THE PRESIDENT MADE NOT A WHOLE >>> THEY USED TO CALL IT NAFTA.
WE’RE GOING TO CALL IT THE
UNITED STATES-MEXICO TRADE
AGREEMENT AND GET RID OF THE
NAME NAFTA.
NAME NAFTA. I LIKE TO CALL THIS DEAL THE
UNITED STATES-MEXICO TRADE
AGREEMENT.
AGREEMENT. I THINK IT’S AN ELEGANT NAME.
I THINK NAFTA HAS A LOT OF BAD
CON OTHERATIONS FOR UNITED
STATES BECAUSE IT WAS A RIP-OFF
PAP DEAL THAT WAS A HORRIBLE
DEAL FOR OUR COUNTRY.
>> AS FAR AS CANADA’S CONCERNED
WE VERY STARTED WITH CANNIA YET.
WE WANTED TO DO MEX KEI ANDICO A
IF IT WAS POSSIBLE TO DO.
CANADA, WE’LL START NEGOTIATIONS
SHORTLY.
SHORTLY. I’LL BE CALLING THE PRIME
MINISTER VERY SOON AND WE’LL
START NEGOTIATION AND IF THEY’D
LIKE TO NEGOTIATE FAIRLY WE’LL
DO THAT.
DO THAT. >> I THINK WITH CANADA, FRANKLY,
THE EASIEST THING WE CAN DO,
TARIFF THEIR CARS COMING IN.
IT’S A TREMENDOUS AMOUNT OF
MONEY A VERY SIMPLE NEGOTIATION
THAT COULD END IN ONE DAY AND
WE’D TAKE IN A LOT OF MONEY THE
FOLLOWING DAY, BUT I THINK WE’LL
GIVE THEM A CHANCE TO PROBABLY
HAVE A SEPARATE DEAL.
WE COULD HAVE A SEPARATE DEAL OR
PUT IT INTO THIS DEAL.
>> HE’S -- HE’S JUST MAKING
EVERYTHING UP AS HE GOES ALONG.
THERE IS NO -- THERE IS NO DEAL.
IT’S LIKE NORTH KOREA.
HE GOES OVER TO NORTH KOREA.
HE DECLARES VICTORY.
HE TELLS YOU, YOU CAN GO TO
SLEEP AT NIGHT, NEVER WORRYING
ABOUT NORTH KOREA NUKES AGAIN.
BECAUSE HE WENT OVER AND SHOOK
SOMEBODY’S HAND AND HE HAD A LOT
OF CAMERAS THERE TAKING PICTURES
OF HIM.
OF HIM. AND THEN YOU FIND OUT A COUPLE
WEEKS LATER, AND CERTAINLY WE
FOUND OUT THIS PAST WEEK FROM
DONALD TRUMP’S OWN INTEL
COMMUNITY, THAT NOT ONLY WHAT HE
SAID WAS A LIE, BUT IN FACT
NORTH KOREA IS ADVANCING ON
THEIR NUCLEAR TECHNOLOGY.
HERE IN THIS CASE HE TALKS ABOUT
AN ELEGANT NAME THAT HE’S
CREATED FOR THE NEW U.S./MEXICO
DEAL, WHICH ISN’T EVEN A DEAL.
THEY’RE TRYING TO DISCUSS A
FRAMEWORK, BUT THERE ISN’T EVEN
A DEAL.
A DEAL. AND HE SAYS HE CAN GET CANADA TO
STEP IN AND DO A DEAL IN A DAY?
NO -- NO, HE CAN’T.
DAVID IGNATIUS, I REALLY DON’T
KNOW HOW TO EVEN ADDRESS THIS.
HE’S COME UP WITH A NAME FOR A
DEAL.
DEAL. THERE’S ONLY ONE PROBLEM.
HE’S GOT NO DEAL.
WHAT EXACTLY HAPPENED YESTERDAY?
>> WELL, HE’S GOT THE BEGINNINGS
OF A DEAL, AND, JOE, I THINK
THAT HE’S -- IN MY JUDGMENT,
BEGINNING TO MAKE A LITTLE
PROGRESS, GET A LITTLE MOMENTUM,
ON THE TRADE FRONT.
WHAT HE’S DOING IS CLEARING AWAY
THE SUBSIDIARY, SECONDARY
ISSUES.
ISSUES. WE’VE BEEN PICKING FIGHTS WITH
OUR FRIENDS AND NEIGHBORS,
MEXICO, CANADA, EUROPE.
THE REAL TRADE ISSUE IS CHINA
AND IT’S A BIG AND IMPORTANT
ONE.
ONE. ON PRESIDENT TRUMP ISN’T WRONG.
THE IMBALANCE THERE HAS BEEN A
PROBLEM FOR SEVERAL DECADES.
I THINK THIS MEXICO AGREEMENT IS
SIGNIFICANT FOR ONE REASON.
IT IS AN ATTEMPT TO RAISE THE
WAGES PAID TO MEXICAN AUTO
WORKERS AND THERE IT BY HAVE
SOME UPWARD MOVEMENT ON U.S.
AUTO WORKERS WAGES AT A TIME
WHEN WE WORRY ABOUT STAGNATEING
AMERICAN INCOMES IS A WORTHY
GOAL.
GOAL. CARS WILL COST A LITTLE MORE
PROBABLY IN THE U.S. UNDER THIS
DEAL, BUT THE ASSUMPTION IS
AMERICANS WOULD BE WILLING TO
PAY THAT PRICE AS PART OF SOME
IMPROVEMENT FOR THEIR NEIGHBOR’S
STANDARDS OF LISTENING.
IT’S NOT MUCH OF A DEAL OR NOT A
LOT IN IT.
IT’S HAUNTINGLY SIMILAR TO WHAT
WAS GOING TO BE IN THE
TRANS-PACIFIC PARTNERSHIP IN
TERMS OF LABOR AND ENVIRONMENTAL
STANDARDS THAT TRUMP NIXED AS
SOON AS HE GOT INTO OFFICE, BUT
IN TERMS OF THE PARTICULARS OF
HIS DEAL, THEY’RE PRETTY GOOD.
HE PROBABLY WILL GET CANADA TO
GO ALONG.
GO ALONG. THE EUROPEANS ARE SIGNALING THEY
WOULD LIKE NOW TO SOLVE SOME OF
THEIR DIFFERENCES AND THEN MOVE
ON TO EVERYBODY’S REAL TARGET OF
INTEREST WHICH IS CHINA.
>> BRING IN CNBC’S DOMINIC CHU.
DONALD TRUMP SAYS HE’S BLOWING
NAFTA UP, GETTING RID OF NAFTA.
JUST GOING TO NEGOTIATE WITH
MEXICO AND WORRY ABOUT CANADA
LATER.
LATER. HE CAN GET THAT DONE IN A DAY.
SOUNDS PRETTY SIMPLE.
IS THAT THAT SIMPLE?
>> NOT THAT SIMPLE.
LIKE DAVID WAS POINTING OUT THAT
THE REASON HE IS TRYING TO TAKE
AT LEAST A MINI VICTORY LAP, IF
YOU WILL, IT’S BECAUSE THE
FRAMEWORK DAVID TALKED ABOUT
PUTS AT LEAST A COUPLE, MAYBE A
COUPLE OF PARTICULARS TO WHAT
ULTIMATELY PRESIDENT TRUMP IS
TRYING TO DO.
THIS NEW DEAL WOULD HYPOTHETICAL
IF IT WERE TO KIND OF GO
FORWARD -- FIRST OF ALL, AUTOS
IS THE BIG POINT OF THE DEAL.
IT’S A HUGE ECONOMY INDUSTRY
BETWEEN THE CANADA SIDE, THE
U.S. SIDE AND MEXICO SIDE.
THIS NEW FRAMEWORK WE’LL CALL IT
IS GOING TO CALL ON AT LEAST THE
MANUFACTURERS OF AUTOS IN NORTH
AMERICA TO MAKE AT LEAST THREE
QUARTERS OF THAT AUTOMOBILE’S
OVERALL WORTH HAS TO COME FROM
NORTH AMERICA UNDER THESE RULES.
AT ABOUT 62.5%.
A BUMP UP TO QUALIFY FOR THE
ZERO TARIFF SITUATION NAFTA
CURRENTLY HAS.
CURRENTLY HAS. ALSO HAVE TO USE MORE KIND OF
LOCALLY SOURCED STEEL, MORE
LOCALLY SOURCES ALUMINUM, AUTO
PARTS, THAT SORT OF THING.
LABOR ISSUE, ONE OF THE MAIN
STICKING POINTS.
STICKING POINTS. BECAUSE THERE IS LOWER WAGES IN
MEXICO AND AUTOMAKERS AND PARTS
MANUFACTURERS HAVE BEEN ABLE TO
TAKE ADVANTAGE OF THE CHEAPER
LABOR TO PUT CHEAPER PARTS ON
THE MARKET FOR U.S. SALE AND
GOODS THERE.
GOODS THERE. SO NOW UNDER THIS NEW FRAMEWORK,
40% TO 45% OF A CAR ARE GOING TO
HAVE TO BE MADE BY WORKERS
EARNING AT LEAST $16 AN HOUR.
PUT US ON MORE COMPETITIVE
FOOTING.
FOOTING. ONE OF THE BIG THINGS, JOE, THE
PRESIDENT WANTS TO 123458SIGNAL
THE DEAL.
THE DEAL. WHETHER OR NOT THEY CAN GET
CANADA TO AGREE IS SOMETHING
ELSE.
ELSE. VIEWED AS THE U.S. AND EVEN IN
CANADA HAS BEEN WANTING FOR A
WHILE.
WHILE. >> WE CAN SEE THAT WE CAN COVER
THE AGREEMENTS, PROPOSED
AGREEMENTS OR DEALS EFFECTIVELY
AND COMPLAIN THEM TO THE
AMERICAN PUBLIC QUITE WELL, BUT
SOMETIMES GIVEN THE GREAT
DEALMAKER WHO SITS IN THE WHITE
HOUSE TODAY, THERE’S AN AFTER
EFFECT OF THINGS THAT HE CLAIMS
ARE DEALS, THAT ARE NOT REALLY
DEALS.
DEALS. I CITE LAST NIGHT "WALL STREET
JOURNAL" POSTED THIS NEWS STORY.
THE TRUMP ADMINISTRATION PLEDGED
TO PAY FARMERS $4.7 BILLION TO
OFFSET LOSSES FROM TRADE
DISPUTES WITH FOREIGN BUYERS OF
U.S. AGRICULTURE PRODUCTS.
AGRICULTURE SECRETARY SONNY
PERDUE SAID THE PAYMENTS WOULD
PROTECT FARM IS FROM UNJUSTIFIED
TARIFFS SOME NATIONS APPLIED IN
RESPONSE TO PRESIDENT TRUMP’S
PARADE POLICIES.
PARADE POLICIES. SO WE’RE A LONG WAY FROM ANY
DEALS WITH MEXICO OR CANADA
BEING PUT TOGETHER.
AND YET THE AFTER EFFECT OF ALL
OF THIS TALK IS, DO YOU SENSE
THAT THE AMERICAN PEOPLE ARE ON
TO THIS?
TO THIS? THAT THIS GUY -- HE’S NOT ONLY
NOT CUTTING DEALS BUT I MEAN,
HE’S TALKING REALLY NONSENSE?
>> WHEN YOU START GETTING
INVOLVED IN TRADE WARS AND
PROTECTIONIST POLICIES THERE ARE
WINNERS AND LOSERS AND NOT JUST
WINNERS IN YOUR OWN COUNTRY AND
LOSERS IN OTHER COUNTRIES.
TURNS OUT AS WE’RE DISCOVERING
THERE ARE LOSESERS IN YOUR OWN
COUNTRY BECAUSE OTHER COUNTRIES
RETALIATE AGAINST YOUR
AGGRESSIVE TRADE PRACTICES,
WHICH IS EXACTLY WHY THE WHITE
HOUSE HAD TO STEP IN WITH NOW
WHAT LOOKS LIKE A PACKAGE THAT
COSTS A LOT MORE TO TRY TO
PROTECT AMERICAN FARMERS AND THE
QUESTION I THINK FOR DONALD
TRUMP, PARTICULARLY WHEN IT
COMES TO CHINA IS, HOW LONG CAN
HE CARRY ON THE BRINKMANSHIP OF
RATCHETING UP THE TRADE WAR WITH
CHINE IN, IF IT STARTS TO REALLY
HURT AMERICAN FARMERS?
AND HOW QUICKLY CAN THEY BAIL
THOSE FARMERS OUT AND HOW MUCH
IS IT GOING TO COST THEM?
THIS IS WHY FOR DECADES THE
MANTRA OF THE REPUBLICAN PARTY
HAS FWON TRYBEEN TO TRY TO GOVEG
TRADE DEALS.
TRADE DEALS. WE’VE SEEN THIS AROUND DONALD
TRUMP, PERHAPS THE ISSUE OF
NORTH KOREA SAYING A DEAL HAS
BEEN DONE AND ACTUALLY THE
CONSEQUENCES SEEM TO BE A LITTLE
FURTHER DOWN THE ROAD THAT
THINGS WERE MORE COMPLICATED.
AND THE DEAL IS NOT NECESSARILY
ALL IT WAS CRACKED UP TO BE AND
POTENTIALLY THAT DEAL IS MORE
HARMFUL THAN WE WERE, THE STATUS
QUO ANTE BEFORE THAT SUMMIT IN
SINGAPORE EVEN TOOK PLACE.
THE IDEA OF LOOKING AT WHAT
HAPPENS IN THIS WHITE HOUSE WITH
A LITTLE MORE NUANCE AND
AWARENESS OF THE COMPLICATION OF
POLICY, BECAUSE WE HAVE A
PRESIDENT WHO LIKES TO PRESENT
THINGS IN BLACK AND WHITE RATHER
SIMPLIFIED WAY IS SOMETHING WE
SHOULD ALL LEARN TO DO.
>> AND LET’S REMEMBER.
TRADE WARS ARE EASY.
THAT’S WHAT DONALD TRUMP SAID.
AND YET, GENE ROBINSON, LOOK AT
THE POLITICS OF THIS.
BECAUSE IT DOESN’T JUST HAPPEN
IN THE VACUUM OF THE UNITED
STATES OF AMERICA WITH DONALD
TRUMP’S MEANDERING VIEWS ON
TRADE.
TRADE. YOU’VE GOT A RADICALIZED
ELECTORATE IN MEXICO, WITH THE
POSSIBILITY OF MORE
ANTI-AMERICAN LEADERS COMING IN
THAT WILL NOT STRIKE POSITIVE
DEALS WITH THE UNITED STATES AND
IN CANADA DONALD TRUMP FOR GOOD
REASON IS SO UNPOPULAR AFTER
ATTACKING CANADA NONSTOP IT’S
GOING TO BE EXTRAORDINARILY HARD
FOR JUSTIN TRUDEAU OR ANY
CANADIAN POLITICIAN TO SAY, WHY,
YES.
YES. WE’RE GOING TO GO BACK IN AND
REOPEN NAFTA, BECAUSE DONALD
TRUMP WANTS TO CHANGE THE NAME.
>> YEAH.
>> YEAH. FIRST OF ALL, PRESIDENT TRUMP
DEFINITELY TESTS THE LIMITS OF
CANADIAN NICENESS, BECAUSE ONE
OF THE THINGS HE DOES, HE DIDN’T
MENTION THE NAME OF THE CANADIAN
PRIME MINISTER YESTERDAY.
>> RIGHT, BUT HE REFERS TO PRIME
MINISTER TRUDEAU AS JUSTIN ALL
THE TIME TO SORT OF DIMINISH
HIM.
HIM. THAT DOESN’T GO OVER WELL IN
CANADA.
CANADA. HE WANTS TO GET CANADA SIGNED UP
THIS WEEK, BASICALLY, TO, YOU
KNOW -- ANY TRADE DEAL IS
COMPLICATED.
COMPLICATED. TWO HUGE ECONOMIES, BUT HE WANTS
TO DO IT THIS WEEK, BECAUSE HE
WANTS TO MEET A DEADLINE TO GET
IT TO CONGRESS AND START A
90-DAY CLOCK TICKING AND GET IT
ALL SIGNED BEFORE THE NEW
MEXICAN PRESIDENT TAKES OFFICE,
LOPEZ OBRADOR, WHO IS WELL TO
THE LEFT OF THE CURRENT
PRESIDENT PIN YETYETTO AND MAY W
DIFFERENT THINGS OUT OF A TRADE
DEAL.
DEAL. ONE OF THE THINGS THAT THE
CURRENT MEXICAN PRESIDENT TRIED
TO INSIST ON, ON THAT PHONE CALL
YESTERDAY IS WE WANT CANADA IN
THIS THING.
THIS THING. SO IT IS, YOU KNOW -- THIS IS AT
BEST A PROTODEAL AT THIS POINT.
IT IS, AS SOMEONE SAID, A
FRAMEWORK, AND IT WAS ANNOUNCED
PREMATURELY AND IN PART I THINK
BECAUSE OF THE DEADLINE BUT TO
GRAB ATTENTION, BECAUSE -- HE
LIKES TO BE AT THE CENTER OF
ATTENTION.
ATTENTION. >> GENE’S POINT ABOUT POLITICS
HAPPENING IN OTHER COUNTRIES
CANNOT BE UNDERSTATED.
ONE OF THINGS ABOUT THIS
FRAMEWORK OF THIS DEAL, THE
RULES OF ORIGIN ARE SORT OF
RAMPED UP ALREADY 62.5% OF
PRODUCTS SOLD AND APPLICABLE TO
THIS ZERO TAX REGIME IN NAFTA
GOES UP TO 75% ON EVERYTHING
MADE IN-DASH PRODUCT HAS TO BE
MADE IN NAFTA COUNTRIES TO
QUALIFY FOR THAT ZERO TARIFF
THING.
THING. IF CANADA’S NOT IN THIS, DON’T
HAVE STEEL, ALUMINUM,
IMPOSSIBLE.
IMPOSSIBLE. THE DEAL IS FUNCTIONALLY NOT
APPLICABLE.
APPLICABLE. BY THE WAY, THE SENATE HAS
CONTROL, RATHER, THE CONGRESS
HAS CONTROL OF THE AMERICAN
TRADE POLICY.
TRADE POLICY. THE PRESIDENT IS CONGRESS’
REPRESENTATIVE.
REPRESENTATIVE. THE SENATE HAS THE ABILITY TO
WEIGH IN ON THIS ON SOME POINT.
IF THE DEAL FALLS APART IT IS
INCUMBENT ON CONGRESS TO SAY, UP
OR DOWN, WHETHER THIS THING
MOVES FORWARD AND CONGRESS
SHOULD PROBE EXERCISE ITS
PREROGATIVE AT SOME POINT.
>> ALL RIGHT.
CNBC’S DOMINIC CHU, THANK YOU
VERY MUCH FOR BEING WITH US.
APPRECIATE YOUR INSIGHT.
>>> STILL AHEAD, RUDY GIULIANI
KEEPS ON ATTACKING ROBERT
MUELLER.
MUELLER. IN AN INTERVIEW WITH THE "NEW
YORK TIMES."
YORK TIMES." A NEW POLLING SHOWS ONE OF HIS
ARGUMENTS JUST ISN’T ACCURATE
AND, MY GOSH, SEEMS THAT MORE
AND MORE AMERICANS ARE BACKING
WHAT ROBERT MUELLER’S DOING AND
BELIEVING THAT THE PRESIDENT IS