Mexico is a sty. I'm not sure they have ANY kind of regulations or provide any benefits to the Mexicans.
They have sewage in the streets and their unemployment rate is less than ours.
He’s not the only one who says NAFTA is an unnecessary tool of trade.
We will ask lower- and middle-class Americans to make a small contribution toward bringing jobs and prosperity back home.
The authors are not looking at the big picture. It matters little that imported goods are less expensive, when the method of making them less expensive has been to export the production factories to other countries, putting Americans out of work.
A $50 toaster might seem expensive to a family earning the median income, but a $10 toaster might be out of reach for that same family whose jobs have been exported.
Trade has to be of true mutual benefit. Not for a few power brokers at the top, but for the people.
Speak softly, carry a big stick.
Should a great negotiator announce ahead of time what cards he holds and how he plans to play them?
That is what previous trade negotiators did. They got run over by the the special interest, the labor unions, the corporate parasites, the environmentalists, the Carlos Slims.
Trump’s economic advisers Wilbur Ross and Peter Navarro explain the trade problem:
Here is the key unequal tax treatment issue:
While the US operates primarily on an income tax system, all of America’s major trading partners depend heavily on a “value-added tax” or VAT system.
Under current rules, the WTO allows
America’s trading partners to effectively create backdoor tariffs to block American exports and backdoor subsidies to penetrate US markets.
Here’s how this exploitation works:
VAT rates are typically between 15% and 25%. For example, the VAT rate is 25% in Denmark, 19% in Germany, 17% in China and 16% in Mexico.
Under WTO rules, any foreign company that
manufactures domestically and exports goods to America
(or elsewhere) receives a rebate on the VAT it has paid. This turns the VAT into an implicit export subsidy.
At the same time, the VAT is imposed on all goods that are imported and consumed domestically so that a product exported by the US to a VAT country is subject to the VAT. This turns the VAT into an implicit tariff on US exporters over and above the US corporate income taxes they must pay.
Thus, under the WTO system, American corporations suffer a “triple whammy”: foreign exports into the US market get VAT relief, US exports into foreign markets must pay the
VAT, and US exporters get no relief on any US income taxes paid.
The practical effect of the WTO’s unequal treatment
of America’s income tax system is to give our major trading partners a 15% to 25% unfair tax advantage in international transactions.
(While in principle, exchange rates should adjust over time to offset border adjustment, in the near term, exchange rate manipulation leads to major effects on trade flows)
It is thus not surprising that US corporations want to move their factories offshore and then export their products back to the US and to the rest of the world.
An American subsidiary located overseas gets the VAT benefits on its exports back to the US. Of course, such exports to America from the offshored production facility add to the US
trade deficit. Such offshoring of capital investment
also subtracts from GDP growth.
Growth has to be balanced and steady. It makes no sense for example to hinder imports if you don’t have varieties of domestic product to compete with it.
Taxing the imports can mean some price negotiations stateside which profits domestic business over foreign ones
..but, as said, there have to be choices for the consumer. Naturally, the foreign manufacturers are going to want to pass tjat tax increase to the consumer, but with good competition, the consumer isn’t going to be stuck paying for it.
I personally would love to see imports from Europe, and Israel. I’ve seen some of their fabrics and children’s clothing..wow, what nice quality and fabulous styles! It would be really nice to have something other than China mart.
I went into a pricey store at tje mall. Beautiful clothes, kewl styles. Some of it was retro 60’s/70’s, interesting and appealing prints so i decided to check out some prices. Saw a dress for $150, blouses for around $60, pants closer to 200..then I looked to see where the stuff was made....China. The store didn’t even have a sales rack. At least Dillards has a great sales rack! Yep, competition is needed, badly. Price wars are fun and I don’t even like shopping!
Its been a year since I checked out Van Maurs..I’m not a shopping nut but if Idecide to shop, its a bit more fun when good varoety exists with fun pricing like dessert on tje side lol!
If products from other countries are so great, why won’t “they” place country of origin on all of it?
As for me, I DO NOT buy produce from Mexico, refuse to buy fish from China or any of those nasty places.
It is getting harder to buy USA, because products are not labeled with country of origin. My expenditures increase when I buy the now, more expensive products Made or grown in the USA.
All these "benefits" are the result of us subsidizing other nations so they can have better economies at our expense.
Trump talked Cook into building the iphone in America again Trump told him that he would reduce taxes and regulations on American companies and that's what convinced cook to make things in America again.
Estimates now are that the iphone may cost $30 more when build in America.So Trump just exposed another media lie that we can't make things in the USA cheaply or that prices would go up too much. We can make things in the USA cheaply and now we will thanks to Trump.
China was deindustrializing the USA, sending us back to the animal powered age or the stone age. Reindustrializing the USA , keeping technology in the USA, and creating production wealth and Jobs for Americans is far more important than any supposed minor increases in prices.
Trump also did this with Ford and is working on carrier. Read Trump's book , Making America Great again, "how to be a billionaire" , Rich dad poor dad,"The Art of the deal"These books will give you the secrets of success, and joy and hope for the future: Trump books
If other nations need or want US products they will buy them.
If they don’t, they won’t.
How much of what they do buy is financed by loans or grants from the US taxpayer?
You can be assured that the answer is “A Lot”.
If the existing trade agreements were so good for us we wouldn’t have a multi-billion dollar trade imbalance.
And our government would have to hand out loans or grants to get them to buy American products.
This article is why I haven’t read your rag in nearly twenty years. Progressive, leftist, globalist, elitist drivel. Free market capitalism in a laisse faire market and let the buyer beware. No more of your Atlas Shrugged elitist political policies.
Thanks to imports, American families effectively stretch their pay check..
Which is a Good thing since their JOBS have been Shipped to a Foreign Country and they now barely survive on Welfare and Food Stamps.
Utter nonsense and garbage
IBD long ago became unreadable
I’m not the sharpest tool in the shed, but I’ve never understood why America, the most amazing ‘experiment’ in Modern History, with all of Her super-smart people, awesome Natural Resources, fresh water and productive land, cannot produce any and everything She needs for Herself.
Oh, that’s right. We have a Government that is so far REMOVED from it’s original design it’s no longer workable or recognizable!
Never mind. *SIGH*