Trump Troubled By NAFTA

Sen. Ted Cruz (R-TX) admitted there was “an active debate,” within President Trump’s administration on NAFTA renegotiation.

Cruz told NBC, “I am worried. The most consistent concern that I hear from Texas business leaders all across the state and also from farmers, from ranchers throughout the state is trade, and what the administration is going to do on trade.”

“My view on NAFTA renegotiation it could be a good thing, it could be a bad thing. It would be a good thing if we modernized the agreement, if we expand our access to Mexican markets, the Canadian markets, if we increase trade, that would be good for Texas. On the other hand, if it is used instead to erect barriers to the U.S. market, to decrease trade, that will hurt Texas farmers, hurt Texas ranchers, hurt Texas businesses. The truth of the matter is there are voices on both sides of that debate within the Trump administration. There is an active debate. I can tell you I have leaned in repeatedly, with President Trump directly, with the cabinet members involved in this saying we need to be expanding trade, opening up and I think the best opportunity for NAFTA is energy. Opening up the Mexican energy markets, there are vast energy reserves in Mexico. If we do that, we can produce thousands of good paying jobs in Mexico and naturally the place they will turn for expertise is Texas.”

  • flashy0ne

    Proceed with caution. We did this in the Mid East and South America and in BOTH cases it resulted in a “pain in the drain”. When people are left to develop their own resources, they usually develop ‘civilized’ behavior along the way.

  • gimpy

    The hell with mexico, we really don’t need a damn thing they have to offer. We have what we need, now build the damn wall to keep the trash out of our Country.

    • Howard Kirshenbaum

      gimpy – in the mind – – We get so much produce from Mexico when it’s too cold for us to grow it here. We assemble our cars there because labor is cheaper and that keeps the costs down. If you want to boycott Mexican made things out of your economic ignorance and prejudice, you go right ahead.

  • kbmiller

    If the trade deficit #’s we see are correct, then something needs to be done to protect the USA.

    • Howard Kirshenbaum

      Protect against what? They get money we get goods. Even exchange. If we have goods they need they buy them and we get the cash. Even exchange. The fact is we assemble autos in Mexico which is beneficial to their economy and that keeps people over there and not wanting to come here. The U S isn’t losing at all.

      • kbmiller

        How many illegals(Paid cash under the table and pay NO TAXES) trade their work, here in the US, for $ that they send out of the country? How many US citizens (Who pay no taxes in the countries they work in, hardly any) are in foreign countries sending their $ back home? Does that hurt or help our economy? Did you think that out Howie? I assume you’re in on a business that profits, somehow, in this inequity. Usually those for it, are.

        • Howard Kirshenbaum

          Well, if you had your family back home to support, you would send money back there too. It isn’t just people taking money under the table that do that. There are those who pay taxes and send some back to family. There are even citizens that make money he and send it to parents in Europe. What’s your point. There are tons of people who work off the books that are citizens and spend their money here. In any case like that, there is nothing paid to the government as it should be and we have to make up the difference. The problem with all the people working off the books is really the employer that wants these people working off the books. No payroll tax matching, no benefits, lower wages. That’s the illegality of it. And having been in the tax field for over 50 years, I am well aware of this problem. Go after the employers and you solve the problem. All in all, without those working off the books our debt would be much, much lower and Social Security would be in much better shape.

          • kbmiller

            What’s my point? You didn’t understand? You claimed the US isn’t losing. In your last post you claim, “We have to make up the difference” !!! According to you, then sounds like ,”WE” are losing. If you are the expert you claim to be, how many yrs. could a country survive with $Trillion trade deficits EVERY yr? I suppose you’ll suggest, Keep printing money.

          • Howard Kirshenbaum

            A very long time. As long as the population has the money to pay for the goods it wants we can keep buying more than we make. Realize that it is not the government that creates this deficit but the population. We are a very large and wealthy country so when we buy from poorer countries, we give them our earned money for the stuff we need. Where is the problem? Keep in mind, also that shareholders of our companies can also be people from foreign countries. Our companies shareholders are estimated to be 35% foreigners. That money goes out of the country. Should we do something to not allow that to happen just to keep the money here? It’s not all about the money. There’s way more to it than that.

            Also realize that when you put a tariff on something like steel, you may help a bunch in the steel industry here but you are hurting all the people who work for companies that use that steel and that’s way more than the jobs helped.

          • kbmiller

            Deficit trading, like deficit spending will eventually get you into trouble. You should have learned that from your dad.

          • Howard Kirshenbaum

            Deficit spending means you are spending more than you have and results in debt. If you do it it’s bad. If the government does it it’s bad. There is no such thing as deficit trading. You are paying cash for the products you are receiving and you get cash for the products you are selling. There is no deficit. The person who buys a car from Japan and pays cash has no deficit.

            When you buy a house, you have deficit spending but you also are supposed to have equity that the borrower can give if needed.

          • kbmiller

            Howie, the gummint puts out yearly stats, trade deficit= the amount more we PAY than others pay for our goods. Get it? Now go away.

          • Howard Kirshenbaum

            So what. If there are more of us than them and we are more affluent than them we will demand more goods than they will. See if you can wrap your brain around that. The raw numbers are meaningless.

          • kbmiller

            So what ? There are more foreigners on this planet than there are Americans. Thought you knew that. When a country charges 25% tax on US cars they import and we charge 2.5% on theirs, the USA feels that 25% is unfair and not on par with all other countries. THAT helps create trade deficits. Say so what to that. I thought you had some sense. Not any more, though.

          • Howard Kirshenbaum

            Put it in perspective. We import how many cars from China? China imports how many cars from the U S.? The amount is so small that one shouldn’t have any worry about it. Actually do you know of any cars imported from China?

            And we are talking about China that loves stealing our intellectual property. I actually don’t have a problem being selective in tariffs with them. But with Canada and Mexico? Trump is putting a tariff on something that we actually have a surplus on.

          • kbmiller

            Are you claiming that Canada and Mexico do not subsidize any products traded with the US which gives their businesses advantage over ours? Does this move help or hurt our manufacturing base? Will it help to open or grow businesses/jobs and result in less dependence on foreign goods in case of world conflict? Should we be making our own components for our planes/missiles/ships, etc, or depending on Asian countries?

          • Howard Kirshenbaum

            First of all, Canada and Mexico are not Asian countries. At least the last time I looked. Don’t conflate the two problems. We relied on Canada for WWII and they helped with Afghanistan. They are an ally. They have shown us many times that we can trust them. We have a huge unmanned border. Should we treat them like me would Mexico? No. We need to take each specific problem and try to solve it. This trade war will benefit no one. Think of the Smoot-Hawley that prolonged the depression.

            Do they subsidize products? Of course and so do we..

            Will it hurt our manufacturing base? In the long run it definitely will. It might help the steel manufacturers now but will hurt every industry that Canada puts tariffs on and every industry that uses the steel in manufacturing.

          • kbmiller

            Howie, listen to Wilbur Ross, he’s got way more smarts than you. You admitted it’d hurt us in the long run. Isn’t that enough reason for you? The US economy is like a marathon, not a sprint. Use your brain. Strength building for the future is a good thing. I trust good economists and businessmen more than I’d ever trust a DumbA$$o CROOK who relies on emotions and feelings. Leave me alone, go pester a leftist.

          • Howard Kirshenbaum

            So what does Wilbur Ross say about tariffs on Canadian goods? It’s such a small percentage of the economy that it shouldn’t matter. If that is true, why do it at all? We subsidize products we want to succeed all the time, why not just keep it in house and subsidize the steel industry to encourage expansion? That way with more people working, the government will get paid back for those subsidies with more wages being paid and more profits being made and we don’t piss off the rest of the world. From what I’ve read and heard, even Kudlow doesn’t like the idea. I and many, many economists don’t agree with the Trumpian way.

          • kbmiller

            blah blah blah, too bad, now go away. That’s the President Trump way.

  • dolittle

    it is pass time that the deficits of trade against the us is stopped the eu and mexico are hollowing so is canada they care nothing about the us only their bottom line and our money it’s time we cut off both especially to the eu over their iran stand and when the muslims take over england and they hollow for help like with ww1 and ww2 we don’t give it american taxpayers footed the bill to rebuild germany and england and they spit in our faces when in the hell do they stand with us

  • DP

    Trade agreements should be unilateral…get rid of NAFTA which incorporates both Canada and Mexico under the same agreement made over 50 years ago!…America’s relationship with Mexico and Canada are completely different now. Cruz should not be ranting publically about this and letting these countries know our weaknesses-we will have no leverage when it comes to re-negotiating.
    Cruz is only concerned about Texas and not our borders and the way Mexico takes advantage of America nationally. It is a complete mess given their drug cartels immersed in our nation, and sending their rejects to invade our borders illegally and break our immigration laws, etc. This has to be addressed first, and Mexico needs to cooperate with our laws and stop taking advantage of the US first, then a unilateral trade agreement can be made that could benefit both countries.