New US-Mexico-Canada agreement

[CF DolFan]

Looks like everyone's favorite arsehole has done it again. He's done what he said he'd do and we have a much better trade agreement with Mexico and Canada.

“Ford is very encouraged by today’s announcement, and we applaud all three governments for working together to achieve free and fair trade in a strong regional agreement. We stand ready to be a collaborative partner to ensure this agreement is ratified in all three markets because it will support an integrated, globally competitive automotive business in North America. The benefits of scale and global reach will help to drive volume and support manufacturing jobs.”

[MyGodWearsAHoodie]

stilll need to see the details to see if. he replaced NAFTA with soething better. 

He has a tendency to claim accomplishment for not keeping a promsee.

Promises:

 1. Replace ACA with something better that will cover more people at less cost. Claims to have kept promise, when he gutted it and millions lost healthcare

2. Pass a tax cut that helps the middle class and that the wealthy will hate.  Tax cut helps wealthy does almost nothing for middle class.

3. Mexico will pay for the wall. Now he is threatening to shut down the government unless congress funds the wall.

4. Drain the swamp in DC.  By any measure it has gotten swampiier. 

5. Get the rest of the world to stop laughing at us.  They weren’t laughing at us.  They are now.

Before you congratulate him on replacing NAFTA with something better let’s actually make sure it is in fact better.

[Fau Teixeira]

"better" .. for whom ?

[Tenshot13]

"better" .. for whom ?

Ford Motor Company for one:

“Ford is very encouraged by today’s announcement, and we applaud all three governments for working together to achieve free and fair trade in a strong regional agreement. We stand ready to be a collaborative partner to ensure this agreement is ratified in all three markets because it will support an integrated, globally competitive automotive business in North America. The benefits of scale and global reach will help to drive volume and support manufacturing jobs.”

https://www.cnn.com/politics/live-news/trump-us-mexico-canada-remarks-oct-18/h_2d8e355854248e34f609817e5cde9168

[MyGodWearsAHoodie]

Question is why is Ford happy. If it is cause it makes it easier to move jobs out of the US and into Mexico or weakens working conditions/wage requirements or environmental requirements.  Than it is a bad deal for US even if it is a great deal for Ford Motor Corporation.

[CF DolFan]

Question is why is Ford happy. If it is cause it makes it easier to move jobs out of the US and into Mexico or weakens working conditions/wage requirements or environmental requirements.  Than it is a bad deal for US even if it is a great deal for Ford Motor Corporation.

The new agreement will require that 75 percent of vehicle parts be made in North America. It will also require greater use of domestic steel and other materials and establish a new requirement for work to be performed by those earning at least $16 an hour, which will benefit the United States and Canada at the expense of Mexico. It also allows Mexico companies to form unions. All of this benefits the American worker.

[CF DolFan]

I had thought hell must have frozen over

Senate Minority Leader Chuck Schumer, D-N.Y., gave President Trump rare praise Monday for the renegotiated trade deal between the U.S., Mexico, and Canada announced earlier in the day.

Schumer said that Trump "deserves praise" for taking "large steps" to improve the outgoing North American Free Trade Agreement, which Trump had derided for years as a "disaster." The new deal, known as the United States-Mexico-Canada Agreement, or USMCA, was reached late Sunday night between the three countries after months of negotiations.

“As someone who voted against NAFTA and opposed it for many years, I knew it needed fixing. The president deserves praise for taking large steps to improve it," Schumer said.

And then CNN publishes this opinion piece today ...

What if Trump's confrontational trade stance actually works?
https://www.cnn.com/2018/10/01/opinions/trump-trade-deals-nafta-china-iran-andelman-opinion/index.html

[Dave Gray]

I don't know much about the deal, but I've heard it described as basically NAFTA, but with a few small tweaks.  ..hope it works out.

[Pappy13]

The MAJOR difference is the name. That was pretty much Trumps only contribution.

[Spider-Dan]

We all know Trump would be perfectly happy to repeal "Obamacare" and immediately replace it with a virtually identical "Trumpcare" bill.

Trump replaced Clinton's NAFTA with Trump's NAFTA.  If it is just the same thing warmed over with a Trump logo, I'd say we dodged a bullet.  (Unlike, say, the Iran and North Korea situations,where Trump threw out a strong agreement with Obama's name on it and enacted a toothless one with his name stamped on it.)

[CF DolFan]

The MAJOR difference is the name. That was pretty much Trumps only contribution.

This statement is so wrong I can't tell if you are kidding or just nuts. When even Chuck Schumer gives Trump credit I'd think you have to know that even without reading it.

Here are the biggest changes:

Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).

Labor provisions: 40 to 45 percent of automobile parts have to be made by workers who earn at least $16 an hour by 2023. Mexico has also agreed to pass laws giving workers the right to union representation, extend labor protections to migrant workers, and protect women from discrimination. The countries can also sanction one another for labor violations.

US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, which was a big issue for Trump.

Intellectual property and digital trade: The deal extends the terms of copyright to 70 years beyond the life of the author (up from 50). It also extends the period that a pharmaceutical drug can be protected from generic competition.

It also includes new provisions to deal with the digital economy, including prohibiting duties on things like music and e-books, and protections for internet companies so they’re not liable for content their users produce.

No section 232 tariff protections: Section 232 is a trade loophole that Trump has used to impose steel and aluminum tariffs on Canada, Mexico, and the European Union. Both Canada and Mexico wanted protections from these tariffs, but they didn’t get them. They did get the US to make a side agreement that protects them from possible auto tariffs under 232, though.

Sunset clause: The agreement puts in a 16-year “sunset” clause — meaning the terms of the agreement expire, or “sunset,” after a set period of time. The deal is also subject to a review every six years, at which point the US, Mexico, and Canada can decide to extend USMCA.

[Tenshot13]

This statement is so wrong I can't tell if you are kidding or just nuts. When even Chuck Schumer gives Trump credit I'd think you have to know that even without reading it.

Here are the biggest changes:

Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).

Labor provisions: 40 to 45 percent of automobile parts have to be made by workers who earn at least $16 an hour by 2023. Mexico has also agreed to pass laws giving workers the right to union representation, extend labor protections to migrant workers, and protect women from discrimination. The countries can also sanction one another for labor violations.

US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, which was a big issue for Trump.

Intellectual property and digital trade: The deal extends the terms of copyright to 70 years beyond the life of the author (up from 50). It also extends the period that a pharmaceutical drug can be protected from generic competition.

It also includes new provisions to deal with the digital economy, including prohibiting duties on things like music and e-books, and protections for internet companies so they’re not liable for content their users produce.

No section 232 tariff protections: Section 232 is a trade loophole that Trump has used to impose steel and aluminum tariffs on Canada, Mexico, and the European Union. Both Canada and Mexico wanted protections from these tariffs, but they didn’t get them. They did get the US to make a side agreement that protects them from possible auto tariffs under 232, though.

Sunset clause: The agreement puts in a 16-year “sunset” clause — meaning the terms of the agreement expire, or “sunset,” after a set period of time. The deal is also subject to a review every six years, at which point the US, Mexico, and Canada can decide to extend USMCA.

A lot of this looks good, but this worries me...

It also extends the period that a pharmaceutical drug can be protected from generic competition.

Isn't that bad?  It keeps drugs expensive for longer, there is usually a drastic decrease once a drug becomes generic.

[Dave Gray]

A lot of this looks good, but this worries me...
Isn't that bad?  It keeps drugs expensive for longer, there is usually a drastic decrease once a drug becomes generic.

It's a mixed bag.  Yes, drug prices will be more expensive for longer, but it promotes Research and Development into new medicines and treatments.  Pfizer, say, has more incentive to dump money into figuring out new treatments if they get a longer return on their investment.

[CF DolFan]

It's a mixed bag.  Yes, drug prices will be more expensive for longer, but it promotes Research and Development into new medicines and treatments.  Pfizer, say, has more incentive to dump money into figuring out new treatments if they get a longer return on their investment.

Interesting. I was wondering how that would be beneficial as well.

[Sunstroke]

I do see the tweaks in this, and would consider this a slightly better version of NAFTA than we had before. Two thoughts on this...

One: The atmosphere around this agreement is significantly different than it was before. If a country (or countries, in this case) think that you don't give a shit about their allied status, it might make getting concessions a little easier. Trump gives zero shits about alliances, except where he thinks he can profit.

Two: I would love to see the day where Trump does something above and beyond tying his own shoelaces, where he doesn't immediately come out and exclaim to everyone that he just did the awesomest thing ever, much more awesomer than any Democrat could ever do, and we should all be impressed with how impressive he is.