Monday, October 15, 2018

The United States, Mexico and Canada Trade Agreement

President Trump earlier this month with Corporate America, his Treasury Secretary and trade representatives at his side announced that the U.S., Mexico and Canada had agreed to a new trade deal to replace NAFTA, the much maligned agreement.  Trump painted a bright picture for the new agreement and like a little kid took the opportunity to bash past administrations decisions on trade.

But the American people were not told that it will take several years before we actually know the results of the new trade deal if in fact turns out to be better than NAFTA.  Congress will actually hold hearings on the issue next year and that is when we will learn what the fine print says.  In the mean time Trump's commerce secretary said America's trade imbalance with Asia and Europe will probably be the largest at the end of this year than in the last 10 years even though Trump raised tariffs on trade originating in those countries.

Trump's trade war of words with China is not going well and Trump is back tracking.  His economic advisor Larry Kudlow said last week Trump is now trying to arrange a meeting with China in November at the G-20 Summit in Buenos Aires where the U.S., China and other nations will meet.  China cancelled the last trade talk meeting with the U.S. that was set up and said they would not be intimidated by Trump's threats.

Transparency concerning the agreement will not beknown until next year when congress meets to take up the issue.  And even than, if republicans are still in control of congress, the American people may still be in the dark.


This commentary written by Joe Lorio

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