WASHINGTON: On the 1st October 2018 President Donald J. Trump morning tweet is, “late last night our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be the United States Mexico Canada Agreement or USMCA…”, With that Presidential Tweet, NAFTA passed on into history.
Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many……
— Donald J. Trump (@realDonaldTrump) October 1, 2018
As a result, the U.S. has more access to Canadian dairy markets. What America needs is full access to the Canadian milk market. And full access for Canadian milk in America’s markets.
The Facist NAFTA Agreement
Chapter 11 of the (now defunct) NAFTA agreement, the Investor-State Dispute Settlement, (ISDS), is a pure fascist tool, now non-existent. The ISDS rule was to allow corporations to sue governments for any, legitimate to frivolous, reason. This, unofficially, hands the governments over to the corporations. The rule in favor of market globalization was a key step in the development of the TPP, the Trans-Pacific Partnership.
Steel to many people’s surprise was not included in the USMCA agreement, left out in Trump’s strategy to revamp global trade agreements that eventually must include Europe, Asia, and to a minor degree Africa. Africa to a minor degree because they continue to reject any semblance of liberty.
The managed NAFTA trade deals (fascism) have led to the standoff between the U.S. and Canada and the U.S. and Mexico. Trump has every right to use it as a bargaining chip.
Imagine three countries – Bizazool, Lala, and Tropia.
Bizazool is the largest economy (Republic), Lala (Socialism) has the greatest number of people and Tropia (Tolatarianism) provides resources. The elite of Bizazool think only of themselves, forgetting they got their industrial strength from a system that is very much oriented towards liberty for the vast number of their people.
They make a deal, envying the potentials of such a promisingly rich market. They make it a deal that can not be refused, Lala has full access to the markets of Bizazool, but to give Lala fairness, Bizazoolo will not have the same full access to the markets of Lala.
Immediately those who understood economics cried, how on earth can Lala say you believe in liberty and freedom? You are merely looking at quarterly results for yourself and not the long-term implications of this unfairness on the people of Bizazool. You hae to remember it is Bizazool whose system has allowed you to amass such wealth. So why, we ask, betray the people who have supported a system that has allowed you to have such great wealth.
Lala’s one-sided trade deal
By giving Lala such a one-sided deal first it means Lala can keep its failing system as the elite members of Bizazool are financing their failed government.
Lala, of course, got wealthy proclaiming in their propaganda how well totalitarianism works. However, it only works well because the elite of Bizazool is willing to finance it. But jobs where constantly being lost to Lala because of the lopsided trade deals.
Bizazool, in an act of desperation, says we control a central bank, and we can buy some time. So Bizazool drops the interest rates and starts printing money. Great idea, except jobs keep migrating to Lala, leaving Bizazool without strong employment because the jobs have moved to Lala.
And Bizazool is unable to meet their debt.
We told you to follow the free market
Before the deals where made the warning to follow the free market is ignored. The best car manufactures from Bizazool began to make cars in Lala. Lala, then, is exporting steel to Bizazool. Why should the trade deal require Bizazools car manufactures to manufacture in Lala, but not require Lala companies to make steel in Bizazool.
What the elite of Bizazool had decided was that the people of Bizazool will be sacrificed, after all, they have so much to give. Only it is not the job of Bizazool to sacrifice her prosperity in order to economically raise Lala. However, as Lala gains economic parity, Lala turns around and becomes belligerent to Tropia. Lala says their government is superior and that Tropia is corrupt. They allow Tropia to purchase from them, but a Lalalian will never find Tropian beef in their supermarket.
Open free trade, not fair trade markets
What should have happened was that a free trade deal was done. Meaning zero tariffs all around. The market of Bizazool is completely open and the market of Lala is completely open. And if Tropia wants to buy or sell, the markets are open to them as well.
And at the end of the day, Bizazool does not need to sacrifice its superior economy to Lala or Tropia. Lala would be forced to reduce is totalitarian habits in all manners of society to create a system that will allow people to be free to create goods and services. If it refuses to reduce it totalitarian habits, then it can not participate in trade with Bizazool or Tropia.
The only winners are the Globalists
Instead, we now have a mess, the only winners being the elite of Bizazool and the political elite of totalitarian Lala who have had industrialization financed by the elite of Bizazool thus ensuring their continual existence. To pretend, the elite of Bizazool complain of human rights in Lala, obvious hypocrisy, as Bizazool is a financier of Lala’s tyranny.
It is best to bite the anti-globalist bullet now. President Trump is in a strong enough position to push ahead with his plan wherein everybody is free to participate in any market, but it is up to you to change to be able to succeed.
President Trump is in a difficult position however the only solution is a trade system where nobody can complain. But being a politician, he must also satisfy his constituency demanding world balance in tariffs and trade.
But deliberate complications from previous administrations in Washington means such justice is a long way away.