Global Trade Wars - The New Nafta and Why the U.S.A. Played the Trump Card

in #news6 years ago (edited)

trump at the un.jpg

I went into the research portion of writing this article with an open mind hoping to find enough information to keep this post impartial by putting forth the arguments on both sides about the recent U.S. trade activity. Honestly, it was impossible for me to look at this and not be pro Trump and support his platform here.

I thought I was going to find really tough one sided demands being made by our country against China and our neighbors but instead found the changes to NAFTA were all really great for everyone, especially IP creators like us.

I don't just like the trade deal with Mexico I love it. It has in it something for all political camps to be happy about and it's going to make a lot of lives easier and more prosperous in both countries. Let me show you a few examples snipped from the press release of the U.S. Trade Rep office. https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/august/modernizing-nafta-be-21st-century

trade snip 1.PNG

This is a protection for us, those who create news posts; do podcasts; make music; vlog and just about everything else that can be done on Steemit and other social media sites. I lived through the era of Napster and heard every side of the piracy argument but having these rules at least gives us the choice on what is done with our IP.

If that isn't enough for you look at these privacy protections, yes I said privacy protection coming from the U.S. government, I'm just as shocked as you.

trade snip 2.PNG

If you are thinking that this is all about right wing causes and entrepreneur support then please read through a snip from the Labor section.

trade snip 3.PNG

There is plenty more to be happy about like better environmental protections and everything to make this a bi-partisan dream so it's no surprise Mexico signed right up and made the deal with us. I would say then, that the real question is why is Canada holding out?

For a good look at Trudeau's and thereby Canada's position of contention please click this source link to an article that lays out the sticking points one by one, I think I can summarize it in a different way though. https://www.washingtonpost.com/business/2018/08/29/these-issues-are-holding-up-us-canada-trade-deal/?noredirect=on&utm_term=.6d09dfa124e8

I think it boils down to political philosophy and more towards the way The U.S. and Canada fixes commodity prices and collects taxes. For instance there has been a long, on going dispute about dairy exports heading north.

Graph1 dairy.jpg

As you can see Canada has experienced a growing deficit on a very important agricultural product and that is not good for their country. With the climate in most areas of the country providing a very short window for growing crops these kinds of agricultural products become all the more important when competing on the international stage so I completely understand their protectionist position. However, I do disagree with the answer to the problem they provide.

http://mentalfloss.com/article/81628/why-cheese-so-expensive-canada

Price fixing is not the approach that helps consumers but only helps the government and big corporate farms optimize profits. If the product was purely luxury I may not have much to say about the tactic but considering this keeps families and children from having a nutritious diet I would say the American approach is the better way to go.

Canada has cut most of their domestic farm subsidies and shifted to seeking international subsidy funds from sources like the IMF and other U.N. aid agencies. I'm sorry to criticize but I really do have a problem with any government that puts so many rules in place that a poor person can't milk a cow and sell the product just so they can stuff their pockets. The idea that a place as beautiful as the Great North wont allow their citizens to improve their lives makes me a bit angry to be honest, especially if it for the purpose of cutting a country like Ethiopia in the global bread line. Destitute countries in Africa will always need the money more than a lush 1st world country, plain and simple, showing up with hands out should be embarrassing for them but I suppose it isn't. They have to come to Trump's table with this beggars mentality instead of a position of strength and therefor I predict they will fold and start taking care of their own children again by simply leaving the kid's parents alone if nothing else.

I'm not a fan of subsidies at all but sometimes a tax reduction is called a subsidy so look at things closely before you judge them as a general rule I would say. The way we are going to win the trade war does have everything to do with the U.S. tactic of redirecting domestic funds toward balancing out the loss of sales brought on by the tariffs imposed here.

US%20farm%20size.jpg

We consistently fund smaller/family owned farms and the insurance companies that protect them from crop loss. The goal is to provide as much food as possible while protecting the most vulnerable among the industry, not tax dollars. When this administration knowingly hurts an industry by starting trade wars they pay the difference to take responsibility for the pain they cause. I wish it wasn't this way but if things need to change the adjustment period will be uncomfortable guaranteed. Another big advantage the U.S.A. has is that as the aggressor in this fight we can announce our next moves before the globalist opposition has a chance to even get their counter measures in place.

Take a look at what happened when we put pressure on China for an example of what I am getting at. We anticipated the tariff on Maine lobster and were ready before Trump put the message out officially.

I have seen reports that live lobster sales to China going up as much as 160% leading up to the 25% tariff they are imposing. Soy subsidies are rising in proportion to their tariffs too, in fact the lion's share of the 4.7 billion dollar farm bill will be going to soybean farmers to make up the loss in sales the administration caused.

I do believe that we are going to have a new NAFTA, hopefully with a less euphemistic name, in the next few days and we will be better off from it. Trudeau will realize his next door neighbor makes for a better friend the "international community" perhaps by the end of the day I'm writing this. China and the EU on the other hand are a whole different story but I do hope to get to those messy situations soon.

Like I said at the beginning of this article, I had no intention on siding with my government when I started out writing this but considering the facts of the deal I can't help it, the plight of tax collectors and a few cheese makers in Montreal don't outweigh the benefits of this renegotiation. This is by no means a criticism of the Canadian people, only their government on this particular issue. I have nothing but love for over-the-border brothers and sisters and consider you to be the apex of a what a great neighbor should be.

The steel and auto manufacturing aspects of this are mostly quid pro quos between the factories that produce parts and will be as easy to work if the labor section of the proposal is met so I really don't see much downside.

I really hope people take the time to go over the protections we as creator of intellectual property are going to receive. The privacy that will be afforded to all other free thinking people in the world could potentially change everything for those living in speech restricted countries and I truly hope we can all find some value in that.

Have a great day everyone!

top image provided by
http://www.foxnews.com/opinion/2017/09/19/two-sides-trumps-un-speech-pro-un-and-america-first.html
lobster article
https://www.seafoodnews.com/Story/938088/Online-sales-with-home-delivery-of-lobster-in-China-pushes-up-price-in-Boston

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When it comes to trade, Trump is well TRUMP! LOL

He came with this hype, he better deliver ;)

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