IS A MUCH EASIER TO GO, PERHAPS
THE OTHER WOULD BE MUCH BETTER
FOR CANADA.
DAGEN: JOINING ME NOW, U.S.
COMMERCE SECRETARY WILBUR ROSS.
AND WHAT ARE THE CHANCES THAT
SOMETHING ACTUALLY GETS DONE?
I THINK THE DEADLINE IS FRIDAY,
SO IN THE NEXT FOUR DAYS WITH
CANADA?
>> WELL, THIS DEAL IS PRETTY
WELL PUT TOGETHER WITH MEXICO,
SO THE PRESIDENT AS HE'S
INDICATED IS FULLY PREPARE TO GO
AHEAD WITH OR WITHOUT CANADA.
I THINK IT'S A GOOD IDEA IF THEY
DO.
THERE'S REALLY NOT MUCH THEY
SHOULD OBJECT TO.
BUT IF NOT, THEY WILL THEN HAVE
TO BE TREATED AS A REAL
OUTSIDER.
UNITED STATES TO CANADA?
HOW MUCH HAVE YOU WEIGHED THAT?
>> WELL, WE'VE WEIGHED IT, BUT
OVERALL THE KEY THING IS THE
CANADIAN ECONOMY REALLY CAN'T
SURVIVE VERY WELL WITHOUT A DEAL
WITH THE U.S.
THEY ARE TOO TENT -- TOO
DEPENDENT ON US AND PARTICULARLY
TOO DEPENDENT ON THE AUTOMOTIVE
SECTOR.
SINCE WE'VE ALREADY ARE RESOLVED
THE AUTOMOTIVE ISSUES WITH
MEXICO AND THOSE ARE NOT ISSUES
THAT ARE PARTICULARLY ADVERSE TO
CANADA.
PROBLEM.
THE INCLUSION OF 75% WITHIN
NAFTA SHOULD NOT BE A PROBLEM
THE BIG RED LETTER THINGS THAT
THEY SHOULD HAVE ANY PROBLEMS
WITH.
THEY MAY HAVE SOME PROBLEMS WITH
THE KINDS OF CONCESSIONS WE
NEED.
THEY'VE BEEN VERY BAD TO OUR
FARMERS, PARTICULARLY TO OUR
DAIRY FARMERS.
THE PRESIDENT HAS MADE CLEAR
THAT'S NOT SOMETHING THAT'S
AGREEABLE TO HIM.
THEY'VE NOT BEEN THAT GOOD ON
INTELLECTUAL PROPERTY, AND
INTELLECTUAL PROPERTY IS A BIG
PART OF THE PROTECTIONS THAT ARE
COMING IN WITH NAFTA.
TO.
DAGEN: MR. SECRETARY, HOW MUCH
TIME ARE YOU GIVING CANADA?
IS IT LITERALLY THIS FRIDAY?
IS THAT ALL THE TIME CANADA'S
GOING TO HAVE TO STEP UP?
>> WELL, WE NEED TO GET OUR
PROCESS ROLLING.
UNDER THE TPA PROCESS, THERE ARE
LENGTHY NEGOTIATING PERIODS
BEFORE -- AFTER WHICH YOU HAVE
SO IT'S PRETTY IMPORTANT THAT WE
FILE SOMETHING VERY, VERY
PROMPTLY, AND THAT MIGHT BE AS
SO THAT'S ONE POSSIBLE FILING.
THE OTHER POSSIBLE FILING WOULD
BE A THREE-WAY ONE.
DAGEN: "THE WALL STREET
JOURNAL," I WANT TO GET YOUR
REACTION TO THIS, THE EDITORIAL
PAGE WRITING A RESPONSE TO THE
TRADE DEAL.
THE TITLE OF THE EDITORIAL IS
"HALF A NAFTA."
AND HERE'S JUST A LITTLE SOME OF
WHAT THE EDITORIAL PAGE WRITES:
THIS DEAL CONTAINS SOME
IMPROVEMENTS BUT IS NOTABLY
WORSE IN MANY WAYS.
SO WORSE THAN THE ORIGINAL NAFTA
AGREEMENT.
THEY GO THROUGH ONE PROBLEM THEY
SAY THE BILATERAL DEAL STRIPS
CURRENT PROTECTIONS FROM MOST
U.S. INVESTORS IN MEXICO.
THEY ALSO DON'T LIKE THE NEW RED
TAPE AND COST ON OUR AUTO
INDUSTRY TO PUNISH IMPORTS.
I WANT TO GET YOUR SONS TO THAT.
AND THEY ALSO -- YOUR RESPONSE
TO THAT.
AND ALSO SAY IT'S ESSENTIALLY A
HANDOUT TO THE UNIONS TO WOO
DEMOCRATIC VOTES.
>> WELL, ONE OF THE PURPOSES IS
TO PUT WAGES UP IN MEXICO.
THINK ABOUT IT.
LONG TERM, HOW CAN WE COMPETE
WITH $20 PLUS AN HOUR, WAGES AN
OUR AUTOMOTIVE IF THEIR WAGES
ARE AROUND $4?
PUTTING THEIR WAGES UP WILL ALSO
HAVE IS THE EFFECT OF OPENING
MORE CONSUMER MARKETS FOR
AMERICAN PRODUCTS.
THE OTHER THING IS THAT THERE IS
MUCH MORE ENFORCEABILITY OF
ENVIRONMENTAL RULES IN THIS PACT
THAN IN ANY OTHER FREE TRADE
AGREEMENT WE'VE EVER HAD, MUCH
MORE ENFORCEABILITY ON LABOR.
SO THIS IS DEALING WITH SOME
STRUCTURAL REFORMS THAT WILL
BRING MEXICO'S COST STRUCTURE
MUCH CLOSER TO OURS.
AND THEN THE OBJECTION THAT IT'S
AGAINST MULTI-NATIONAL
COMPANIES, WELL, THAT'S RIGHT.
THE PRESIDENT WANTS FACTORIES
HERE, HERE IN THE U.S., NOT IN
MEXICO, NOT IN CANADA, NOT
ANYWHERE ELSE.
SO THE JOURNAL IS CORRECT IN
SAYING THAT THIS WILL ENCOURAGE
FACTORIES TO MOVE BACK TO THE
U.S., AND THAT'S ONE OF THE BIG
PURPOSES.
HANDOUT TO THE UNIONS AND A WAY
INTO?
I SAID THAT ABOUT THE STEEL
TARIFF.
THAT IT HELPS THE FEW AND HURTS
THE MANY WHO USE STEEL.
>> WELL, IT REALLY ISN'T THE
CASE.
IF YOU LOOK AT THE UNEMPLOYMENT
FIGURES, THEY KEEP GOING DOWN.
JOBS ARE BEING CREATED VERY
RAPIDLY.
THE PRESIDENT HAS CREATED SOME
THREE MILLION JOBS AND WHICH
ABOUT 300 ODD THOUSAND ARE IN
MANUFACTURING.
THERE'S NO VISIBLE SIGN THAT THE
STEEL AND ALUMINUM TARIFFS HAVE
BEEN ANYTHING BUT, ON BALANCE,
GOOD.
AND THE REASON FOR IT IS THAT
STEEL AND ALUMINUM TARIFFS IN
SO ANYBODY WHO THINKS THAT'S
GOING TO DESTROY THE CONSUMING
INDUSTRIES SIMPLY CAN'T DO THE
MATH RIGHT.
DAGEN: BUT, MR. SECRETARY, A LOT
OF PEOPLE -- NOT JUST MYSELF --
THOUSANDS OF WAIVER APPLICATIONS
FROM THE STEEL TARIFFS, GREATER
COMPLEXITY AS BUSINESSES TRY TO
FIGURE OUT IF THEY'RE GOING TO
GET HIT WITH A TARIFF THAT MIGHT
BE DOWN THE ROAD, SAY ON GOODS
THAT ARE IMPORTED INTO THE
UNITED STATES FROM CHINA.
THAT ADDS REGULATION, IT ADDS A
LAYER OF COMPLEXITY, IF YOU
WILL.
IT MAKES WASHINGTON SWAMPIER,
AND THAT'S SOMETHING THAT THE
MUCH TO ROLL BACK REGULATIONS,
WHY MAKE DOING BUSINESS MORE
>> IT ISN'T THAT IT'S MORE
COMPLICATED.
THERE'S NOTHING MORE COMPLICATED
THAN A SUPPLY CHAIN THAT
INVOLVES CHINA, THAILAND,
MEXICO, CANADA, INDONESIA,
EUROPE AND A WHOLE BUNCH OF
OTHER COUNTRIES.
THE SUPPLY CHAINS ARE ALREADY
RULE THAT TELLS US WHERE OUR
GOODS SHOULD COME FROM.
THEY KNOW VERY WELL WHERE THEIR
GOODS COME FROM.
IT'S CALLED A PURCHASE ORDER.
YOU DON'T BUY THINGS JUST IN A
VACUUM, YOU BUY THEM FROM A
PARTICULAR SUPPLIER IN A
PARTICULAR COUNTRY.
SO THAT'S ALL A LOT OF HOOEY.
THE FACT IS THAT THE PURPOSE OF
THIS IS TO BRING JOBS BACK.
IT WILL ACCOMPLISH THAT PURPOSE,
AND THAT'S WHAT THE FREE TRADE
PEOPLE ARE COMPLAINING ABOUT.
DAGEN: NO, I -- MR. SECRETARY
THE, WITH ALL DUE RESPECT,
I'VEED HAD A LOT OF SMALL
BUSINESSES, ENTREPRENEURS WHO
BEGINNING TO STORE SUPPLIES FROM
CHINA, AND NOW THEY DON'T KNOW
IF THEIR GOODS ARE GOING TO BE