Posted on 08/31/2018 6:07:58 PM PDT by Candor7
At first glance, it is easy to chalk up the train wreck that is the NAFTA re-negotiations to Prime Minister Justin Trudeau’s bad luck. But in politics, there’s an old saying that you make your own luck.
And there should be some tough questions asked and accountability demanded on how it all came to this: a last minute “take it or leave it” ultimatum for Canada to sign a trade deal seemingly reached between Mexico and the United States while Canada watched from the sidelines for five weeks.
Two years ago, when a populist presidential candidate tapped into NAFTA as the root of flagging American competitiveness and lost jobs and he promised to reform it, what did Canada do? Justin Trudeau’s Liberal brain trust not only looked down their noses at the reality-TV buffoon Donald Trump but ignored even the possibility that he could be mining a vein of real American angst.
As the Trump presidency settled into the Oval Office, Canada whistled past the graveyard thinking it impossible that a president would actually do what he promised. And, despite a cordial first meeting with the president, Justin Trudeau couldn’t resist identity politics and virtue signalling by declaring that any new Canadian trade agreements, like NAFTA, must include chapters on gender, climate change and Indigenous issues. This established that Canada was not going to be taken seriously by the Americans.
As the NAFTA talks began, Canada’s lead negotiator insulted the Trump administration with a backhanded comment during a Washington speech on trade. This would not have been done by the redoubtable international trade law experts who have led Canadian trade teams in the past.
But Chrystia Freeland is not an expert in trade. Nor is she a seasoned negotiator. She’s a politician. Though bright and well educated, Freeland’s life experience was as a journalist before becoming Trudeau’s Minister of Foreign Affairs.
From the day he was elected, President Trump’s beef was not with Canada — it was with Mexico. Except for some minor objections, mainly over Canadian dairy policy, Trump spoke of “tweaking” the Canadian relationship. And his team said it preferred bi-lateral, or two-way, deals with each of Canada and Mexico.
By the end of this summer’s G7 meeting, Trump had backed off his insistence on a sunset clause that would set a NAFTA expiry date and had apparently thought the way was being paved for a Canadian deal. This explained the president going ballistic when Trudeau publicly repeated that Canada was insulted by American tariffs.
It should be clear by now for anyone decoding Trump that straight talk and a play to his huge and brittle ego are important. Rather than doing that and sliding quietly into a two-way deal with America by giving them some increased access to our dairy market, Canada allowed its options to run out.
Then Mexico, which had talked a good game along with us on insisting there’d be no bilateral agreements, started having a detailed two-way negotiation, as our lead negotiator and her team sat on the sidelines.
As this week played out, Ms. Freeland and the Prime Minister have put on their best brave faces and optimistically talked of getting a deal. But they are looking down the barrel of a last-minute ultimatum to sign a deal already decided by Mexico and the U.S.
The re-worked NAFTA reportedly removes the dispute settlement mechanism so cherished and needed by Canada; it changes drug patent laws and redefines how many cars will be manufactured in the U.S. To top it off, Trump’s position is that Canada can only take the deal if we bend on dairy. And, if we don’t accept the agreement Trump will decimate our automotive industry with tariffs as early as next week.
This doesn’t seem much like a negotiated deal. It looks more like the Trudeau trade team signing terms of surrender.
Thus is about 2 d’s: dairy and drugs.
And that second one is the biggie.
And why the Canadian government is squealing like a stuck pig.
Note to Canada: God willing, Trump is gonna be around for another six years. Grow a brain and deal.
If Canada wants to sign something even worse for them to keep the “NAFTA” named deal going, fine. If not, we’ll have 2 bilateral deals. Both are wins for the US.
F Canada. Without the U.S.A. the only jobs in Canada would be for fur trappers and loggers.
Wait... in Socialist Can a da can you still kill animals and cut down trees?
Thus is about 2 d’s: dairy and drugs.
And that second one is the biggie.
And why the Canadian government is squealing like a stuck pig.
Can you give me a short explanation of what the problem is with drugs? I’m seriously trying to understand what the problem is but can’t get any answers here.
Trudeau has sh*t the bed on this NAFTA issue in Canada. He is trying to turn the people opf Canada against the USA in some kind of false Canadian nationalism. On this he is dead wrong , the only support he has on this is from the cross eyed , drooling leftists that support him in some of Canada’s cities.
Over 70% 0f the Canadian population lives within a hundred miles of the US/Canada border and Canadians actually love and envy the United States under Donald Trump, simply for the economic aspect and jobs which PDJT has brought to the People in the USA. Canadians want the same, jobs and a vibrant economy , which is under a socialist stranglehold between the federal and provincial governments where marketing boards set the price of eggs. dairy, fuel and lumber. Hell, Canadians pay more for lumber than their US counterparts do.
Canadians want this rigged economy to come to an end and bring in free market competition, so those who truly understand the economic issues in Canada support the President and his policies.
Canada does not allow the importation of drugs from the USA unless the price is fixed by the federal government.Thats not free trade.
There has to be some quid pro quo over all.Canadians love cheaper drugs, but they should also open up their markets to tarrifed US goods in some other areas.
I didn’t know about the big NAFTA loophole until I read at Conservative Treehouse. Both Mexico and Canada have been wiseguys as far as encouraging and giving monetary and tax incentives to foreign manufacturers to set up shop to export mostly to the USA. And avoid tariffs under NAFTA cover.
A huge example is Nissan establishing a mega-factory in Agaus Calientes Mexico. Go look up on the internet. It is there. This factory makes Nissans for all of North South America but it largest market is the USA. These Nissan vehicles enter the US with zero tariffs due to NAFTA. This violates the spirit and intent of NAFTA when it was first setup and got running.
IOW if Nissan (and other foreigners) wants its products to not be charged tariffs then build factories here, not Mexico or Canada. Why should America operate a tariff free jobs program for Mexicans and Canadian workers?
Trump and his trade negotiators are going to close this two loopholes for Mexico and Canada. And make other adjustments too. Another large one is dairy products. We produce milk and cheese etc cheaper than Canada but Cnada has found ways of keeping them out. Canada protects its dairy farmers and dairy industry. Understandable of course but Trump will change this or will start punishing Canada w tariffs.
Nafta Crunch Caps a Pretty Dreadful Week for Justin Trudeau
I didn’t know about the big NAFTA loophole until I read at Conservative Treehouse. Both Mexico and Canada have been wiseguys as far as encouraging and giving monetary and tax incentives to foreign manufacturers to set up shop to export mostly to the USA. And avoid tariffs under NAFTA cover.
I don’t know what Mexico does but Canada does not pay foreign companies to build factories in Canada.
Some very larges projects do receive tax breaks during construction and for a set time upon completion (3-5 years)
US corporate taxes are lower than Canada so there is no real tax benefit for building in Canada over the US.
As for dairy, Canadian farmers aren’t subsidized. American dairy receives 50% of there income through subsidy.
Canada does not charge the dairy tariff on US dairy unless we import more than 10% of what is sold in Canada. Last year we imported 730 million in US dairy and exported 112 million to the US. What’s not fair about that?
If drug companies can’t get the price they want why would they sell to Canada?
Pharmaceutical companies spend more money on advertising than they do on research. Canada doesn’t allow drug advertising to the public so they save billions and are able to sell cheaper to the Canadian health board in bulk.
I realise that drugs are generally cheaper in Canada than the US but honestly that is the only product I can think of that we don’t pay more for than you do.
Cars, trucks, groceries, gas, clothes, books all things that we import from the US cost us more than you.
NAFTA has not helped the Canadian consumer.
NAFTA has not helped the Canadian consumer.>>>>>>>>>>>>>>>>>
Exactly.
And I have to listen to the CBC, a federally subsidized radio and TV netwoek, spew CNN style propaganda about Trump and the USA 24/7. Most Canadians are consequentially uniformed.
Trudeau’s village idiot reaction to the hard place he put himself into is to create a false Canadian Nationalism which will eventually do nothing but screw the Canadian consumer, as you have truly said has been done for decades.
I have to look more into Canadian dairy
https://en.wikipedia.org/wiki/Automotive_industry_in_Canada
Foreign automakers that have plants in Canada:
Chrysler Canada
Hino Canada
Honda Canada
Toyota Canada
“Honda Canada Inc. is the Canadian division of the Honda Motor Company. Founded in 1969, Honda has been building cars in Canada since 1986 in Alliston, Ontario and head office in Markham, Ontario. Since 1964, Honda has been committed to lessening the environmental impact of their business.”
Toyota Canada
Since opening in 1988, TMMC has built more than 6 million vehicles[7] for Canadian and U.S. consumers with the vast majority (approximately 4.6 million) being exported to the United States. In September 2003, TMMC’s Cambridge facility was expanded and became the first Toyota plant outside Japan to manufacture a luxury vehicle Lexus RX).
********Trump wants them to be charged tariffs Same for foreign auto parts manufacturers
i
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.