Not Tired of Winning Yet LXXXIX
Another campaign promise kept by Donald Trump. Eighty-nine and counting.
The Democrat-controlled legislators in the House of Representatives take a small vacation from their unremitting and vain attempts to overthrow the results of the 2016 election in order to do some of the work entrusted to them under the Constitution, namely, ratifying a treaty: the House announced support for USMCA, the trade deal negotiated by Trump and signed by the United States, Canada, and Mexico.
This is a huge win for Mr Trump, but the media (who are the avowed and open enemy not just of the American people, but of all Western Civilization) will downplay it or dismiss his role.
From an investment website called The Balance:
The new deal changes NAFTA in six areas.
First, auto companies must manufacture at least 75 percent of the car’s components in Canada, Mexico, or the United States. It was 62.5 percent previously. At least 30 percent of the car must be made by workers earning at least $16 an hour. That increases to 40 percent in 2023. That’s three times what the average Mexican auto worker makes. Autos that don’t meet these requirements will be subject to tariffs. The agreement protects Mexico and Canada from any future U.S. auto tariffs.
These changes should create more U.S. jobs for autoworkers. But it could reduce U.S. jobs for cars sold to China. The higher labor costs will make them too expensive. for the Chinese market. It will also increase the price of cars sold in America. It also means some small cars will no longer be sold in North America.
Second, Canada must open up its dairy market to U.S. farmers. It will eliminate its complex pricing scheme for Class 7 products. That includes milk protein concentrate, skim milk powder, and infant formula. It also allows certain cheeses to be marketed in Mexico and the United States. It opens the wine market in British Columbia to American wine.
Third, Mexican trucks must meet U.S. safety standards before crossing the border. That was a win for Mexico. It was promised in the first NAFTA agreement but withdrawn by the U.S. Congress. Mexico must also allow its workers to form unions.
Fourth, the new agreement provides more protection for patents and trademarks. This adopts many of the intellectual property rights negotiated in the Trans-Pacific Partnership abandoned by Trump.
Fifth, U.S. drug companies can sell products in Canada for 10 years before facing generic competition. It was eight years under NAFTA.
Sixth, companies can no longer use Chapter 11 to resolve disputes with governments. The only exceptions are U.S. oil companies. They are concerned Mexico may try to nationalize its oil industry again. But the Chapter 19 dispute resolution panels remain. These arbitration panels rule on whether a NAFTA country treated a partner’s overseas investments unfairly. The panels make sure U.S. corporations maintain the rights protected by the U.S. Constitution.
About John C Wright
John C. Wright is a practicing philosopher, a retired attorney, newspaperman, and newspaper editor, and a published author of science fiction. Once a Houyhnhnm, he was expelled from the august ranks of purely rational beings when he fell in love; but retains an honorary title.
