NAFTA “Finessed” to Include Canada at the Expense of U.S. Sovereignty


The New American: In the rush to include Canada in the USMCA (United States-Mexico-Canada Agreement), now being referred to by some in the press as NAFTA 2.0, before the witching hour of midnight Sunday, the United States “finessed” the agreement, according to various press reports. Last Friday, the liberal Toronto Star first leaked about the coming “finesse”: “The dispute resolution impasse [over sovereignty-threatening Chapter 19 in the original NAFTA] could be finessed.” (Emphasis added.)

Just before midnight Sunday, another writer at the Wall Street Journal wrote that Trump’s demand to eliminate Chapter 19 altogether from the USMCA disappeared entirely under pressure from those who wanted to keep it:

A broad coalition of Republican and Democratic members of Congress, joined by leaders from American business and labor organizations, have made clear in recent days they would be unlikely to support a revised NAFTA that doesn’t include Canada.

In response, Trump officials [including globalist Robert Lighthizer as Trump’s trade representative and Jared Kushner, his son-in-law, who, said various sources, “brokered the deal”] suggested they would try to find ways to finesse the procedures and deadlines to leave the door open for Ottawa to be part of Nafta 2.0 before an agreement was submitted to Congress for consideration. [Emphasis added.]

Merriam-Webster defines “finesse” as “a skillful handling of a situation, [an] adroit maneuvering. more …

OpinionChapter 19 was one of the most important achievements in NAFTA for Canada, as it provides a binational dispute settlement process for challenging anti-dumping (AD) and countervailing (CVD) measures (makes up for the gap between foreign manufacturer pricing and fair market value).

The Trump administration’s new trade deal with Canada and Mexico leaves much of the old North American Free Trade Agreement intact. There are some key differences, however, particularly when it comes to the dairy and auto industries.

Despite the new name (the U.S.-Mexico-Canada Agreement, or USMCA) dropping any references to trade, let alone free trade, the tariff rates on imports from Canada and Mexico are still zero.

Translation: The new deal is an utter collapse as cited by the Wall Street Journal “A treacherous sellout of precious sovereignty in order to keep Canada in NAFTA 2.0.

With the crucial mid-term elections in just over 1 month and the Kavanaugh mess dominating the news cycle, the Trump administration can hope nobody notices NAFTA 2.0.