The WaPo Supports New Canada-Mexico-U. S. Trade Deal

You can read an unwalled version of the Washington Post’s editorial supporting passage of the deal the Trump Administration has negotiated:

In one respect — updating rules for cross-border e-commerce, which was still in its infancy when NAFTA took effect 25 years ago — Trump’s deal is a real improvement over the status quo. For the rest, it mostly leaves NAFTA intact, or changes it in ways Democrats and their union allies have long demanded, especially by increasing the amount of U.S.-made inputs that cars and trucks would need to qualify for tariff-free trade among the three countries. What’s more, Trump negotiated access to a greater percentage of Canada’s notoriously closed dairy market. Neither the auto nor dairy provisions have much to do with free trade — “managed trade” would be a better description. But Democrats can’t really object, given their past positions. In fact, sending Trump’s deal down to defeat could have political costs for Democrats, too — specifically, in House districts where farmers and other interests support the deal, and in the auto-making state of Michigan, pivotal for the presidential election.

Anyone want to make book on what will happen? My guess is that presidential political considerations will prevail and Democrats, unwilling to give Trump a win, will not approve the deal.

7 comments… add one
  • jan Link

    I agree with your prediction regarding how the dems will treat the USMCA deal. It has little likelihood of going anywhere, no matter how much good it will do for the country.

    The democrats will probably hold up revisions needing to be made to pharm’s biological patents, keeping drug prices higher, as their reasons for not passing it. However, forgotten will be how protecting bio tech’s patents was pointedly supported for the passage of Obamacare.

    Oh the hypocrisy…..

  • Roy Lofquist Link

    Stick a pin in the Orange Man for the win!

    I don’t know, Dave. I was kinda hoping for a Trump victory but with this brain trust going for the Democrats I guess I’m going to have to move to Ulan Bator.

  • I guess I’m going to have to move to Ulan Bator.

    It won’t be far enough.

  • mercer Link

    The Post minimizes the longer patent and copyright parts of the new trade deal. I agree with Dean Baker:

    “Against the prospect of a small gain in manufacturing jobs, we have rules that lock in higher drug prices for the indefinite future. These rules could easily mean that patients in the United States and Canada and Mexico will pay tens of billions annually in higher drug prices. Just doing the math, we could easily be paying $2 or $3 million annually per manufacturing job saved. And, this is before even considering possible job loss in manufacturing due to the drain in purchasing power from higher drug prices.”

    http://cepr.net/blogs/beat-the-press/new-nafta-versus-old-nafta

  • jan Link

    I believe that the USMCA has set biological patent time time as 10 years, while the ACA was pushing 12 years.

  • Steve Link

    It remains 12 years in the US. It increases to 10 (from 8) in Canada and from 5 to 10 in Mexico.

    Steve

  • jan Link

    Thanks for the clarification, Steve.

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