WAS THEIR MOMENT TO SHINE.
AND SHINE, EVERYBODY DID THIS
MORNING.
STARTING WITH THE HISTORIC
SIGNING OF THAT U.S. CANADA
MEXICO DEAL AND SOME MODERNIZED
VERSION OF THE NORTH AMERICAN
FREE TRADE AGREEMENT.
PRESIDENT TRUMP FIRST TO SPEAK
AT THE SIGNING CEREMONY,
ACKNOWLEDGING THAT SOMETIMES
VERY TOUGH RHETORIC THROWN BACK
AND FORTH DURING MONTHS OF
NEGOTIATIONS BETWEEN HIM,
CANADIAN PRIME MINISTER JUSTIN
TRUDEAU AND MEXICAN PRESIDENT
ENRIQUE PENA-NIETO.
>> PRIME MINISTER JUSTIN TRUDEAU
WHO HAS ALSO BECOME A GREAT
FRIEND, THIS HAS BEEN A BATTLE
AND BATTLES SOMETIMES MAKE GREAT
FRIENDSHIPS SO IT'S REALLY
TERRIFIC.
LIZ: AND HE CALLED IT A GREAT
FRIENDSHIP AND WHEN YOU LOOK AT
WHAT REALLY HAD HAPPENED BEFORE
THEN, BOY, THERE WERE SOME REAL
BARBS BEING THROWN BACK AND
FORTH.
THIS INCLUDED A CROWD WATCHING
TREASURY SECRETARY MNUCHIN HAD A
BIG SMILE ON HIS FACE.
I WATCHED HIM WALK IN.
TRADE REPRESENTATIVE ROBERT
LIGHTHIZER, JARED AND IVANKA
TRUMP.
PRESIDENT TRUMP SAID QUOTE,
AFTER A LOT OF ABUSE AND BARBS,
THIS AGREEMENT WAS QUOTE, WORTH
IT.
LET'S BRING IN ONE OF THE
NEGOTIATORS IN A FOX BUSINESS
EXCLUSIVE OF THE ORIGINAL NAFTA,
AMBASSADOR CHARLES REESE.
AMBASSADOR, WELCOME.
I WANT TO BEGIN BY ASKING YOU
JUST HOW DIFFERENT IS THIS NEW
MODERNIZED NAFTA DEAL THAN WHAT
YOU PUT TOGETHER 24 YEARS AGO
WITH PRESIDENT GEORGE HERBERT
WALKER BUSH?
>> WELL, THIS IS A LITTLE BIT
DIFFERENT, LARGELY BECAUSE OF
THE PASSAGE OF TIME.
THERE ARE ELEMENTS THAT CAME
REALLY OUT OF THE TRANS-PACIFIC
PARTNERSHIP, COVERAGE FOR
DIGITAL TRADE, BETTER COVERAGE
FOR DRUGS AND INTELLECTUAL
PROPERTY, THINGS THAT YOU WOULD
HAVE DONE IF YOU HAD JUST SAT
DOWN TO MODERNIZE THE NAFTA.
THE BIG CHANGE BETWEEN THIS AND
THE AGREEMENT THAT WE DID IN '94
IS IN THE AUTO SECTOR, WHERE
THERE ARE HIGHER RULES OF ORIGIN
AND THERE IS A PROVISION
REQUIRING SOME PROPORTION OF THE
CONTENT OF AUTOS AND TRUCKS TO
COME FROM HIGH WAGE, MORE THAN
$16 AN HOUR LABOR.
BUT MOST OF THE AGREEMENT
INCLUDING THE AGRICULTURAL
PROVISIONS THAT ARE REALLY,
REALLY IMPORTANT FOR THE U.S.
FARM SECTOR IS PRETTY MUCH THE
SAME.
LIZ: THE PERCEPTION, I'M SURE
THEY ALL WANTED, WAS THAT THEY
WERE SELLING IT TO EACH OF THEIR
COUNTRIES THIS MORNING AS A
VICTORY, ALTHOUGH I WOULD HAVE
TO SAY THAT CANADIAN PRIME
MINISTER JUSTIN TRUDEAU SEEMED
TO BE THE LEAST EXCITED ABOUT
IT, AND HERE'S WHAT HE SAID.
I WANT YOU TO THEN REACT TO
JUSTIN TRUDEAU.
>> THERE'S MUCH MORE WORK TO DO.
WE NEED TO KEEP WORKING TO
REMOVE THE TARIFFS ON STEEL AND
ALUMINUM BETWEEN OUR COUNTRIES.
LIZ: WHAT ABOUT THAT?
WILL THERE BE A QUICK MOVE?
>> WELL, I DON'T THINK SO.
THIS WAS THE MOMENT FOR THE SORT
OF GENEROSITY OF SPIRIT TO LIFT
THIS STEEL AND ALUMINUM TARIFF
WHICH WERE PUT ON ON A NATIONAL
SECURITY BASIS AND THE CANADIANS
HAVE TAKEN THIS VERY BADLY.
THEY ARE ONE OF OUR LONGEST AND
OLDEST ALLIES, AND THEY HAVE
THIS LONG PEACEFUL LAND BORDER
WITH US AND THEY FIND IT SORT OF
PERSONALLY OR SORT OF NATIONALLY
OFFENSIVE THAT WE RESTRICT STEEL
AND ALUMINUM IMPORTS ON NATIONAL
SECURITY GROUNDS.
I THINK THEY HAD HOPED THAT IN
THE END GAME BEFORE THE
SIGNATURE, THEY COULD HAVE
GOTTEN THAT RELIEVED.
BUT THEY COULD NOT.
LIZ: I NEED TO TALK ABOUT WHAT
HAPPENS NEXT.
THIS IS STILL A MOVING TARGET.
ALL THREE COUNTRIES HAVE TO HAVE
THIS RATIFIED BY THEIR
LEGISLATIVE BODIES.
NOW, CONGRESS HAS TO LOOK AT IT
BUT THERE ARE A BUNCH OF OTHER
ISSUES THAT HAVE TO HAPPEN AHEAD
OF THAT, INCLUDING I GUESS THE
PRESIDENT HAS, WHAT, ABOUT 60
DAYS TO REPORT TO CONGRESS THE
CHANGES IN THE U.S. LAW AND THEN
THERE'S ABOUT 105 DAY AGREEMENT,
WITHIN THE 105 DAYS WHERE THE
TRADE COMMISSION HAS TO TALK
ABOUT THE IMPACT ON THE U.S.
ECONOMY, BUT THEN IT GOES TO
CONGRESS, AND WE HAVE A NEW
CONGRESS HERE.
WE HAVE A DEMOCRATIC CONTROLLED
HOUSE AND I'M NOT SO SURE THAT
ANYBODY'S AS WORRIED ABOUT THAT
AS MAYBE SOME OF THE SENATE
MEMBERS.
ROBERT LIGHTHIZER HAS SPOKEN TO
THE PRESS AFTER AND HE TOLD US,
HE WAS MOST ANIMATED, LET ME
JUST SAY THAT, WHEN ASKED ABOUT
WHETHER DEMOCRATS WOULD BE
FIGHTING THIS.
HE SAID WE WANT DEMOCRATS HAPPY
ON THIS AND THIS HAS BEEN A
BIPARTISAN DEAL FROM THE START.
SO I'LL TELL YOU SOMETHING, YOU
LOOK AT WHAT THAT TONE IS, AND
NOW YOU SEE THAT IN THE PAST
HOUR OR SO, SENATOR MARCO RUBIO
IS TWEETING THAT HE HATES THIS
DEAL.
HE THINKS IT'S TERRIBLE.
AND HE IS ON THE SAME SIDE IN A
WAY AS SENATOR LIZ WARREN.
WHO WOULD HAVE THOUGHT?
>> YEAH, WHO WOULD HAVE THOUGHT.
I THINK THE MOST IMPORTANT THING
ABOUT THIS WHOLE PROCESS THAT WE
HAVE IN THE FUTURE IS THAT THE
EXISTING NAFTA STAYS IN EFFECT.
THE BIGGEST RISK THAT WE HAD WAS
THAT FOR SOME REASON OR ANOTHER,
THESE NEGOTIATIONS WOULD FAIL
AND THE NAFTA WOULD -- THE
PRESIDENT WOULD PULL THE UNITED
STATES OUT OF NAFTA ON SIX
MONTHS' NOTICE.
THAT WOULD HAVE BEEN A LITTLE
LIKE BREXIT.
A CLIFF EDGE THAT WOULD HAVE
BEEN DEVASTATING FOR BUSINESS
FOR THE STOCK MARKET AND SO
FORTH.
WE'RE NOT THERE.
SO WE HAVE THE NEXT STEPS ARE
PART OF WHAT USED TO BE JOKINGLY
CALLED FAST TRACK WHICH ISN'T
ALL THAT FAST, BUT IF THESE
PROCEDURAL STEPS ARE MADE, WHAT
HAPPENS IS THAT THE
ADMINISTRATION GETS A STRAIGHT
UP OR DOWN VOTE ON THE AGREEMENT
WITHOUT THE POSSIBILITY OF
AMENDMENTS.
IT MAY TAKE REALLY QUITE SOME
TIME.
THERE IS NO TIME LIMIT ON
CONGRESS ITSELF IN DOING THAT UP
OR DOWN VOTE.
AND THE ADMINISTRATION WILL TRY
TO BUILD A BIPARTISAN COALITION
IN FAVOR OF THIS.
THERE ARE REPUBLICANS WHO WILL
BE DOUBTFUL OF ITS MORE
RESTRICTIVE ASPECTS AND THERE
WILL BE DEMOCRATS THAT WILL BE
ENTHUSIASTIC ABOUT THE
PROVISIONS IN AUTO TRADE WHICH
SEEM TO BENEFIT THE LABOR
UNIONS.
WE'LL HAVE TO SEE HOW IT PLAYS
OUT POLITICALLY.
I THINK THAT THE DEMOCRATS WILL
BE FUNDAMENTALLY A LITTLE