Prime Minister Justin Trudeau speaks Friday, August 31, 2018 about the Canadian perspective on trade negotiations with the U.S. – Everything about the Canadian position is framed through the prism of politics not economics. Virtue signalling is the primary tactic.
Trudeau and Foreign Minister Chrystia Freeland are in a tenuous position, they cannot accept the terms of the U.S-Mexico deal because they cannot afford to drop the protections and carve-outs within their highly controlled and subsidized economy. Canada would have to: drop telecommunications and banking barriers; drop protectionist tariffs on Dairy and agricultural products; and drop subsidies for the lumber and aeronautics industry.

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Well, there’s yet another promise kept.  Candidate/President Trump always said he would deploy the “killers” to renegotiate trade deals:

…‘When it comes to negotiating, “Robert Lighthizer is a vicious son of a bitch.”…

~Gordon Ritchie

Somehow I think this type of criticism will only elevate U.S. Trade Representative Robert Lighthizer in the eyes of President Trump.
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The financial media is all a flutter based on a Bloomberg report that President Trump is likely to apply tariffs on $200 billion in Chinese goods.  DUH !  Why do they think U.S.T.R. Lighthizer has been conducting open section 301 tariff hearings for the past week?  Of course President Trump is considering tariffs on $200 billion in trade goods; this approach is not exactly a secret.
Then again, most of the financial media are clueless about the larger economic strategy and how China ties into the negotiations with North Korea.  I digress.

The proposed tariffs are a supplemental action in response to China’s unfair trade practices related to technology transfer, intellectual property, and innovation, based on the findings in USTR’s investigation of China under Section 301 of the Trade Act of 1974. Tariffs on $34 billion in goods from China are currently in effect, and tariffs on an additional $16 billion took effect on August 23rd, 2018.
The issue is not *if* President Trump will apply the 301-tariffs, the question is *how* and *when*?
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For Canada it’s all about politics and face-saving. How to tell? Well, after Canadian Foreign Minister Chrystia Freeland went out of her way last night to tell the media she would not conduct negotiations in the press, Freeland runs back to the press to discuss the ongoing negotiations. She is signaling to a domestic audience…. nothing more.
Domestically Justin and Chrystia from Canada have seen complete collapse in support from the Canadian electorate. Canadians have little confidence that Chrystia and Justin are capable of negotiating a deal that will benefit their economy. Trudeau and Freeland rolled the political dice; played political games; and crapped out.
Mexico (Seade) and the U.S. (Lighthizer) have structured a strong trade agreement that benefits both countries and creates an actual manufacturing and commerce bloc. Canada has no option except acquiescence, if they want to avoid Lighthizer sending a 2205 notification to dissolve the Canadians from the U.S-Mexico deal.

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In January 2018, when still attempting the political use of the negotiations, Freeland burned Lighthizer. The U.S. Trade Rep has not forgotten. Canada’s ability to enter the deal is now dependent on Lighthizer allowing them a way to save face.  Robert Lighthizer, like Trump, really doesn’t care…. The U.S. is in an overwhelming winning position either say…. Hence, Freeland’s continual appearances in the media, she’s shook.
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Ezra Levant of The Rebel Media discusses the background of Justin from Canada politicizing trade negotiations with President Trump eventually leading to a complete collapse of trade diplomacy.

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The *tell* is within: “we have agreed not to conduct our negotiations publicly.”
Remember, U.S.T.R. Lighthizer, Jared Kushner, Secretary Ross and the U.S. team have never made a public comment about internal negotiations, ever.  The only trade team that has discussed the dialogue, and specifically their individual terms within the dialogue, is Justin from Canada’s team, specifically Chrystia Freeland.  This has been a weakness of team sparkle socks all along because it highlights their political prism.
So when princess rainbow sparkles and Justin back away from talking about their unicorn demands they are signaling a shift from a political prism toward a more economic-based set of determinations.  Essentially, their political approach has failed; they are weakened.

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“what both sides need” interpreted: Justin and Chrystia are trying to gauge the best retreat from the position of political damage. I’m going to hold-off on expanding consequences to Canada joining until I see if they *actually* do join. However, the biggest part of the U.S./Mexico agreement would eliminate Canada’s ability to use the NAFTA loophole.
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What happens when the silent majority stand up in full force and elect a president entirely focused on advancing the interests of Main Street over Wall Street?  What happens when that President takes office and begins systematically instituting a comprehensive series of economic policies that are targeted to Make America Great Again?
The middle-class of America benefits.  That’s what happens.  And when economic, trade, and U.S. financial policy are focused to improve the outcomes for the middle-class, the entire landscape of beneficial outcomes within the U.S. economy shifts…. Bigly.

Express Pro Survey – America’s blue collar workers may be one of the most optimistic groups in the country today. According to a new study conducted by The Harris Poll and commissioned by Express Employment Professionals, 85 percent of America’s blue collar workers see their lives heading “in the right direction.”
Sixty-nine (69) percent also say their local communities are heading in the right direction, and 51 percent say the same about the country as whole.

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Earlier this afternoon President Trump announced an initiative to provide federal grants to assist communities with drug abuse and prevention.  Marking the 20 year anniversary of the Office of National Drug Control Policy’s (ONDCP) Drug-Free Communities (DFC) Support Program grant awards, today President Trump announced $90.9 million in grants to 731 local drug prevention coalitions.
Continuing the tradition of transparency in government; during the media availability for the round-table President Trump answered numerous questions. The round-table discussion begins the video below.  The impromptu presser begins around 14:40 of the video:

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*Asked about Don McGahn* – President Trump called him a really good guy, added that he has a lot of affection for Don; said McGahn is likely headed to the private sector. Asked if he was concerned about McGahn’s cooperation with Mueller. POTUS replied: No, adding that he had approved of McGahn speaking to the special counsel.
*Asked about trade negotiations with Canada* – President Trump said negotiations were going really well. Noted that White House and Canadian officials “negotiated late into the evening” last night. A lot of trade deals are working out well.
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During analysis of the U.S-Mexico trade agreement terms it became obvious that *if* Canada was going to join the pact they would have to almost completely acquiesce and reverse on their former positions.   It now is entirely plausible that just might happen.
When entering the meeting with U.S.T.R. Robert Lighthizer, Canadian Minister Chrystia Freeland spoke specifically about “Canadian workers”.  Justin from Canada has been very cautious in his word choices also speaking about “Canadian workers”.  As Freeland exited the first meeting with Lighthizer the reasoning for their collective word choice is becoming apparent.  Canada is preparing to take a knee, and they are positioning for the least amount of political damage possible.  WATCH the exit of first meeting:

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Team Trump has positioned this perfectly. By using NAFTA section 2202, to construct a modification of the original 1993 agreement, Lighthizer is intending to send a 90-day notification letter to congress informing them the U.S. and Mexico have agreed to modifications of their bilateral trade agreement.
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A few months ago we highlighted a discussion between Ezra Levant and Manny Montenegrino when they first began to notice the direction of Trump strategy and the duplicitous political agenda of Justin from Canada.  After the announcement of the U.S./Mexico trade agreement yesterday, Levant and Montenegrino revisit the discussion.
While both Canadians seem to overlook the importance of President-elect Lopez-Obrador, Jesus Seade, and the mutually beneficial alignment with U.S.T.R. Lighthizer, their perspective on the motives of Justin from Canada and President Trump circle close to the target.

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Meanwhile Chrystia from Canada has now arrived in Washington DC:
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