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JoanneDavis @JoanneDavis
, 19 tweets, 6 min read Read on Twitter
1. theconservativetreehouse.com/2018/07/19/tra…

There is a key issue in every NAFTA discussion that is omitted purposefully. The issue always hidden is that NAFTA is not a North American “Trade Bloc”.
The NAFTA partnership is nothing like the EU trade bloc; it is not even close.
2. W/in the EU example, each nation is committed to only trade w/outside nations on terms of agreement w/in the trade bloc. All trade parameters must meet/comply w/terms w/in the EU trade agreements. The terms of trade inside the group are connected to the same terms outside
3. the group. It is an agreement between themselves/their commerce toward all other external nations.

***However, in NAFTA, the Canadian & Mexican trade ministers can negotiate freely w/outside nations. There are NO restrictive parameters on their independent decisions.
4. NAFTA is more similar to an access agreement with *only* terms of internal trade and commerce between the U.S., Canada and Mexico subject to the agreement. NAFTA is only an agreement between the U.S., Canada and Mexico and does NOT extend to external nations.
5. If France wanted to negotiate trade w/China on a specific product -or sector- they have to comply with, & go through, the EU trade group. China would have to apply the same terms to France as all other nations w/in the trade bloc. However, if Mexico wants to negotiate with
6. China on a specific product, they do NOT NEED TO CHECK w/the U.S.,
they can cut any deal they want. This is the basic issue underlining the NAFTA ‘FATAL FLAW'.

If the U.S. wanted to apply a tariff to Chinese cars the Chinese CAN WORK AROUND the issue.
7. Chinese cars could be trans-shipped into Mexico and/or Canada for delivery under NAFTA to the U.S. market. The only way to block this issue is to apply auto tariffs to Mexico & Canada. This is currently the reason why Canada & Mexico are facing steel & aluminum tariffs.
8. As a consequence of NAFTA NOT being a trade-bloc, it has been EXPLOITED EXCLUSIVELY for ACCESS to the US market. Over the past 30 yrs Canada & Mexico have structured their manufacturing economy based on UNLIMITED ACCESS to the U.S. market.
9. Mexico & Canada ASSEMBLE FOREIGN PRODUCTS SHIPPED to them AS PARTS, then SEND the finished products into the U.S. market. Hence, Canada & Mexico demand high content of cheap foreign parts in any internal NAFTA manufacturing agreement. There is ZERO BENEFIT to the U.S. worker
10. or manufacturing base under this structure.

This EXPLOITATIVE approach, a BACKDOOR to the U.S. market, was the primary reason for massive foreign investment in Canada & Mexico;

it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to
11. shut down that loophole and renegotiate NAFTA. However, with hundreds-of-billions already invested by the multinational banks and corporations – they are fighting to retain the status quo.

This LOOPHOLE was the primary reason for U.S. manufacturers to RELOCATE operations to
12. Mexico. CORPORATIONS WITHIN the U.S. Auto-Sector could ENHANCE PROFITS by BUILDING IN Mexico or Canada using cheap parts imported from Asia/China. The labor factor was not as big a part of the overall cost consideration as cheaper parts and imported raw materials.
13. From the POTUS Trump position, NAFTA always came down to two options:

Option #1 – renegotiate the NAFTA trade agreement to ELIMINATE the LOOPHOLES. That would require Canada & Mexico to agree to very specific rules put into the agreement by the U.S. that would
14. REMOVE the ability of third-party nations to EXPLOIT the current trade LOOPHOLE. Essentially the U.S. rules would be structured around REMOVING and PROFIT MOTIVE with regard to building in Canada or Mexico and shipping into the U.S.

Canada and Mexico would have to agree to
15. those rules; the goal of the rules would be to STOP THIRD-PARTY NATIONS from EXPLOITING NAFTA. The problem in this option is the exploitation of NAFTA currently benefits Canada & Mexico. It is against their interests to remove it.
16. Knowing it was against their interests President Trump never thought it was likely Canada or Mexico would ever agree. But he was willing to explore & find out.
17. Option #2 – Exit NAFTA. And subsequently deal w/Canada & Mexico individually w/structured trade agreements about their imports. Canada & Mexico could do as they please, but each U.S. bi-lateral trade agreement would be written w/language removing
18. the aforementioned cost-benefit-analysis to third-party countries (same as in option #1.)

All nuanced trade-sector issues put aside, the larger issue is always how third-party nations will seek to gain access to the U.S. market through Canada & Mexico.
19. [It is the NAFTA EXPLOITATION LOOPHOLE which has SEVERELY DAMAGES the U.S. manufacturing base.]

Now, watch the gaslighting:



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