This is a little on the economic wonky side of things; but well worth watching if you are a trade follower.  The Canadian Broadcasting Company (CBC) attempts to construct a pro-TPP narrative by discussing possible 2019 benefits to Canada.  However, if you listen closely, each time the question of  Canadian consumer benefit it raised you’ll note there aren’t any.

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Corporate globalism, via international trade agreements, is a scam. By design it is intended to exfiltrate the wealth of a targeted (host) nation, and allow corporations full control over the domestic pricing of commodity goods.  There are parts of that interview when the lobbyist/punditry accidentally admits the scheme.
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A few days ago many critics were concerned over an announced pledge of U.S. State Department funding ($4.8 billion) for security and economic development in Mexico. However, CTH noted the approach was likely not what it seemed.
Those who followed the USMCA construct closely noted that U.S. President Trump (through Jared Kushner) and Mexican President Lopez-Obrador (through Jesus Seade) were doing something much bigger than a trade agreement; they were structuring an entirely new U.S-Mexico economic alliance.
With increased investment in central America by the Chinese government; and with Venezuela in a state of vulnerability to becoming a proxy therein; and with Brazil taking a more nationalistic approach; a completely new partnership which focused heavily on domestic security and economics was taking shape between the U.S. and Mexico. Throughout 2017 and 2018 the U.S. media was oblivious to it.
Then, two days ago, the U.S. State Department made public the principles of an economic alliance between the United States and Mexico. [See Here] The outline should be familiar: Economic Security is National Security.
Today Department of Homeland Security chief Kirstjen Nielsen told lawmakers that migrants heading to the southwest border to seek asylum in the United States will have to wait in Mexico until their claims are processed, under an agreement between the two countries:

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The CFO of Huawei has been released on bail pending her extradition hearing to the United States. Ms. Meng will have to wear and ankle monitor and travel with security agents until her next hearing on February 6th.

(Via NBC) A Vancouver judge set a $10 million CAD bail ($7.5 million U.S.) for Huawei Chief Financial Officer Meng Wanzhou Tuesday, capping a week of increasing trade tensions and strong market reactions around the dispute between the Department of Justice and one of China’s largest hardware companies.
The United States had asked the Vancouver court to deny bail for Meng, whose father is a billionaire and a founder of Huawei, calling her a flight risk. Canada has been expected to extradite Meng to the United States over charges that the company improperly took payments from Iran in violation of sanctions against the country.

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CTH has never hidden our disgust for the corrupt lobbying enterprise known as the U.S. Chamber of Commerce, and their President Tom Donohue.  No internal organization in modern history has done more to harm American workers and American industry than the U.S. Chamber of Commerce.  Their fraudulent and corrupt enterprise is a toxic threat to our economy.
Today the U.S. Chamber of Commerce issues a statement denouncing the trade strategy of the Trump administration and announcing their lobbying support for the USMCA trade agreement is contingent upon the removal of Steel and Aluminum tariffs.

As the Washington Times writes: “The Chamber had previously complained that the deal’s language limiting protections for investors and stiffening of the “rules of origin” for when autos can be duty-free were problematic.”  Put another way: Wall Street is angry their multinational constructs are not supported, and protecting U.S. workers from the predatory nature of global outsourcing is bad for their controlled market schemes.
Ultimately, Donohue’s biggest complaint -revealed by historic review- is that his organization didn’t get to write the USMCA trade agreement and were stopped from selling their special interest carve-outs to their corporate clients.
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A lengthy interview (recently released) between Greta Van Susteren and President Donald Trump at the G20 summit in Argentina.  The topics include: the USMCA trade agreement; the conflict between Russia and Ukraine; overall global trade; issues within the global climate change economy; Brexit, China, the U.S. economy and immigration.
As most CTH readers are aware MAGAnomic policy, economic nationalism, is the largest focus of President Trump.  Beyond all other issues, this is the POTUS priority. Within this interview the president walks through the geopolitical issues and interests for the U.S. economy.  Well worth watching:

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Too funny… this is what we would call a win/win.   President Trump delivering remarks to the media aboard Air Force One on the flight back to the U.S.

(Via Associated Press)  President Donald Trump says he will shortly be providing formal notice to Congress that he will terminate the North American Free Trade Agreement, giving lawmakers six months to approve the replacement he recently signed.
Speaking to reporters aboard Air Force One while returning to Washington from Argentina, Trump says: “I will be formally terminating NAFTA shortly.”

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On the sidelines of the G20 summit in Argentina, U.S. President Trump, Mexican President Pena Nieto and Justin from Canada deliver remarks prior to signing the NAFTA replacement agreement, the USMCA. [White House Statement Here]
The USMCA is a major structural shift in the U.S., Mexico and Canada, trade agreement. While the new agreement does not form an actual trade-bloc, the agreement removes most of the exploitation of the U.S. market that existed within NAFTA. The U.S. and Mexico are the primary benefactors; Canada notsomuch.

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[Transcript] Buenos Aires, Argentina – 9:24 A.M. AST – PRESIDENT TRUMP: Thank you very much. We’re gathered together this afternoon for a very historic occasion: The signing ceremony for a brand new trade deal, the United States-Mexico-Canada Agreement. So important.
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Canadian media are reporting that General Motors plans to shut down operation in Oshawa, Canada.   This is quite possibly an outcome that portends the sign of things to come…

CANADA – Numerous sources have told CTV Toronto that General Motors is planning to close all operations in Oshawa, Ont., affecting thousands of high-paying jobs.
The announcement is expected to be made on Monday, in the city of about 159,000 people located roughly 60 kilometres east of Toronto.  Sources said they believe the Oshawa closures are part of a global restructuring. (read more)

GM holds considerable risk exposure within the current state of international trade and economics as it relates to the auto industry.  As a result of the ongoing U.S-China trade confrontation, GM holds risk as a result of heavy investment in China.  Add to that exposure the very significant financial impacts about to start for heavy manufacturing operations inside countries aligned with the Paris Climate Treaty, and the risk increases.
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U.S. Agriculture Secretary Sonny Perdue discusses the U.S. Mexico-Canada trade agreement and the positive impacts for U.S. farmers with increased open markets.
About two-thirds of the way through the interview the national FEMA alert message was tested.  Secretary Perdue cracks me up: “I get those presidential alerts in a different way”…

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Biggest U.S. Trade Win in the History of all U.S. Trade Constructs !

I’m still going through the USMCA text (even speed reading, it will likely take a while); here’s the link to the AGREEMENT DETAILS.  However, many people have asked about how the NAFTA loophole was being closed.
Well, the answer is exactly what it had to be – there was really no option.  The U.S. now has veto authority over any trade deal made by Canada and/or Mexico with third parties.  This is what Ambassador Lighthizer described as the “Third pillar”.
Last year, despite the inevitability of it, we didn’t think Canada and Mexico would agree to it.  The NAFTA loophole was/is a zero-sum issue: Either Can/Mex agree to give veto authority to the U.S. –OR– President Trump had no option to exit NAFTA completely.
Well, Canada and Mexico have agreed to the former, so there’s no need for the latter.

(LINK to Article 32 pdf)

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