Monday, January 20, 2020

"I did the Biggest Deal in the history of our Country yesterday - in terms of trade"


Photo: Fox Business




Just after an impeachment trial was initiated for the President of the United States in the Senate, President Trump finds himself mired in controversy over a witness interview (outside of the Senate) on national television.  Yes, Lev Parnas stated that he knew President Trump and the current scandal is not about corruption but about gathering dirt for the upcoming election in 2020.



In fact, during an interview in the White House, President Trump claims to not know anybody by that name.  Or at least, if a picture was taken, he does not know the person by name.  During the same interview, President Trump claims to have done the largest Trade Deal in the history of the United States -- with the recent passage of the USMCA Trade Agreement -- to replace NAFTA.



How does the USMCA Trade Deal look in comparison?  Reporting last week by Politico Agriculture shed a brief light on the benefits of the new (historic) Trade Deal:



Senate approval of USMCA will lock down one of Trump’s biggest achievements and hand him a political win to tout on the campaign trail this year. Replacing NAFTA was one of Trump’s signature promises in 2016.
Still, the new deal isn’t seen as a major departure from the current three-way framework, and it’s unlikely to significantly increase North American trade. USMCA would raise economic output by nearly $70 billion (or 0.35 percent) and create 176,000 jobs by its sixth year in effect, according to official estimates.


The USMCA would raise economic output by an astonishing 0.35%.  Wow!  What a disappointment.  Even Senate Majority Leader Mitch McConnell was not thrilled with the plan.  In fact, if anything, the United States has lost provisions built into previous trade deals.  Provisions which are very important.  Therefore, a supposed victory is an actual step back in progress or lost.



This is dangerous for Americans who are watching or reading the news without realizing the actual outcome.  Trade deals take a long time to work out.  Not everyone benefits greatly from Trade Deals on face value.  Which is why our supposed lost with the previous Trade Deal was an actual benefit in disguise.



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