NAFTA "negotiation" enters into the realm of the absurd
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NAFTA "negotiation" enters into the realm of the absurd

By anonymous following x   2017 Oct 13, 4:52pm 378 views   4 comments   watch   quote     share    


So Donald Trump is trying to murder NAFTA and he's introduced wildly stupid requirements that are protectionist..........against the slave labor state of Canada.

The new rule proposal is that 50% of an automobile's content be from the US (up from 0%) and 85% be sourced from North America as a whole. (up from 62.5%) to avoid tariffs. (currently 2.5%) These rules are why most American car manufacturing is done in the USA, Canada, and Mexico.

https://www.thestar.com/news/canada/2017/10/13/another-trump-poison-pill-for-nafta-ottawa-slams-demand-for-50-us-content-in-cars.html

What makes this so completely fucked up is that the 2.5% tariff isn't going to bring jobs home to the USA, it's going to send jobs over to ASIA where a factory can be set up that saves far more than the 2.5% tariff. (one estimate given in the article is 7%) Therefore if the new version of NAFTA is going to prevent nearly all cars from qualifying due to necessary electronics imports from places like Japan and Indonesia and Korea and China, why wouldn't GM just say fuck it and manufacture the entire car in China since they will be hit with the tariff regardless?

Anyway it's DOA and so utterly pro-USA and anti-Canada/Mexico that they aren't even seriously making counter offers. They are laughing at us. It's another clown show.

Since I am essentially protectionist when it comes to globalism, I'll describe how this should have been handled:

1. No trade barriers with Canada since they share our wages and standard of living.
2. Tariffs with goods produced in Mexico although discounted. 2.5% sounds about right but none of this 50% nonsense.
3. Double or triple tariffs on imports from China and no tariffs with Japan and South Korea.
1   joeyjojojunior   ignore (1)   2017 Oct 14, 5:18am   ↑ like (0)   ↓ dislike (0)     quote      

Someone might even say that Trump is making sure NAFTA doesn't get changed at all, but is able to claim he tried...
2   BlueSardine   ignore (1)   2017 Oct 14, 7:08am   ↑ like (2)   ↓ dislike (0)     quote      

It is obvious from recent history that trump always starts negotiations from an absurd position, allowing himself to be negotiated down to the actual numbers he's after.
In this process the opposing party feels they've won by getting massive concessions from trump, while trump hits his target numbers that he planned for all along.
It's called "win win"...

iwog says
NAFTA "negotiation" enters into the realm of the absurd
3   joeyjojojunior   ignore (1)   2017 Oct 14, 7:17am   ↑ like (0)   ↓ dislike (1)     quote      

BlueSardine says
It is obvious from recent history that trump always starts negotiations from an absurd position, allowing himself to be negotiated down to the actual numbers he's after.
In this process the opposing party feels they've won by getting massive concessions from trump, while trump hits his target numbers that he planned for all along.
It's called "win win"...


lol--except he's not negotiating against CIC. His high IQ is going to get schooled.
4   TwoScoopsMcGee   ignore (1)   2017 Oct 14, 8:40am   ↑ like (0)   ↓ dislike (0)     quote      

Honda Accord, 90% US Parts. F-150, 85%. Chevy Corvette, 83, Chevy Traverse, 90%. More here:

https://www.boston.com/cars/news-and-reviews/2016/06/16/the-made-in-america-index-tells-you-how-much-of-your-car-was-built-at-home
Of course, there's all kinds of games and methods one can play around with when calculating origin to make it look higher or lower depending on interest.

joeyjojojunior says
lol--except he's not negotiating against CIC. His high IQ is going to get schooled.


Sure, Trudeau keeps shuttling back and forth, CoC Donahue looks like he's shitting a brick, surprised the Mexican President hasn't had a stroke yet. Looking good.

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