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And now Canada and her people will get the shaft courtesy of Trudeau. Between his horrible deal with Asian countries allowing cheap parts to flood into the country and now being issued a take it or leave it deal by the United States and Mexico, Canada will be bent over a table for years to come the same way the USA was the past 25 years. I wonder what Ross Perot thinks about this new deal? He was 100% right about NAFTA.
“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.”
Haaar! It was said that Canada "refused" to negotiate over the sunset clause and now you have a deal without a sunset clause. So who exactly was it demanding an agreement with a sunset clause again?
Trump isn't trying to renegotiate this new, fair deal. There's no need for a sunset clause.
Have details of the deal actually been released yet? I have heard that we got Mexico to raise their auto wages to an average of $16/hr which is good for the Mexican worker, but one of the main reasons car companies do business in Canada and Mexico is that they don't have to deal with healthcare. I don't see this influencing production to return in a meaningful way. Were there any other major details released yet?
Yes, the details have been released. No, Mexican workers did not get a raise to $16 per hour. 45% of all materials used in passenger vehicles must come from workers in the US or Mexico earning at least $16 per hour. That's not all going to be Mexican workers. The deal also includes a clause which allows Mexican auto workers to unionize. That's where you're likely to see health care come into play. Remember AMLO is a Marxist, who is criticizing the multinational corporations treatment of Mexican workers and is vowing to improve conditions dramatically for them. What's good for Mexico, is good for the US in this case. More jobs, better jobs, better wages & better benefits mean less illegals and the repatriation of many existing illegals.
As for influencing US production in a meaningful way, the new rule says 75% of all materials/parts used in passenger vehicles will have be to MADE, not ASSEMBLED, in the United States or Mexico. Currently a company like BMW builds a plant in Mexico, ships their German made parts there, has Mexicans assemble them for $4 per hour, with no benefits, then ships to the US market tax free, because these are "Mexican" products. Now BMW will have to build factories in the US/Mexico where they make the actual parts that are to be used in the assembly of their vehicles and they're going to have to pay more than $4 per hour, with no benefits for the Mexican slave labor. That will mean billions in new investment, hundreds of thousands of jobs and trillions of revenue long term.
"There is no formal free trade deal between the US and Mexico, only an agreement between the two countries on how to resolve key issues in their trade relationship as part of the NAFTA talks. The US trade representative's office officially described the agreement as "a preliminary agreement in principle ... to update the 24-year-old NAFTA with modern provisions representing a 21st century."
In other words. Nothing....NAFTA still stands.
He's doing with NAFTA the same thing he's going with the ACA....finding out that trade is complicated. On the job. Training.
Earlier in the thread people were claiming Mexico wouldn't do the deal if it didn't include Canada. I was addressing that with this post.
Yes -- you are right -- initially Mexico was saying that Canada had to be in the deal and now they are saying they don't have to be. I stand corrected.
The bi-lateral deal still has to go through both USA & Mexico Congress.
As far as Canada,
“NAFTA is overall a trilateral agreement, but inside that trilateral agreement, there are bilateral trading relationships,” Canadian Foreign Minister Chrystia Freeland said. “The U.S.-Mexican issues inside NAFTA are really complicated and it makes a lot of sense — and we welcome the fact — that the U.S. and Mexico are rolling up their sleeves and devoting a lot of time to resolving those issues.”
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The conditions in the agreement with Mexico are supported by Canada.
I assume that given Canada was ready to sign in May, except for the sunset clause , and that issue has been resolved....it may not be a big deal for Canada/USA to come to terms.
On that point alone, I can't wait to see the anti $15 min wage for US workers folk squirm. How do they reconcile that? Sounds like Mexico will be getting the better end of the deal based on your synopsis. MMGA?
Why would anyone in America squirm? American auto workers are already making that. And it isn't a minimum wage, as has been explained several times already.
It's like this. Let's say you make $20/hr making widgets. But your company owner realizes he can move the show down south where Jose will make the widgets for $3/hr. You can't compete with that. You can't match that wage and make widgets for the same amount and survive. You can't argue that your owner isn't making a smart economic move. You get laid off. But now Jose must be paid $16/hr. Now it's not so cost effective for your owner to move the show. You get to keep your job.
What this provision does is minimizes Mexico taking our auto jobs by drastically undercutting our wages.
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