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  • NAFTA Renegotiation Starts Today.

    by coldwarrior ( 135 Comments › )
    Filed under Economy, Open thread at August 16th, 2017 - 4:39 am

    More Winning!

     

    Discussions to begin renegotiating the North American Free Trade Agreement (NAFTA) are set to begin Wednesday in Washington, D.C., when the United States, Canada and Mexico will come together to work out new terms for the trilateral trading pact.

    Mexican officials have said the plan is to hold seven rounds of talks at three-week intervals, according to Reuters.

    President Donald Trump, who has called NAFTA “the worst trade deal” the U.S. has ever approved, is not expected to be included in the initial rounds of talks, as he continues his 17-day working vacation. Trump officially announced his intentions to renegotiate the agreement shortly after his inauguration, part of his campaign promise to put “America First.”…

    According to the White House, since the implementation of NAFTA in 1994, the U.S. trade balance with Mexico has shifted from a surplus of $1.3 billion to a $64 billion deficit in 2016.

    That deficit is the ‘giant sucking sound’ of American jobs going south. It is not Free Trade if one country grossly undercuts wages, environmental protections, and workplace safety. Adam Smith was talking about trade of British Wool for Portuguese Port wine, not exporting thousands and thousands of jobs to another country to sell back those goods to us. Smith would have never gone for exporting the British Woolen mills to Portugal, ever. NAFTA is not Free Trade nor was it ever meant to be. It was a sellout of America.

    Another likely source of dispute is Washington’s desire to eliminate an infrequently used dispute resolution process under which a NAFTA panel can overrule individual countries’ decisions on dumping and unfair subsidies.

    Washington views Chapter 19 as unfair, since it can overrule decisions made by US agencies on imports thought to receive unfair subsidies.

    But for Canada especially, which has successfully used the process in the longstanding timber dispute with the United States, Chapter 19 is not negotiable.

    And Mexico’s Congress passed a resolution last month calling for negotiators to resist any move to eliminate the mechanism.

    The question remains whether that becomes a red line for the US side, and would prompt Washington to withdraw from the trade deal that has allowed vast multinational supply chains to form throughout the region

    I don’t think Adam Smith would have went for Chapter 19 either. He was a huge fan of British Sovereignty. I’m a huge fan of American Sovereignty.

    Canadian Foreign Minister Chrystia Freeland suggested on Monday that Canada could walk away from the talks if the United States insisted on scrapping the mechanism to resolve trade disputes between the three NAFTA countries.

    You tipped your hand sweetie, you don’t play much poker or negotiate real often do you?

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