Published: Thu, October 04, 2018
Markets | By Otis Pena

Trade deal returns U.S. to ‘manufacturing powerhouse’

Trade deal returns U.S. to ‘manufacturing powerhouse’

Kansas officials expressed cautious optimism Monday about a proposed new trade agreement between the United States, Canada and Mexico, saying it appears to offer Kansas farmers and manufacturers greater access to worldwide markets, although details of the agreement still need further study.

Auto exports from Canada to the United States are to be capped at 2.6 million vehicles, if Trump imposes global tariffs on cars on national security grounds.

On Monday, the president announced the United States-Mexico-Canada Agreement (USMCA), a major rewrite of NAFTA.

"Moving forward on eliminating the tariffs on steel and aluminum remains a priority for us, for Mexico, and is something the Americans have indicated they are more than willing to work on", Trudeau told a news conference. Both Mexico and Canada received guarantees from the Trump administration that exempts 2.6 million vehicles imported from these countries from US auto tariffs.

"Anything you submit to Congress is trouble no matter what", Trump said, predicting that Democrats would say, "Trump likes it so we're not going to approve it". A White House official said the negotiations over the steel and aluminum tariffs are being handled on a "completely separate track", according to the Washington Post. Also, two of NAFTA's three original multiparty trade dispute resolution processes will remain in place (which is good for future intra-North American relations). That's meant to force automakers to source fewer parts for an "Assembled in Mexico" (or Canada) vehicle from Germany, Japan, South Korea or China.

Besides, he added, "Canada would not negotiate a deal that would threaten its access to the US market".

Clark called the deal a "leap backwards" but said Canada also didn't have any other choice. "He's a professional. I'm a professional", Trump said, calling it a "fair deal". "We never believed that it would be easy, and it wasn't, but today is a good day for Canada".

Twins to replace manager Paul Molitor
The 2017 Twins made the playoffs after losing 103 games in 2016, leading to higher expectations this season. I think Paul understands that. "It's never the right time to make a hard decision, and it's never easy".

If repeated in other USA negotiations with the European Union and Japan, it could help isolate Beijing in the global trading system. If you can't cut a trade deal with them, with whom can you do so?

Polls show that Trudeau is still personally popular in Quebec and that the Liberals easily would win a federal election if one were held now.

"Without tariffs, we wouldn't be talking about a deal", Trump insisted, taking a potshot at the many, many prominent critics of his hardball tactics. Mr. Trump has long blasted NAFTA, even before his presidential campaign.

He said the new deal was "much more reciprocal" than Nafta, which he blamed for the loss of one in four jobs in the auto industry and 4.1 million manufacturing jobs.

Maxwell said if the new USMCA agreement is signed by Congress, U.S. dairy farmers will benefit. "Sources close to the action say the 11th-hour deal came together as a result of deadline pressure, willingness to compromise, and Trump's constant threat of hitting Canada's extensive auto industry with tariffs if it didn't agree to a new deal", Politico reported, saying the latter was "the last detail to be nailed down".

The deal also gives modernized protections to things like patents and intellectual properties. Canada had agreed to provide USA dairy farmers access to about 3.5% of its approximately $16bn annual domestic dairy market, the sources said, adding that the Canadian government was prepared to offer compensation to dairy farmers hurt by the deal. Back in the 1980s, America's trade deficit was climbing due to an overly strong dollar. I used tariffs to get the deal, because if they weren't willing to make a deal, as an example, Mexico or Canada, then I would have used tariffs. The agreement also states that Canada will allow USA businesses to sell wine in British Columbia.

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