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Jacoby
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23 Jan 2017, 7:29 pm

Quote:
https://www.nytimes.com/2017/01/23/us/politics/tpp-trump-trade-nafta.html
WASHINGTON — President Trump formally abandoned the Trans-Pacific Partnership on Monday, pulling away from Asia and scrapping his predecessor’s most significant trade deal on his first full weekday in office, administration officials said.

Mr. Trump sharply criticized the partnership agreement during last year’s campaign, calling it a bad deal for American workers. Although the deal had not been approved by Congress, the decision to withdraw the American signature at the start of Mr. Trump’s administration is a signal that he plans to follow through on promises to take a more aggressive stance against foreign competitors.
...

The president’s withdrawal from the Asian-Pacific trade pact amounted to a drastic reversal of decades of economic policy in which presidents of both parties have lowered trade barriers and expanded ties around the world. Although candidates have often criticized trade deals on the campaign trail, those who made it to the White House, including President Barack Obama, ended up extending their reach.

“We’ve been talking about this for a long time,” Mr. Trump said as he signed a document formalizing his decision. The withdrawal from the trade pact, he added, is a “great thing for the American worker.”

Aides signaled that Mr. Trump may also move quickly on renegotiating the North American Free Trade Agreement. He is scheduling meetings with the leaders of Canada and Mexico, the two main partners in that pact, first negotiated by the elder President George Bush and pushed through Congress by President Bill Clinton. Nafta has been a major driver of American trade for nearly two decades, but it has long been divisive, with critics blaming it for lost jobs and lower wages.

Mr. Trump outlined his views in his Inaugural Address on Friday, when he promised an “America First” approach to the world. “We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs,” he said. “Protection will lead to great prosperity and strength.”

He said that his policy would be to “buy American and hire American.”



:D Trump is keeping his word on trade

Bernie Sanders and rustbelt Democrats breaking party lines to support President Trump on this matter

Quote:
Sen. Bernie Sanders (I-Vt), who campaigned hard against the Trans-Pacific Partnership in last year’s Democratic presidential primaries, praised President Trump for an executive order to officially pull the United States out of the deal.

“I am glad the Trans-Pacific Partnership is dead and gone,” Sanders said. “For the last 30 years, we have had a series of trade deals — including the North American Free Trade Agreement, permanent normal trade relations with China and others — which have cost us millions of decent-paying jobs and caused a ‘race to the bottom’ which has lowered wages for American workers. Now is the time to develop a new trade policy that helps working families, not just multinational corporations. If President Trump is serious about a new policy to help American workers, then I would be delighted to work with him.”

“I support President Trump’s issuing of an executive orders that will pull the U.S. out of the Trans-Pacific Partnership (TPP) and his recent steps to renegotiate the North American Free Trade Agreement (NAFTA),” Sen. Robert P. Casey Jr. (D-Pa.) said in a statement. “NAFTA has adversely impacted middle class families in Pennsylvania and the TPP would have cost jobs and hurt income growth, which is why I voted against fast tracking the deal in 2015.”

Sen. Tammy Baldwin (D-Wis.) shared a similar reaction on Twitter:

Withdrawing from #TPP & moving to renegotiate #NAFTA are good 1st steps from @POTUS, but more must be done to keep his word to WI workers.

— Sen. Tammy Baldwin (@SenatorBaldwin) January 23, 2017



cyberdad
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24 Jan 2017, 1:44 am

It means the Australians, Canadians and New Zealanders are going to ditch the US and build up geographic trade with a new TPP with our Asia/Pacific neighbours

Looks like the US is going to have to rely on domestic manufacturing to survive
good luck
http://jalopnik.com/5110995/the-ruins-o ... -factories



BaalChatzaf
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24 Jan 2017, 4:11 am

cyberdad wrote:
It means the Australians, Canadians and New Zealanders are going to ditch the US and build up geographic trade with a new TPP with our Asia/Pacific neighbours

Looks like the US is going to have to rely on domestic manufacturing to survive
good luck
http://jalopnik.com/5110995/the-ruins-o ... -factories


Which means building new factories with the latest technology. Oh the horror! The horror!


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jrjones9933
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24 Jan 2017, 10:14 am

We obviously have to have trade deals of some sort, so they will come back in another form. I expect they'll have more of what I hated in the TPP, special courts for corporations paid for by them. They'll definitely have less of what I liked, worker protections. I can't separate those from the subject of trade and tariffs, but the argument from the right will be that worker protections can be handled separately, if at all, at some unspecified time in the future.


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SocOfAutism
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24 Jan 2017, 10:21 am

From 1995 to 1999, when I was 18-22, I worked in two textile factories here in SW VA. The first wasn't all that great, but after just a few months I got to upgrade into a better factory. It was nearly all women, but after my husband had some trouble at his job, they hired him as well.

When I worked at the factory, I had pretty much everything possible to pierce on my face pierced, short green hair (and was bald for a short period of time), tattoos, and dressed in the most offensive t-shirts I could find. That was pre-Internet, so I got these t-shirts through underground catalogs.

No one cared what I looked like. Everyone there was a different race, class, and age. Some people had mental or emotional problems. Many people were autistic. Several of us were "unhireable" for various reasons (me for the way I looked). As long as you could do the hard a** manual labor, be on time, and keep up basic human politeness, no one cared. I loved that place.

After NAFTA, just a few of us went to college. The economy in my town collapsed. Most of the people I worked with then are now working at Walmart or Taco Bell and are grateful for that. Making much less than what we made in the 1990s. The factories that are still around fire quickly, pay little, and have terrible conditions because they can. There's no competition.

The young people now don't even know what the world used to be. Things used to be so much easier. You used to have more options. I hope things will be that way again.



Jacoby
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24 Jan 2017, 10:25 am

It doesn't seem right that we'd had a free trade deal with repressive countries like Vietnam or Brunei, deals with Malaysia/Peru/Singapore seem like recipe for job loss too. I believe in tariffs as a means of raising tax revenue, I don't see how it is different than taxing your own citizens. They try to say oh well then prices will be raised for consumers which is a confusing rationale considering they want to raise taxes on big business and the minimum wage a ton in this country and the common argument against those is that it will just be felt by consumers. A tariff is not any different than a tax, I think they should be raised on countries like China who utilizes exploitative borderline slavery 3rd world labor, American workers should not have to compete with that. The US probably should of never opened trade relations with China, imagine how different our country would be without all the 'made in China' crap.



jrjones9933
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24 Jan 2017, 10:28 am

Corporations drive these deals, and resource-extracting corporations love authoritarian regimes. They even influence various government bodies in the US to use eminent domain, about as big an expression of government authority as there is.


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AspieUtah
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24 Jan 2017, 10:32 am

SocOfAutism wrote:
From 1995 to 1999, when I was 18-22, I worked in two textile factories here in SW VA. The first wasn't all that great, but after just a few months I got to upgrade into a better factory. It was nearly all women, but after my husband had some trouble at his job, they hired him as well.

When I worked at the factory, I had pretty much everything possible to pierce on my face pierced, short green hair (and was bald for a short period of time), tattoos, and dressed in the most offensive t-shirts I could find. That was pre-Internet, so I got these t-shirts through underground catalogs.

No one cared what I looked like. Everyone there was a different race, class, and age. Some people had mental or emotional problems. Many people were autistic. Several of us were "unhireable" for various reasons (me for the way I looked). As long as you could do the hard a** manual labor, be on time, and keep up basic human politeness, no one cared. I loved that place.

After NAFTA, just a few of us went to college. The economy in my town collapsed. Most of the people I worked with then are now working at Walmart or Taco Bell and are grateful for that. Making much less than what we made in the 1990s. The factories that are still around fire quickly, pay little, and have terrible conditions because they can. There's no competition.

The young people now don't even know what the world used to be. Things used to be so much easier. You used to have more options. I hope things will be that way again.

Yep. We should remember (or be told by someone who lived at the time President Clinton signed NAFTA) that the American labor unions fought strongly against NAFTA and its adoption. After Clinton signed it anyway, labor was quite chilly toward the Clinton administration. So, the question for many people was "do you support American workers, or don't you?" As usual for me, I supported American workers, just not their unions per se (I had experienced firsthand the corruption of unions), but Ross Perot's "giant sucking sound going south" ended up being quite real and quite destructive to American workers.


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jrjones9933
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24 Jan 2017, 10:39 am

SocOfAutism wrote:
The young people now don't even know what the world used to be. Things used to be so much easier. You used to have more options. I hope things will be that way again.

Trump may bring jobs to your area, but I think they will have to be some kind of modern job. I don't think he can bring back the old ways without creating the whole structure that surrounded them.

I support unions, but I don't even think unions can bring that back.

Directly transplanting the Chinese working conditions would reduce production costs below where they are now, and cause factories to return by normal economic adjustment to our comparative advantage. If we impose tariffs, they will have to exceed the current difference in the cost of US and Chinese production, or else US production costs have to get closer to Chinese production costs (read, salaries).

Intl. Econ shows some simple models of price floors, tariffs and ceilings which are among the most accurate that I learned in any Econ class. You can't predict specific values well, AFAIK, but you can predict the various directions that supply and prices will move with high confidence.


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AspieUtah
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24 Jan 2017, 10:54 am

jrjones9933 wrote:
SocOfAutism wrote:
The young people now don't even know what the world used to be. Things used to be so much easier. You used to have more options. I hope things will be that way again.

Trump may bring jobs to your area, but I think they will have to be some kind of modern job. I don't think he can bring back the old ways without creating the whole structure that surrounded them.

I support unions, but I don't even think unions can bring that back.

Directly transplanting the Chinese working conditions would reduce production costs below where they are now, and cause factories to return by normal economic adjustment to our comparative advantage. If we impose tariffs, they will have to exceed the current difference in the cost of US and Chinese production, or else US production costs have to get closer to Chinese production costs (read, salaries).

Intl. Econ shows some simple models of price floors, tariffs and ceilings which are among the most accurate that I learned in any Econ class. You can't predict specific values well, AFAIK, but you can predict the various directions that supply and prices will move with high confidence.

I had this conversation with my sister yesterday. Millennials appear to have no ambition and less work skills; though I admit that this fact is no real fault of their own. After all, how would they learn about good work skills if they never had the opportunity to learn them? When corporate billionaires fail to employ American workers, is it the billionaires' fault or the workers who got passed over time and time again?

As for the ability of labor unions to help bring back their workplace influence, I am reminded of the "aging of union workers." Apart from SEIU, NEA and AFT, there simply are no influential American unions anymore. Should they be rewarded with Trump's efforts to repair the damage done by free-trade agreements? Meh, I dunno if they deserve it either. A plague on both the houses of corporations and unions.


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jrjones9933
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24 Jan 2017, 11:00 am

If unions want more members, then they should use the celebrity recruiters more effectively.

Recruit fans at NFL, NBA, NHL, and every other union shop. Actually appeal to their interests, and be ready to shut down sports in solidarity with other unions. Money always talks, and I don't even think many sports fans think of their heroes as proud union members.


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Jacoby
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24 Jan 2017, 11:29 am

jrjones9933 wrote:
If unions want more members, then they should use the celebrity recruiters more effectively.

Recruit fans at NFL, NBA, NHL, and every other union shop. Actually appeal to their interests, and be ready to shut down sports in solidarity with other unions. Money always talks, and I don't even think many sports fans think of their heroes as proud union members.


Are you a fan of these leagues? They have all at varying times have been labor strikes and shutouts over the years, to me these pro sports unions are probably the most visible in the country next to teachers. These strikes and shutouts are terrible for the image of both the league's owners and players which fans do not really sympathize with. People want to heart multimillionaires whine about not getting it good enough from billionaire owners, it's not really that populist of a message and just makes people resent them. If they were to show 'solidarity' with other unions then it would basically destroy that league, fans would not accept it. Celebrity in general is not a good way of reaching out to people, there is an obsession in this country but simultaneous resentment of these people who are so often not the sharpest tool or are the member of some generational aristocracy.

I would think that the labor pool needs to restricted, that's why immigration is a big issue to a lot of people I think. It can't be 'elastic' or unlimited, how can you collectively bargain when there is no value in an individual worker? Having an open borders destroys American QoL. I think unions if they want to regain their populist credentials would be best served supporting a more robust stance on immigration, the rank & file and the leadership of these unions are not on the same page. Their leadership is corrupt and beholden to partisan politics, it doesn't advocate on their behalf anymore at least not in a way that rattles the cage our liberal establishment. Blue collar and working class does not go along with political correctness and Beltway cocktail parties.



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24 Jan 2017, 11:30 am

I'm just glad the TPP is dead. The TPP would've been a nightmare for copyright law.


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jrjones9933
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24 Jan 2017, 12:23 pm

You know, Jacoby, I kind of expected that I kind of expected that even if we agreed on the problem, we would have different plans to fix it.;)


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24 Jan 2017, 1:33 pm

I recall that one of the empty promises of NAFTA was that prices would drop on some things. The products that we used to make were sweatshirts, which then usually cost $15-20 each. University sweatshirts cost up to $60.

That's about what they cost now. Our plant closed nearly 20 years ago.

Our plant moved to Mexico immediately following NAFTA but is now in Guatemala.

I don't know what Mexicans made in 1999 but 2016 they made about $0.50/hour. We made $7-$12/hour back when minimum wage was $4.25/hour.

Guatemalans can make as little as $0.38/hour currently.

Why have sweatshirts cost the same this whole time? Think about the massive, massive profits. And this is just wages. I'm not even talking about the human rights. Obviously we don't let children work here in the US and it's much harder to force people into slavery. Easy to do that in these other countries.

NO these companies will not have to do ANYTHING different if they bring back manufacturing. All it will do is cut into their profit margins.



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24 Jan 2017, 1:58 pm

They will raise prices to keep their profit margins.