Mexico ready to quit NAFTA if US talks fail

a reply to: angeldoll

Putting "America First", through bullying and causing other nations to suffer?

That is indeed the American way.

On January 23, 2017, President Donald Trump signed an executive order to renegotiate NAFTA. He wants Mexico to cut its VAT tax and end the maquiladora program. He will withdraw the United States from the Trans-Pacific Partnership. Trump prefers bilateral trade agreements to multilateral ones. For more, see What Happens If Trump Dumps NAFTA?

www.thebalance.com...

a reply to: D8Tee
Would Americans find this renegotiation objectionable?

What Changes Would Trump Make to NAFTA?
First, Trump would require Mexico to end its value-added tax (VAT) on U.S. companies. Trump claims that the VAT acts as a tax on U.S. exports to Mexico. A VAT tax is like a federal sales tax that's imposed on all companies throughout the supply chain. Mexico charges a 16 percent VAT tax on all business sales, whether it's to other firms or the consumer.


When companies export the finished product to the United States, Mexico rebates the VAT tax. But U.S. companies that export to Mexico must pay the VAT tax. Trump says that encourages U.S. companies to build factories in Mexico to receive the rebate and avoid the tax. (Source: "How Does a Value-Added Tax Work, Anyway?" The Atlantic, March 1, 2010. "Trump's Incredibly Misleading Claim on Mexico," CNN Money, September 28, 2016.)

Second, Trump would ask Mexico to end the Maquiladora program. That program allows U.S. companies to set up low-cost factories across the border in Mexico to assemble finished products. They export the goods back to the United States. As a result, Maquiladoras became responsible for 65 percent of Mexico's exports. That undercut American workers and sent jobs to Mexico. NAFTA expanded the Maquiladora program by ending tariffs. (Source: "The Benefits of Setting Up a Maquiladora in Mexico," The Offshore Group.)

www.thebalance.com...

originally posted by: Rookseven

originally posted by: seasonal
a reply to: lordcomac

I think it is high time we start to make our $125 a pair shoes here.

Aww that's adorable that you think those shoes would cost the same if they were made here.

Just feel the need to point out-
My shoes cost $150 (after tax) and are made right here in the USA.

They're also composite safety boots- also known as steel-toe, only the toe is actually some sort of aluminum composite.

Manufacturing. Boots being made at a Red Wing Shoes factory in the U.S. The Red Wing Shoe brand is primarily handmade in the USA with American materials at the company's plants in Potosi, Missouri and a plant in Red Wing, Minnesota.

I'd imagine that the same shoe without the composite wouldn't be that much more than 125 a pair after tax...

a reply to: Flyingclaydisk
Good point, I hope Trump is the real deal. The trade deals that were signed to law smell funny. Almost like they were intended to have a certain effect.

a reply to: Sillyolme

Correct how much $ does a service agent make?

How much $ does a factory worker make?

a reply to: D8Tee

Yep. I knew when I posted that somebody would say "it IS the American way."
Knew it knew it knew it.

a reply to: angeldoll

Why is it bullying to make sure the 3rd world workers are not being exploited?

a reply to: lordcomac

I see red wing also imports boots. And they are the same price as the american made. I find it odd that this company that touts it's AMERICAN made goods also now offers chinese made boots for around the same price.

a reply to: angeldoll

Yep. I knew when I posted that somebody would say "it IS the American way."
Knew it knew it knew it.

I challenge you to watch that video.

My shoes cost $150 (after tax) and are made right here in the USA.

Check the label inside the boot, RedWing offshores some of their production.

a reply to: D8Tee

I am going to watch the video, and I saw one called economic hit men.

Disgusting what happens to whole countries when unbridled and unregulated capitalism is unleashed.

originally posted by: seasonal
a reply to: Flyingclaydisk

True, I have to admit I don't know what Reagan envisioned and what we have.

My opinion is that reagan would have been OK with NAFTA the way it sits.

I couldn't disagree more strongly.

My opinion of what/how Reagan would react to this is:

If a bill crossed his desk that had all of the elements of the present day NAFTA, he'd veto it in a heartbeat.

If that same deal was brought to him from one his cabinet members, he'd ask for some significant changes.

I was in college when he got elected for his first term, and I remember his positions on some key issues and policies. Based on that, I believe there's no way he would have agreed to the NAFTA deal in it's current form.

As always, your mileage may vary, void where prohibited, etc etc

originally posted by: Riffrafter

originally posted by: Blaine91555
80% of exports coming here is a powerful hand to have. Were I betting man, I'd say the deal will be struck out of view of the media quietly in the background and Trump will prevail.

Of course Trump (i.e.the US) will prevail.

We're holding all the aces...and all of the royal flushes too for that matter.

To not prevail would require extraordinary efforts.

The only way to lose this one would be if we were to fold. I can't see Trump doing that in a million years.

Good call Blaine...

It's going to be fun to watch. The "crazy left wing zealots" will lose their collective minds as this is happening.

And why *has* the left gone nuts or brain dead lately?

It's an amazing sight to witness...truly.

Actually a lot of free trade Republicans will be not to keen on it. I'm not a partisan so I view it through the lens of what I think might be good for the US. I could care less about the Parties or their partisan garbage to be honest.

Both sides have been out of line for a long time now and frankly I'm curious to see how this goes. If nothing else it will shake the cobwebs out of the rafters and hopefully Congress will get some work done. This I'm happy about, but I may not be happy about everything.

a reply to: seasonal

So, if we don't capitulate to their demands, demands made from a very weak position, they'll give us what We The People want and dissolve NAFTA themselves?

...I'm failing to see a downside here.

originally posted by: lordcomac
Not to mention that without mexican imports, we'd be in a tight spot too. It would take a decade at full speed for us to start up industry in this country to replace what we import now.

Which would be awesome, of course... but it has to be ramped up. You can't just flip a switch, we import almost everything.

Whatever will we do without our ration of imported unaccompanied minor illegals, poor quality and overpriced "domestic" vehicles, produce swimming with e. coli, and WWE crusierweight wrestlers?

a reply to: D8Tee

That makes sense. Canada as an economy is very similar to ours in level. Trade would be on fairly equal terms.

Mexico is the sticking point. We can make a positive trade deal with them, but the relative inequalities in level between our two economies makes it harder for one side not to fleece the other.

They read the art of the deal but they actually think they are in a position of power. They aren't, America is. They can't walk away.

I don't know why we don't strike a deal with combating the cartel problem and corruption before we get into any more business with them.

I mean, isn't 98% of the WHOLE reason people want to leave the South American countries to come here because their countries aren't providing them with opportunities.

It would make more sense to work on that becoming a reality so that we in turn can help these people only seeking a better life, it would in turn help us and the world.

Is that too much common sense?

The planet is failing at a drastic rate at retaining the talent and positive mindsets we need to evolve into the future, with the small minded issues and weird divide and conquer tactics are just too insane to see a reasoning for.

a reply to: burdman30ott6

The problem is what do we the people want?

I want a stop to the 3rd world labor being pool being exploited by corp America. This leads to higher profits, but fewer jobs and a suffering nation.

What would solve this is a tariff.

originally posted by: seasonal
What would solve this is a tariff.

Nope.

Wouldn't even put a dent in it.

a reply to: peck420
It used to be a main stay in the US govt.