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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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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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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As Foreign Minister Chrystia from Canada arrives in Washington DC to meet with U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin is interviewed by CNBC.
Triple Play: Finalize NAFTA (or two bilats); fill in the details on previously agreed EU deal; then face-down red dragon (China).

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Additionally, Mnuchin had some impromptu remarks (below):
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Commerce Secretary Wilbur Ross appears on Fox News to discuss the U.S-Mexico trade agreement and the unlikely possibility of Canada to join the agreement.  In order for Canada to join the agreement they would need to remove protectionist tariffs (dairy); remove subsidies to several sectors (lumber, aeronautics); and in large measure open their economy to free, fair and reciprocal trade.
Additionally, The Wall Street corporations who have exploited NAFTA for strategic financial advantage are unhappy with the removal of the NAFTA loopholes.

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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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The corporate-owned, Wall Street-controlled, U.S. media are twisting, contorting, and in many cases hiding the consequential details of the U.S-Mexico trade agreement.
The reason for MSM disinformation campaign is quite simple: the deal helps the U.S. middle-class; helps both U.S. and Mexican workers; begins deconstructing the tentacles of Wall Street economic policy; and highlights a major success story for President Trump and the country in general.  The UniParty, Wall Street and the agenda of their purchased political class are being dismantled…. All of those interests are furious.
While it is still available, watch the 10 minutes of this report (and interview with U.S.T.R. Lighthizer) from 07:00 to 17:00 to get a generally good idea of how significant a day this is.  (prompted, just hit play)
https://youtu.be/Uen12x0jmXA?t=7m
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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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