        • Justah says:

          I need to get off this tablet and back to the laptop .. my posts are a total mess.


        • cdquarles says:

          Exactly. You have to find out what the customer really wants, first of all and then how badly they want it. Then give it to them at a price they can afford and with a smile. You do not ever, and I mean EVER, lie to a customer nor cheat them.

          It is hard enough to be successful in sales by being honest; but if you’re not, you’re toast. You may get a second chance somewhere else, but a bad reputation will follow you until your contrition has been shown to be true and complete.


    • Curry Worsham says:

      And what a great example AMLO is for Kim (and Xi): Good things happen when you work with Trump!

      Liked by 7 people

    • mj_inOC says:

      And our President Trump followed protocol [unlike previous one] to give Congress the appropriate, respectful notification as required.

      Liked by 4 people

    • Bendix says:

      AMLO was smart. All he had to do was go along with our president’s ideas, and his people are going to love him for it.

      Liked by 9 people

    • L4grasshopper says:

      Please explain how a revised deal with Mexico does not need Congressional approval.

      The original NAFTA agreement required it.

      So how can a new agreement replacing it not need Congress to approve?

      Liked by 1 person

    • jrapdx says:

      Canada may be too committed to their political positions to agree to US-Mexico provisions, but when as the agreement with Mexico heads toward finality the Canadians might panic when they see what Mexico is gaining, and Canada is not. The Canadian leadership will probably be getting a lot of unfavorable feedback from citizens, businesses, and regional governments that the endless virtue signaling doesn’t satisfy. My hunch is Canada will have second thoughts about dismissing the opportunities a new agreement would bring about even if not as good as it would have been without the dithering they’ve done.

      Liked by 4 people

    • Drake Passage says:

      Private Mexican farms have also been reduced by 80% since the enactment of NAFTA, squeezed out by multi-national agro’s. This is also a huge issue with ALMO who certainly wants to reverse that trend.

      Liked by 4 people

      • Rhoda R says:

        And that is part of the pressure behind the illegal invasion into the US.


      • Lindenlee says:

        Yes, many Mexicans had small plots of land, and were subsistence farmers, usually with corn. Grew a bunch, kept some for seed, ate some, sold some. Used some as feed. NAFTA drove them out of their small business, because while the Mx farmer needed to get $3.50 for his corn, Cargill or ADM, with their taxpayer subsidies, could sell for $2.80/bushel. That crushed the small subsistence farmer here. Created more poverty, and many of those kids were illegals coming north on the Beast to cross and get illegal jobs.


    • TimesUp says:

      I’m confused. If Congress can’t do anything about it then why does President Trump conclude by writing, “My Administration looks forward to continued collaboration with the Congress to develop legislation to approve and implement this agreement.”?

      Liked by 2 people

      • Deplorable_Infidel says:

        Because CONgrASS sort of expects to be sucked up to.

        ” continued collaboration with the Congress ”

        Or. perhaps the swamp dwellers know darn well there is nothing that they can legally do about it. It is just PDJT sticking in the knife and twisting…..


      • DeAnna Vaughn says:

        The trade law does REQUIRE that Congress be notified but they are not required to approve or allowed to modify the deal.


  9. Phflipper says:

    I truly enjoy PDJT and his transparency. #MAGA continues…

    Liked by 6 people

  10. ladyliberty11 says:

    We are forgotten no more.

    Liked by 9 people

  11. Bogeyfree says:

    Isn’t it refreshing to have a President:

    who truly understand business and how to drive the economy

    Who,is strong on the keeping us safe both home and abroad

    who works smart and pretty much non stop

    who doesn’t care about special interest groups

    who uses common sense to help formulate his policies

    Who doesn’t care about being politically correct and

    who’s driving principle is Making America Great by putting all Americans first.

    Liked by 16 people

  12. CLRoemke says:

    In Washington D.C. FART will be approved and passed shortly.
    Mister President, it is indeed appropriate you insist Congress pass FART.
    The Congress of 2018 will be known world wide for FART.


  13. Kenji says:

    … and with Canada if it is willing, in a timely manner …

    Hahahaha ha ha … Trump didn’t NEED to have his “off the record” comments spilled by The Toronto Star last Friday … he put it in writing for Canada to READ for themselves! Take it or leave it. THAT is MY President’s terms of “negotiation” with Canada. How ya feeling NOW PM Socks-n-Puss? Trudeau is such a tool. So completely out of his depth. Oh Canada! Get a decent PM and government. You’re being led off a cliff.

    Liked by 8 people

    • Curry Worsham says:

      I love the way PDJT leads you to believe the deal is between all three countries.
      But then, surprise:

      … my Administration has worked hard with Mexico and Canada to reach a modern trade agreement that sets high standards for free, fair, and reciprocal trade…
      I hereby notify the House of Representatives and the Senate that I intend to enter into a trade agreement with Mexico –


      …and with Canada if it is willing.


    • Maxi Dean says:

      “If you like your maple syrup, you can keep your maple syrup. Period.”


  14. tav says:

    Your move, Justine.


  15. tav says:

    Sanity is now the greatest challenge for the democrats. As in getting and maintaining any, which for them now seems entirely impossible.

    Liked by 1 person

  16. Donna in Oregon says:

    Corsi noted, “The American public is largely asleep to this key piece of the coming North American Union,” which he described as a “new trilateral region of United States, Canada and Mexico.”

    While strongly supported by Texas Governor Rick Perry, supposedly a conservative Republican, construction of the highway was also being driven by a coalition of various U.S. government agencies, dozens of state agencies, and scores of private organizations. For example, the North American SuperCorridor Coalition received $2.5 million from the U.S. Department of Transportation to plan the Super Highway “as a 10-lane limited-access road (five miles in each direction) plus passenger and freight rail lines running alongside pipelines laid for oil and natural gas.” The goal was to merge the three North American nations into one transportation system.

    President Bush signed the Security and Prosperity Partnership (SPP) agreement in Waco, Texas, on March 23, 2005, with President Vincente Fox of Mexico and Prime Minister Paul Martin of Canada in order to reduce bottlenecks in trade between the three countries and to create a regulatory framework to govern that trade. This clearly sounds like the creation of a super-national government for North America.

    Corsi concluded that this was likely why Bush had no desire to “secure the border with Mexico.” What Bush wanted to do with the SuperHighway, Corsi argued, was to “create express lanes for Mexican trucks to bring containers with cheap Far East goods into the heart of the U.S., all without the involvement of any U.S. union workers on the docks or in the trucks.”

    Trump Has Huge Opportunity To Kill NAFTA

    Liked by 5 people

    • pyromancer76 says:

      Good report. More evidence of the traitors trying to morph the American Republic into the good One World Order. Are there two ultimate authorities to OWO? “P” above Rothschild (second in line) maybe rep by EU, UN, WTO, and China Panda sneaky world-domination plans?


  17. TreeperInTraining says:

    Thanks, Sundance.

    He just keeps on keeping on…despite the onslaught.

    One good thing…McCain can’t block it. He died. You guys probably didn’t know, because it wasn’t really reported about much.


    Liked by 8 people

  18. L4grasshopper says:

    I’ve been doing some research, and I’m pretty sure that any new trade deal with either or both Mexico and Canada to replace NAFTA will require Congressional approval.

    It appears that if both Mexico and Canada sign on at same time, then the TPA “Fast Track” process can be used, and this would only require simple majority vote in Senate…it can’t be filibustered.

    But if only a new bilateral with Mexico is agreed, then Dems could filibuster it, making a 60 vote threshold req.

    So while it does appear that the President can take us out of NAFTA without Congress, he cannot unilaterally replace it with a new agreement. That WILL require Congressional approval.


    • jrapdx says:

      AIUI thinking is Congress will not unduly hold up implementing legislation for the US-Mexico agreement because it contains so much of what the various factions in Congress have said they wanted. For example, the labor provisions are exactly what the Democrats/leftists aimed for, like implementing collective bargaining, increased wages for Mexican workers, while protecting American workers as well. So “resistance” in Congress will be minimal, especially as the agreement could become an election issue that none of the politicians want to get on the bad side of.

      Liked by 5 people

    • L4grasshopper says:

      Here is a detailed Report on the topic written justblast year. Pages 24 to 29 are about modifications or withdrawal.


    • Woody says:

      That congressional role tracks with a recent Forbes article. My amateur understanding of politics makes me question why Dems would go against the progressive labor and enviro elements of the new US-Mex deal?
      The deal benefits both Nation’s unions and workers. Hopeful Candidates from key states in the midterms must recognize the agriculture and manufacturing interests in those states, right? ( POTUS timing seems exquisite in this regard ) Will TDS drive them to political suicide?


      • jmclever says:

        TDS and the fact that they believe their own fake polls and MSM reporters. They will all in lock step oppose him the same as they all voted against the tax cuts.


    • Jim in TN says:

      Awe shucks. Despite years of supporting NAFTA, Congress is being placed in the position that they have to accept Trump’s improvements or kill the entire thing. But they have a way to escape this trap. Convince Canada to join in with Trump’s improvements.

      Who’d of thought that the candidate who ran on canceling NAFTA would have maneuvered Congress into doing so just to spite him.


  19. wheatietoo says:

    Anything that raises wages in the ‘cheap labor countries’ is a good thing for US workers.

    Cheap Labor is the big draw that has lured US businesses to relocate their factories to countries like Mexico and China.

    So it was a brilliant move on the part of our VSG President, to insist on higher wages for Mexican workers.

    I wish we could Export our Labor Unions to those ‘cheap labor countries’ to raise their wages even more.
    That would really level the playing field more, for our US workers.

    Insisting on the same Environmental Regulations that our US companies have to comply with, is another way to level the playing field.
    These regulations increase the cost of doing business, for our US companies.
    So it is unfair to our US companies, when we allow products into our country which do not have this added expense.

    Thank you, Mr. President!
    Thank you for looking out for us and putting America First!

    Liked by 7 people

    • wheatietoo says:

      And this is exactly why the Globalist Cabal feared a Donald Trump presidency.

      He is doing exactly what they feared he would do.
      They are desperate to stop him.

      This is why they have been using all their paid lackeys in the media and in Congress, to get rid of PDJT.

      Liked by 1 person

    • I think it may also eliminate the motive for illegal immigration to US as well..why come when you can make equivalent pay there and not be living in shadows…or fear of deportation?

      Liked by 2 people

  20. iwasthere says:

    McCain could not be reach for anti-Trump comment, but it would have been something about ‘not who we are’ and ‘unAmerican’ to be sure.

    Liked by 3 people

  21. Boris Dabot says:

    “My Administration looks forward to continued collaboration with the Congress to develop legislation to approve and implement this agreement.”

    Hold up. It was said yesterday that section 22xx didn’t need approval from congress. Now I’m confused.

    Liked by 2 people

  22. Amy2 says:

    Hey that’s Andrew Jackson behind the president! No surprise!


  23. Doug Amos says:

    In Canada this morning, Toronto papers, via esteemed political science educators, are saying that what Mr Trump is doing is illegal and that it will probably fail. Their new hero, of course, is Trumka. Harriett Beecher Stowe wrote Uncle Tom’s Cabin to decry the injustice of slavery. At the same time, she was also entertained and fascinated enough by the genocide in the Scottish Highlands to pen Happy Memories. The written word and the spoken word have ensnared many fools. May all left wing speakers and writers join John McCain in whatever place this kind of garbage ends up and may they stay there forever.

    Liked by 1 person

  24. jmclever says:

    I would be interested to see the details of the “labor law” part of this agreement. I saw photos that suggested that DHS Secretary Kristen Nielsen was part of the negotiations. Is e-verify part of the modernization? More than just high paying Mexican jobs, are there other provisions that will encourage self deportation?

    Liked by 1 person

  25. Larry says:

    I think it is important to note that a 25% tariff places an 80 cent CDN dollar at parity with a USD.


  26. Jeff says:

    How ironic is THAT Sundance . Ted Cruz , while intending to help the Uniparty destroy America , actually gave Trade Promotion Authority to president Donald J Trump !!

    Imagine THAT !!

    ” They never thought she’d lose ” ~ Q

    Liked by 1 person

  27. frank field says:

    Why does the administration need collaboration and approval and legislation from Congress?

    I thought the administration needed no approval from Congress.

    Thanks again for another great read!


  28. jmarshs says:

    From the post:
    “It will provide the most robust protections against currency manipulation of any United States trade deal.”

    This to me is the underlying disease of NAFTA – the issue of parts origination is merely a symptom. There has never existed a provision in NAFTA to sanction Mexico for manipulating the value of the Peso. I’m very happy to see that one is now being introduced.

    Since the start of NAFTA, Mexico has allowed the value of the Peso to drop 700% against the Dollar. This is a blatant, naked and corrupt attempt to keep Mexican wages artificially low so as to continue attracting foreign manufacturing/assembly plants. Since the start of NAFTA, Mexico’s GDP has risen thru the roof. However, poverty in Mexico is still stuck at just over 50%. It hasn’t budged an inch. This drop in the value of the Peso, coupled with the subsidizing of US Big Agriculture (which allows US farmers to sell their products at below market prices in Mexico) is why we saw a flood of illegal immigration to the United States under NAFTA. And this also contributed to the rise of the “agriculture based” drug cartels – the cartels hired the Mexican farmers that were put out of work by subsidized US agriculture (the ones who didn’t head North).

    The importation of Chinese automotive parts thru NAFTA is only economically feasible because the Chinese Communist leadership also manipulates their currency to keep their citizen’s wages even lower than that of Mexico’s. They also outsource to countries like Vietnam and North Korea to keep the wages low.

    The Oligarchs who run Mexico couldn’t care less if their citizens are poor – and they rely on illegal immigration to the US to relieve them of the burdens of poverty in Mexico. Remember, for a US (or other foreign) company to do business in Mexico, that company has to “partner” with a Mexican company. It would be very interesting to see a list of all the names of the Mexican “owners” of these companies – I have no doubt they are highly placed in the Mexican Government – or the likes of Carlos Slim.

    And the Chinese leadership will never allow the emergence of a wealthy, vested middle-class in China. If that were to happen, the middle-class would start to wonder why they still need the Communist Party. The rulers of China were happy to embrace market reforms – but only to a point. Censorship and repression of political opposition is done in China at levels that would make even Putin blush.

    Had China pursued true free market reforms, the average Chinese citizen would be many times wealthier than he is today. The same goes for Mexico.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s