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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CTH takes a little flak for pointing out the obvious; that’s ok, it doesn’t change the reality: When you confront the manipulated multinational trade system – the multinational Wall Street entities who have historically benefited from that system will lose.

It is impossible for Wall Street corporations invested overseas not to lose some financial position. This is reality, and this is also necessary.  Meanwhile U.S-centered  corporations will gain valuation in direct proportion to the amount of investment they hold inside the U.S…

White House Trade Director Peter Navarro discusses the ongoing trade initiatives, China, Wall Street and NAFTA.  President Trump has indicated a strong preference for U.S.T.R. Lighthizer to make a determination about NAFTA as soon as possible. WATCH:

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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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In retaliation for $50 billion in U.S. trade tariffs against Chinese imports, China laughably hits back with $3 their own billion tariffs against the U.S.  According to most reporting Beijing has selected U.S. pork and scrap aluminum as targets for a 25% tariff, along with wine and fruit tariffs around 15%.

It should be emphasized the approach by China is rather ridiculous considering the Chinese government purchased the largest U.S. pork manufacturer Smithfield in 2013 for $5 billion; at the time the purchase price was 30% more than the company was worth.  Smithfield, now a Chinese company, represents 25% of all U.S. pork products.

Do you really think China is going to not import it’s own pork products… or subject them to a domestic tax?  Think about it.  It’s ridiculous.  China knows they have ZERO leverage in a trade-dispute with the U.S., they cannot afford to lose access to the U.S. market.

The example of Smithfield foods is exactly what we have outlined in how China cannot sustain itself and needs to control the assets of foreign countries.  Hence, their one-road/one-belt program for securing products and raw materials.  China is a dependent economy, they need to exploit global trade to survive.  China cannot feed itself. This is the inherent flaw within their short-sighted authoritarian government-controlled economic model.

Again, for emphasis, the Chinese government underwrote the purchase of Smithfield foods in 2013.  They paid 30% more than the company was worth because they were securing access to food just like they would any other raw material (uranium, minerals, etc).  China also purchases U.S. politicians to retain their ability in this regard.

Now look at the cartoon from the unofficial Chinese state-run media today:

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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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United States Trade Representative Robert Lighthizer releases the final report into Chinese trade practices including intellectual theft:

[scribd id=375056913 key=key-ikcrKkfRNxfhughFkXe9 mode=scroll]

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Ambassador Lighthizer also appeared on CNBC for a discussion of content:

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The final quantification of the Bureau of Economic Analysis fourth quarter GDP growth rate was released today, reflecting an anticipated increase from the prior two estimations. The last revised estimation of GDP growth (February) was +2.5%, the final revised estimate is +2.9% growth.

A massive increase in consumer spending (+4%) around the October through December 31st time-frame (Q4) was offset by those dollars purchasing a large portion of imported products.  The GDP growth deduction from import purchases was 1.99%. [See table #2, line 50 pdf here]

In short, American consumers spent significantly more than usual in the holiday season; however, many of those purchases were foreign goods.

From the BEA Report – Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the fourth quarter of 2017 (table 1), according to the “third” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.2 percent.

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White House Director of Trade and Manufacturing policy Peter Navarro discusses the revamp of the KORUS trade deal with South Korea.  In addition Navarro discusses the ongoing Trump administration’s tariffs on steel and aluminum, as well as plans to impose tariffs on Chinese products surrounding violations of intellectual-property rights.

[NOTE: Final USTR 301 Report on China was released last night]

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JOINT STATEMENT – Today, Ambassador Lighthizer and Minister Kim are pleased to announce that the United States and the Republic of Korea have reached an agreement in principle on the general terms of amendments and modifications to the United States-Republic of Korea Free Trade Agreement (KORUS FTA). The nations have also agreed on terms for a country exemption for the Republic of Korea from tariffs imposed on steel imports under Section 232 of the Trade Expansion Act of 1962 pursuant to Presidential Proclamation 9705, as amended.  The arrangement with respect to steel imports is expected to take effect on May 1, 2018.  (link)

Ever since the original 2012 US-Korea free trade agreement (KORUS) went into effect, the U.S. trade deficit in goods with Korea increased by over 73 percent from $13.2 billion to $22.9 billion (2017), while the overall deficit increased by 70 percent from $6.3 billion to $10.7 billion (2017).  President Trump committed his administration to changing this immediately and renegotiating a deal that benefited the United States.

“The improved KORUS agreement reflects the President’s leadership in delivering more reciprocal trade outcomes benefiting U.S. workers, exporters, and businesses. The United States and Korea have strengthened an important economic relationship by agreeing to substantial improvements to KORUS that will help rebalance our trade, reduce our trade deficit, and expand U.S. export opportunities.”  ~ U.S. Trade Representative Robert Lighthizer

Here’s the historic details:

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The actual announcement of KORUS (“KOR”+”U.S.”), the renegotiated U.S. and South Korea trade deal, has yet to be made by U.S. Trade Representative Robert Lighthizer, Commerce Secretary Wilbur Ross and U.S. President Donald Trump.  However, more details are surfacing inside KORUS media leaks.  Fantastic job by Lighthizer!

TOP LINES:

• U.S. Gains twice as many exported vehicles into S-Korea (50k per manufacturer, per year).  [No word on possible Kia / Hyundai tariff or quota – RE: “unlikely”]
• South Korea drops ridiculous customs inspection barriers. [Trade trickery ploy]
• U.S. retains 25% Tariff on S-Korea pickup trucks with extension for 20 years.
• South Korea gets two year exemption from a 25% U.S. steel tariff, but must drop steel export level to 70% of prior two years shipments. (A controlled reduction of 30%).

(Via AP) The new deal doubles — to 50,000 — the cars each U.S. automaker can export annually to South Korea, reduces bureaucratic barriers to American products and extends a 25 percent U.S. tariff on South Korean pickup trucks by 20 years, through 2041.

South Korea escapes America’s new 25 percent tariff on imported steel — but must accept quotas on steel exports equal to 70 percent of its average annual shipments to the United States between 2015 and 2017.

The officials spoke on condition of anonymity in order to discuss the policy ahead of an official announcement.

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