Peter Navarro Discusses Structure of USMCA to Create North American Manufacturing Base…

White House Trade and Manufacturing Advisor Peter Navarro appears on Fox Business to discuss the purpose and intent of the USMCA and the ongoing China trade discussions.

What Navarro skims upon is the heart of the economic purpose behind the USMCA as requested by President Trump and constructed by USTR Lighthizer. The USMCA establishes an internal North American manufacturing system; this provides the alternative for Asian manufacturing of goods for the U.S. market.

This manufacturing system is why Mexico is “all-in” to support the USMCA. Additionally, the economic benefits within the system as constructed is exactly why Mexican President Lopez-Obrador is willing to pressure House democrats to ratify and also back-up President Trump on other geopolitical issues (immigration controls etc).

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On the Stock Market dynamic. Currently there is a great deal of investment capital waiting to see where the money should be placed. Investment in China has dropped dramatically; investment in Southeast Asia shifted, but new investment is pending this outcome. Multinationals are calculating the TCP (Total Cost of Production), and if the new USMCA is passed there will be a triggering effect of North American investment because the uncertainty will be eliminated.

Unfortunately the advisors to Speaker Nancy Pelosi know the likelihood of economic benefit from the new North American trade agreement; and that’s why they are holding back passage of the USMCA. The democrats know it would be a big investment boost to the economy. Their political future is dependent on not allowing that to happen.

Their excuse for not passing USMCA is a false-excuse surrounding labor issues. The North American content standards within the USMCA will drive the manufacturing decisions; this is the closure of the NAFTA loophole.

To protect herself from the political backlash, Pelosi has leveraged AFL-CIO union President Richard Trumka to support her false claims. Trumka is trying to help the democrats politically by agreeing with the false-narrative about the labor concerns. It’s all a scheme:

(Via NBC) […] In an interview with The Washington Post published Wednesday, AFL-CIO President Richard Trumka said it would be a “colossal mistake” for the Democratic-held chamber to vote on ratifying the United States-Mexico-Canada Agreement soon. The head of the key labor group, which represents more than 12 million active and retired members across a range of industries, added that the agreement “would be defeated” if the House voted before Thanksgiving.

Trumka’s comments underscore the sustained resistance to the USMCA from labor groups even as the White House and key business organizations push for the deal’s swift approval. House Speaker Nancy Pelosi and top Democratic negotiators have said they want to resolve concerns about the deal harming American workers or the environment before they ratify it.

The labor leader’s remarks undermine a key claim from the president as he makes his case for the deal: that major labor unions back the USMCA. (read more)

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This entry was posted in Auto Sector, Dem Hypocrisy, Donald Trump, Economy, Election 2020, Legislation, NAFTA, Nancy Pelosi, President Trump, Trade Deal, Uncategorized, USA, USMCA. Bookmark the permalink.

45 Responses to Peter Navarro Discusses Structure of USMCA to Create North American Manufacturing Base…

  1. Tall Texan says:

    Trumka is a thug, Nancy’s thug.

    Liked by 8 people

    • bertdilbert says:

      Why would Nancy and Schiff, both from California, want any of this?

      CA is anti business and bright minds are not going to put manufacturing there. Secondly, CA makes bank having Asian manufactured goods coming into their ports and shipped by rail or truck across the country. USMCA cuts out California. Those high port fees are an California export to the rest of the country.

      They will totally oppose this.

      Liked by 4 people

    • CalRicky says:

      Love ya Sundance Really do but please put all your efforts toward wiping out the deep state. We already know all of this stuff and we agree with it. so please save you and us some time. Wiping out the deep state is ALL that matters -SO PLEASE JUST STICK TO THAT

      Like

        • MD says:

          This is great reminder of why the deep state hates Trump. You can arrest only so many and new ones will keep showing up as their replacements. (AOC?) The two big things that will dry up the swamp are…..
          1. Fix these trade deals which in turn makes the corrupt swamp less needed by big business and dry’s up their money stream.
          2. Appoint as many conservative judges as possible so they can’t get their ridiculous laws and business killing regulations (that would never be passed in congress) forced on us in the courts.

          Thanks for all your hard work on all these topics.

          Like

  2. Perot Conservative says:

    Mexico Bilat agreement?

    And not specifically laid out is how this would disinsentivize (sp?) manufacturing and / or importing from China.

    I’m surprised they’re only estimating 200,000 new American jobs, especially given the high multiplier affect of manufacturing jobs.

    Liked by 1 person

    • Canada contributes NOTHING to USMCA that the USA wouldn’t be contributing to USMA.

      Liked by 1 person

      • Regrettably, Canadians will soon learn that the USA has DOMESTIC resources and capabilities that will DISPLACE imports from Canada.

        Four years from now, they’ll get another shot at recovering their economic future and prosperity they surrendered to Trudeau.

        Liked by 5 people

    • dd_sc says:

      Hopefully disincentivize a lot of illegal immigration if good-paying manufacturing jobs are available in Mexico and Central America.

      Bring in Brazil, Argentina, and Chile and that’s a pretty massive, resource-rich block of trading partners.

      Like

  3. Truth seeker says:

    Of course she won’t hold a vote on it. When it passes it will boost the economy, boost the markets and give Trump a huge victory. All would help to cement his reelection. Nancy can’t have that. She needs to hamper the US economy to gain and retain power. They don’t give a rat’s a$$ about Americans. All the dems care about is power.

    Trump needs to hole a prime time persser from the oval office explaining this to the American people.

    Liked by 5 people

    • ristvan says:

      As explained before on previous threads and again below, Pelosi cannot win and PDJT cannot lose on USMCA.

      She denies him USMCA he just executes plan B, which she cannot stop. And Dems look terrible in flyover country. PDJT wins before the 2020 election.

      She gives him USMCA, he wins before 2020 election but Dems look less terrible in flyover country. Gonna happen. Just waiting for the Canada shoe to drop.

      Liked by 12 people

      • Battleship Wisconsin says:

        Mr. Ristvan, when the Canada shoe drops, which side will it be landing on, port or starboard? (A.k.a. ‘left’ or ‘right’.)

        Like

  4. Patriot says:

    Offer her a ton of money – that seems to be the only way stuff gets done around this corrupt capitol.

    Liked by 2 people

  5. Elric VIII says:

    Screw Trumka. He has been crooked since he was with the UMW and has blood on his hands.

    Liked by 8 people

  6. ristvan says:

    USMCA was negotiated under fast track authorization 19USC§2191-2194. That gives Congress only a yes/no vote. No modifications are possible. The reason is obvious; Mexico has already approved it as is.
    ‘Resolving labor and environment questions’ is just a smokescreen for political delay.

    IMO PDJT will wait a few more weeks to see whether Canada acts before ‘putting the gun to Pelosi’s head’ (NAFTA§22.5 6 month nullification). And as explained before, at 6 months and 1 day he can then implement plan B without Congress, Bilateral USMCA equivalents via 19USC§2902.

    Pelosi’s USMCA DO NOTHING (already PDJT branded) would cost Dems bigly in 2020 in flyover country. So I suspect she will get USMCA done in the next few months. Navarro is just slowly turning up the heat on Pelosi’s frog in the pot position.

    Liked by 19 people

    • hokkoda says:

      Which is why they are putting all of their eggs into the impeachment basic. This is winner-take-all time in the country. We’re either going down into totalitarianism or the Swamp wins and fully implements the rest of the police state. There will be no common ground.

      Like

    • zinpa says:

      I would wager AMLO would be the one to actually nullify NAFTA.

      Like

    • ezgoer says:

      Trump has to learn to play hardball with these criminals because they have no honor as in the private sector he’s used to dealing with. Should have already given Trudeau a deadline to approve USMCA or have tariffs go into effect on all Canadian goods. In fact had he initiated tariffs before the Canada election he could have ensured a Trudeau loss.

      Like

  7. hokkoda says:

    Trump needs to move off of the “why won’t Pelosi pass the USMCA” and advance the argument to ask why Democrats oppose the re-industrialization of the US economy. Their inability to pass USMCA is just a continuation of the Government Party’s war on the American People. They are, in effect, making Trump’s point for him. Can they fig-leaf it behind Trumka? It won’t hold up over time, particularly if Trump would talk specifics.

    The holdup on USMCA is directly tied to draining the swamp. The people who oppose it are the same people who foisted a bad NAFTA deal on the American Public. Just like they are the same people behind the Permanent War coalition. They have failed. Trump is the solution. Make them pay the price politically. Make them defend their position.

    Liked by 5 people

    • GB Bari says:

      The problem is that DemonRATs aren’t thinly ones opposed to “the re-industrialization of the US economy. ”

      Uniparty RINOs are also opposed to it because their Globalist Bribery PayMasters want unfettered access to cheap foreign labor where there are no requirements to include medical insurance costs or retirement pensions for their various industries. They were making trillions of dollars of profits by moving the manufacturing offshore.

      Liked by 4 people

  8. jrapdx says:

    Here it is again: Democrats will do anything to undermine the President even if it hurts the USA. That being the case it follows that the damage caused by Democrat inaction on USMCA will harm their candidates’ prospects in the 2020 elections. It sure gives opponents to Democrats some mighty good ammunition to use against them. But we know Democrat leadership in Congress is not necessarily comprised of the sharpest knives in the drawer. I’ll be keeping good thoughts that Democrats keep on inflicting mortal wounds upon themselves, after all they deserve no less.

    Liked by 6 people

    • sarasotosfan says:

      Foxconn is owned by Terry Gou, a Taiwanese billionaire. I suspect he is highly leveraged to any action taken against China and is acting accordingly.

      Like

    • Notice that the report does not contain a single interview with anyone from Foxconn. It’s just a stealth ‘eff Cheeto Hitler’ hit-job.

      Liked by 4 people

      • GB Bari says:

        True. Nonetheless, after being trumpeted (no pun intended) by the President and his Administration when the project was first announced, with very large project numbers (combined total size of campuses; total number of jobs; economic impact, etc.) the project seems to be stalled.

        I think the company owes the President an explanation unless he already knows and it’s temporary so he isn’t talking about it. I just would hate to see Foxconn shaft the President and the state of Wisconsin by reneging on the deal.

        I will admit that despite NPR’s best effort to throw cold water on the situation (no surprise there…) , we still really don’t know the critical facts as to current status and future plans..

        Like

  9. willthesuevi says:

    Rank and file Union members are waking up to the fact their Union Leadership has taken the place of the Industrial Revolution fat-cats.

    President Trump is more of a friend to the Union workers than any President in decades. He employed, and his son continues to employ, thousands of Union workers building and operating his empire.

    It is amazing to watch real business people get our country back on the right track. Damn sight better than those Keynesian academic economists that our government has been infested with since the late 1930’s.

    Liked by 8 people

  10. Nordic Breed says:

    “Unfortunately the advisors to Speaker Nancy Pelosi know the likelihood of economic benefit from the new North American trade agreement; and that’s why they are holding back passage of the USMCA. The democrats know it would be a big investment boost to the economy. Their political future is dependent on not allowing that to happen.”

    If they want their political future to be the implosion of the Demonrat party and by extension the Uniparty, this statement is absolutely true. And they will have done it to themselves. The blue collar workers I’ve known over the years are not stupid, and by now they know how crooked the big union bosses are. PDJT has shown them the money and the opportunity while Pelosi has called their gains “crumbs”. There’s only so much hubris the guys and gals on the line are willing to put up with. We already saw the turn in the 2016 election. Let’s see what happens in the 2020. And let’s not forget that our billionaire president made his money getting dirty and wet and sweaty at construction sites while Pelosi was chauffer driven to school and most Congress critters haven’t put in an honest day’s work in their lives.

    Regarding our jobs and opportunities, Molon labe, Nancy. Molon labe.

    Liked by 3 people

  11. willthesuevi says:

    I am sure it has been said here before, but I would like to re-iterate Peter Navarro is smart, speaks well, and is one heck of an asset for President Trump. I will love it when USMCA is enacted and his predictions come to pass.

    My opinion – the market is just now barely getting to where it should have been if the last 4 Presidents hadn’t screwed up what Reagan started.

    Liked by 5 people

  12. mopar2016 says:

    We need USMCA and I think it will happen. Pelosi is supposed to work for the US, not China.
    I don’t think China will ever be trustworthy and I don’t think we should trade with them.
    The communists have too much influence in our country. Sports, Hollywood, US politicians etc.

    https://i2.wp.com/www.powerlineblog.com/ed-assets/2019/10/Screen-Shot-2019-10-11-at-7.32.35-AM.png?resize=600%2C336&ssl=1

    Liked by 6 people

  13. 6x47 says:

    China paid good money to buy off the political and financial elites of America to help them plunder the U.S. economy, and they are men and women of integrity who stay bought!

    Liked by 2 people

  14. Jonesy says:

    She is delaying the vote to occur close to the election or 5 months and 30 days before plan B, so ”American Voters” will see and feel no effect immediately. If the D’s win, they will reap the rewards and tell the Americans it was bc of them…..

    Like

  15. Doug Amos says:

    During the Canadian election campaign Trudeau crowed about what a great job he had done crafting USMCA and how fantastic it is going to be for Canadians.

    Liked by 1 person

  16. PVCDroid says:

    Corrupt media financial analysts want you to think Trumponomics isn’t working. “Just look! No increase in manufacturing.” This article explains why. Tremendous opportunity to shift manufacturing focus from China to North America and all this resistance.

    Like

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