Saturday, July 08, 2017

Leveraging economics to benefit our allies

Sundance reports at The Conservative Treehouse,
In Hamburg, U.S. President Donald Trump, Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin and Chairman of Economic Policy Gary Cohn, are advancing bilateral trade deals within one-on-one discussions; including discussions with U.K. Prime Minister Theresa May now that brexit has freed the U.K. from the collective European Union.

President Trump speaking trade with Prime Minister May is making the EU collective furious because, Germany’s Angela Markel is attempting to leverage/blackmail their own protectionist EU trade deal before allowing the United Kingdom to exit the union.

The U.S. trade team know how to leverage the economics of this issue to the benefit of their ally, the U.K. (and also to Poland, Hungary, and the Baltics etc.)

If a trade deal between the U.K. and the U.S. holds specific benefits not granted by the U.S. toward the larger EU collective, then European companies who want access to America may shift or open new operations in the U.K.

Regional location to take advantage of the economic pathway to the United States (the worlds largest market) is already a well known strategy. This approach makes the U.K. economy stronger and dilutes the larger EU trade economy by shifting economic activity out of the union and into the United Kingdom (England, Wales, Scotland, N-Ireland).

In essence European companies will predictably move to the U.K. in order to have better access to the United States market. This has Angela Merkel (Germany), Emmanuel Macron (France), and other EU leaders in fits of outrage. Thus the EU threats toward Prime Minister May and the U.K. that she (they) are not allowed to enter into trade deals with America until after she leaves the EU.

...Access to the $19 Trillion U.S. market is the golden ticket for any nation in economic trade. President Trump, Wilbur Ross, Steven Mnuchin, Robert Lighthizer and Gary Cohn determine which nations get the ticket and at what level they will be granted access.

Removal, nullification or revocation of that golden ticket is also economic leverage holding multiple purposes, including national security.

The use of such dominant economic leverage to change behavior is the looming approach by the Trump administration to get China to stop enabling North Korea, and to change their militaristic behavior.
Read more here.

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