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Is the #Mexico / #USA new #TradeDeal Real? or just lipstick on a Pig or moving Chairs around the Deck of the Titantic?!?!
Monday, August 27, 2018 16:45
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Trump announces NEW TRADE DEAL with Mexico…. Before you start jumping up and down and shouting RAH, RAH, RAH… #AmericaFirst…. #WINNING!!! How about we wait and see the damn details and see if it is a real improvement over NAFTA (or just usual Political Theater and rearranging the Chairs on the Deck of the Titantic)?!?!?
#DevilIsInTheDetails…. The “‘American’ content” clause change in the upcoming agreement with US/Mexico DOES NOT mean any more Manufacturing in the USA. ‘Mexican content’ is defined as (included in, Amerocan content, not US content) ‘American content’ and therefore will result in an incentive for some Mfg needing to be moved from China (to meet new 75% from 62% content standard) TO MEXICO (not the US). Still waiting for details that will undeniably and a guarantee to Help the US…. So, we know how Mexico is going to benefit from this new agreement, where/what are the benefits for the US?!?!
We’ve also heard details that not just “American content” was/is increased, but loopholes were closed so that China will no longer be able to just route Parts through Mexico but final destination for/in US to be Tariff Free. That is wonderful. That may be a MORAL VICTORY to PUNISH CHINA that people are calling for since China has clearly had a Trade Advantage to this Point! A Moral Victory, however, doesn’t help US Workers or US Consumers, in fact (just like with Import Tariffs) American Consumers will actually be PUNISHED via increasing prices (whether it be increased costs of China Parts due to Tariffs now going to be levied or more expensive MEXICAN, still not US, Parts being used)!
That is still NOT the end of the details leaked thus far…. The Content Rules now also have a clause requiring the Parts come from Manufacturers paying a Minimum of $16/hour to Workers… Again, great for Mexico! Mexicans will see a Pay Raise… The US will see an increase in the Cost of Cars… And NO it won’t just be 35, 50, 75 dollars, but more like $500/car as the cost of ALL PARTS COMING FROM MEXICO WILL RISE! And NO it will not result in greater competition and more US Parts Sales, as while the cost of a Mexican Part (and, again, every part rises, times several thousand parts in a Car), for example, may go from $15 to $18 it is still less than $20 US Part and will therefore still come from Mexico, NOT shift to being produced in the US.
TO BE FAIR…. NoOne’s seen the whole Deal yet…. If there are indeed REAL/TANGIBLE/MEASURABLE benefits for US Workers and/or US Consumers, they damn well better hurry up and leak those details if they want support for the Agreement (rather than the lipstick on the pig we see so far) cuz, so far, all I’ve seen is DOWNSIDE!
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