Thursday, October 24, 2019

"The USMCA establishes an internal North American manufacturing system; this provides an alternative for Asian manufacturing of goods for the U.S. market."

Sundance reports in the Conservative Treehouse,
White House Trade and Manufacturing Advisor Peter Navarro appears on Fox Business to discuss the purpose and intent of the USMCA and the ongoing China trade discussions.

What Navarro skims upon is the heart of the economic purpose behind the USMCA as requested by President Trump and constructed by USTR Lighthizer. The USMCA establishes an internal North American manufacturing system; this provides an alternative for Asian manufacturing of goods for the U.S. market.

This manufacturing system is why Mexico is “all-in” to support the USMCA. Additionally, the economic benefits within the system as constructed is exactly why Mexican President Lopez-Obrador is willing to pressure House Democrats to ratify and also back-up President Trump on other geopolitical issues (immigration controls etc).

On the Stock Market dynamic. Currently, there is a great deal of investment capital waiting to see where the money should be placed. Investment in China has dropped dramatically; investment in Southeast Asia shifted, but new investment is pending this outcome. Multinationals are calculating the TCP (Total Cost of Production), and if the new USMCA is passed there will be a triggering effect of North American investment because the uncertainty will be eliminated.

Unfortunately, the advisors to Speaker Nancy Pelosi know the likelihood of economic benefit from the new North American trade agreement; and that’s why they are holding back passage of the USMCA. The democrats know it would be a big investment boost to the economy. Their political future is dependent on not allowing that to happen.

Their excuse for not passing USMCA is a false-excuse surrounding labor issues. The North American content standards within the USMCA will drive the manufacturing decisions; this is the closure of the NAFTA loophole.

To protect herself from the political backlash, Pelosi has leveraged AFL-CIO union president Richard Trumka to support her false claims. Trumka is trying to help the Democrats politically by agreeing with the false-narrative about the labor concerns. It’s all a scheme:
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