The United States-Mexico Trade Agreement

Another “Potemkin trade deal.”

Nothing there and will not move the needle in bringing back jobs to the U.S., in our analysis.

That is why, we believe,  the markets like it — little impact on profit margins and the prospect for the removal of tariffs.

Capital por encima del trabajo

Back of the envelope analysis, the administration got only about one of the six objectives it was seeking.   Still working on the analysis.

The new agreement makes it so most parts of an automobile traded without tariffs — taxes imposed on a particular set of items — must be made in factories that pay their workers higher wages.  – VOX

 

O Canada

Can they now cram it down Justin’s throat and bring in Canada?

Canada has purposefully stayed out of talks for weeks because it wanted the US and Mexico to resolve some of their trade problems. “Once the bilateral issues get resolved, Canada will be joining the talks to work on both bilateral issues and our trilateral issues,” Chrystia Freeland, Canada’s foreign minister, told reporters on Friday.  – VOX

It’s now up to “the True North strong and free.”

Band-Aid Is Better Than A Major Trade Disruption

If it fits the Trump administration’s political needs,  we will take it.

Could have been worse but we do worry the final chapter in this NAFTA book has yet to be written.

Need For a Proactive Government Trade Policy

Now, maybe, we can start retraining the American workforce for the 21st century global economy instead of the fantasy of #Making America The 1960’s Again.

It peeves us  governments almost always are reactionary and never proactive.

The U.S. spends about $600 million per year on Trade Adjustment Assistance  (TAA) to help American workers hurt by free-trade.  Pittance.

Then it offers farmers $12 billion to cushion the blow of tariffs.   Reductio ad absurdum!

If the U.S.G. had budgeted more for TAA, or some similar program, in the first place,  the rust belt would have transformed itself years ago.   Goods and services would be flowing more freely, markets for U.S businesses growing,, and real wages skyrocketing.

Wouldn’t that make America Great?