U.S. Trade Representative Robert Lighthizer and the trade ministers from Canada and Mexico are not in Washington DC this weekend; however the trade staff from all three nations stayed in DC working to finalize agreement on NAFTA with increased urgency.

The nation pushing hardest to complete an agreement quickly is Mexico.  The Mexican national election is July 1st and the soft-Marxist Andres Manuel Lopez Obrador (AM LO) has increased his lead.  AM LO is now 22 points ahead of his next closest competitor. Lopez Obrador, a self-described Hugo Chavez ideologue, is guaranteed to win – and Mexico will become Venezuela 2.0 within five years.

The looming Mexican election, and the radical political departure therein, means if a deal is not made soon, there will be no deal.

Andres Manuel Lopez Obrador will likely nationalize large segments of the Mexican economy for more progressive wealth distribution…. Enter, quickly, and with a transparency in their desperation, the multinational corporations who have already invested hundreds of billions into Mexican ports, transportation infrastructure, raw material procurement contracts, manufacturing/processing and assembly facilities, and all around exploitation of NAFTA as a tariff-free, profit-driven, back-door to the U.S market…

Yes, as oft repeated, there are trillions at stake.

(more…)

Trade Representatives from Canada, Mexico and the U.S. are in the deepest weeds within NAFTA negotiations, and some of the current proposals are flat out nuts.

Within the auto-sector the “Rules of Origin” continue to be one of the biggest sticking points.  The U.S. position is that 80% or more of a vehicle made in the U.S., Mexico or Canada should be made from parts from the U.S., Mexico or Canada, ie. North America.  Canada and Mexico are trying to argue for lower North American content because they want more Asian/Chinese parts in American automobiles. [Reuters Link]

On its face their position is ridiculous.  Canada and Mexico are not arguing for more Canadian and Mexican content; they are arguing for more Chinese content.  The U.S. is arguing for more North American content.  Canada and Mexico want to support China’s economy; the U.S. wants to support Canada, Mexico and the U.S. economy.   Let that sink in for a moment.

In an effort to enhance their ridiculous position, Canada and Mexico have come up with a proposal that is, well, bananas. Can/Mex want the United States to tax vehicles made in Canada and Mexico.  Stop. Re-read that.  Yes, that is correct.  Canada and Mexico want Chinese parts so badly, they are arguing for the U.S. to tax American (NAFTA) automobiles.

Nuts.

(more…)

Allow me to introduce:”SUPER-MAGA-NAFTA-WINNING“

This Reuters article is framed around Mexico making a surprise announcement they will support the U.S. steel tariff against China by shutting down the NAFTA back door on that specific trade segment….  However, the bigger story is Mexico’s admission/concession to the U.S. trade position that Canada and Mexico structure access to the U.S. market inside their trade deals with other nations.

With a Marxist about to win the July 1st election; and with certain nationalization of private industry soon to follow; and with free capital markets anticipating and responding by shifting investment into the U.S.; Mexico proposes to close the fatal flaw in NAFTA.

MEXICO CITY (Reuters) – The ministers leading the renegotiation of the North American Free Trade Agreement (NAFTA) could meet again on Thursday in Washington as they push for quick progress, Mexican Economy Minister Ildefonso Guajardo said on Monday.

Guajardo said he had spoken to Canadian Foreign Minister Chrystia Freeland on Monday and would talk to U.S. Trade Representative Robert Lighthizer on Tuesday to see about agreeing a trilateral meeting in Washington on Thursday.

(more…)

The next president of Mexico, Andres Manuel Lopez Obrador, or “AM LO” as he is known locally, is a well known Marxist.  AM LO is virtually certain to be the winner of the July 1st Mexican election.  The U.S. will have a Hugo Chavez ideologue at our southern border.

Today, front-runner AM LO told an audience in Rosarito (Baja California peninsula) that President Trump’s bad experiences investing in Mexico, and encountering corrupt officials throughout government, were likely the reason for his negative view of the country.

“[Trump] invested here in Rosarito and also in Cozumel, Quintana Roo, and because of Mexico’s corrupt governments he had to leave,” Lopez Obrador said. “That’s why he got a bad impression of our country.”  (Reuters link)

AM LO went on to say his national government would eliminate the decades-long corruption within government and the judicial system.  Keep eyes-wide-open; once in office AM LO will likely repeat Chavez/Maduro and remove blocks to his agenda including legislative opposition, elections and eventually term limits.

(more…)

The Eagle and the Arrow – An Aesop’s Fable

An Eagle was soaring through the air. Suddenly it heard the whizz of an Arrow, and felt the dart pierce its breast. Slowly it fluttered down to earth. Its lifeblood pouring out. Looking at the Arrow with which it had been shot, the Eagle realized that the deadly shaft had been feathered with one of its own plumes.

Moral: We often give our enemies the means for our own destruction.

The United States economy is the Eagle; the shaft is Wall Street; the feather is the U.S. middle-class, and the archer is U.S. Chamber of Commerce President Tom Donohue.

Need proof?  Please, don’t take my word for it, read:

Tom Donohue: Tonight feels like a gathering of old friends. Five years ago, I had the pleasure of being in this beautiful city to help start a hemispheric business dialogue, and I’m pleased to be back in Lima for this year’s CEO Summit of the Americas.

[…] I also want to talk a little about the priorities within our government. Because, as everyone knows, many of the policy decisions coming out of Washington today not only impact the U.S. economy and its businesses and workers, but indeed those across this hemisphere and around the world.

[…] The Chamber has helped lead the fight to protect the status of more than one million people who are at risk of deportation. It makes no sense to send one million talented workers back to their home countries when we don’t have enough labor to get the job done in our own. This includes the young men and women who were brought to our country as children through no fault of their own—known as “the Dreamers”—as well as hundreds of thousands of individuals who are working in the U.S. under temporary protected status.

(more…)

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.

(more…)

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.

(more…)

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.

(more…)

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.

(more…)

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.”

(more…)