Summers Says Scrapping Nafta Would Be Handing a 'Gift' to China
Ending the U.S. free-trade deal with Mexico, as Donald Trump threatened during his presidential campaign, would hand a significant victory to China, former Treasury Secretary Lawrence Summers said.
Continuing with an unfriendly policy toward Mexico could lead to the election of a president along the lines of Venezuela’s Hugo Chavez and a strained relationship with the U.S., he said Thursday in an interview with Bloomberg Television. Summers, who served in President Bill Clinton’s administration, spoke on the sidelines of the nation’s annual banking convention in the Mexican resort city of Acapulco.
Trump, who in January withdrew the U.S. from the Trans-Pacific Partnership trade deal that would have tied it more closely to Japan and other economies in Asia, has vowed to end or renegotiate the North American Free Trade Agreement. Trump blames Nafta, which also includes Canada, for the loss of American manufacturing jobs and the nation’s trade deficit with Mexico. He’s also demanded Mexico pay for a border wall to stop undocumented immigration.
“There is no bigger strategic and economic gift we could give China than for the United States to move away from Nafta,” Summers said. “It would mean less effective production, and less efficient production in North America, which would be a huge windfall to China-led Asia.”
Trump’s timetable to renegotiate Nafta threatens to slip into an election year for Mexico, which could feel the economic impact of the uncertainty especially if the agreement starts disintegrating. The ruling party of President Enrique Pena Nieto, who is prevented by law from running for re-election, is likely to face pressure from populist opposition candidate Andres Manuel Lopez Obrador, who has led potential rivals in early polls ahead of the July 2018 vote.
“Indeed it’s possible to imagine that if the United States were to stay on a hostile path to Mexico, Mexico could find itself with a government in the tradition of Hugo Chavez in Venezuela, and China put $65 billion behind that government,“ Summers said. "We are putting at risk the creation of a major Chinese beachhead in our region on the trajectory we are following if we really were to abrogate Nafta.”
Trump’s top trade adviser, Peter Navarro, raised hopes last week that the U.S. might take a more conciliatory approach toward Mexico. In an interview with Bloomberg News, Navarro said he hoped the U.S. could ally with Mexico to form a “mutually beneficial regional powerhouse” that would benefit manufacturers and workers on both sides of the border.
Report: Trump voters in Michigan like economically populist Democrats
The county broke again for Obama in 2012 by 5 points. A new report says one way for Democrats to win these voters back is to more aggressively attack Wall Street, corporate tax breaks, and international free trade deals. Read more
Britain leaving the EU is like shooting yourself in both feet and then trying to crawl back to safety when you realise that was a dumb thing to do. Y’all are gonna have to ask the EU for a free trade deal anyway…
A mere 2 days after Brexit and there’s already talk of the US and Canada wanting free trade deals with the UK, and Germany wanting to make us an ‘associated partner country’. On top of that, the pound has stabilized.
“…British people will still be able to go and work in the EU; to live; to travel; to study; to buy homes and to settle down. As the German equivalent of the CBI – the BDI – has very sensibly reminded us, there will continue to be free trade, and access to the single market. Britain is and always will be a great European power, offering top-table opinions and giving leadership on everything from foreign policy to defence to counter-terrorism and intelligence-sharing – all the things we need to do together to make our world safer.
Yes, the Government will be able to take back democratic control of immigration policy, with a balanced and humane points-based system to suit the needs of business and industry. Yes, there will be a substantial sum of money which we will no longer send to Brussels, but which could be used on priorities such as the NHS. Yes, we will be able to do free trade deals with the growth economies of the world in a way that is currently forbidden…”
take a moment to appreciate just how arrogant this statement is. he is saying that british people have some kind of god-given right to live wherever the hell they want but people don’t have the right to settle in the uk – they would be stopped at the border. it is absolutely staggering that this imperialist, arrogant and britain-centric worldview is so prevalent in the british political elite still today. they must think that they can just snap their fingers and everyone else follows because they are british and they used to enslave half the world. rule britannia, fuck immigrants and fuck europe.
normally this would make me mad as hell because this mindset is so repugnant but given the circumstances i just laugh. you know why? because he is going to get his ass handed back to him on a plate when he goes to europe with this ‘plan’, which is basically that a) british people can live where they want b) other people can’t come to the uk c) we will do the same amount of trade with the eu, only we won’t follow any of your legislation (which, i should say, includes employment legislation that he so wants to get rid off, the tory cunt he is). he is barking mad if he think this is going to last 5 seconds with other european leaders. who the hell does he think he is?
poor boris is going to learn very quickly that britain isn’t an empire anymore, that this isn’t the 1950s and that the world doesn’t revolve around british national interests. you’re not the largest economy in europe, germany is. you led the campaign to lead britain out of the eu and now the 27 member states are a united front and they hold all cards in these negotiations, not you boris. i would not too kindly suggest you eat some humble pie but my guess is that it will very soon be forced down your throat by the other eu member states anyway.
as soon as british (mainly english though, i give you that) people learn that no one gives a fuck about them and that they’re not exceptional in any way and all they are is a tiny island no better than any other european country, the better they will manage the challenges of the 21st century. being english or british doesn’t give you special privileges in this world, you utter fucking morons. oh, and if you so want to be independent then leave and don’t let the door hit you on your way out but don’t expect the same level of privileges from the eu just because you think everyone loves you, you self-serving creeps.
leaving the eu is absolute insanity but what more can you expect from english people who think they’re still the king of the world? and the funny thing is that brexiters led the campaign with promises to ‘take back control’, and more ‘sovereignty’ and ‘independence’. how’s that working out for you so far, brexiters? the extent of their fuck-up will come evident the minute boris joins in on these negotiations with the eu, and i personally can’t wait for that to happen.