Why Current Trade Deal is not in Interest of the United States

Dec 2018
1,173
25
Tempe, AZ
#2
The biggest changes between it & NAFTA sound pretty good to me.:

  • Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).
  • Labor provisions: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico passed new labor laws to give greater protections to workers. Democrats still want tougher enforcement, though.
  • US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, a big issue for Trump.
  • Intellectual property and digital trade: The deal extends the terms of copyright to 70 years beyond the life of the author (up from 50). It also extends the period that a pharmaceutical drug can be protected from generic competition, and includes new provisions to deal with the digital economy, such as prohibiting duties on things like music and e-books, and protections for internet companies so they’re not liable for content their users produce.
  • Sunset clause: The agreement adds a 16-year “sunset” clause — meaning the terms of the agreement expire, or “sunset” after 16 years. The deal is also subject to a review every six years, at which point the US, Mexico, and Canada can decide to extend the USMCA.
 
Dec 2018
1,173
25
Tempe, AZ
#4
The biggest changes between it & NAFTA sound pretty good to me.:

  • Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).
  • Labor provisions: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico passed new labor laws to give greater protections to workers. Democrats still want tougher enforcement, though.
  • US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, a big issue for Trump.
  • Intellectual property and digital trade: The deal extends the terms of copyright to 70 years beyond the life of the author (up from 50). It also extends the period that a pharmaceutical drug can be protected from generic competition, and includes new provisions to deal with the digital economy, such as prohibiting duties on things like music and e-books, and protections for internet companies so they’re not liable for content their users produce.
  • Sunset clause: The agreement adds a 16-year “sunset” clause — meaning the terms of the agreement expire, or “sunset” after 16 years. The deal is also subject to a review every six years, at which point the US, Mexico, and Canada can decide to extend the USMCA.
Oops! Forgot link:

https://www.vox.com/2018/10/3/17930092/usmca-mexico-nafta-trump-trade-deal-explained
 
Aug 2010
257
40
Cliffside Park, NJ
#5
Maoo, economic policies effectively choosing to favor specific individuals, or selected groups, or characterizations of nations, or industries, or enterprises, are generally poor economic policies.
Within general but explicitly written laws, regulations, and guidelines, it's preferable that the markets rather than government determine individual global trade transactions.

I'm among the proponents for USA adopting the improved trade proposal described within Wikipedia's “Import Certificates” article. The unilateral, self-funding, substantially market-driven policy would significantly reduce, if not entirely eliminate USA's chronic annual trade deficits of goods while increasing our GDP and numbers of jobs more than otherwise.

Refer to https://en.wikipedia.org/wiki/Import_certificates
and https://politicalfray.com/threads/usa-goods-could-be-more-price-competitive.5806/

Respectfully, Supposn
 
Aug 2010
257
40
Cliffside Park, NJ
#7
US goods could be more price competitive if we DROP the minimum wage.
PaulSmith69, eliminating the federal minimum wage rate would do extremely little to increase USA's exports but it would extremely reduce the purchasing powers of lower wage employees and substantially reduce it for our median wage. Respectfully, Supposn
Minimum wage. ... If rather than a political determination, the minimum rate would be annually cost of living adjusted in the same manner as social security retirement benefits, it would improve the condition of our working poor and decrease need for public assistance more than otherwise.
 
Dec 2018
1,173
25
Tempe, AZ
#8
PaulSmith69, eliminating the federal minimum wage rate would do extremely little to increase USA's exports but it would extremely reduce the purchasing powers of lower wage employees and substantially reduce it for our median wage. Respectfully, Supposn
Worker productivity should improve.
 
Dec 2018
1,173
25
Tempe, AZ
#10
PaulSmith69, reducing wage rates increase labors' productivity? Respectfully, Supposn
Indeed. Business will have more flexibility therefore greater ability to concentrate on increasing productivity.

The booming economy has accelerated the modest productivity increases of the past. Less business restriction should increase the boom even greater, or at least keep it going, resulting in even greater productivity increases.

 
Last edited:
Aug 2010
257
40
Cliffside Park, NJ
#13
Indeed. Business will have more flexibility, therefore, greater ability to concentrate on increasing productivity.

The booming economy has accelerated the modest productivity increases of the past. Less business restriction should increase the boom even greater, or at least keep it going, resulting in even greater productivity increases. ...
PaulSmith69, the federal minimum wage rate is one among factors affecting markets.

Minimum wage rate's “restrictions” on commercial enterprises are no more restrictive than are laws prohibiting fraud. The U.S. Congress have in both cases passed legislation they determined to be in the best interests of our nation's economic and social well-being.
Respectfully, Supposn
 
Dec 2018
1,173
25
Tempe, AZ
#14
PaulSmith69, the federal minimum wage rate is one among factors affecting markets.

Minimum wage rate's “restrictions” on commercial enterprises are no more restrictive than are laws prohibiting fraud. The U.S. Congress have in both cases passed legislation they determined to be in the best interests of our nation's economic and social well-being.
Respectfully, Supposn

I doubt that very much. Few businesses are affected by laws against FRAUD, whilst MANY are affected by arbitrary minimum wage laws which literally seriously affect their business model.

Respectfully, Robert K. Aufgeblassen
 
Aug 2010
257
40
Cliffside Park, NJ
#15
I doubt that very much. Few businesses are affected by laws against FRAUD, whilst MANY are affected by arbitrary minimum wage laws which literally seriously affect their business model.

Respectfully, Robert K. Aufgeblassen
PaukSmith69, you're posting nonsense.
The criminal statutes somewhat protect businesses from being defrauded and they somewhat discourage those businesses from committing frauds.
The federal minimum wage rate is a legally specific, rather than an indefinite arbitrary rate.
Respectfully, Supposn
 
Dec 2018
1,173
25
Tempe, AZ
#16
The federal minimum wage rate is a legally specific, rather than an indefinite arbitrary rate.
Respectfully, Supposn
It is arbitrarily determined, & flat across the board to boot, even though costs of living vary WIDELY depending on where you live! Probably cost 3 or 4 times to live in Beverly Hills vs Tupelo, Mississippi!
 

Similar Discussions