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View Full Version : Donald Trump was right. The rest of the G7 were wrong



jimnyc
06-14-2018, 12:01 PM
I'm not sure I care either way, but I do agree that there should be some sort of limitations. I don't think any contract we sign with other countries should be 100% indefinite.

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Donald Trump was right. The rest of the G7 were wrong

In arguing for a sunset clause to the Nafta trade agreement, this odious man is exposing the corruption of liberal democracy.

He gets almost everything wrong. But last weekend Donald Trump got something right. To the horror of the other leaders of the rich world, he defended democracy against its detractors. Perhaps predictably, he has been universally condemned for it.

His crime was to insist that the North American Free Trade Agreement (Nafta) should have a sunset clause. In other words, it should not remain valid indefinitely, but expire after five years, allowing its members either to renegotiate it or to walk away. To howls of execration from the world’s media, his insistence has torpedoed efforts to update the treaty.

In Rights of Man, published in 1791, Thomas Paine argued that: “Every age and generation must be as free to act for itself, in all cases, as the ages and generations which preceded it. The vanity and presumption of governing beyond the grave is the most ridiculous and insolent of all tyrannies.” This is widely accepted – in theory if not in practice – as a basic democratic principle.

Even if the people of the US, Canada and Mexico had explicitly consented to Nafta in 1994, the idea that a decision made then should bind everyone in North America for all time is repulsive. So is the notion, championed by the Canadian and Mexican governments, that any slightly modified version of the deal agreed now should bind all future governments.

But the people of North America did not explicitly consent to Nafta. They were never asked to vote on the deal, and its bipartisan support ensured that there was little scope for dissent. The huge grassroots resistance in all three nations was ignored or maligned. The deal was fixed between political and commercial elites, and granted immortality.

In seeking to update the treaty, governments in the three countries have candidly sought to thwart the will of the people. Their stated intention was to finish the job before Mexico’s presidential election in July. The leading candidate, Andrés Lopez Obrador, has expressed hostility to Nafta, so it had to be done before the people cast their vote. They might wonder why so many have lost faith in democracy.

Nafta provides a perfect illustration of why all trade treaties should contain a sunset clause. Provisions that made sense to the negotiators in the early 1990s make no sense to anyone today, except fossil fuel companies and greedy lawyers. The most obvious example is the way its rules for investor-state dispute settlement have been interpreted. These clauses (chapter 11 of the treaty) were supposed to prevent states from unfairly expropriating the assets of foreign companies. But they have spawned a new industry, in which aggressive lawyers discover ever more lucrative means of overriding democracy.

Rest - https://www.theguardian.com/commentisfree/2018/jun/13/trump-nafta-g7-sunset-clause-trade-agreement

Elessar
06-14-2018, 12:12 PM
I am not an economist and will never pretend to be one.

But one thing NAFTA did was open flood gates for virtual free passage of tractor-trailers
from Mexico across the Southern US border.

Many of them are in such piss-poor shape they would be curbed under California's strict
environmental laws. I would see them broken down by the freeways leading into the
Ports of Los Angeles and Long Beach, or even traveling northbound up the I-5.

Those drivers are not subject to our laws concerning limitations as to how long
they can stay behind the wheel as a long-hauler.

Gunny
06-14-2018, 04:19 PM
I think it's just common sense that something (like NAFTA) based on a fluctuating market be subject to periodic review and update/revision to reflect current times. A trade agreement that sucked from the get-go 30-some years ago and needed to be scrapped the day before it was signed would definitely fall into that category, IMO.

I can't imagine us so much as breaking even much less getting the better end of a deal with Mexico.