“Canada will start negotiations shortly. I’ll be calling the Prime Minister very soon. And we’ll start negotiation, and if they’d like to negotiate fairly, we’ll do that. You know, they have tariffs of almost 300 percent on some of our dairy products, and we can’t have that. We’re not going to stand for that.
I think with Canada, frankly, the easiest thing we can do is to tariff their cars coming in. It’s a tremendous amount of money and it’s a very simple negotiation. It could end in one day and we take in a lot of money the following day.” President Trump in phone call with President of Mexico announcing bilateral trade deal
The orange bully, poopy head is being mean to our mighty Prime Minister and his trade negotiators. Basically the US, having been insulted by our PM and getting thoroughly fed up with the gender equality/climate change/social justice pretensions of the Great White North, cut a deal with the Mexicans. Sunset clause and all.
Now, Trump may call Justin – assuming Justin is in the office – and he may be willing to do a bilateral trade deal, but there is no particular reason the US needs a deal. And they certainly don’t need one with big dairy tariffs and gender equality.
See the big stick? Yup, auto tariffs. Which is to say the end of Ontario’s economy.
Now, our brilliant Prime Minister and his advisers are pretty convinced that the path to their next majority lies in running against Trump. Because Canadians hate Trump and they line up to demonstrate their patriotism by supporting Justin when he stands up to the orange ogre.
Here’s the thing: Trump and his people don’t care.
Justin’s tough guy stance has reduced Canada to the status of ankle biter among nations. We used to box above our weight internationally – or at least we told ourselves we did. Trump is a realist. He doesn’t need Canada. And he certainly doesn’t need a dim, virtue signalling Canadian Prime Minister to tell him about climate change and indigenous people.
So, realistically, it may be a while before the Prime Ministerial phone rings.
I believe that is Minister Happy Ears behind the tree.
This article (and the video) really lay out where NAFTA is going. China is Trump’s big target and Canada is just collateral damage if we don’t play by the new American / Mexican rules. Trump doesn’t care any more about US / Canada relations or trade.
A lot of the stuff listed below is anathema to Canada but we may have to eat crow because we were so intransigent when negotiations were still going on; it is sign it or don’t but I do not believe there will be any negotiating; it is sign it before September 3rd because this new bi-lateral deal is being fast-tracked to congress on that date – next Monday.
“In order for Canada to join the U.S./Mexico deal they must:
1) eliminate soft-wood subsidies in the lumber sector;
2) eliminate protectionist tariffs in AG, specifically dairy;
3) accept the 75% rules of origin that eliminates the NAFTA loophole;
4) agree to enforcement mechanisms; and,
5) open their financial sector by allowing U.S. banks to operate in Canada.”
I don’t think Skippy will be able to stomach all these and if not, we are in trouble big time. Everyone should recognize that Trump will move quickly to put tariffs on our autos pour encourager les autres (as the French Foreign Legion major said as he shot the bedouin). But even if POTUS doesn’t impose tariffs, and this is huge, if we don’t sign this new deal our autos will be made “outside the region” (US / Mexico) – watch the video around the 12:00 minute mark.
The details are really not clear but if we are not ‘in the region’, then it follows that Canadian cars and parts will be treated the same same as Chinese and other foreign automotive products are now; we will have to import 75% of the content of Canadian built / assembled autos from the US or Mexico to comply with the new rules of origin of the United States-Mexico Trade Agreement and thus be able to export our cars south. Or conversely, American auto plants will need way fewer Canadian parts for cars built in the US or Mexico because 75% of such cars and trucks must be made with parts that originate ‘inside the region’. The region is North America now but that is not how it will read in the new bi-lateral agreement, the new agreement that will supersede and cancel out NAFTA.
Think that will work? Auto companies will skedaddle south faster than you can say depression. And they won’t be back so stalling in order to outwait Trump / Trudeau is not on either.
So, we sign real fast under the new rules – the option I now think our Skippy is forced to take – or we stand firm against the American bully and keep supply management in order to save 10,000 Quebec dairy farmers and lose 160,000 auto related jobs. Either way, there will be huge negative blowback for our incompetent Liberal friends.