Buh-Bye NAFTA!

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NAFTA No More: President Trump Announces United States-Mexico Trade Agreement

Through a translator President Nieto thanked Trump and remarked that this is “very positive for the United States and Mexico.” He went on that the call was to “celebrate the understanding that [they] have had between both negotiating team on NAFTA.”

Nieto spoke of talks over months to renew, modernize, and update the trade deal between the nations as it relates to NAFTA. “And to generate a framework that will boost… productivity in North America,” said Nieto through the translator. “It is our wish now Mr. President that now Canada will also be able to be incorporated in all this.” Nieto said he was sure the U.S. and Canada will begin bilateral meetings on sensitive trade topics to their relationship.

The Mexican President acknowledged both Mexico and the U.S. negotiating teams including Lighthizer’s team. He thanked the support of the White House through Kushner. He thanked his own team from Mexico as well.

Trump thanked the Mexican President as well and referenced his meeting with Nieto in Mexico during the 2016 presidential campaign. “This is something that is very special for our manufacturers and for our farmers from both countries,” said Trump. “It’s also great trade and it makes it a much more fair bill.”

President Trump shared in thanking both trade teams. He spoke of the complicated nature of and months-long efforts that went in to forging the United States-Mexico Trade Agreement. He said that the U.S. hasn’t started with Canada yet as they wanted to work with Mexico first. President Trump said that many claimed it couldn’t be done due to the factions and complexity involved. “We made it much simpler, much better, much better for both countries,” said Trump.

maga
 
The United States and Mexico have agreed to a Labor chapter that brings labor obligations into the core of the agreement, makes them fully enforceable, and represents the strongest provisions of any trade agreement.

Massive consequences:
♦First, incoming Mexican President, Andrés Manuel López Obrador gets a big win for his new Mexican economic agenda, the right of workers to form collective bargaining agreements, ie. unions.
♦Secondly, how is the left-wing political opposition in Canada and the U.S. going to fight against this deal which includes protections for collective bargains and union representation? argue against higher Mexican wages?
The new U.S./Mexico 75% auto rule of origin for manufacturing parts works in synergy with the demand that 45% of those manufacturing components must come from assembly and manufacturing wages of $16/hr or higher
 
A whole lot of Mexican workers will be getting raises as a result of this deal, and the US Chamber of Commerce gets kicked in the nuts, what's not to like?

Justin from Canada Painted His Country Into a Lose/Lose Trade Corner – More Details of U.S-Mexico Deal…

I can't see Canada liking the AG and Bank parts. Canada still has quite a few small farmers supporting rural areas. If AG gets unfettered foreign competition a lot of what's left will go into foreclosure unless there is a bailout. Canada has also spent considerable effort since the 80s on building up the banking sector and banks are generally more powerful than governments these days as a consequence. Whatever banks you let in is who you are ruled by these days. That could even lead to quicker adoption of the US dollar or new currency like the Amero just to make inter-banking more efficient. Actually.... I wonder if the banks could just agree to currency abstraction layer without government approval - an unofficial currency as intermediary for exchange - without government approval. Banking Units. Hmmm.
 
REPORT: Trump Wanted To Speak With Trudeau BEFORE His Mexico Deal Announcement. Trudeau Didn’t Take The Call.

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Canada now has to choose between negotiating a seperate bilateral trade agreement with Trump , a NAFTA withdrawal, or accepting the terms of modification as agreed to by Mexico.
 
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