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Thursday, September 6, 2018

Trump administration's trade talks encouraging

NEW TRADE ARRANGEMENTS WILL BENEFIT U.S. EXPORTERS, AMERICAN WORKERS

MEXICAN WORKERS HELPED WITH NEW AGREEMENT


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Much misinformation has been laid on the American people about the Trump administration's trade negotiations. So far, there appears to be much success. The United States is the largest market in the world. It has by far the largest consumer market on the planet. It is a powerful incentive for trade partners to want to have access to the United States market.

There is no reason to have any tariffs or restrictions on trade goods between first world counties. It would cut a lot of red tape, make most business's become more efficient and be a general benefit for everyone. There has now been a general agreement on trade with the European Union, South Korea, Mexico and negotiations are in progress with Canada. There will soon be a new agreement with Japan.

Before beginning these negotiations, Trump should have had at least 1 prime time explanation of his goals and reasons behind the re negotiations, he should have used an accomplished person with a white board to lay out the facts concerning trade. I believe that would have gone a long way in overcoming the disinformation that has been used to oppose his plans.

One area of concern is the importation of steel and aluminum. The problem is that if no action would have been taken the domestic production of steel and aluminum in the U.S. would have ceased to exist. This situation was caused by massive production of Chinese steel and aluminum. Most of the world's steel and aluminum plants are now re-fabrication plants. They import bulk metal and then re-fabricate as needed by their customers. It may be listed as a product of the EU or Canada, but in reality the raw steel is produced in China. These new agreements will end the labeling of imported goods from China being relabeled by other trading partners.

The United States needs to maintain a vibrant Steel and Aluminum industry to have a guaranteed access to hi-quality materials for our defense industry. Once our industries shut down it could take years to be restarted.

One part of the new agreement with Mexico will require that Mexican Auto workers who manufacture cars and parts will need to earn a minimum $16 an hour to have access to American markets. This will help Mexican workers and may also slow the incentive to immigrate into the U.S.

While trade negotiations with first world countries should be without tariff and restriction, this will not work with third world countries. We insist on having high standards for the environment, worker safety, good wages and benefits for American workers and rightly so. China has few of these requirements, and may even engage in slave labor. While this situation may be a lucrative situation for industries that import their products from China. It will continue to lay the burden for this situation on American labor. While many continue to complain about the growing gap between the top and bottom of the economic ladder in America. This situation can be directly connected to our trade policies.

While many in International business would like to keep these policies as they are getting very rich with them. Then we have the other side who would rather support a guaranteed minimum income, food stamps, rent subsidies etc. rather put Americans to work. It is because they would rather have a permanent dependent class of Americans who are dependent on government subsidies and thereby a guaranteed vote.

The Trump administration could have taken the easy path, let the present trade policies continue, take campaign contribution from those who benefit from this policy and be praised as a principled free trader. You can love or hate the policies of Trump, but you cannot deny that he has taken on long festering problems head on. He is paying the price for bucking the established policies that have benefited the few, at the expense of the long term health of the country.









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