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Trump did in less than 2 years what Obama, W Bush and Clinton didn't do in 24 years. Re-negotiate a bad deal.
not bad.....Trump kept his promise to deal with NAFTA......unlike Obama when he promised to deal with it in 2007 running for President and changed his mind....Obama and Hillary wanted TPP, which would have screwed more the working class and ship more jobs overseas.
Canadian dollar gained with NAFTA update. NAFTA has been refreshed, as needed.
The Dairy Industry is slated to die by 1,000 cuts.
I understand that there is something that I'm missing.
What I do understand is that milk and cheese is more expensive in Canada than in the USA. That make sense, the USA dairy industry is heavily subsidized.
If that subsidized chicken, egg, milk, or cheese is sold in Canada, who pockets the change?
Under NAFTA, USA had dibs on 10% of the Canadian dairy industry with a high tariff on over-surplus. That has been increased by 3.6%.
And what did Trudeau walk away with that he didn't already have?
Nothing. And that's the point.
Under NAFTA, any trade disputes were to go through an independent bilateral trade adjudication tribunal. Trump wanted them to go through US courts. That's not happening under USMCA; so the status quo is maintained.
Trump wanted Canada to get rid of those so-called 300% tariffs on US dairy products. And that happened. But what Trump did not realize is that:
1. Those tariffs only applied to certain US dairy products, neither of which is milk or cream;
2. Over a certain quota; and
3. Those US dairy products were admitted to Canada duty-free up to that quota.
So, it's not like Canadians will be drinking American milk any time soon. Under the USMCA, Canadians may see a break on the price of shredded pizza cheese eventually, or curds for their poutine. But those are the kinds of products that are addressed; the agreement does not address drinkable milk or cream. The status quo is maintained.
Trump threatened Canadian auto manufacturers with tariffs. But what Trump did not realize is that Ford and GM manufacture different cars in different countries. As I recall, the Dodge Challenger, Chevy Impala, and Lincoln MKX are made in Canada. They are not made in the USA, but they are sold there. Tariffs might have been devastating for Canada's auto industry, but tell the American who wants a Chevy Equinox that it will cost 25% more because it comes from Canada, and he or she will turn to a Ford Edge. Except that's made in Canada too. Okay, a Honda CR-V. Nope, made in Canada again. We're back to the 1965 US-Canada auto pact, and the status quo is maintained.
So you are correct: Canada walked away with what it already had, except for minor concessions on dairy, which won't affect Canadian consumers much. I will say that Canadians like raising the duty-free exemption on cross-border online shopping to $150 (from $20), but outside of that--the status quo remains. But the fact that the US and Canada had to go through 14 months of negotiations to arrive at what they already had is not a victory for Mr. Trump. It is not a failure either--most agree that NAFTA needed an updating. But an updating is not a victory, and should not be sold as such. At best, I'd say that Mr. Trump ranted and raved over renegotiating an agreement that ended up pretty much the way it was before.
Under NAFTA, any trade disputes were to go through an independent bilateral trade adjudication tribunal. Trump wanted them to go through US courts. That's not happening under USMCA; so the status quo is maintained.
Trump wanted Canada to get rid of those so-called 300% tariffs on US dairy products. And that happened. But what Trump did not realize is that:
1. Those tariffs only applied to certain US dairy products, neither of which is milk or cream;
2. Over a certain quota; and
3. Those US dairy products were admitted to Canada duty-free up to that quota.
So, it's not like Canadians will be drinking American milk any time soon. Under the USMCA, Canadians may see a break on the price of shredded pizza cheese eventually, or curds for their poutine. But those are the kinds of products that are addressed; the agreement does not address drinkable milk or cream. The status quo is maintained.
Trump threatened Canadian auto manufacturers with tariffs. But what Trump did not realize is that Ford and GM manufacture different cars in different countries. As I recall, the Dodge Challenger, Chevy Impala, and Lincoln MKX are made in Canada. They are not made in the USA, but they are sold there. Tariffs might have been devastating for Canada's auto industry, but tell the American who wants a Chevy Equinox that it will cost 25% more because it comes from Canada, and he or she will turn to a Ford Edge. Except that's made in Canada too. Okay, a Honda CR-V. Nope, made in Canada again. We're back to the 1965 US-Canada auto pact, and the status quo is maintained.
So you are correct: Canada walked away with what it already had, except for minor concessions on dairy, which won't affect Canadian consumers much. I will say that Canadians like raising the duty-free exemption on cross-border online shopping to $150 (from $20), but outside of that--the status quo remains. But the fact that the US and Canada had to go through 14 months of negotiations to arrive at what they already had is not a victory for Mr. Trump. It is not a failure either--most agree that NAFTA needed an updating. But an updating is not a victory, and should not be sold as such. At best, I'd say that Mr. Trump ranted and raved over renegotiating an agreement that ended up pretty much the way it was before.
Yup --- this new NAFTA is an update of the old with fixes that all three countries wanted.
We won't even notice the changes......
And yes Trump has no clue how the auto manufacturing goes.
Oh for the record ---- Canadians would never use American cheese curds for their poutine. Has to be from Quebec. It's like bagels from NYC -- you can't replicate the quality elsewhere no matter what you do.....
What message does this send? Trump is busy reworking bad trade deals, improving American lives and Democrats are obsessed with high school parties and race hustling.
This message tells me that most of Trump's fans don't bother to think for themselves. They believe his bull. This trade deal is a minor tweak of the previous -- does little to improve the overall lives of most Americans and says nothing about the Democrats.
I can't stand Trump, but I won't call the revisions horrible, they are barely anything. There was no point to all the drama and then a fake "winning" at the end.
Like all the economists, business leaders etc. have said, some minor changes and a name change.
There will be some good for us, some bad, just like before.
Trump messes up stuff, then claims victory when he cleans up his own mess.
I'm perfectly happy that he didn't screw it up more, and in this day and age I do suppose that could be called "winning."
This is how I feel. A sigh of relieve that Trump didn't drag this out further. I think the midterms had him scrambling to resolve so it wasn't hanging over his head as something he can't pull together.
For the first time, the new agreement also mandates that an escalating percentage of parts for any tariff-free vehicle — topping out at 40 percent in 2023 — must come from a so-called “high wage” factory. The agreement says those factories must pay a minimum of $16 an hour in average salaries for production workers. That’s about triple the average wage in a Mexican factory right now, and administration officials hope the provision will force automakers to shift suppliers from Mexico to Canada or the United States.
There are risks to that change. Automotive analysts have warned that the provision could have a damaging effect for Americans, by raising costs for American car buyers and incentivizing automakers to move production to low-cost countries outside the United States, such as China.
Conversely, the final provision, as written, could prove relatively ineffective at shifting production — because it is not indexed to inflation. An average wage of $16 an hour will be less constraining in 2023 dollars than it is today.
Global auto supplier have many ways to deal with "parts manufacturing" and how ever they deal with it, the higher cost will be upon the sale price of vehicles which will impact Americans Auto Purchasers.
Now, what is going to make American Parts Manufactures step up and pay the $16? When this Administration stands AGAINST raising the Minimum Wage Across the nation.
Are we truly aware of the capital reserves that exist in not just China but the rise of GDP growth in other low wage Asian Nations. This plays right back to the TPP(Trans Pacific Partnership)... which is quite likely to find out, that it was a deal that Trump should not have attacked, because it would have given America accessibility, and that accessibility would play into trade agreements that would keep us in the loop, rather than put us at a point and position of challenging competition.
When the discussion of "Supply Chain" is looked into, the reality is, the supply chain is strong and dominant in Asian Regional Nations. So too is the "natural resource agreement" strong in that region as well. We ignore the value of the AIIB, which all nations except America and Mexico are part of that agreement, Japan is working to meld itself into that agreement.
At some point the value of labor in Central America will become a concern, it may be a decade or so away, as they work on corruption and crime, but fact is they can't go on forever with the level of violence that has overtaken the landscape. We might well see China as well as Russia move to infuse money into the region for economic reforms and development. Because we can be sure, that China nor Russia will be silent and stagnant as the world economics continue to change. As countries that are connected to the N. American Continent, we've long neglected them in ways that we should have worked to change decades ago. What the outcome may be is unknown but it is certain the region of Central America won't remain in the status it currently exist. Mexico will see itself change in relation to any mass growth and development in Central America.
Today, there is "massive money" moving in All sectors of the Globe. Nothing happens in a vacuum, and the rest of the world is paying close attention to "whatever happens".
We can't omit the position of the EU with regards to Iran, and its program to sustain trade beyond any U.S. Sanction... These are not small things.
NAFTA was a 1990's model... based on many factors pre-1990's... so much has changed since then, and the volume of capital that spins in the global arena is astronomically higher than the 1980's or the 1990's and nations are recovering after the global crash... and "everyone learned something"... Even technology since the Crash of 2007-2008 has advanced tremendously.... so "information flows globally".
Trump has found out the hard way that his illusion of American companies expanding industrial capacity in America, is not to be the ease that he assumed, not only is it not moving in that direction, with the Tariffs and other Contentions, it has not slowed companies from looking at ways to produce on foreign shores to avoid being damaged by the escalating cost that the Tariffs will continue to generate. It has not been favorable to the U.S. Industrial growth. Its basically only shaping up how "imports will flow from many other countries". Many other localities are growing and doing so at rapid rates. The shift even in China of investments in other Asian regional nations, all benefit from the massive supply chain that exist in and around that entire region.
America's industry has not expand, it has not raised wages and it faces raising cost to vast segment where wages is stagnated and areas where wage is tired to low wage job types. Tax cuts to the wealthy industrialist, has only given them more capital to invest in emerging industrial centers and those centers are not necessarily in America. Nothing has slowed the off shore housing of money, and nothing has slowed the investments by American companies in foreign locations. Examples, is Harley Davidson, Ford and a host of other Industrial leaders, understand every well where the "supply chains exist" and they see the economics of populations in various countries rising and the purchasing power of people in those countries increasing.
We should look at the building boom that is widespread outside of the U.S. We should look at the change in how education has saw America go from 6th to 27th. Technology will not slow that change down.
We cannot remake the 1940's and 1950's and we are not advancing toward training and educating our mass population on new technology and new skill sets. Yet, we watch as many of the foreign nations are adept at training their people to build "new technology" to a level, we are not on the horizon when it comes to mass retraining. This is a deficit that is far grater than current monetary measure. Nor does it position us for the monetary improvements that mass training could provide us.
We might want to ask are we 'reshuffling coal ash' trying to create heat, while others are storing up on new means of creating economic heat by skill training, and expanding their ability to have tech development wide spread across their nations. We may have innovators that are in a small circle, but what they create is not being mass produced by a well trained American population.
Go to various cities and look at out un centralized tech development and tech manufacturing is. It certainly has meaning when we have vast segment of no high tech training of the broader population. People should really look at "licensing agreement" and they are not being centered in America for production and integration of industry expansion in America.
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