U.S.Trade Representative Robert Lighthizer: It is Unlikely U.S and Canada Will Reach Trade Agreement…

There has been a great deal of background activity in the past 72 hours surrounding the U.S. and Canada trade negotiations.  However, some of that activity has become more brutally obvious; a deal is not likely to happen.

Against growing visibility the Canadian team of Justin Trudeau and Chrystia Freeland were intent on using opposition to Trump for maximum domestic gain, President Trump declined a bilateral meeting with Justin from Canada at the U.N. General Assembly; and today U.S. Trade Representative Robert Lighthizer told a group an agreement was unlikely.

Additionally, in a video taken today during the U.N. luncheon it is clear President Trump has no time for the political schemes of Justin Trudeau. The moment happens at 02:45 of the video below:

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It is difficult to see from the video above, however in the camera angles below it is much more transparent.

Watch video embedded within tweet:

At the Concordia Summit in New York, the following remarks from USTR Lighthizer are noted:

“The fact is, Canada is not making concessions in areas where we think they’re essential. We’re going to go ahead with Mexico; if Canada comes along now, that would be the best. If Canada comes along later, then that’s what will happen.

I think Canada would like to be in the agreement. I think the U.S. would like them to be in the agreement, but there is still a fair amount of distance between us. There are very large issues.”  (link)

The big issues between the U.S. and Canada are too significant to anticipate any agreement can be reached.  Additionally, the Canadian position is not to concede any ground on key aspects relating to their controlled markets.

Canada will not allow negotiations on their “cultural industries”; meaning they will not allow U.S. investment, ownership or competition within the sectors relating to media broadcasting, telecommunications or banking.   Additionally, Canada will not eliminate the protectionist tariffs on the dairy industry; and will not stop subsidies for the lumber and aeronautics industry.

Lastly Canada is reluctant to agree to “rules of origin” within manufacturing, that are similar to the U.S-Mexico deal.  The Canadian economic model does not currently support heavy industry, and therefore they rely on importing foreign parts for assembly and transshipment into the U.S. market.

If Canada agreed to rules and limits on foreign parts, they do not have the ability to manufacture on their own; and they have no intention on allowing heavy industry to restart which would provide for their needs.  A heavy industrial base is not in alignment with the environmental and energy standards favored by the liberal government.

None of these challenges are present within the U.S-Mexico trade agreement.  Both the U.S. and Mexico want high-wage manufacturing jobs to support both economies.  It is much more likely the U.S. and Mexico will form an economic bloc and both nations will then enter into bilateral trade negotiations with Canada.

Within a U.S-Mexico Bilateral trade deal it is unlikely President Trump would attempt to gain access to the protected Canadian markets.  A far more simple solution would be to set terms for reciprocal access of Canadian products into the U.S. Market.

The primary U.S. tool to generate trade reciprocity will be a 20 to 25% auto tariff on Canadian made vehicles.  This approach would likely mean the exit of many Canadian auto-factories, and reestablishment of their plants inside the United States.

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This entry was posted in Auto Sector, Big Stupid Government, Canada, Culture, Donald Trump, Economy, Election 2018, energy, Environmentalism, media bias, Mexico, NAFTA, President Trump, Taxes, Trade Deal, Typical Prog Behavior, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

212 Responses to U.S.Trade Representative Robert Lighthizer: It is Unlikely U.S and Canada Will Reach Trade Agreement…

  1. US-Mexico should build a southern wall on Mexico’s Southern border. This should reduce the illegal travel into US by half and the border is shorter and it will cost less as well

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    • Covadonga says:

      The Mexicans already built their southern wall long ago, with very tough laws against people entering Mexico illegally.

      It’s a felony to there without permission. If you get caught, you’re lucky if you get automatic deportation right away. If you’re unlucky, you get a prison sentence in a Mexican jail, then automatic deportation.

      The Obama-era trains full of “unaccompanied children” were all escorted by Mexican police, to make sure no one got off the train in Mexico. They were for purposes of invading the US, only. Not for invading Mexico.

      Like

  2. Doug Amos says:

    Last week the corrupt Canadian media were postulating that Justine and the grape squasher would use the U N extravaganza to buttonhole Mr. Trump and get NAFTA wrapped up. Now, Lloyd Axworthy, ex of Canadian Foreign Affairs, is accusing America of being a bullying, heartless, aloof and uncompassionate dictatorship; led by a madman. His solution; a new world union w/o the United States. As for Trudeau, he is already back in Canada.

    Liked by 1 person

  3. DavidC says:

    Trump’s trade policy is harmful to Americans and based on willful economic ignorance. If Canada wants to subsidize certain industries, let their taxpayers bear the burden, while US consumers benefit from lower prices. If Canada has “protectionist tariffs on the dairy industry,” what do you call all the tariffs Trump has imposed? They are equally “protectionist.”

    The “rules of origin” requirements are just another non-tariff trade barrier, of the same type the US complains about when other countries impose them. As for a 20-25% tax on Canadian autos forcing manufacturers to the US – sure, that might happen, but it could take years and billions of dollars for them to replicate existing factories – what a colossal waste of time and money. Meanwhile, US consumers are paying more for autos and would continue to pay more after US factories are built, since companies would want to make up for their investments.

    Tariffs are sales taxes. They’re not paid by the exporting country, they’re paid by importers, and they reduce the wealth of companies and people only to increase the power and scope of the US government.

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    • Alligator Gar says:

      Blah Blah Blah Blah. Take the Canadian talking points elsewhere. Mexico and the US have negotiated a deal. Do you forget that? Canada can come on board or get left behind. Get it? Got it. Good.

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    • G. Combs says:

      “….Tariffs are sales taxes. They’re not paid by the exporting country, they’re paid by importers, and they reduce the wealth of companies….”

      You forgot the last point —
      BECAUSE they reduce the wealth of companies the companies WILL MOVE to the USA which is the ENTIRE POINT of the Tariffs in the first place!!!

      Do you think we don’t know that we, the consumers will pay those tariffs?

      That we are not WILLING to pay a higher price to KEEP and ENCOURAGE QUALITY AMERICAN PRODUCED PRODUCTS? And OUR JOBS???

      I am looking at the backbreaking HAND labor of digging out over a dozen Chinese made water hydrants buried three feet deep in my pastures. They failed but the older American built hydrants are still working without a problem.

      AND I will CURSE the CoC and Tommy Donahue and Billyboy Clinton with every shovelful for the TRAITORS they are.

      Liked by 2 people

      • DavidC says:

        G. Combs – you may be willing to pay a premium for domestically produced products but why should I be forced to share your value preference by the coercive hand of government, that only benefits a few favored producers and workers?

        US producers that are protected by tariffs will almost always raise prices within the margin of the tariff rate, costing consumers.

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    • bunky says:

      American workers then get the shaft.

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    • Orville R. Bacher says:

      Without good, tax-paying private sector jobs, you do not have a country. Canada lost thousands of auto jobs to Mexico because of NAFTA. The dirty money flowing to Liberal Party politicians is the only reason Trudeau can’t make a deal.

      Liked by 1 person

      • 3and2fastball says:

        I think Trudeau can’t make a deal because, well, Trudeau can’t make a deal. What he can do is make a fool of himself and continue to be a weakling, especially since we have a boss that knows how to deal with weaklings. Canada votes next year, I’ll bet Trudeau won’t be able to further dance while important business needs immediate attention.

        Liked by 2 people

    • Laurie says:

      But the US will have good paying jobs to pay for those more expensive cars and Canadians will not.

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    • Laurie says:

      I think it’s despicable when Canada chooses to offshore their heavy industry to a country where the environmental standards and workers protection are abysmally sub-standard to those in Canada. Hypocritical in the extreme!

      Like

    • Rob says:

      You’re so wrong DavidC. The pain Canada will feel from not making a deal with the US will be much higher than the pain of making a deal. He just does not know it yet, or he is hoping Trump will back down (or be impeached). We will eventually get the deal done, and the US will be the big winner.

      Like

    • Roberta says:

      The Founders understood tariffs. They established these united states’ federal government be funded (for its very limited role) by, guess what?, tariffs…no income tax.

      Having been in Canada when the NAFTA debacle went into effect, knowing it was a very bad deal, being in Canada for many years thereafter, and having watched the progress toward a North American government ever since, I find your comments less than informed. Auto manufacturers (think Ford) would come home…the infrastructure is here and the funds to expand are in the pockets of the companies. Even Toyota might abandon their specially built Ontario plant. 🙂

      Poor Canada. Many are taking to heart “Oh Canada, our home and native land. True patriot love, in all they sons command!” Doug Ford is now premier of Canada’s largest (population) province. I heard him last weekend over CBC when he echoed our MAGA agenda, promising that together, they would Make Canada Great Again!

      Liked by 1 person

      • DavidC says:

        Roberta – We now have both tariffs and an income tax that only partially fund a virtually unlimited government. The Founders prohibited interstate tariffs in the Constitution because they reduce trade and prosperity. Before the Constitution was ratified, the States were independent, sovereign nation-states: that is, countries. The same principle applies for trade among countries as it does among US states.

        Why should companies have to pay to replicate in the US what they already have elsewhere? They could use those funds in more productive ways, if only to return cash to shareholders.

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      • donna kovacevic says:

        Roberta don’t forget the loony liberals changed our anthem. It was in all our sons command, now it is in all of us command! How stupid is that!! It was all good for years until Justine and his party decided this gender crap. Yes and it is not humankind it is people kind! I swear the grey matter in the liberals mind has all but leaked out. BTW our car prices are way higher than that of the USA, and the majority of the time we do not have the parts needed for repairs for cars that are older than a few years. The Toyota Cambridge plant employs a majority of southern Ontario.

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    • wow says:

      David the rules have changed and it will be better, much better, for Americans. You’re upset because like it the way it is. I am hopeful that with a more equal trade balance it becomes a win/win instead of your win/lose model. time will tell.

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      • DavidC says:

        Wow – I’m upset because Trump’s policy is going to cost me money the next time I buy a washing machine, a car, or a beer,. This will only benefit a few people, while increasing the size and scope of the federal government. That other countries’ politicians inflict economic pain on their citizens through tariffs and trade barriers is no reason for Trump to do the same to us.

        The “trade balance” between countries is as useful a metric as your trade balance with your grocery store. Every trade that goes into the aggregate trade balance calculation is between a willing buyer and a willing seller. Both parties consider it a win/win situation.

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    • patsfaninpittsburgh says:

      Retard level intellect DavidC

      The producer ALWAYS pays the tariffs or they were undercharging for their product.

      In the end, people pay what they are willing. No prices will increase because if businesses could increase prices………..they would spend all day increasing prices.

      Tariffs will be offset by lower prices from China if China still wants to produce.

      Like

  4. Abraham fox says:

    Trudeau’s ‘open borders’ philosophy allows Muslim terrorists almost free entry into Canada, and I’m certain that Trump is not only aware of this but has a distaste for Trudeau and the Liberal party because of it. There is room for Canada’s negotiation with the US but not under the Liberal – Trudeau banner.

    Liked by 3 people

  5. Robert W says:

    DavidC. you’re not right at all. First, if the US allows other countries to compete with US companies, then those same countries should allow US companies the same access to their own, but they don’t. Second, if say Canada gains access to US for competition and Canada subsidizes those industries, then they can dont just compete with US companies but they can have a tremendous advantage and major lower prices against US. Thus, making US companies go out of business and rely on imports to US for goods. Fair is fair. Trump knows what he is doing. You do not.

    Liked by 1 person

  6. jdondet says:

    I hate to say this Sundance but that guy doesn’t look like Trudeau to me. I don’t know who he is but it does appear he wants something from President Trump.

    Like

    • Roberta says:

      You have to watch carefully…”Purple tie man” is not the one the story is speaking to. Watching the other camera angles embedded within the tweet, very, very, carefully, I was able to see Justin. In the main video one can see Justin Trudeau cross the screen from left to right, but can’t see the (condescending) shoulder tap.

      Like

  7. STEVE P says:

    Can and will Congress not allow a bilateral trade agreement with Mexico or can they insist it must still be a three party deal?

    Like

  8. mugzey302 says:

    Are the insurrectionists in the administration also dealing with these daycare brats and their tantrums? Like they are attempting to sandbag our negotiations with Iran and Europe? Kerry, Biden and friends should have their security clearances pulled NOW. See how cocky they are then!

    Like

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