After three days of discussions between U.S Trade Representative Robert Lighthizer, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo they were not able to develop any consensus on the major issues within the North American Free Trade Agreement, NAFTA.

The likely outcome of the upcoming Mexican national election on July 1st brought the principals together for non-scheduled talks, as U.S. President Trump instructed Ambassador Lighthizer to explore whether the three nations could find common ground on the ‘big picture’ issues behind the largest schism.  The auto sector and rules of origin is the epicenter of the biggest difference between the U.S., Mexico and Canada.

The U.S. auto-sector NAFTA position is that North American content of vehicles made in NAFTA countries be increased to 85 percent from 62.5 percent.  The Canadian and Mexican position is for lower North American content.

Canada is not arguing for higher Canadian content.  Mexico is not arguing for higher Mexican content… Instead both Canada and Mexico are arguing for higher imported content (China and Asia).  Honestly, I cannot fathom why more people don’t see the inherent ridiculousness of NAFTA against the reality of Canada and Mexico arguing for more Chinese imports.

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President Trump delivers the weekly address on April 7th, 2018, on the subject of border security and the latest laws passed by the state of California that undermine U.S. federal immigration laws.

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Yesterday U.S. Trade Represenative Robert Lighthizer and Mexico’s Minister Ildefonso Guajardo met in Washington DC for a bilateral discussion. Likely one of the key avenues for Lighthizer to explore surrounded the upcoming election of a hardline Marxist in Mexico and how Guajardo views the impact to Mexican policy therein.

At this point it’s virtually guaranteed that Andres Manuel Lopez Obrador will win the election – I would VERY strongly bet on that outcome (likelihood 85%).  That puts a Hugo Chavez type ideologue, and the attached economic policies, at our southern border. [Pro-Tip: prepare your business affairs accordingly now, and avoid the chaos later]

Canadian Foreign Minister Chrystia Freeland arrived in Washington DC today to join Lighthizer and Guajardo and expand the informal discussion toward a trilateral trade discussion.

Thankfully Lighthizer is on his home turf because he’s now surrounded by left-wing globalist advocates from Mexico, Canada and the U.S. Chamber of Commerce via Tom Donohue.

There was some media talk, and a hint from Trump’s NEC Chairman Larry Kudlow yesterday, about the U.S. strongly wanting to have an agreement on principle utilizing the cornerstone of the Auto-Sector as a building block.

However, I cannot caution strongly enough that NEC Chairman Larry Kudlow is in love with NAFTA and POTUS Trump is not.  So filter Kudlow’s optimistic glee against his trade worship with NAFTA.

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Today President Donald Trump signed a proclamation directing the National Guard to be deployed to the U.S.-Mexico border.  Earlier today DHS Secretary Kirstjen Nielsen explained the process:

In a memorandum to Defense Secretary Mattis, Homeland Security Secretary Nielsen and Attorney General Jeff Sessions, President Trump states the “situation at the border has now reached a point of crisis.”  The document orders the Secretary of Defense to support the Department of Homeland Security in securing the southern border to stop the flow of drugs and people.

FROM THE WHITE HOUSE – WHAT: President Donald J. Trump is authorizing the deployment of the National Guard to support the Border Patrol in its mission to protect our country and stop the stream of illegal immigration.

To give our Border Patrol agents the support they deserve, President Trump is authorizing the deployment of National Guard units to the southern border to aid their mission.

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I don’t know how many people are connecting the dots of President Trump’s border security proposals, and the increased urgency therein, to the upcoming -almost guaranteed- outcome of the Mexican election… but the connection is too brutally obvious to be ignored by the intellectually honest.

With a commanding -and growing- 18 point lead, it is almost a certainty our closest Southern neighbor is going to be run by a far-left Marxist ideologue, Andres Manuel Lopez Obrador.  It is against this backdrop, and the certain conflict with the U.S. economy, where we see a renewed sense of urgency from President Trump today:

WASHINGTON DC – President Trump on Tuesday said that the U.S. will secure the southern border with the military until a wall can be built, calling the move a “big step.”

Trump made the remarks during a meeting with Baltic leaders, where he said he had discussed the matter with Defense Secretary Jim Mattis.

“Until we can have a wall and proper security, we’re going to be guarding our border with the military,” he said. “That’s a big step, we really haven’t done that before, or certainly not very much before.”

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With the migrant march from South America, mostly Hondurans, gaining more media attention, it is also important to revisit last year’s threats -from Mexican officials- which preceded their current year complicity.

♦  In August of 2017 President Trump and Commerce Secretary Ross were discussing their trade efforts within NAFTA and renegotiation with Mexico/Canada on a trilateral basis.  However, the U.S. administration said if it doesn’t work, they’d scrap the 3-way NAFTA deal and go one-on-one with individual bilateral agreements.  In response, Mexican Economic Minister Ildefonso Guajardo threatened to flood the U.S. with South American illegal aliens, criminals and gang members as leverage:

MEXICO CITY (Reuters) – Mexico could pull back on cooperation in migration and security matters if the United States walks away from talks to renegotiate the North American Free Trade Agreement, the Mexican economy minister said in a newspaper report published on Thursday.

“If they do not treat [us] well commercially, they should not expect us to treat them well by containing the migration that comes from other regions of the world and crosses Mexico,” Guajardo said. “Or they should not expect to be treated well in collaboration with security issues in the region.” (LINK)

However, Mexican Minister Ildefonso Guarjardo’s threat was mild compared to a threat in January 2017, when another Mexican official promised to flood the U.S. with South American drugs and gang violence:

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If the news from the first round of Mexican election polling was any better we’d have to be twins to enjoy it.   Andres Obrado, a well-known Marxist who intends a government take-over of the Mexican energy sector, is holding a commanding 18-point lead.

This is excellent news for border wall enthusiasts and those who want the Trump administration to pull out of NAFTA.

Mr Obrador is the modern Mexican version of Hugo Chávez (or Nicolàs Maduro/Bernie Sanders) with a similar ideological outlook.  His resulting territorial economic policies are certain to deliver the Venezuela outcome to the Mexican people.

For American companies doing business in Mexico, an Obrador win would be the worst possible outcome.  They will lose hundreds of billions from their current Mexican investments, as President Obrador swoops in to skim (tax) corporate profits for his state-run enterprises and care for ‘his people’. However, the good news is – those U.S. multinationals will likely all return to the U.S. asap.  Lucky day, lucky day.

Funnily enough, U.S. Commerce Secretary Wilbur Ross must have held some insider information about this likelihood when he sheepishly hinted toward this possibility a few weeks ago.  Oh, the poor multinational critters in Wall Street are gonna have a heart attack when they see this.  Wait, wha… they did already?

MONTERREY (Reuters) – Mexican left-wing presidential candidate Andres Manuel Lopez Obrador has an 18-point lead ahead of the July 1 election, according to a poll published on Monday that showed him with a growing advantage at the start of formal campaigning.

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“There are Trillions at Stake”… ~ CTH

By now most have become aware of the story of thousands of people from Central America, mostly Honduras, walking toward the U.S. border where they intend to gain entry into the U.S. legally or illegally.

Transparently, against mid-term elections (U.S. and Mexico), and contrast against the backdrop of Mexico’s opposition toward the Trump administration vis-a-vis NAFTA, the People Without Borders march is one big left-wing political ploy with multiple benefactors, organizers and political groups positioning for maximum ideological benefit.  Do not discount the U.S. Chamber of Commerce multinational financial alignment within this endeavor.

(Via Daily Mail) – An army of a thousand migrants from Central America are marching through Mexico to the US where they hope to get in by any means – legal or not.

The massive flood of migrants hail mostly from Honduras, where the country has become rife with gang violence and political unrest.

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Earlier today President Trump tweeted concern about the politicization of border security and the unwillingness of Mexico to confront their side of the equation.  [the three tweets from POTUS Trump follow the video snippet]

Before attending Easter Mass today, President Donald Trump briefly paused and responded to a question about his calling out Mexico for not helping the U.S. secure the border. WATCH:

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National Trade Council Director Peter Navarro appeared on CNBC, prior to today’s massive U.S. stock market increase, to discuss ongoing trade initiatives.

U.S.T.R. Robert Lighthizer is currently conducting simultaneous bilateral trade negotiations with South Korea, Philippines, Vietnam, Australia, China (way-points), Japan, Mexico/Canada (NAFTA) and the European Union.

Trade talks going on with numerous countries that, for many years, have not treated the United States fairly. In the end, all will be happy!

— Donald J. Trump (@realDonaldTrump) March 27, 2018

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