What trade deals? NAFTA 2.0 is the only one's he's done. Canada was the big winner in that one. The US got nothing.
Um, Canada got screwed with the USMCA deal...
You just proved you do not have nary a clue what is actually in the deal.
'Prime Minister Justin Trudeau. There might not be a lot of love lost between Trump and Trudeau, but in the end, Trudeau didn’t cave much on his key issues: dairy and Chapter 19, the treaty’s dispute resolution mechanism. Trudeau held out and got what he wanted: Canada’s dairy supply management system stays mostly intact, and Chapter 19 remains in place, a win for the Canadian lumber sector. On dairy, Canada is mainly giving U.S. farmers more ability to sell milk protein concentrate, skim milk powder and infant formula. On top of the substantive issues, Trump went out of his way to criticize the Canadian negotiating team in the final days of deliberations, which Trudeau can play up as a sign of just how hard his staff fought on this deal.'
Winners and losers of the ‘USMCA’ trade deal
PLUS, it looks like Canada will not even ratify it.
Bloomberg - Are you a robot?
I suggest you stick to whatever the hell it is you do know.
Because USMCA AIN'T it.
Have a nice day.
Canadian Economy Halts – GDP Growth Drops to 0.1 Percent, and No-One Is Talking About Why…
Within the new USMCA the critically important NAFTA loophole
was closed.
Over the past three decades both Canada and Mexico structured key parts of their independent trade agreements to take advantage of their unique access to the U.S. market. Under the existing NAFTA, Mexico and Canada generate billions in economic activity through exploiting
the NAFTA loophole.
China, Asia (writ large), and the EU enter into trade agreements with Mexico and Canada as back-doors into the U.S. market. So long as corporations can avoid U.S. tariffs (and rules of origin that pertain to those tariffs), by going through Canada and Mexico they would continue to
exploit this approach.
By shipping parts to Mexico and/or Canada; and by deploying satellite assembly facilities in Canada and/or Mexico; China, Asia and to a lesser extent EU corporations exploited a NAFTA loophole for rules of origin on finished goods.
Through a process of building, assembling or partially manufacturing their products in Mexico/Canada those foreign corporations could skirt U.S. trade tariffs and direct U.S. trade agreements. The finished foreign products entered the U.S. under NAFTA rules.
Why deal with the U.S. when you can just deal with Mexico, and use NAFTA rules to ship your product directly into the U.S. market?
This exploitative approach, a backdoor to the U.S. market, was the primary reason for massive foreign investment in Canada and Mexico; it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to shut down that loophole and renegotiate NAFTA.
At the
conclusion of Round #6, just before giving up on Chrystia Freeland for good, this was the direct issue at the heart of a very frustrated U.S.T.R. Lighthizer’s strongly worded response to Canada:
[…] In another proposal, Canada reserved the right to treat the United States and Mexico even worse than other countries if they enter into future agreements. Those other countries may, in fact, even include China, if there is an agreement between China and [Canada]. This proposal, I think if the United States had made it, would be dubbed a “poison pill.” We did not make it, though. Obviously, this is unacceptable to us, and my guess is it is to the Mexican side also.
(read full remarks)
This loophole was the primary reason U.S. manufacturers relocated operations to Mexico. Corporations within the U.S. Auto-Sector could enhance profits by building in Mexico or Canada using cheap parts imported from Asia/China. The labor factor was not as big a part of the overall cost consideration as cheaper machined parts and imported raw materials.
If the U.S. applied the same tariffs to Canada and Mexico we apply to all trade nations, then the benefit of using Canada and Mexico -by those trade nations- is lost.
Corporations will no longer have any advantage, and many are likely to just deal directly with the U.S. This was the reason Trump, Lighthizer and Ross to retained
Steel and Aluminum tariffs on Canada and Mexico until they agreed to the new USMCA rules.
When Trump took away the flawed NAFTA market access; and when Trump removed the ability of Mexico and Canada to broker themselves for economic benefit; there was no longer a financial benefit behind corporations investing in Canada. Under a binding trade pact between the USMCA partners, the NAFTA flaw is closed.
As a direct outcome billions of investment dollars are now being removed from any future consideration into Canada.
That’s the overarching reason for the Canadian GDP to halt.
Here’s the proverbial $64,000 question: Can Canada re-engineer their economy and actually begin to “make” products again, not just simply “assemble” foreign products from other nations?
- Can Canada reverse three-decades of specifically structured economic policy decisions that were centered around this “assembly” (brokered) economy?
- Can the environmentalists be put back into a box while heavy manufacturing and raw material development are reconstituted?
- Can the environmentalists allow natural resource development? Oil development, mining operations, lowered overall energy costs, etc?
- Can Canada somehow lower national energy costs so that Heavy manufacturing might consider restarting? (NOTE: heavy manufacturing requires massive energy use.)
- Can Canada find any industrial development investors who would be willing to take a chance on all the above?
See the problem?
The Canadian economy is not likely going to get better without a radical shift in Canadian political perspectives and outlook(s).
Then again, perhaps that’s really why Justin and Chrystia were
so damned set on protecting their “cultural industries” (ie. media) from competition.
Think about it.
Canadian Economy Halts – GDP Growth Drops to 0.1 Percent, and No-One Is Talking About Why…
poor little snowflakes...
