Wednesday, November 9, 2016

Donald Trump and Free Trade

As the dust settles and the shock waves dissipate, one of my coworkers who did not support Trump tried to look on the bright side and agreed the bottom line is that Americans want jobs and are unhappy with the way things have continued to go for many years. One of my pet peeves is these ridiculous Free Trade agreements that have absolutely nothing to do with free trade and everything to do with giving up sovereignty. It all began with NAFTA Chapter 11.

Donald Trump said that NAFTA was the worst trade deal the US ever signed and said he would pull out of the Trans-Pacific Partnership. This could be a good thing for all of us.

One of the logical consequences of NAFTA was seeing American made automobiles assembled in Mexico. If Japanese cars can be assembled in Canada why are American cars assembled in Mexico? Because it's cheaper labour. So Buying American isn't supporting the American economy any more. The American auto industry received a $80 billion bailout from tax dollars which was ultimately spent in Mexico not the United States. So when Donald Trump says NAFTA was a bad deal, there is merit to his argument. Why should a company receive tax dollars to be spent outside the country?

My concern with NAFTA is chapter 11 compensation awards. That hidden clause that says it's illegal for the government to create a law that would inhibit a corporation's ability to make a profit. Under that clause, if the new Donald Trump government said OK we'll give you a bail out but you have to start building cars in America the corporation could sue the government under NAFTA because they can find cheaper labour in Mexico and that law would inhibit their ability to make an extra profit. This is the inherent flaw in these trade agreements.

Under NAFTA chapter 11 Ethyl Corporation sued the Canadian Government and was awarded $20 million because Canada banned a toxic gasoline additive that California also banned. SDMI is a private corporation located in Tallmadge, Ohio specializing in the disposal of hazardous waste including the disposal of PCP contaminated waste. MYERS Canada was incorporated as an SDMI affiliate in 1993. Their business plan was to dispose of Canada’s stockpile of PCP and to open up the border to make Canada a dumping ground for PCP from the United States. Canada banned the dumping of PCPs and the company sued Canada under NAFTA Chapter 11. They were awarded $6 million in their second award. Not including legal costs.

The government was sued under NAFTA for saying you can't dump toxic PCP in Canada. That is absurd. It clearly shows how the trade agreement is flawed and is designed to give up sovereignty not promote trade.

The trade agreement Harper signed with China was even worse. Trump is wise for pulling out of it. Under the new agreement with China, Canada is not allowed to say China can't open up a private organ harvesting hospital in Canada that gets its organs from political prisoners in China because that would inhibit their ability to make a profit. That is why this agreement is pure evil. If Trump pulls out of that agreement, then more power to him.


  1. Trump has said NAFTA will renegotiated, and if he can't get a good enough deal it will be turfed completely. I don't see any worthwhile "renegotiation" happening, so look for it to get deep sixed.

    Clinton was the one who signed that into law, it's ONLY purpose was to allow corporations who paid the Dem's off to be able to move their factories down there. Trump is against that, he is going to forced those corp's to either pay exorbitant customs duties or move the factories back. So, NAFTA will bite it. Canada will benefit from this as well.

  2. Well detailed and written! I totally AGREE!

  3. That free-trade business is one of the worse things they ever started.

  4. yes, that free trade business didn't work so well for the average working person, but for those in control of the economy it has worker very well and it will keep working. Trump may say he is going to tear up the NAFTA deal. me, I'm not holding my breathe. Trump may impose tariffs on goods from some over seas countries, but first he'll have to get permission from Wal-mart and all those politicians they support.

  5. Does anyone really think Trunp is going to bring about any real change? It's business as usual in the US. His presidency wont change anything.

    1. Perhaps. Time will tell, it always does. I just know that FIPA was just plain evil so if he trashes the trade agreements that aren't about free trade and are really about giving up democracy, then that would be a good thing.


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