NAFTA vs USMCA

[Scottsdale.Sooner]

I had the good fortune of being provided with a 132 page brief on the trade agreement to replace the NAFTA agreement. (my Inflight reading material). The brief was provided to me before Canada agreed to participate last week. The brief was a document that broached the upsides to the USA, the strategies for each category and expected milestones achievements. It is apparent that the author(s) saw this as a high stakes low risk gamble with much to gain and little to lose by taking a very strong high ground position out of the gates. As I read I understood where the fuzz on our Commander in Chief's nuts came from when he sounded off on Canada a few months ago. The trade summary was that Mexico would buy in without much contention but Canada would try to flex their muscles. It was stated in expanded terminology that Canada would soon recognize that entering into future trade negotiations with the current administration would have diminishing returns. The summary financial statement showed that Canada could not afford to wait. This won't get much press because the Democrats will not be able to find much fault in the new agreement. I am certain that Trump had little to do with the meat and bones of this deal but he had the business savvy to realize NAFTA was not a good trade deal for the USA and sought to change it post haste. You may not admire the man but you have to admire the results. Look for China to come tot he table within 12 to 18 months.

 

[trademarcs]

The left finds a way to attempt to screw this up like everything else.........every single person involved with this deal will have women coming out of the woodwork claiming sexual harass all the way back to the Stone Age.

 

[roygbell]

The left finds a way to attempt to screw this up like everything else.........every single person involved with this deal will have women coming out of the woodwork claiming sexual harass all the way back to the Stone Age.

I have been in the farm and ranch business my whole life. Over the long decades no US President has ever had the guts to tackled the trade inequities facing American Agriculture. We have faced outright restrictions and high tariffs when it comes to other countries buying America's agricultural products.

It is about time we have a leader that is absolutely fearless when it comes to tackling these extremely difficult and highly political issues. No country in the world can out compete US Farmers and Ranchers. Of course, there may be some pain in the process. I have discussed this issue with lots of our friends. They understand the risk and the potential gains. Everybody I know is hoping Trump can even up these trade issues. If he can, then that gets the federal government out of our business.

 

[Scottsdale.Sooner]

roygbell - International trade gets very complicated when it gets large scale export type commodities, i.e. wheat, soya beans, dairy, beef, etc. If your business has trade organizations to rep you then your government will take macro decision positions in your industry. Unfortunately, this can be a sliding scale from very bad to very good. Trump is (in my humble opinion) the only president in my lifetime to truly understand foreign trade. Reagan knew what he didn't know and appointed Block as his Sec of Agriculture. A good man for the job. This USMCA agreement has the earmarks of lasting benefits. Like chess, Trump (or this administration) understands the move made now is a precursor to the goals. Obama was an absolute farce in the business arena. Again, I'm not an expert but what I read reeks of one primary objective: that the USA maximizes the benefits to be gained by leveling the playing field. There was section that stated a balanced market & level playing field is all that is needed to succeed. This agreement will put former Canadian customs duties in the pockets of farmers and ranchers. Light manufacturing will grow. Detroit will no longer buy auto parts from Toronto. This deal will not make news because it is simply too good for America.