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 That USMCA thing

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richard09

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Join date : 2013-01-16

PostSubject: That USMCA thing   Wed Oct 03, 2018 3:45 pm

There's this site QorA that I read. It's mostly bullshit (trolls or kids trying to get answers for their homework), but occasionally a question and answer seem worthwhile.

Why didn’t Canada play hard ball with the US but instead signed the NAFTA/2.0 deal, knowing that President Trump doesn't have the authority to sign the trade pact with Mexico alone?
https://www.cbsnews.com/news/nafta-deal-canada-us-mexico-reach-trade-deal-agreement-rename-usmca-today-2018-10-01/

Gord Campbell, Consulting Philosopher at Semi-retirement, Answered 23h ago

Canada did play hard ball. Real hard ball. The only win for the Americans was getting more access to the Canadian Dairy. But Canadians had already given the TPP, and CETA the identical deals about supply management.

The dairy farms are upset. They describe it as a thousand cuts. Think about it. The American market concession was only one cut. The supply Management system so hated by the Americans is still in place. As soon as things die down, the Canadians will get down to brass tacks modify the system. Usually when access is gained its a two way access. If the Americans wanted added access they would have allowed more Canadian access.

Another point was the tariff on cars. Americans have limited the number of Canadian units shipped to the states. Any number higher and tariffs are applied. So the Americans brag that they have curtailed the number of cars shipped. The interesting point is that this is a greater quantity than the Canadian auto industry ever sent. ????

The Americans consider that a win.

The Canadians wanted to protect the cultural sector such as music, cinema, TV. Got it. A couple of gimmes on the copyright length for music. But these items are related to the internet and were due to be negotiated anyway.

Another irritant was the abysmally low duty free rate. I believe it was somewhere around $20 duty free. During the last Canadian federal election it was conceded that it should go up. It was going up but Trump re-opened NAFTA and slapped on tariffs. Canada just conceded $150 dollars. And the Americans won a victory.

Three years ago the rate was discussed and the Canadian government was thinking about $500 duty free. And they would have settled for that amount but the Americans demanded $150 dollar duty free limit instead. It means the Americans didn’t do the homework.

Another sticking point was the sunset clause. The Americans insisted it was a nonnegotiable. It was five years. Canada said no way. In he Mexican bilateral they argued in the same manner and the Americans compromised with a longer term. To the Canadians they pretended they were reluctant most likely but it was totally acceptable because it allowed a longer time window.

Oh then, the Americans seem to have insisted that there be no more trade deals without getting their permission. A weird request, Canada already had the TPP deal that the Americans pulled out of, and the Canadian European Trade Agreement CETA. This would be meaningless concession since it was the NAFTA/USCAM that was the last big trade deal left on the Canadian trade list.

The Canadians still have the dispute mechanism. except, instead of chapter 19 its called 10.

Really the Americans didn’t gain all that much. We Canadians have moved on. It really isn’t a big deal.
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