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CUSMA

Tuesday November 19, 2019

November 26, 2019 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday November 19, 2019

Pelosi hints that a USMCA deal might be near. It’s a wise move for Democrats

House Speaker Nancy Pelosi (D-Calif.) suggested both that President Trump may be impeachable due to “bribery” and gave her strongest signal yet that the House Democratic leadership is close to a deal with the White House that would enable the passage of Mr. Trump’s update to the North American Free Trade Agreement (NAFTA). In fact, she said those two seemingly contradictory things within the same news conference. Politics is indeed a strange and wondrous business.

June 22, 2019

Thank goodness. Governability can no longer be taken for granted in Washington, much less actual legislation. The impeachment of Mr. Trump along what are so far highly partisan lines threatened to deepen the dysfunctionality, despite promises from Ms. Pelosi and other Democratic leaders that the House could “walk and chew gum at the same time.” Ms. Pelosi’s optimistic words regarding the NAFTA revision, which Mr. Trump calls the U.S.-Mexico-Canada Agreement (USMCA), were clearly carefully chosen and confirm that she was serious about her pledge to continue attending to the people’s business while the hearings proceed. This is a tribute also to the several dozen moderate members of her caucus, many first-termers elected from swing districts, who recognize that it is in their interest — as well as the country’s — to preserve stability in the hemispheric economy.

December 4, 2018

Stability is the operative word. Though highly unpopular in many quarters, especially the (often Democratic-leaning) industrial heartland — where it was blamed for loss of jobs to lower-wage Mexico — NAFTA, for better or worse, legally defines the multitrillion-dollar economic relationship among the United States and its two neighbors. To blow it up and revert to the higher-tariff status quo ante, as Mr. Trump threatened to do both in his 2016 campaign and as president, would have been disastrous.

On the other hand, having gone into effect in 1994, NAFTA was due for modernization, particularly to take account of new developments in e-commerce. Therefore, when Mr. Trump agreed to engage with Mexico and Canada in a renegotiation of the deal, it was wise for Democrats not to dismiss the effort out of hand, even if it might mean ultimately having to share credit with a Republican president for an initiative they had long promised to mount themselves.

October 2, 2018

On the merits, Mr. Trump’s deal is a tweak to NAFTA, disproving his hyperbole about how bad the old agreement was and how good his new one will be. It does indeed improve e-commerce rules and crack Canadian dairy protectionism. For the most part, though, the USMCA deal is about managed trade, not free trade. Its key provisions would set minimum autoworker wages in Mexico and guarantee higher North American content for cars and trucks made in the three signatory countries, so as to protect U.S. Jobs.

The realistic alternative, though, is a rupture with Mexico and Canada, which is why Ms. Pelosi and the moderates in her caucus are right to work with Mr. Trump, and why we hope they will see the USMCA through to House passage, send it to the GOP Senate for likely approval — and then move on to other business, impeachment included. (Washington Post)  

 

Posted in: Canada, International, USA Tagged: 2019-41, Andrés Manuel López Obrador, Canada, CUSMA, diplomacy, Donald Trump, impeachment, Justin Trudeau, Mexico, NAFTA, Nancy Pelosi, Trade, USA, USMCA

Tuesday December 4, 2018

December 11, 2018 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday December 4, 2018

Donald Trump threatens to kill NAFTA in push for Congress to approve new trade deal

U.S. President Donald Trump says he will withdraw the United States from NAFTA “in the not-too-distant future” in a hardball attempt to pressure Congress into voting to approve his new agreement with Canada and Mexico. 

November 30, 2018

The original North American Free Trade Agreement would otherwise remain in place if Congress rejected or delayed the new agreement, which Trump calls the USMCA and Canada calls CUSMA or “the new NAFTA.” A Trump withdrawal would give Congress a take-it-or-leave-it choice between the new agreement — which is highly similar to the original — and no agreement at all.

The new agreement has been criticized on various grounds by both Democrats and Republicans, leaving its prospects for passage uncertain. The Democrats, who will take control of the House of Representatives in January, have made clear that they do not plan to approve the deal any time soon.

Trump’s announcement late Saturday introduced new uncertainty into the continental trading relationship just a day after the leaders of the three countries held a signing ceremony for the new agreement, at which Prime Minister Justin Trudeau said the agreement “lifts the risks of serious economic uncertainty” that hovered over the negotiations themselves. Trump’s words suggested the state of bilateral trade will remain uncertain as long as the president is in office.

November 12, 2018

Advocates of free trade say a withdrawal would be a foolish gamble with the American economy. Trump has said he doesn’t see it that way, since he believes the economy was stronger without NAFTA than it is with it.

“Congress will have a choice of the USMCA or pre-NAFTA, which worked very well,”  Trump told reporters on the flight back from the G20 summit in Argentina.

“Congress will have a choice of approving the USMCA, which is a phenomenal deal. Much, much better than NAFTA. A great deal, ” he said. He again described NAFTA as a “disaster,” although the new deal he calls “incredible” retains almost all of NAFTA’ s central features while making a smattering of substantial changes.

The Canadian government declined to comment on the record. An official said on condition of anonymity, “ We are focused on our domestic ratification process and not a process that is internal to the U.S.” 

September 6, 2018

Trump’s announcement is likely to displease businesses across the continent, which have hailed the new agreement for preserving tariff-free North American trade and for allowing them to make investment plans with some degree of confidence that the rules will not soon change.

It is unclear whether Trump has the power to actually withdraw the U.S. from NAFTA. Some experts say he does, some say he doesn’t. The move would undoubtedly be challenged in U.S. courts, which have not yet weighed in on the question.

A Canadian government official told the Star last year that they have concluded “there’s a pretty good chance that he could just do this.” The official said the government also believed the old Canada-U.S. Free Trade Agreement, which preceded NAFTA, would snap back into force if he did.

June 6, 2018

Others say it would not be so simple.

It is also unclear whether Trump will indeed proceed. Trump has repeatedly delivered trade threats he has not carried out, and his aides — joined by Trudeau — have talked him out of withdrawing from NAFTA before. He has sometimes appeared to use harsh trade rhetoric primarily to appeal to parts of his political base, and his tough talk on Saturday came immediately after he announced that he had taken a conciliatory stance in a trade meeting with Chinese President Xi Jinping, postponing a plan to increase tariffs on Chinese products. (Source: Toronto Star) 

Posted in: Canada, USA Tagged: christmas, Congress, CUSMA, Donald Trump, NAFTA, ratification, Santa Claus, USA, USMCA

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This website contains satirical commentaries of current events going back several decades. Some readers may not share this sense of humour nor the opinions expressed by the artist. To understand editorial cartoons it is important to understand their effectiveness as a counterweight to power. It is presumed readers approach satire with a broad minded foundation and healthy knowledge of objective facts of the subjects depicted.

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