Economy

We Might See a Fake NAFTA Deal

JM Ashby
Written by JM Ashby

Multiple outlets reported yesterday that Trump may announce some kind of "handshake" deal with Mexico to resolve bilateral trade issues, and Mexican officials said this morning that they may be just "hours" away from a deal, but if we do see an announcement it will definitely be nothing more than a handshake.

To make that clear, unhinged trade representative Robert Lighthizer released a very direct statement this morning.

(Reuters) - North American Free Trade Agreement talks have "major issues outstanding", a spokesperson for the U.S. Trade Representative said on Wednesday.

"There is no deal on NAFTA," the person said, as U.S. and Mexican negotiators resumed negotiations.

It's possible Trump will make an announcement to change the subject and redirect the news cycle away from his corrupt government, but anything he says almost certainly won't be set in stone.

Moreover, we appear to be even further away from an agreement with Canada than the Trump regime ever was with Mexico and you can't reform NAFTA without an agreement between all three countries.

I believe a best case scenario for all parties involved is for Trump to declare victory and move on and forget about this business even if nothing has really changed.

  • muselet

    Key U.S. demands that neither Mexico nor Canada have agreed to yet include the automatic expiration of the deal after five years, known as the sunset clause; rules for government contracting; and methods for resolving investment disputes, two [sources told Politico].

    Sunsetting a trade deal undercuts the stability such a deal is meant to create. It’s a terrible idea that no sane negotiator would contemplate, so of course the Trump administration is insisting on it. (“See, folks? Canada and Mexico weren’t really serious about free trade. They wanted to keep the crooked, rigged deal they had before, but I wouldn’t let them, I wouldn’t let them. NAFTA was just as rigged as the Russia Probe that Bob Mueller and the 17 angry Dems are running to undermine Trump. Where’s the collusion? Why aren’t they investigating Crooked Hillary’s emails?”)

    I’m guessing without knowing that issues around government contracting and resolving investment disputes could have been resolved months ago if Donald Trump could make a decisiion and stick with it.

    At the end of all this, the US will be lucky if anyone wants to trade with us at all, let alone make trade agreements.

    –alopecia

    • All this economic sabotage is going to hurt us for decades to come.