As noted by President Trump, U.S. businesses and contractors are blocked from bidding on most Canadian federal and provincial contracts for goods and services. However, the U.S. does not restrict Canadian companies from bidding on U.S. state and federal contracts.
Effective today, that one-way benefit ends.
Keep in mind, as this Truth Social post was made, USTR Jamieson Greer is in a meeting with Canadian USMCA negotiator, Dominick LeBlanc.
(Via Truth Social) – “Everyone knows that Canada doesn’t let our Great Dairy Farmers sell into the Canadian Market, and that the only reason Canada makes Autos is because of previous disastrous Trade Agreements while other Presidents were in Office. Canada has been ripping us off for years, but what many do not realize is that the Canadian Government, including Canadian Provinces, have banned American Small Businesses and Companies from selling into their Government Procurement Markets.
This is the case even though Canada gets broad access into the massive American Government Procurement Market, including those of our States. That is not reciprocity, it is a Canadian Trade Scam. From now on, NO RECIPROCITY – NO ACCESS! I am hereby directing the GSA, working with the USTR, to take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies. Those schedules account for more than 50 BILLION DOLLARS a year. This should have been cut off years ago, by other Administrations, like it was by mine, only to reinstituted by Sleepy Joe Biden. Thank you for your attention to this matter!”
This is also a good opportunity to point out that several media reports on a Deloitte analysis of the Canadian economy, centered around what would happen if the USMCA was terminated, are fundamentally false. The Deloitte analysis has a baseline assumption that is structurally flawed.
You can read the Deloitte Report HERE. In the forward you will notice they ‘assume’ all trade between the U.S. and Canada continues, they assume Canada will retain “most favored nation” status, and they assume without the USMCA Canada will face a global 10% baseline tariff. Each of these assumptions is structurally false.
There is a lot of wish-casting in those assumptions, the biggest one is that Deloitte ignores the Chinese components in Canadian goods.
Without the USMCA to protect their transshipping operation, Canada will not be able to assemble component parts from China into finished goods bound for the United States. There would be no content agreement with the U.S, nor would there be a defined ‘rules of origin’ to use as a guide.
A singular Chinese component not available in the USA (as an outcome of the U.S-China agreement) would be enough to disqualify the entire product line from Canada.
Within their economy Canada doesn’t independently manufacture all their component parts, specifically the heavy industrial components. Instead, Canada ships the raw materials to China then imports the finished component goods. Canada is more of an assembly plant than a manufacturing plant.
Canada exports raw materials, then imports component goods. THAT is their economic model. They chose that route when they decided that climate change was their gospel, carbon emissions were terrible and industrial manufacturing was dirty work that kills the planet. Now they have a “clean energy” carbon trading system, but electricity alone cannot smelt and pour.
Deloitte misses that BIG PICTURE entirely, in their estimate of losing 163,000 jobs/yr, and losing $402 billion in economic activity over ten years.
Basically, Deloitte pretends some form of a general Free Trade Agreement with the USA will exist, while continuing to believe a bunch of Canadian processes, rules, bans, provincial regulations, tariffs and non-tariff barriers against the USA remain in place. The status quo without the USMCA. I can assure you those massive assumptions are flawed.
Canadian media and govt officials are pushing the Deloitte-ca analysis to maintain their political agenda.
The more likely scenario of a USMCA termination (without a FTA to replace it) would be somewhere around a 30 to 50% drop in all export-driven GDP, totaling well over a trillion dollars in the first 5 years. 70% of all Canadian exports would be impacted, and the job losses are not just in the direct manufacturing or assembly process. All of the ancillary economic activity that is derived from wage spending suddenly stops.
China would need to spend 10x more to subsidize Canada than Europe is spending to subsidize Ukraine.
Canada = Yuan Money Pit.
Very interesting times.
Drag ALL of the “U.S.” automakers into a conversation and demand all automobiles made by U.S. manufacturers be made in the U.S. or slap massive tariffs on them all.
First, do a deep dive and look at all sides of the issue as to why, many years ago, American automakers set up factories on the other side of the border. Most likely the reasons are plentiful, so they should help illuminate a pathway towards new, mutually beneficial trade agreements, that last long into the future.
THIS is the correct way to proceed
Now start filing lawsuits in Canadian courts, bombarding them with US propaganda, and bribing a few weak politicians in parliament. Time to fight as dirty as they do.
I would feel sorry for the average Canadian, but I live in Vegas, and the Canucks are commonly known as incesent complainers who don’t tip. So screw ’em.
But at lease we can spel. 😉
If only PDJT could get a few more terms and a few in congress with spines he could actually fix this country. If it were up to me I’d appoint him benevolent dictator for life.
Concarney your about to discover the meaning of FAFO and so it Canada.
Deloitte is a multinational globalist organization. All you need to know. Look at their leadership.
The economic model described by SD is basically the same as Australia: export raw materials (bauxite and iron ore), mostly extracted by Chinese companies with Chinese equipment and transported in Chinese ships from China-managed ports… send back fully completed goods or nearly-completed goods for final assembly. Absolute hollowing-out of an economy.
It is a good idea for PDJT to keep hammering at Canada’s one way trading system. And tear it apart as he is.
Carney is playing off the hatred of Trump. If he succeeds and tilts the vote in favor of the Democrat’s, then what?? Main stream voters don’t know any of this stuff and anything is possible. Canada may lose now, but money talks and bullshit walks. The politicians are a greedy bunch on both sides of the isle. How can what Trump enacts against Canada survive once he is out. I want to know what long term guarantees there may be over the long haul. The next asshat may pass another agreement with Canada and we are back at square one.
All this has a two year shelf life until the next preidential election…after that, who knows. God forbid a democrap President wins and everything becomes undone as in the Sleepy Joe Biden years and we are again returned to Americian sold out policies…Glass Half full now, hopefully not half empty after that election.
Another great example of pretending not to know things.
Carney has been selected to accomplish one objective — bring down or at least dramatically weaken President Donald J. Trump no matter what it takes and regardless of who gets hurt, even if it wrecks his own economy and people.
President Trump won 2020. He should get to serve that term next.
These folks are hilarious. As I shop, if it says raised in or product of canada. it stays on the shelf. I live in a small town in NH and Quebbies have always been known as rude . Go to Hampton beach and watch these chuckleheads refuse to speak English. When it comes to buying anything, I spend more to shop local. As Tom Selleck said in the movie Monte Walsh. “You have no idea how little I care”. Keep your beady eyes, square tires and flapping heads on your side of the border.
Trump is savage