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Thursday, April 27, 2017

Renegotiating NAFTA

In "Trump the Establishment," in which I eviscerate the media for missing Donald Trump's election as president, I devoted a chapter to the North American Free Trade Agreement, which was a linchpin to President Trump's initial appeal.

As President Trump on Wednesday indicated he has begun taking steps to end NAFTA, the case for withdrawal is clear.

Manufacturing employment peaked at 17 million nationally in 1993, the last year before NAFTA.

Twenty-two years later, it had fallen to 12 million.

Yes, overall, employment rose 25 percent in those 22 years.

But in the 22 years prior to NAFTA, employment rose overall by 50 percent.

As for claims that NAFTA would reduce the number of illegal aliens because Mexicans would stay home as jobs rose there, that was bunk sold by globalists who could not care less about American sovereignty.

CBS News reported:
Amid a bubbling trade dispute over softwood lumber and dairy with Canada, the Trump administration is now considering an Executive Order on withdrawing from the North American Free Trade Agreement, two White House officials confirmed to CBS News. 
This executive order is one of several ideas being considered by President Donald Trump as the administration readies to move forward on Mr. Trump’s campaign trail pledge to renegotiate or withdraw from the three-nation trade deal, a White House official says. 
The executive order could be unveiled in short order. A White House official says the administration is waiting until attorney Robert Lighthizer, a noted protectionist, is confirmed as Mr. Trump’s U.S. Trade Representative before going to Congress for fast track authority to renegotiate the treaty, resulting in a formal 90 day notice to Mexico and Canada.   
The White House could also bypass Congress to remove the U.S. from NAFTA. Such a move would require a written notice to other parties in the treaty six months before implementation, and would likely revert U.S. tariffs on Canadian goods to 1989 levels due to a free trade treaty the two countries signed that year.
Given the hostility by Mexico toward our attempts to end its invasion, screw NAFTA and Mexico.

End it and continue trading with Canada, and add a moat to the wall. We get nothing from Mexico but trouble. The two nations share no history nor language, as it is a land not steeped in the English tradition of individual liberty and property rights.

I'd rather live next door to China at this point.

However, CNBC reported:
Late this afternoon, President Donald J. Trump spoke with both President Peña Nieto of Mexico and Prime Minister Trudeau of Canada. Both conversations were pleasant and productive. President Trump agreed not to terminate NAFTA at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries. President Trump said, "it is my privilege to bring NAFTA up to date through renegotiation. It is an honor to deal with both President Peña Nieto and Prime Minister Trudeau, and I believe that the end result will make all three countries stronger and better."
President Trump is negotiating. Fasten your seatbelt. Negotiating with Trump is always a bumpy ride.

The original, "Trump the Press" chronicled and mocked how the media missed Trump's nomination.

It is available on Kindle, and in paperback.
Then came "Trump the Establishment," covering the election, which again the media missed.

It is available on Kindle, and in paperback.

Autographed copies of both books are available by writing me at

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  1. Beauty, eh? The Power of the Tweet. Canada and Mexico have surrendered without a shot being fired. All President Trump has to do now is name his terms. For our northern and southern neighbors any trade agreement with the U.S. is better than no trade agreement. - Elric

  2. I'd rather live next door to China at this point.

    At least when the Chinese invade they bring money. There are two driving McLarens in my home town today.
    As opposed to the beat up compact truck with a "This is Aztlan" bumper sticker.

  3. "President Trump is negotiating. Fasten your seatbelt. Negotiating with Trump is always a bumpy ride."

    As Korben Dallas said to the Mangalores in the movie "The Fifth ELement"
    "...anybody else wanna negotiate?..."

  4. This is precisely WHY Robert Lighthizer hasn't been confirmed in McConnell's Senate.

    Trump is going around McConnell and the establishment globalists.

    Another reason to prefer China - they build their own walls.
    ~Carolina Kat

  5. If Trump is going to turn the North American Free Trade Agreement into the North American FAIR Trade Agreement, I can agree with that. FAIR is better than FREE because, as we all know, there is nothing about trade that is FREE. There's a cost. There always is. Canada is looking out for itself (as it should). Mexico is doing the same (as it should). The US is about to follow suit (what took it so damned long?)

  6. I'm a Canadian.
    Milk - Go Trump. If he succeeds, my family milk bill will drop by at least half. I will benefit. A few heavily protected inefficient farmers will have to grow, raise or do something else for a living.

    Lumber - We have more trees and they are cheaper.

    If the tariff stays on, some of our forest workers will go on unemployment and/or get another job but the cost of a new single family house in the USA will go up by about 20%

    1. Where did you come up with the 20% figure? It can't be Trudeau, he's not smart enough being a commie. By the way your 20% is hogwash.

    2. Government subsidies never work. Never know when they might end, this is what happens in your scenario 1. Fewer lumber jobs. A prime example why Communism never works.

    3. Although there are some drawbacks to it, home construction is moving toward metal framing, which reduces labor costs if some of the work is performed off-site, where it goes faster and is often cheaper. It also reduces the long-term impact and financial costs of the damage to homes from termites and wood rot. If wood products become more expensive, metal framing will become more popular with home builders.

    4. You are right Anon 8:00 pm. Sorry it is more like 5-10% depending on who you ask.
      Agree with your comment on Trudeau +10

      Anon 8:07 It is called a subsidy but it isn't the same as a direct one.

      We have cheaper trees. The government doesn't have one rate for exporters and another for domestic. The cost to the lumber/pulp companies is the same.

      The tariff benefits no one except the US lumber industry. US consumers pay more for lumber.

      Iapetus If it is a Good Thing, you could accelerate that process by not only restricting imports but by putting a big tax on lumber. :)

      It is my view that a tariff on wood is morally the same as a subsidy to US wood producers paid for by the US consumer.

      Milk, cheese and several other items are blatant protectionism by Canada and I am hopeful that the negotiations will put an end to that silliness.