Speaker of the House Nancy Pelosi (D-CA), watching support for her party evaporate due to her disastrous insistence on pushing a factless impeachment, has been forced to agree to President Trump’s USMCA trade deal replacement for NAFTA lest her attempt to remove a duly elected president linger like an Eric Swalwell fart.
Pelosi had blocked USMCA from coming to the floor for a vote for more than a year. Now she wants credit for “fixing it.” Seriously, you can’t make this stuff up. But Pelosi knows that whatever she says her corrupt mainstream media allies will parrot endlessly.
The fact is President Trump fashioned the USMCA to bring China to heel and Pelosi refused to bring it to a vote in hopes of weakening Trump’s 2020 election chances.
(The Conservative Treehouse) An important aspect here is that the USMCA (U.S., Mexico and Canada) agreement exempts the trilateral North American pact from any auto tariff fear. If the vehicle consists of 75% North American (USMCA) content, there’s no tariff.
At the 30,000 ft level, the USMCA deal positions Mexico to retain their current multinational investments; and through a series of sector-by-sector standards on origination the deal simultaneously closes the fatal NAFTA loophole.
Once the USMCA is passed, China can no longer use Canada and Mexico as assembly centers to bypass tariffs.
Currently there is a great deal of investment capital waiting to see where the money should be placed. Investment in China has dropped dramatically; investment in Southeast Asia shifted, but new investment is pending this outcome. Multinationals are calculating the TCP (Total Cost of Production), and if the new USMCA is passed there will be a triggering effect of North American investment because the uncertainty will be eliminated.
Speaker Nancy Pelosi is aware of the economic benefit that will accrue from the new North American trade agreement which is why she has been holding back passage of the USMCA. Pelosi’s Democrats know it would create an investment boom for the economy.