Trump Warns Canada "Fair Deal or Out": Mish's Fair Deal Proposal
Fair Deal or Out
>Mr. Trump’s warning on Saturday comes a day after U.S. and Canadian negotiators failed to reach an agreement on Friday, a deadline he set, to revamp the trade deal that includes Mexico. The two sides have agreed to continue the trade talks.
>While the president does have the power to terminate the pact, with six months’ notice, it isn’t clear if such a decision could withstand legal challenges, of which there would likely be many.
>And lawmakers and business groups whose support has usually been vital for passage of trade pacts have made clear that a bilateral trade deal that excludes Canada would face an uphill battle for the required congressional ratification.
>Four days of marathon talks ended with significant differences remaining between the U.S. and Canada. Mr. Trump said he still planned to stick with the timetable he laid out earlier this week to sign a new pact in late November to replace the three-nation accord, which on Saturday he described as “one of the WORST Trade Deals ever made.”
>Mr. Trump’s statement that “Congress should not interfere” with the Nafta talks is likely to provoke bipartisan consternation on Capitol Hill.
>The battle over the balance of power in trade policy will be particularly intense if Mr. Trump tries to proceed with a new Nafta that excludes Canada. Lawmakers from both parties have over the past week warned that if he does so, they would make the required congressional ratification all but impossible, effectively killing it.
Fair Deal Proposal
I can write a fair deal in one sentence: "Effective immediately, all tariffs and all subsidies, on all goods and services are abolished."
That's fair. Trump would not want it.
The EU offered to abolish all tariffs on US cars if the US would do the same. Trump refused.
Despite his bluster, Trump does not support free trade. Once again, I offer this statement: Dear Donald Trump, Please Prove Me Wrong.
Mike "Mish" Shedlock