Last week the United States, Mexico, and Canada agreed to replace the North American Free Trade Agreement (NAFTA) with a new United States-Mexico-Canada Agreement (USMCA). Sadly, instead of replacing NAFTAs managed trade with true free trade, the new USMCA expands governments control over trade.
For example, under the USMCAs rules of origin, at least 75 percent of a cars parts must be from the US, Canada, or Mexico in order to avoid tariffs. This is protectionism designed to raise prices of cars using materials from outside North America.
The USMCA also requires that 40 to 45 percent of an automobiles content be made by workers earning at least 16 dollars per hour. Like all government-set wages, this requirement will increase prices and decrease employment.
The USMCA also requires Mexico to pass legislation recognizing the right of collective bargaining. In other words, this so-called free trade agreement forces Mexico to import US-style compulsory unionism. If the Mexican legislature does not comply, the US and Canada will impose tariffs on Mexican goods.
The USMCA also requires the three countries to abide by the International Labour Organization (ILO) standards for worker rights. So, if, for example, the bureaucrats at the ILO declared that Right to Work laws violate international labor standards because they weaken collective bargaining and give Right to Work states an unfair advantage over compulsory unionism states and countries, the federal government may have to nullify all state Right to Work laws.
The USMCA also obligates the three countries to work together to improve air quality. This sounds harmless but could be used as a backdoor way to impose costly new regulations and taxes, such as a cap-and-trade scheme, on America.
This agreement also forbids the use of currency devaluation as a means of attempting to gain a competitive advantage in international trade. Enforcement of this provision will be difficult if not impossible, as no central bank will ever admit it is devaluing currency to obtain a competitive advantage in international trade. Of course, given that the very act of creating money lowers its value, the only way to stop central banks from devaluing currency is to put them out of business. Sadly, I dont think the drafters of the USMCA seek to restore free-market money.
The currency provision will likely be used to justify coordination of monetary policy between the Federal Reserve and the Mexican and Canadian central banks. This will lead to region-wide inflation and a global currency war as the US pressures Mexico and Canada to help the Fed counter other countries alleged currency manipulation and challenges to the dollars reserve currency status.
A true free trade deal would simply reduce or eliminate tariffs and other trade barriers. It would not dictate wages and labor standards, or require inter-governmental cooperation on environmental standards and monetary policy. A true free trade deal also would not, as the USMCA does, list acceptable names for types of cheeses.
Those of us who support real free trade must not let supporters of the USMCA get away with claiming the USMCA has anything to do with free trade. We must also fight the forces of protectionism that are threatening to start a destructive trade war. Also, we must work to stop the government from trying to control our economic activities through regulations, taxes, and (most importantly) control of the currency through central banking and legal tender laws.
Read more from the original source:
The Ron Paul Institute for Peace and Prosperity : NAFTA 2.0 ...
- Ron Paul Forums / Rand Paul Forums - Grassroots Central Updates [Last Updated On: February 6th, 2018] [Originally Added On: February 6th, 2018]
- The Ron Paul Institute for Peace and Prosperity : What the ... [Last Updated On: February 6th, 2018] [Originally Added On: February 6th, 2018]
- The Libertarian Party Won't Let Ron Paul Speak at Their ... [Last Updated On: February 6th, 2018] [Originally Added On: February 6th, 2018]
- Barnds brothers lawn and garden, Overland park, Kansas ... [Last Updated On: February 23rd, 2018] [Originally Added On: February 23rd, 2018]
- Ron Paul .com [Last Updated On: March 20th, 2018] [Originally Added On: March 20th, 2018]
- Aaron Paul, Ron Cephas Jones Round Out Cast of Apples ... [Last Updated On: June 19th, 2018] [Originally Added On: June 19th, 2018]
- Ron Paul presidential campaign, 2012 - Wikipedia [Last Updated On: June 29th, 2018] [Originally Added On: June 29th, 2018]
- Ron Paul: U.S. secession is already 'happening' | MSNBC [Last Updated On: June 29th, 2018] [Originally Added On: June 29th, 2018]
- Ron Paul tweets racist, anti-Semitic cartoon before ... [Last Updated On: July 4th, 2018] [Originally Added On: July 4th, 2018]
- Ron Paul Blames Shockingly Racist, Anti-Semitic Tweet On ... [Last Updated On: July 9th, 2018] [Originally Added On: July 9th, 2018]
- Ron Paul, former presidential candidate, tweets racist and ... [Last Updated On: July 9th, 2018] [Originally Added On: July 9th, 2018]
- Ron Paul: 'Trump Won' in Summit with Putin, 'Neocons Aren't ... [Last Updated On: July 19th, 2018] [Originally Added On: July 19th, 2018]
- Ron Paul warns that this is the 'biggest bubble in the ... [Last Updated On: July 19th, 2018] [Originally Added On: July 19th, 2018]
- Ron Paul disavows racist newsletters under his name - CBS News [Last Updated On: July 25th, 2018] [Originally Added On: July 25th, 2018]
- Ron Paul Exposes The Human Suffering Of "Cultural Marxism" [Last Updated On: July 25th, 2018] [Originally Added On: July 25th, 2018]
- The Ron Paul Institute for Peace and Prosperity : Spending ... [Last Updated On: July 28th, 2018] [Originally Added On: July 28th, 2018]
- Wikipedia Listed Ron Paul On White Supremacists List For ... [Last Updated On: August 1st, 2018] [Originally Added On: August 1st, 2018]
- The Ron Paul Institute for Peace and Prosperity : Neocons ... [Last Updated On: August 9th, 2018] [Originally Added On: August 9th, 2018]
- Ron Paul: The Mueller Indictments & The Triumph Of The Deep ... [Last Updated On: September 4th, 2018] [Originally Added On: September 4th, 2018]
- The Ron Paul Institute for Peace and Prosperity : Cant We ... [Last Updated On: September 4th, 2018] [Originally Added On: September 4th, 2018]
- Ron Paul, Rising Political Star - CBS News [Last Updated On: November 12th, 2018] [Originally Added On: November 12th, 2018]
- Ron Paul: US is barreling towards a 50% or more stock ... [Last Updated On: November 13th, 2018] [Originally Added On: November 13th, 2018]
- Ron Paul Tweets Racist, Anti-Semitic Cartoon [Last Updated On: December 5th, 2018] [Originally Added On: December 5th, 2018]
- TNR Exclusive: A Collection of Ron Pauls Most Incendiary ... [Last Updated On: December 5th, 2018] [Originally Added On: December 5th, 2018]
- Ron Paul: Foreign interventionism isnt the America First ... [Last Updated On: December 5th, 2018] [Originally Added On: December 5th, 2018]
- Ron Paul's LANDSLIDE VICTORY! (327-98) | SVTPerformance.com [Last Updated On: December 17th, 2018] [Originally Added On: December 17th, 2018]
- The Ron Paul Revolution - Taki's Magazine - takimag.com [Last Updated On: December 17th, 2018] [Originally Added On: December 17th, 2018]
- Ron Paul: Market meltdown could spark depression-like conditions [Last Updated On: December 18th, 2018] [Originally Added On: December 18th, 2018]
- The Ron Paul Institute for Peace and Prosperity : Why The ... [Last Updated On: December 23rd, 2018] [Originally Added On: December 23rd, 2018]
- Ron Paul: US is barreling towards a 50% or more stock market drop [Last Updated On: December 29th, 2018] [Originally Added On: December 29th, 2018]
- Ron Paul | American politician | Britannica.com [Last Updated On: December 29th, 2018] [Originally Added On: December 29th, 2018]
- Ron Paul: Troops Out Of Syria And Afghanistan? That's A Good ... [Last Updated On: December 29th, 2018] [Originally Added On: December 29th, 2018]
- Ron Paul: Troops Out of Syria and Afghanistan? Thats a Good ... [Last Updated On: December 29th, 2018] [Originally Added On: December 29th, 2018]
- US needs to withdraw all troops from Mideast: Ron Paul [Last Updated On: December 29th, 2018] [Originally Added On: December 29th, 2018]
- Ron Paul: Trump's decision to withdraw US troops from Syria ... [Last Updated On: December 29th, 2018] [Originally Added On: December 29th, 2018]
- Stem Cell Therapy - Top Rated Local Stem Cell Treatment In ... [Last Updated On: January 1st, 2019] [Originally Added On: January 1st, 2019]
- The Power of Stem Cells | California's Stem Cell Agency [Last Updated On: January 1st, 2019] [Originally Added On: January 1st, 2019]
- xkcd: Secretary: Part 2 [Last Updated On: February 19th, 2019] [Originally Added On: February 19th, 2019]
- Ron Paul - Official Site [Last Updated On: March 21st, 2019] [Originally Added On: March 21st, 2019]
- GOP candidates blast Ron Paul over Iran policy. Is one side ... [Last Updated On: April 5th, 2019] [Originally Added On: April 5th, 2019]
- 'Racist newsletter' timeline: What Ron Paul has said ... [Last Updated On: April 5th, 2019] [Originally Added On: April 5th, 2019]
- Ron Paul spent $35M, yet only got 40,000 votes nationwide ... [Last Updated On: April 5th, 2019] [Originally Added On: April 5th, 2019]
- RON PAUL: Is he the ONLY candidate who can speak PLAIN ... [Last Updated On: May 1st, 2019] [Originally Added On: May 1st, 2019]
- Ron Paul - amazon.com [Last Updated On: May 1st, 2019] [Originally Added On: May 1st, 2019]
- Ron Paul TV Archives & Latest Videos | MidEast News Syria [Last Updated On: May 1st, 2019] [Originally Added On: May 1st, 2019]
- Ron Paul: False Flag Could Ignite War in Venezuela [Last Updated On: May 2nd, 2019] [Originally Added On: May 2nd, 2019]
- The Dollar Is Going to Self Destruct: Talking Bitcoin With ... [Last Updated On: May 23rd, 2019] [Originally Added On: May 23rd, 2019]
- Inside Ron Paul's Counter-Convention | Vanity Fair [Last Updated On: May 23rd, 2019] [Originally Added On: May 23rd, 2019]
- Ron Paul: Julian Assange, Political Prisoner OpEd Eurasia ... [Last Updated On: May 23rd, 2019] [Originally Added On: May 23rd, 2019]
- Ron Paul | Abortion | Pro-Life Profiles [Last Updated On: May 23rd, 2019] [Originally Added On: May 23rd, 2019]
- Ron Paul, Author at Antiwar.com Original [Last Updated On: May 23rd, 2019] [Originally Added On: May 23rd, 2019]
- Rev. Ron Moore: Three reasons to be thankful - State-Journal.com [Last Updated On: November 29th, 2019] [Originally Added On: November 29th, 2019]
- What Is Happening With Rand Paul? (2019-11-28) - Biology Reporter [Last Updated On: November 29th, 2019] [Originally Added On: November 29th, 2019]
- 'I dont have a facade': How Kane went from WWE icon to elected office - Yahoo Sports [Last Updated On: November 29th, 2019] [Originally Added On: November 29th, 2019]
- The Conservative Establishment's Nightmare Is Only Just Beginning - Washington Monthly [Last Updated On: November 29th, 2019] [Originally Added On: November 29th, 2019]
- Texas' 22nd Congressional District: History of the Seat and a Breakdown of the Current Race - The Texan [Last Updated On: November 29th, 2019] [Originally Added On: November 29th, 2019]
- Getting Hot Late Is Usually the Key to Winning Iowa - New York Magazine [Last Updated On: November 29th, 2019] [Originally Added On: November 29th, 2019]
- Ron Paul: The Real Bombshell Of The Impeachment Hearings OpEd - Eurasia Review [Last Updated On: November 29th, 2019] [Originally Added On: November 29th, 2019]
- Americans are sick and tired of impeachment and grandstanding & chicanery of both parties Ron Paul - RT [Last Updated On: November 29th, 2019] [Originally Added On: November 29th, 2019]
- McCain conservatives are rallying behind Justin Amash - Hot Air [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- Ron Paul: How Congress And The Federal Reserve Stole Christmas OpEd - Eurasia Review [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- What it's like to shoot Cher, Anna Wintour and others at Met Gala - Page Six [Last Updated On: December 29th, 2019] [Originally Added On: December 29th, 2019]
- The 2019 Wypipo Awards: End of the Decade Edition - The Root [Last Updated On: December 29th, 2019] [Originally Added On: December 29th, 2019]
- Recreational bowling scoreboard - The Times Herald [Last Updated On: December 29th, 2019] [Originally Added On: December 29th, 2019]
- How Jaylen Brown and Jayson Tatum have found balance, complement each other, and propel the Boston Celtics - MassLive.com [Last Updated On: December 29th, 2019] [Originally Added On: December 29th, 2019]
- Why These Might Be The Most Competitive Iowa Caucuses Ever - FiveThirtyEight [Last Updated On: January 30th, 2020] [Originally Added On: January 30th, 2020]
- A Million Iraqis Asked Us To Leave We Should Listen - Antiwar.com [Last Updated On: January 30th, 2020] [Originally Added On: January 30th, 2020]
- How The Iowa Caucuses Work And Why They're Important | NPR - KCRW [Last Updated On: January 30th, 2020] [Originally Added On: January 30th, 2020]
- 12 Wild Hours With Andrew Yang - POLITICO [Last Updated On: February 12th, 2020] [Originally Added On: February 12th, 2020]
- Dwayne Haskins is 'All For Competition' To Be The Redskins Starting Quarterback - Redskins.com [Last Updated On: February 12th, 2020] [Originally Added On: February 12th, 2020]
- Andrew Yang makes his stand in New Hampshire - POLITICO [Last Updated On: February 12th, 2020] [Originally Added On: February 12th, 2020]
- Iowa and New Hampshire have no business leading the nomination process - The Dallas Morning News [Last Updated On: February 12th, 2020] [Originally Added On: February 12th, 2020]
- Unbuilt Portland: 4 big projects that never happened... yet - Pamplin Media Group [Last Updated On: February 12th, 2020] [Originally Added On: February 12th, 2020]
- Big Swinging Brains and fashy trolls: how the world fell into a clickbait death spiral - The Guardian [Last Updated On: February 12th, 2020] [Originally Added On: February 12th, 2020]
- Judy Shelton and the - New York Sun [Last Updated On: February 12th, 2020] [Originally Added On: February 12th, 2020]
- Pardon the Interrupters: meet the ska-punks with an InfoWars problem - Telegraph.co.uk [Last Updated On: February 29th, 2020] [Originally Added On: February 29th, 2020]
- Ron Paul: Trump Does The Bidding Of Deep State - The National Memo [Last Updated On: February 29th, 2020] [Originally Added On: February 29th, 2020]
- Health Care Is On Coloradans' Minds. This Is Where The 2020 Presidential Candidates Stand - Colorado Public Radio [Last Updated On: February 29th, 2020] [Originally Added On: February 29th, 2020]
- The immorality of US hegemony with Ron Paul - RT [Last Updated On: February 29th, 2020] [Originally Added On: February 29th, 2020]
- Afghanistan: 'Thank Allah We're Out of That Quagmire' - Consortium News [Last Updated On: March 8th, 2020] [Originally Added On: March 8th, 2020]