Posts Tagged ‘USMCA’

Donald Trump’s Win?

Tuesday, October 2nd, 2018

We might as well let Donald Trump think he won. You hate to give a bully the victory but he would just go away and pout if we did not. What he really got was the right to rename the deal. That way, he can tell his claque that he got rid of NAFTA. It is now called the United States-Mexico-Canada-Agreement (USMCA). It sounds like a branch of the United States Marine Corp, but what the heck—as long as it works for everybody involved.

It might be that Canada let the U.S. in on a bit of its milk market but the farmers can easily be compensated for that small encroachment. It leaves the fresh milk market to Canada’s farmers and that is the important part for consumers.

I would say it is a win for Justin Trudeau and his foreign affairs minister. They held the course throughout the negotiations. They did not let Trump’s irresponsible twits rattle them and they held the course to the end when the Americans had to agree to the deal or look terribly stupid.

The best part of the win was Canada sticking to its guns on bringing Mexican auto-worker wages into line. The $16 minimum wage for the Mexicans making autos and trucks is a huge jump and the impact it will have in Mexico will change that country a great deal. It will help drive up the costs of a holiday in Mexico for Americans and Canadians but that is fair too!

The other part of the deal that was vital to Canada was the continuation of the dispute settlement clause as it was in the original deal. The idea of submitting disputes to America’s highly politicized judicial system was a guarantee of constant harassment.

It also looks like Canada came out ahead on the automobile part of the deal. It looks like we have strengthened our position on auto parts and there are fewer concerns about the bleeding off of final assembly.

All in all, we can have the pleasure of looking south and giving Mr. Trump what Americans often refer to as the Canadian salute. Middle finger at the ready…go!

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