August 28, 2018

US and Mexico Reach Trade Agreement

, putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact.” (Reuters)

Both sides think Canada should be included in the final deal:

See past issues

The left is critical of the lack of specifics in the deal, and the fact that Canada has not yet been brought in.

“What [this] may amount to in the end is some tweaks to the existing agreement—albeit ones that concern some of the most significant issues in the U.S. trade relationship with Mexico.”

The Atlantic

Nothing in this deal has anything to do with milk or lumber or fisheries or financial services or anything else. It’s just a couple of smallish changes to the section of NAFTA about cars.”

Mother Jones

“The Administration says it will proceed with the new deal regardless of what happens with Canada, but that promise could run up against several roadblocks... Mexico has insisted that any NAFTA deal be trilateral... and Congress might reject a deal that doesn’t include all three countries.” (Time

“Without question, some U.S. workers lost their jobs as a result of NAFTA... But all this additional economic activity created many more jobs than were lost... If there is one thing that could be a drag on growth, it would be unraveling NAFTA.”

Bloomberg

Counterpoint: “Studies from the Congressional Budget Office and the Congressional Research Service have found mostly small effects on US jobs and economic growth... it’s not clear that NAFTA ever had a big impact on North America’s economy — which means tweaking it probably won’t, either.”

Boston Globe

The right is generally supportive of a deal updating NAFTA.

The right is generally supportive of a deal updating NAFTA.

“Trump understood the simple math that countries with which we have trade deficits would have to come to the negotiating table... These countries... cannot afford to lose access to our $20 trillion economy—the world’s largest. Trump realized the power this gives us and decided to use it to level the playing field for American workers.”

Fox News

“Not exactly radical, but positive... At the rate things are going, this could be the shortest ‘trade war’ on record.”

Power Line Blog

Counterpoint: One “problem, a large one, is that the bilateral deal strips current protections from most U.S. investors in Mexico. Oil and gas, telecom and power-generation investors will retain what they now have. Others will be protected only against physical expropriation... We’re glad to see Mr. Trump step back from the suicide of NAFTA withdrawal, but on the public evidence so far his new deal is worse.”

Wall Street Journal

Yet “news of the deal appeared to reassure investors that the Trump administration can make solid progress on trade deals... The S&P 500 and the Nasdaq Composite both hit record highs. The Nasdaq was up 0.91 percent, while the S&P 500 rose 0.77 percent. The Dow Jones Industrial Average rose slightly more than 1 percent.”

Breitbart

On the bright side...

Sexually frustrated dolphin named Zafar terrorizes tourists on French beach.

The Telegraph

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