Header Ads

ad

Canadian Media Catch On, U.S Trade Rep Jamieson Greer Says Trump Likely to Exit the USMCA (CUSMA)



In the world of Trumpian geopolitical trade stuff, three issues are very interesting to watch. (1) The strategic reset with Russia which could break the official western construct of financial control. (2) The proactive and defensive positioning of Mexico (desperate attempt to retain economic attachment), and (3) the certain dissolution of the USMCA what Canadians call CUSMA.

Canadian media are starting to realize something we have talked about on these pages for years; President Trump intends to end the USMCA because the USMCA was used as a fracture point to eliminate NAFTA.

Wall Street, the U.S. Congress, the massive K-Street lobbying network around the U.S. Chamber of Commerce and the entire political apparatus of business and industry would never permit the end to NAFTA; too many trillions at stake. So, President Trump replaced NAFTA with the interim USMCA, which was better but factually more useful in elimination of the original.

Now, as we have discussed by highlighting President Trump’s no-so-subtle words on the issue, the Canadian media is realizing the USMCA will be dissolved in favor of two independently negotiated bilateral trade agreements; one with Canada and one with Mexico.



(CTV) – U.S. President Donald Trump could decide next year to withdraw from the Canada-United States-Mexico trade agreement (CUSMA), Politico reported on Thursday, citing U.S. Trade Representative Jamieson Greer.

“The president’s view is he only wants deals that are a good deal. The reason why we built a review period into CUSMA was in case we needed to revise it, review it or exit it,” Greer told Politico’s White House bureau chief Dasha Burns in a podcast episode that airs Friday.

Greer also raised the idea of negotiating separately with Canada and Mexico and dividing the agreement into two parts in the podcast, adding that he spoke with Trump about that possibility just this week.

The White House, Canadian and Mexican governments did not immediately respond to Reuters request for comment.

Trump on Wednesday said that the CUSMA agreement – which faces an upcoming review- will either be left to expire or another deal will be worked out.

The USMCA, which replaced the North American Free Trade Agreement in 2020 and was negotiated during Trump’s first term as president, requires the three countries to hold a joint review after six years. (link)

I have talked to a lot of Canadians on the issues of economics and trade. As a result, I can say with complete sincerity that not since the COVID-19 examples of New Zealand (lockdowns) and Australia (vaxx), has a nation engaged in such a level of mass cognitive dissonance as the govt of Canada on the issue of economics and trade – in the past few years. It is stunning.

To understand the reality of the situation Here’s an IN-DEPTH LINK. Apparently, few really understand the full scope of the issues.

For those who have followed along with the U.S-Canada trade positioning, the current status of conflict between the Trump administration and the government of Canada is not surprising.  {GO DEEP}

Going all the way back to the replacement of NAFTA, with the USMCA, President Trump always said he did not favor multilateral trade deals with multiple countries; instead, he preferred bilateral free trade agreements.

Some people have construed the bilateral preference of President Trump to be the elimination of globalism in favor of nationalism in trade agreements.

While the outcome of the Trump approach indeed aligns with that theme, it is not specifically the objective of President Trump to eliminate global trade, but rather to focus on specific interests in trade that benefit the unique nature of each party involved.

As a result, the USMCA -or CUSMA as said in Canada- is not in alignment with a bilateral free trade agreement, and the conflicted differences between trade with Mexico and trade with Canada are an outcome of this dynamic.  The solution is simply to eliminate the multilateral in favor of the bilateral approach.  This is the objective of President Trump as expressed.

There is zero leverage on the Canadian side of the trade negotiation, zero.

There is nothing that Canada provides to the USA that the USA cannot create, produce or secure independently.  The nature of the economic relationship is entirely lopsided, with the USA getting nothing in return for the massive outflow of U.S. dollars (USD).

Our trade relationship with Canada is based on the U.S. government simply liking our northern neighbor and giving them terms and conditions for their economy to benefit from proximity.  Take the friendship out of the equation, which is key to understanding the polar political ideology of the two nations, and there is simply not much reciprocal trade benefit.

Take away the soft wood lumber, we have our own.  Take away the oil, we have multitudes of domestic production options. Take away the minerals, again we have both our own unused capacities and enhanced trade agreements with other Free Trade Agreement nations.

Then look at the possibility of a strategic U.S-Russia economic alliance, and all those contracted icebreakers take on new meaning.

Some may think this is an overly harsh view of our Canadian friends.  However, the Canadian majority believes in climate change and unfortunately leftist politicians control their industrial economy [SEE HERE].

Climate change is a cult belief, and Canada is in the middle of a mass formation psychosis. Canada needs to get hard, stop this global warming nonsense, dispatch cultural Marxism and put deliberate men in charge.

A Canadian conservative is essentially a milquetoast politically correct Mitt Romney; not strong enough to make a difference.

The best thing President Trump can do for our Canadian friends is to help strategic regions while their overall GREEN ENERGY economy collapses around them.  Then we hope guys like this surface to rebuild the Great White North.