Trade, Peace, Development, Order... worn out ideals for current times?






The nations must be organized internationally and induced to enter into partnership, subordinating in some measure national sovereignty to worldwide institutions and obligations
-- Arthur Henderson



TRUMP






TRADE








THE NAFTA ROUND TO END ALL NAFTA ROUNDS? It's the first day of what could be a defining round of NAFTA talks. Negotiators from the U.S., Canada and Mexico will converge on a Pentagon City, Va., hotel, but the real fireworks may be seen north of the Potomac as Canadian Prime Minister Justin Trudeau discusses the pact with President Donald Trump and House Ways and Means Committee members.  Even before Trudeau landed in Washington on Tuesday, Trump's latest views on NAFTA emerged in a Forbes Magazine interview: "I happen to think that NAFTA will have to be terminated if we're going to make it good," he said. "Otherwise, I believe you can't negotiate a good deal." Agriculture Secretary Sonny Perdue, seeking to soothe nerves on Tuesday, interpreted Trump's statement to mean the president wants "to redefine and renegotiate NAFTA in a free and fair trade deal. We support him in that."  But on a more substantive level, the talks could see some of the thorniest U.S. proposals thrown onto the negotiating table, including on automotive rules of origin, investor-state dispute settlement, a five-year "sunset" provision and a bid to rid the agreement of its trade remedy dispute provisions. Still unclear is whether those proposals are merely starting points for negotiations or red lines that will send the talks into free fall.  "This is absolutely headed for a disaster," one worried business lobbyist told Morning Trade. "This is an absolute crisis. I am pretty damn pessimistic about where NAFTA is headed."  The talks this week could also be the longest round yet, having been extended by two days. Canadian Foreign Minister Chrystia Freeland will return to Washington on Oct. 17 to meet with her U.S. and Mexican counterparts and close the talks, a spokesman for her office told Morning Trade. Freeland is in Washington this week with Trudeau and will accompany him to Mexico for the second leg of his trip.  [POLITICO's Morning Trade, October 11, 2017] 

FARMERS FOR FREE TRADE GETS FARM BUREAU BACKING: A new grass-roots campaign will attempt to connect free trade with economic success for farmers and rural communities as NAFTA remains under threat and uncertainty clouds U.S. trade policy in Asia.  The Farmers for Free Trade group, which is headed by former Sens. Max Baucus and Dick Lugar and received the support Tuesday of the American Farm Bureau Federation, will seek to mobilize farmers nationwide as a force for supporting existing and future trade deals.  "We're going to drive home the threats to export markets like Mexico, Canada, South Korea are threats to states like Kansas, Kentucky and Washington," said Sara Lilygren, president of the group's board of directors, during a press call on Tuesday afternoon.  The bipartisan effort will seize on the agriculture industry's general frustration with the Trump administration's trade policy, which many in the export-oriented sector argue started off with a misstep when the newly elected president abandoned the Trans-Pacific Partnership and then put at risk major benefits to agriculture by initiating a renegotiation of NAFTA. The group also intends to speak out on the hits ag has taken as a result of enforcement actions and the need to pursue new trade deals, she said. [POLITICO's Morning Trade, October 11, 2017] 

NAFTA ROUND 4: WHERE WE STAND: The mood at the Sheraton Pentagon City over the weekend was perhaps best summed up in the words of one attendee close to the talks, who described the outlook as "pretty pessimistic." Industry officials and representatives from various trade associations and labor unions milled in the lobby and around the hotel bar, wondering aloud how close Washington might be getting to walking away from the table entirely.  USTR held a late afternoon USTR briefing for cleared advisers. As talks continue today, here's a rundown of some of the primary points of discussion:
Trade deficits. Representatives from the business community, agriculture groups, organized labor and other concerned parties were given a stark reminder of why they were hanging out in a nondescript hotel conference room on a Sunday afternoon: The Trump administration wants to renegotiate NAFTA in order to reduce the U.S. trade deficit.  That was the opening message from Daniel Watson, the deputy assistant U.S. Trade Representative for North America, according to sources familiar with the briefing. Less clear was which of the U.S. proposals - ranging from a major overhaul of the automobile rules of origin to disarming the pact's dispute settlement provisions - USTR thought would directly achieve the goal rebalancing America's trade with Canada and Mexico, sources said.
Dairy. Two days of talks centered on the agriculture chapter focused at least in part on dairy. The U.S. made a proposal to reverse a Canadian pricing program that has undercut certain U.S. dairy exports north of the border. The text, which demands that Canada eliminate an industry pricing classification that lowered domestic prices for certain milk protein concentrate products to the minimum global price, was met with swift pushback from those who see it as a direct threat to Canada's supply management system. It does not include any language on market access, as those provisions will be negotiated separately.
-- A 'full assault': Sources familiar with the U.S. position characterized the proposal as a five-page attack on Canada's supply management system that not only demands the elimination of the new price class on milk protein concentrates, but also includes onerous "transparency" requirements for Canada to report pricing decisions. (Supply management sets up a system that stabilizes income for dairy farmers by limiting supply, restricting imports and setting prices on milk.)  "The United States is preparing a full assault on Canada's supply management system," said Christopher Monette, director of public affairs for Teamsters Canada. The labor union represents about 35,000 to 40,000 workers in the country's dairy industry.
Auto rules of origin. The United States formally introduced proposal to drastically tighten the rules of origin for automobiles, calling for the amount of content in a car that must be sourced from a NAFTA country in order to be eligible for tariff benefits to rise to 85 percent from its current 62.5 percent. Washington has also proposed for the first time a U.S.-specific content requirement, which would mandate that 50 percent of a car produced in Canada or Mexico be sourced from within the United States in order to qualify for duty reductions.  USTR's proposal also calls for the domestic content provision to come into effect immediately and for the rules of origin to rise over a two-year phase-in period - a time frame critics are saying is far too short.
- Seasonal produce. Mexico gave a hard "no" to the produce proposal on Friday sending its first clear, united signal that the proposal would be fought. The Mexican government and private sector would "for no reason accept the seasonality clause," said Bosco de la Vega, president of Consejo Nacional Agropecuario, Mexico's main agriculture group. De la Vega referenced a conversation he had with Mexico's ministers of agriculture and economy last week, when all agreed that the proposal was a nonstarter. The only effect the proposal would have, if enacted, he said, "Is that my associates in Mexico will ask for seasonality in grains, soy, corn, meat and all the products that affect the Mexican industry." An industry compromise appears elusive, dividing fruit and vegetable growers in the United States. Tom Stenzel, president and CEO of the United Fresh Produce Association, summed it best: "I feel like I'm on a tightrope." 

FOREIGN POLICY






REX TILLERSON

Secretary of State






HEALTHCARE






TAXES






IMMIGRATION






It has been one month since Donald Trump rescinded the Deferred Action for Childhood Arrivals (DACA) program, putting the lives of immigrant youth in immediate danger.  In that time, despite bipartisan legislation and overwhelming public support, Congress has made little progress on passing a legislative solution to this human rights crisis. Every day Congress holds off, waves of more and more immigrant youth will become vulnerable to Trump’s deportation agents.  The DREAM Act has the power to protect more than 1.5 million members of our communities who arrived in the United States as children. But xenophobic, nativist members of Congress have signaled that they plan to use this bill as an opportunity to enact draconian enforcement and anti-family policies.  All immigrants have the right to exist and thrive. They deserve recognition, dignity and respect for all they provide. Immigrant youth are not bargaining chips for escalating detention, deportation, and border militarization fantasies. They should not be leveraged at the expense of their families and community. [Daily Kos, October 5, 2017]


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NOTE: The news sources here vary.  Not all sources have the same credibility, but in an effort to share some different perspectives, they are included here.  This compendium itself cannot claim to be unbiased.  Please take into consideration where these different perspectives originate in assessing their value.  Thank you

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