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Justin from Canada Painted His Country Into a Lose/Lose Trade Corner – More Details of U.S-Mexico Deal…

By choosing politics over fundamental trade economics Justin and Chrystia from Canada have painted themselves into an isolated position on the renegotiated North American Trade deal.  Here’s the basic Canadian conundrum.

The U.S. and Mexico have agreed to manufacturing origination terms; wage and labor improvements; elimination of AG subsidies and non tariff barriers; and removal of all protectionist tariffs – so long as the structural terms of commerce are upheld.
In order for Canada to join the U.S. Mexico deal they would need to:

  • (1) eliminate soft-wood subsidies in the lumber sector;
  • (2) eliminate protectionist tariffs in the AG (Dairy) sector;
  • (3) accept the 75% rules of origin, eliminating the NAFTA loophole;
  • (4) agree to the enforcement mechanisms for all the above;
  • (5) allow U.S. banks to operate in Canada (financial sector).

Each of these five issues, now locked-in and agreed by the U.S. and Mexico are “take-it-or-leave-it” terms for Canada to join. There’s almost no-way, given the politicization of the Canadian plan, for Justin and Chrystia to agree to those terms and keep their fragmented political support base appeased.
Therefore, absent total acquiescence, it is likely Canada will keep their soft-wood lumber subsidies, keep their protectionist Dairy tariffs, keep their banking rules blocking U.S. access, and face a 25% duty on U.S. auto imports – effectively destroying their auto manufacturing sector.  Car companies (ex. Toyota) will simply leave Canada and return to building/assembling in the U.S.
Here’s the content from a conference call filling in more details:
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Mexican Trade Team: Regardless of Canada The Deal Between the U.S. and Mexico Still Stands…

So much good news: WASHINGTON (Reuters) – The trade deal between the United States and Mexico will stand even if Canada does not come to an agreement with the Trump administration in the renegotiation of the North American Free Trade Agreement (NAFTA), Mexico’s foreign minister said on Monday.

“If for any reason the government of Canada and the United States do not reach an agreement, we already know that there will still be a deal between Mexico and the United States.”
~ Mexican Foreign Minister Luis Videgaray (link)

Remember those “private meetings” between Jesus Seade and Robert Lighthizer?
It is said: a picture is worth a thousand words.  Cue the audio visual:

The incoming Mexican President, Andrés Manuel López Obrador,(AMLO)’s representative is Jesus Seade. The outgoing Mexican President Pena Nieto’s representative is Mexican Secretary of Economy Idelfonso Guajardo.
Why the joy in Seade and the defeated Guajardo?  The answer is in the details:
One of President Trump’s principal objectives in the renegotiation is to ensure the agreement benefits American workers.  The United States and Mexico have agreed to a Labor chapter that brings labor obligations into the core of the agreement, makes them fully enforceable, and represents the strongest provisions of any trade agreement.

Key Achievement: Worker Representation in Collective Bargaining

The Labor chapter includes an Annex on Worker Representation in Collective Bargaining in Mexico, under which Mexico commits to specific legislative actions to provide for the effective recognition of the right to collective bargaining.

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Preliminary Details of U.S./Mexico Trade Deal…

In direct relationship to the checkbook policy that impacts middle-class Americans the U.S./Mexico trade deal is the biggest win so far in Trump’s presidency.   There are such massive ramifications it could take days for anyone to comprehend how the granular details have such massive downstream consequences. The deal is incredibly complex.

At the 30,000 ft level, the deal positions Mexico to retain their current multinational investments, and through a series of sector-by-sector standards on origination the deal simultaneously closes the fatal NAFTA loophole.  The agreement makes an economic manufacturing partnership between the U.S. and Mexico; and for assembly products third parties will have to produce parts and origination material within the U.S. and Mexico.
U.S.T.R. Lighthizer has put some details forward:
♦The NAFTA Loophole closure is explained in Summary Form HERE; with emphasis on the Auto-Sector.  The key is a 75% part origination level for auto-assembly; and a 40-45% level for parts with a minimum $16/hr wage rate.  The source-origination rate (75%) is even higher than all previously forecast negotiation results.
Example of downstream consequences/benefits:  German auto-maker BMW recently built a $2 billion assembly plant in Mexico (almost complete).  Most of their core parts were coming from the EU (steel/aluminum casting components) and/or Asia (electronics).  Now the assembly plant will have to source 75% of the auto-parts from the U.S. and Mexico, with 45% of those parts from facilities paying $16/hr.  Result: BMW will need to modify their supply chain and build auto parts in the U.S. and Mexico.
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NAFTA Terminated: President Trump Announces Preliminary Agreement for New U.S./Mexico Trade Deal…

Promises made, promises kept.  The CTH community is in a unique position to understand exactly what has taken place today as President Donald Trump announces the termination of NAFTA and simultaneously announces a bilateral trade agreement has been made between the U.S. and Mexico.  This is exactly what CTH predicted. Most, not all, but most of the media are absolutely clueless.
In an Oval Office announcement today President Trump put outgoing Mexican President Enrique Peña Nieto on his speaker phone as the press watched in the Oval Office. U.S. Trade Representative Robert Lighthizer, Mexican Secretary of Economy Idelfonso Guajardo, and the key figure for incoming Mexican President, Andrés Manuel López Obrador (AMLO), Jesus Seade was present for the announcement.
CTH will have much more on the details of the trade agreement.  This is the most comprehensive and complex trade agreement in U.S. history.  However, in the interim here’s the full video of the announcement (including nuance).  ENJOY:


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[Transcript] Oval Office – 11:09 A.M. EDT – PRESIDENT TRUMP: Hello everybody. It’s a big day for trade, a big day for our country. A lot of people thought we’d never get here because we all negotiate tough. We do, and so does Mexico. And this is a tremendous thing.
This has to do — they used to call it NAFTA. We’re going to call it the United States-Mexico Trade Agreement, and we’ll get rid of the name NAFTA. It has a bad connotation because the United States was hurt very badly by NAFTA for many years. And now it’s a really good deal for both countries, and we look very much forward to it.
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The Bloom is Off the Ruse: Angela Merkel Again Rejects Attempts to Enforce Paris Climate Treaty…

In June, 2017, while trying to keep President Trump committed to the Paris Climate Treaty, Germany’s Angela Merkel and France’s Emmanuel Macron delivered a joint statement proclaiming: “the Paris Climate Treaty is irreversible and cannot be renegotiated.”
U.S. President Trump knew the economic ramifications would handcuff the U.S. and that was the primary motive behind their demands. Rightly POTUS Trump brushed off the demands and withdrew the U.S. from the treaty, in July 2017:
Then came a predictable series of events…
A month after U.S. President Trump called out the ridiculous globalist economic agenda and withdrew the U.S. from participating, German Chancellor Angela Merkel responded on August 20th, 2017, by removing her own country from the primary treaty demands.  Five months later, January 2018, the anointed leader of far-left international political policy then withdrew entirely from the 2020 carbon emission reduction goal.
All of these moves only further evidenced that ‘climate change’, vis-a-vis the Paris Treaty, was/is an insufferable economic control policy; a ruse; a scheme manufactured by global financial elites who seek power and leverage upon the sheeple proles.  Merkel well understands that global emission control mechanisms, specifically carbon reduction schemes, are nothing more than policy tools to exfiltrate national wealth.
Today, much to the chagrin of the barking moonbats and pontificating international elites, Chancellor Merkel refuses to change her position:
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With China In Background: President Trump Hosts Roundtable Discussion of Foreign Investment Modernization Act…

It is not coincidental that three events are occurring simultaneously:  (1) U.S.T.R. Lighthizer is conducting public hearings on Section 301 impacts; (2) a Chinese trade delegation is in the U.S. to re-initiate talks; and (3) U.S. President Trump conducts a roundtable meeting with congressional leadership over the Foreign Investment Risk Review and Modernization Act.


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[Transcript] 11:35 A.M. EDT – THE PRESIDENT: Thank you very much for being here this morning, and thank you to Secretary Mnuchin for joining us. And congratulations. You’re doing a great job. We appreciate it very much, Steve.
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President Trump Interview With Ainsley Earhardt…

Yesterday President Trump sat down with Fox News morning host Ainsley Earhardt for an extensive interview surrounding current events.
During the interview President Trump expressed his frustration with current Attorney General Jeff Sessions and FBI Director Christopher Wray, and the lack of focus on cleaning up the corruption within both organizations. Additionally, President Trump talks about wanting to stay uninvolved with the agencies, but will likely declassify documents so the American people can better understand the scale and scope of the corruption.


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In response to the criticism that AG Jeff Sessions “never took control” of the DOJ, the Attorney General put out a statement:
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U.S.T.R Lighthizer Engages Seade While Nervous Panda Meets Wolverine Ross…

When discussing or reviewing trade deals, particularly NAFTA, it is important to remember two baselines: (1) The trade reset is President Trump’s personal legacy initiative; it’s personal – ignore media banter – it’s personal; like, the most important thing he ever thinks about. Always. 24/7. (2) President Trump has no multinational corporations or financial interests with leverage/influence over his decision-making.

There are trillions at stake.


We begin:

“We are already looking at all the issues. We might close this, not in a matter of hours, but these days. We still have next week,” Jesus Seade, designated chief negotiator of Mexican President-elect Andres Manuel Lopez Obrador, told reporters.

Here’s where it becomes important to note that U.S. Trade Representative Robert Lighthizer has twice asked Jesus Seade to remain AFTER hours when all other trade officials have concluded discussions. Closed-door conversations between Lighthizer and Seade; and no-one else. [Refer back to the two Trump baselines again]
Next, before reviewing the comments and presentations of the media regarding the U.S. Mexico NAFTA status; again reference the team approach, and the division of responsibility. Today, Secretary of Commerce Wilbur Ross is meeting with the twitchy Chinese delegation – again, their arrival is not a matter of scheduling happenstance; it is directly related to the ongoing 301 hearings that began two-days-ago, Monday.
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*Updated* Anatomy of a Sting: Robert Mueller Likely Used FBI and Foreign Intel to Set-Up George Papadopoulos in July 2017…

UPDATE: Since initially posting the set-up for the July, 2017, FBI sting operation against George Papadopoulos a few more important research details have surfaced.  Charles Tawil, the guy who reached out to Papadopoulos in Greece; and who ultimately gave Papadopoulos $10,000 in cash; was a previous intelligence asset of the CIA and FBI.  SEE WIKILEAKS Cables (circa 2006): Paragraph #8, note:

“These undisclosed sources told Zuma that American citizens (not connected with the U.S. Government) were involved. This in part, coincides with another Embassy contact, Charles Tawil (protect), who told our Economic Counselor on November 29 that Zuma had received information from the mother of the King of Swaziland about CIA attempts to kill Zuma using poisoned clothes from the FBI” (link)

Who was the FBI Director in 2006?  Why, Robert Mueller of course.
On page #9 of the recent Sentencing Memo from Special Counsel Robert Mueller there’s an interesting paragraph about a $10,000 payment made to George Papadopoulos.

(pdf link)

The Daily Caller, via Chuck Ross, dug into that payment and outlined the specifics today:

[…] The Daily Caller News Foundation has learned that a man named Charles Tawil gave Papadopoulos $10,000 during a meeting in an Israeli hotel room in July 2017.
Sources familiar with the matter told TheDCNF Tawil flew to the Greek island of Mykonos to meet Papadopoulos and his now-wife, Simona Mangiante Papadopoulos. Tawil invited the pair to Israel, but Mangiante Papadopoulos stayed behind.

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President Trump Invites Media To Remain for Another White House Cabinet Meeting…

When we elected a successful businessman as President of the United States and leader of the executive branch, we elected a person who fundamentally changed the framework of accountability and transparency in government. President Donald J Trump holds an average of two to three full cabinet meetings each month where the cabinet members give direct updates on execution of policy priorities.
No President in modern history has put that much accountability into the position of each cabinet member. No President has ever coordinated strategic objectives with such a high level of expectation and scrutiny. No President has folded transparency into the cabinet with full media access over White House cabinet meetings. This is a new executive branch standard.
NEC Director Larry Kudlow break-out discussion on the economy at 03:45. WATCH:


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