Mexico and U.S. appear close to deal on key auto content rules, as Canada remains on NAFTA sidelines
With Canada remaining on the NAFTA sidelines for a third straight week, the U.S. and Mexico met for more trade talks Wednesday, and appeared close to a deal on the key issue of where car parts come from and how much the workers who make them are paid.
They are expected to turn next to a potentially thornier issue, U.S. demands for a sunset clause in NAFTA requiring it to be re-approved every five years.
h/t RALD
The unions knew what they wanted; they deserve to get it. Good and hard.
“Civilization, in fact, grows more and more maudlin and hysterical; especially under democracy it tends to degenerate into a mere combat of crazes; the whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, most of them imaginary.” H. L. Mencken
Trudeau is doing well. I would say all of them imaginary.
In Saskatchewan, the moral panic du jour is “too many drunk drivers”. And of course, only more regulation, more police, more ads from SGI, more ads from MADD, more taxes, more spending, more, more, more… will save us.
Canada is moving to the sidelines on world issues in more ways than this under the gong show of this government.
We should welcome a “gong show” under a Liberal government, and we should generally welcome more political polarization. For far too long the lefties have been operating under the radar by pretending that their ideology is mainstream – remember the “Natural Governing Party” myth. But thankfully they can’t control their basic emotions, and I welcome anything they do to expose their real agenda. Their inherent lack of self control is causing them to lose the “center” where normal people reside. Their metamorphosis into the monster of their ID might be a little slow for many of us “normals” but it is happening.
Just remember, the MSM will tout PM butt’s fiascos as great victories for the prols.
The fissures of diversity are splitting the country. Outsiders looking in are saying WTF?
While my President is out there working 24-7-365 to MAGA, PM Twinkletoes is out there playing Mr. Dress Up and pulling Saudi’s pigtails with his BFF Chrystia Freeland.
While you may have been too kind to Canada’s idiot PM, “your” President is acting more like a merchantilist in similar fashion to King George III but since most Americans aren’t taught civics or history anymore most wouldn’t know the difference.
It’s difficult to understand the negotiations when so little is revealed about each countries proposals. Content of automobiles is one of the exceptions to that statement. That is pretty much about China undercutting NA manufacturers in pricing for both OEM and replacement parts.
But the most mystifying to me is the hoopla about a sunset clause. It seems to me that if the original deal is good then a 5 year (or other period) review is just going to be about tweaks ….. if even that. Someone posted that 5 years introduced too much uncertainty for manufacturers to properly plan. I find that explanation wanting ….. baseless hand wringing negativity. (What ifs …. what if stock market crashes, if war, if revolution, if climate change, etc, etc.) Again, get it right in the original deal and review/renegotiation shouldn’t be a concern. Anyone got other thoughts on the “sunset clause”?
Planning large capital projects involve time for planning, permitting, construction, and start-up, easily multi year projects. If not commenced immediately after signing off on a trade deal, completion could be very close to a whole new ball game given political cycles. Uncertainty doesn’t invite investment. Certainty involves making business decisions without having to worry about Politicians and Administrations coming and going affecting the rules of the game. Those other factors mater and are hard to plan for but political certainty is primary to commencing anything big. Would Boeing set up plants in “right to work” States if they had sunset clauses on their statutes?
Okay, I see your point …. that “large capital projects” are frequently lengthy though I would say internal bureaucracy (permiting, impact statements, judicial review, etc) is the main culprit in that lengthy time span rather than planning or construction. Pipelines surely are a poster child for this.
But then “large capital projects” are only a small component of the overall trade. For example, I don’t consider adding a second or third shift at a manufacturing facility or even expansion of an established facility to be a “large capitol” project. And I don’t see how anything in the Ag or Services sectors fit this concern.
You and I get to re-negotiate the terms and conditions of a mortgage every five years, allowing us to shop around for competitive rates.
Why can’t the American people re-negotiate the terms and conditions of a trade deal every five years and have an adult conversation about whether they are continuing to get a good deal?
Assuming the point is a deal to the benefit of all parties and not simply to destroy the American industries that allow the US to fight modern wars and win them?
“You and I get to re-negotiate the terms and conditions of a mortgage every five years, allowing us to shop around for competitive rates….”
In a trade agreement, you and I get to negotiate nothing. This is a “negotiation” between sovereign nations penalizing their own domestic consumers in a competition aimed at imposing measures negating competitive advantage by promoting domestic production. Whatever the outcome in terms of it being more or less a customs union, the more certainty, the better. Free trade doesn’t need a negotiation. “Fair trade” is nonsense in that it precludes the need for any trade by seeking to impose equality of inputs so as to negate competitive advantage.
You’re confusing re-negotiating every 5 years and a 5 year subset clause. They’re two different things.
“They’re two different things.”
Do educate me on the difference……….
The “canadian auto industry” is without a homegrown name brand auto manufacturer (FORD GT assembler Multimatic excepted).
The Canadian Oilsands industry is largey dominated by Canadian companies, such as SynCrude, Suncor, CNRL, MEG, Cenovus
I’ll leave it at that for readers to decide whom the Liberals support.
Maybe Justin can get us to Chretien buck land, then take credit for “saving” the auto industry – and oil exports.
Just exports, except imports. He doesn’t want to upset SA further.
But no new Canadian gasoline. Why, because it’s 2018.
Hopefully when it’s 2019 that will change.
https://tradingeconomics.com/canada/currency
Justard still smokin weed and surfing… the Media are okay with anything and everything Gropey does or says… Meanwhile PM Heinrich Himmler Butts and the Nazi Grandaughter are taking their orders from the Soros family… I wonder what Soros and the globalists have planned next for the “Post National State”… I guess we”ll find out in a tweet… Hey, remember that terrorist attack a couple of weeks ago? Its almost like a little girl didn’t get murdered by a Muslim terrorist and then the crimes covered up by the Media and the “authorities”… Everything seems to be going as planned I guess… It should be quite hilarious next year when Trudopians vote for more of the same… Remember our American friends, the Post National State is not your friend, treat it accordingly… Go Trump!!