Monday, February 12, 2018

Trump's trade policy explained.

NAFTA is a problem because other countries can gain access to US markets through Canada and Mexico, so US manufacturers have to relocate there in order to compete effectively.

Understanding Why NAFTA Exit is a Forgone Conclusion… Posted on February 5, 2018 by sundance https://theconservativetreehouse.com/2018/02/05/understanding-why-nafta-exit-is-a-forgone-conclusion/

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.

"Free trade" is a myth because multinational corporations control supply in each country in order to get the highest possible price in each country. Theoretical arguments supporting free trade don't apply to international trade at the present time because global trade is not free trade.

Multinationals also lobby national governments to enact trade policies they prefer. Under the current international trade regime, trade policies favor undeveloped countries. This means multinationals can extract profits from trade agreements claimed to protect the poorer countries. They created an unfair system so they could extract profits from rich countries.

President Trump's trade policies, focusing on fair trade, are intended to prevent Americans from being exploited by multinational corporations and unfair trade agreements.


The Myth of Global Markets Explains Why The DC UniParty View POTUS Trump As a Risk To Their World Order… Posted on March 2, 2018 by sundance
https://theconservativetreehouse.com/2018/03/02/the-myth-of-global-markets-explains-why-the-dc-uniparty-view-potus-trump-as-a-risk-to-their-world-order/

♦Multinational corporations purchase controlling interests in various national outputs and industries of developed industrial western nations.

♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.

♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

Related Articles

  • This week with This Week With George Stephanopoulos 3/4/18. Interview with Wilbur Ross starts at 38:39 (queued). Trade agreements made in the past are obsolete because they were designed to favor developing nations and nations in ruins after WWII.

    Treasury Secretary Steven Mnuchin Interview With Maria Bartiromo… Posted on March 7, 2018 by sundance
    https://theconservativetreehouse.com/2018/03/07/treasury-secretary-steven-mnuchin-interview-with-maria-bartiromo/

    ♦Economic Patriotism – ‘America First’:
    √ Unleash energy development. Drive down energy costs. Lower cost-of-living.
    √ Eliminate regulatory stranglehold. Unleash free market entrepreneurial expansion.
    √ Lower corporate tax burden. Position business investment ‘best bet’ domestically.
    √ Generate investment expansion. Create: jobs, jobs, jobs.
    √ Generate higher labor demand. Jobs, Jobs, Jobs = Higher wages, wages, wages.
    √ Lower middle-class tax burden. Combine higher wages with lower taxes. 2x benefits.
    ==> WE ARE HERE <==
    • Structure trade deals to benefit workers/companies inside the U.S.
    • Leverage access to U.S. market as incitement for domestic investment.
    • Economic Growth + Domestic Manufacturing Expansion = GDP increases.
    • Increased overall tax revenues from expanding economy stabilizes debt and entitlements.