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On steel and aluminum tariffs .......
Pandora:
Canada and Mexico do not manufacture steel, they make products from Chinese steel
--- Quote ---I think we’ve figured out why President Trump is doing the Steel and Aluminum tariffs ahead of the NAFTA withdrawal.
... Canadian Foreign Minister Chrystia Freeland stated:
“Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers,” Foreign Minister Chrystia Freeland said in a statement, calling any trade restrictions“absolutely unacceptable.”
The key word in that statement from Freeland is “products”. Why? because Canada doesn’t make more than a boutique amount of raw Steel. (Top 40 List) The Canadians, like the Mexicans, import the vast majority of their raw steel from China. Canada then fabricates products from the Chinese steel. This nuanced point is almost always lost on people who discuss trade. This point of origination is also the fatal flaw within NAFTA.
In essence Canada is a brokerage for Chinese manufactured material, and NAFTA is the access trade-door exploited by China for entry into the U.S. market.
--- End quote ---
https://theconservativetreehouse.com/2018/02/05/understanding-why-nafta-exit-is-a-forgone-conclusion/
--- Quote ---In its current form NAFTA became an exploited doorway into the coveted U.S. market. Asian economic interests, large multinational corporations, invested in Mexico and Canada as a way to work around any direct trade deals with the U.S.
By shipping parts to Mexico and/or Canada; and by deploying satellite manufacturing and assembly facilities in Canada and/or Mexico; China, Asia and to a lesser extent EU corporations exploited a loophole. Through a process of building, assembling or manufacturing their products in Mexico/Canada those foreign corporations can skirt U.S. trade tariffs and direct U.S. trade agreements. The finished foreign products entered the U.S. under NAFTA rules.
Why deal with the U.S. when you can just deal with Mexico, and use NAFTA rules to ship your product directly into the U.S. market?
This exploitative approach, a backdoor to the U.S. market, was the primary reason for massive foreign investment in Canada and Mexico; it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to shut down that loophole and renegotiate NAFTA.
This loophole was the primary reason for U.S. manufacturers to relocate operations to Mexico. Corporations within the U.S. Auto-Sector could enhance profits by building in Mexico or Canada using parts imported from Asia/China. The labor factor was not as big a part of the overall cost consideration as cheaper parts and imported raw materials.
... As soon as President Trump withdrew from TPP the problem with the Canada and Mexico loophole grew. All corporations from TPP nations would now have an option to exploit the same NAFTA loophole.
Why ship directly to the U.S., or manufacturer inside the U.S., when you could just assemble in Mexico and Canada and use NAFTA to bring your products to the ultimate goal, the massive U.S. market?
--- End quote ---
This information makes the issue a little more clear, doesn't it.
Libertas:
So, Mexico and Canada are pissed at us because we decided we didn't want to be f**ked over by our neighbors who were getting rich off of us with their Chi-Com whorehouse operation as well as taking jobs away from Americans...?
Gosh, it's almost like they have an entitlement mentality not dissimilar to the dead-weight we have in this country we refer to as "democrat voters"...
Libertas:
https://www.zerohedge.com/news/2018-03-05/ryan-rejected-trump-says-not-backing-down
Heh!
::thumbsup::
Pandora:
Aaaand, Mark Levin does not get it. At all.
paulh:
--- Quote from: Pandora on March 05, 2018, 05:42:02 PM ---Aaaand, Mark Levin does not get it. At all.
--- End quote ---
He was on a roll last nite. So where is he wrong?
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