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tv   Washington Journal William Mauldin Discusses the Future of NAFTA  CSPAN  July 19, 2017 9:01am-9:32am EDT

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rise. >> sunday night at 8 eastern on q&a.n's history unfolds daily. c-span was created as a public service by america's able television companies and is brought to you today by your cable or satellite provider. >> "washington journal" continues. host: our guest now is william mauldin, who is a reporter for he "wall street journal," who is focusing on nafta, among other issues and we asked you to come on to talk to us about what the president has had to say this week. take us back to the campaign first and what the president had at that out nafta point. how did we get there, start with he campaign and what did the president have to say? , 2015, tarting in 2016
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going back 100 years, bernie interested in the trade topic, skeptical of past agreements and same thing with donald trump, only more so, calling nafta one of deals ever ade negotiated anywhere, i believe definitely se, but in the united states. that rhetoric was taken to a new level. we had seen that with barack obama, hillary clinton, but this was a new level and it seemed president trump really does want to do something with nafta. ight now the pathway is to renegotiate the agreement. it's 23 years old, the north free-trade agreement f. that doesn't work, the possibility is out there that president trump could walk away the agreement, something he considered as recently as april. as : we have this roadmap the white house put its that came out this week, we will put some bullet points and walk through them. this new roadmap the white house
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says in part that labor and environmental iolations could be punished by tariffs. it addresses currents may nip population, proposes elimination dispute settlement system used by other countrys and the des some element of transpacific partnership, something else he did not like. provisions,ugh some what can you tell us about the highlight? guest: what we have is a pretty overview of what they might try to negotiate with canada and mexico. geared e, very much toward congress. these objectives are required nder 2015 trade legislation, known as fast track or trade promotion with authority. echos,e objectives, some what was seen in the fast track legislation and some echo what the transpacific negotiating objective. something president trump pulled out of on his first day n office and never passed by congress. this is basic washington trade policy, with some exceptions.
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want more o sovereignty for the u.s. to mpose tariffs, punish canada and mexico for dumping or flight want wiggle hey room to do that without that being overturned in a dispute resolution body. controversial provision dispute settlement where a company can challenge a in another country. that, they are unclear on, that for big priority republicans and business groups and like a lot of the negotiating objectives, just be ear, it will have to settled at the bargaining table. ost: you write in today's edition of the "wall street 2, rnal," your piece on page take us deeper into this, rbitration emerges on nafta provision. guest: this has drawn freelizabeth warren and bernie sanders and former one side whoons on think it is undermining u.s. overeignty to allow mexican or
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canadian company to challenge the u.s. government, this is something that happened with the pipeline. obama wasn't allowing the eystone pipeline to be built, trans canada challenged the united states, a company from u.s. , challenging the government rules under dispute settlement. was dropped. it could financial in a penalty. i can't undermine u.s. law, but whenlip side, u.s. company is they go to mexico or canada or more developing countries and ther trade agreements have investor protection. labor groups, democrats and some republicans and conservatives say this is a ticket for is reducing risk for a company when they invest in another country. of local courts, they have an option if they have egulation against them, if assets are seized to challenge a foreign government in
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tribunal and possibly win damages. host: complicated process, we'll in the next e can 25 minutes to lay it out and talk about how this might work. william mauldin is with the "wall street journal." phone number on bottom of the screen. 202-748-8000. republicans, 202-748-8001. .nd independents, 202-748-8002 so what is the process for of nafta?ion what do the chief partners, canada and mexico, think about this? guest: right at the very beginning of it. n mid-may, the trump administration formally announced to congress it intends nafta.gotiate under the fast track law, they detailed bmit objectives, 30 days before the negotiations start. week s what happened this in mid-july. mid-august, they can sit down ith canada and mexico, trump administration officials from the u.s. trade representative office and negotiate what they
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change in nafta and they ast to finish it up as early december or january because exico has a presidential election next year. also, the u.s. has mid-term congressional elections, we know consist do for trade policy, bring out a lot of critics. fast track authority needs to be renewed, if it doesn't, it will expire next july. rump administration wants to get going as early as one month from now. host: here is what the white new nafta o say, the must continue to break down barriers to american exports, of unfair limination subsidy, market distorted state-owned enterprises and intellectual property. modernizedfta will be to affect 21st century standard america's imbalances in north america. that is from the white house and prime to hear from the tru er of canada justin
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do. a >> sometimes getting it right eans refusing to take the politically tempting shortcuts. barriers, more local content provisions more pref access for home grown players and government procurement, for example, does working families over the long-term or even the midterm. such policies kill growth. workers hurts the very these measures are nominally intended to protect. friends, canada doesn't want to go there. a thinnerg, we'd like border for trade, not a thicker
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one. host: what did you hear there from the prime minister? guest: several thing, he's u.s. governors, governors seem to be in favor of free trade, those in border border with the canada and mexico. is lso, you know, canada profree trade, they trade with e.u. and this is true whether conservatives that negotiated the partnership with or the more liberal leaders minister what i also heard was criticism administration's objective for included by domestic american procurement provisions in the new nafta. had open nafta procurement, any company from ny country could compete on a level playing field. rump wants to add by america provisions and have provisions that allow them to levee tariffs
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mexico when the administration feels there is dumping and wave of imports having those overturned by nafta dispute resolution body. host: lots of calls coming in for william mauldin. eddie, the first call from -- mitchell, edsefrom indiana. go ahead, sir. caller: good morning, guys. lost my job through nafta. indiana, in bedford, and i think this was a bet my iue, gw a, didn't stand p and try to slow the process down, they did videos of us doing our jobs, pictures of us jobs, like you were being -- i don't know, slandered or something into getting rid of your job. i also have a question, just was bill clinton required to sign the nafta have said go d he
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ahead and run it under the waters, guy? thank you. eddie.hanks, guest: your main question, sorry about the job situation around of nafta. bill clinton got nafta through congress adding environmental provision to that as adend dum thator the een negotiated under bu there.- it was a big one certainly when it comes to ndiana, you know, there have been shift necessary jobs, jobs going to mexico from the midwest during nafta. the automakers argue that has made north america more figure trade d allowed invest frment japanese automakers in the area. to a suburu plant in indiana. complicated situation. indiana and governor mike pence was he was a governor
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relatively free trade politician. things are different now that vice president and this administration overall has a more skeptical tone toward nafta other free-trade agreements. host: donald in michigan, caller, hi, donald. caller: hello there. host: hi there. caller: i'm almost 80 and i watch this whole thing develop. of my d in industry most or as a machining supervise and what i had seen when clinton started talking about nafta and wanting to get it in, truly did, too, went back that far, but it didn't go all the reagan. but the -- so forth were about it and it really did harm the working people as unions feared it would. and i'll give you a real example.
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have a -- we had a steel wire plant here in luddington, that their manufacturing unit to mexico. well, what you're talking about people up here making, say give figure of $12 $13 an hour at that time to send it to place where people making $.55 a dollar and you many work those people as hours as you wanted, but you only had to pay them for 10 so desired. i'm talking at that time. he competition of the american worker was shot, you can't compete with that. companies just, they also depressed employees stuff by threatening to move the plants. in my wife and i were alabama, just before christmas, wrangler blue
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jean plant from red bay, mexico., to really rporations have gorged themselves with cheap of can labor and lack environmental concerns or safety a i know that my son was write and his company sent ent -- a mexico to help set plant up there. and they didn't want our guys to and it was thing just this whole thing was a isaster for the american worker. host: donald, thanks. thanks for calling.
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thought you were finished there. guest: let's hear from our guest. uest: a lot of points you brought up. nafta is a symbol of job displacement, didn't cause all it, but was a factor in the early '90s. ou are talking about wiring, wiring harnesses for cars have gone down with part-making to i heard from the association of art makers auto component makers at a round table just a few days ago, she said that we don't make wiring harnesses anymore in the u.s., in mexico tis high labor, hasn't been automated. same with stitching together of in rel there is allowance nafta for that. some stitching and apparel making has moved to mexico and
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asia, after that. this came up yesterday with doggett,s excuse me, a jeans an doggett, san ry disappeared from antonio. very complicated economic situations and the trump into stration is marching something complicated, really vicious debate, i would call. it move to chuck now in phoenix city, you are on with of the "wall n street journal." caller: yes, i'm 79 years old. third degree thing for years. back prior to this nafta and call unch of people we down in washington senators and i think we should call them a bunch of bolognists, they are hot air experts, they take jobs from this country and free they traded our jobs for
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from these various companies. general motors of a canadian deal, they had a preassembled deal. what it amounted to was they allowed canada, they couldn't car into the united states completely assembled, so ade an exception, when you get it across the border, you put the air cleaner on it. washington, like i say, i'm 79 years old, anything lifetime, ned in my they're responsible, they have screw third degree country up big time. lawyers to doch of something is like herding cats, run them out of town and not let is where back, this the problem is. thank you. host: thanks for calling. any thoughts? guest: other than auto assembly, assembled, being which part consist cross the border from mexico to the u.s. contained g that is in rules of origin section of afta, something the trump
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administration needs to address to make more content more u.s. required under the agreement. the trump administration talked this trade policy. the problem is in today's congress, and today's economy, only a limited amount they can do. there is a world trade economics of the free trade, companies have been been -- even if they want to see higher labor standard necessary mexico. there is a little wiggle room, you put your finger on an important thing, we've gone retty far down the road and they are limited to changes that can be done at this point. blueprint from the white house this week, has there been much reaction from congress yet? what is congress' role, if any? guest: certain committees play a role in trade negotiations, the ways and means committee in the house and
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committee, mostly heard from democrats, surprising given the skepticism that the democrats had for the trump administration, complained negotiating objectives are too vague, required to be more and they have said that they don't trust the trump dministration to raise labor standards high enough in mexico in order to make this a fair agreement or they don't trust trump administration to follow through on rhetoric, which many democrats agree with. the republican side, we've heard some unit praise, they are wants that everybody modernization of nafta to rules that allow free flow of technology, e-commerce, the things the u.s. is strong at. most respects are close to agricultural groups, farmers or benefits. they benefited from nafta, elling food and vegetables, selling beef and grain and corn
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system a with no limit very plump opportunity for agriculture and many businesses smoothly across borders. republicans are easy to get this one, but worried about the potential pitfalls with canada, exico and the trump administration. host: stacy calling from mclane, virginia. stacy.rning, caller: good morning, thank you for having me on. you touched on a few of my questions, william. my first question is, or was lly comment is, nafta walker by george herbert bush and signed into law, i and president , clinton signed ratified version but this was a g.o.p. talk about outsourcing and look back 10, 15 years from now, outsourcing was the new thing, the thing to do.
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create, that ed to is what the g.o.p. said, going to create all of these jobs and this work and going to be great for the american worker. out to be a ned lie. of passing the buck and acting like their hands are in actuality they created this monstrosity, be it or outsourcing and could you touch on that and explain to he american people where the policies come from and where they originated from? think it would shed a lot of light on the subject. guest: thank you. certainly many republicans see -- no alance between politician wants good jobs to go overseas.
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balance between keeping the good jobs and inouraging more productivity the american workforce and among american companies which result income for the country, more dividend and shareholder moreoverall income, capitalizing on strong ndustries and allowing free trade in weaker industries. people believe in international and opening the door is what free trade is about be safe guard for those seeing jobs move overseas. universal, among most economists, most people safety net forhe free trade wasn't there. hen nafta took effect, china joined world trade organization, there wasn't enough provision to protect workers who lost their wasn't understanding about how far it setback the communities. the still reaping political consequences of that
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today. anna from milwaukee, democratic line from william mauldin of the "wall street journal." morning, anna. caller: good morning. i'm kind of confused here, i was listening to a program yesterday on democracy now, they were nafta and they ndicated that nafta, when it was initiated, the peso dropped radically that, is one point i to make. and if we're going to revamp the nafta, we attention, also, to benefiting from this and corporations benefit greatly from it, a trickle-down system are in the lower economic standing. the issue i have also is that we are not putting our on ronmental restraints nafta, so when we get vegetable
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meat from other countries, how safe are they? we have requirements in this we don't require that in nafta, can you explain that, please? guest: thank you very much. the peso issue of course is a talking nd what you're about i believe is tequila crisis as it is known that hit nafta took ly after effect. a lot of people wonder why as 't nafta good for mexico people thought it would be economically. happenstance, h tequila crisis around the time nafta started. mexico's economy, it has been good for u.s.-mexico relations and certainly now the peso moves based on what donald trump says about nafta and uilding the wall and other political issues that are geo political issues separating u.s. mexican ties.
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as far as the food safety issue, that is huge in trade agreements. this is important for people to understand, the trump knows too well. when you do trade agreement, people haveith tpp, concerns. consumers have concerns, rules touch everything, things are 500,000 pages long. people can join us on social find and on the internet, things they like in trade agreements and ban together and like, askgs they don't members of congress to vote against it, and that is one of the big challenges in getting it passed. food safety, people are concerned, balancing food safety with trade, u.s. doesn't want mexico to put up arbitrary food standard that could block flow of american meat, grain and orn and so there had to be balance achieved, we get the safest food possible with the u.s.d.a. and other agencies regulating it without putting too much in the trade agreement come back and hurt u.s. agriculture. host: time for a couple more
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calls. steams, mississippi, you're on talking about nafta, good morning. caller: good morning, gentlemen, are y'all this morning? host: doing well, how are you? caller: great. a trade agreement, plain and simple, it will work for country in the world, it will protect every worker in and country in the world the people. to do is base on the same cost produce the do, are in.duct that you in other words, china shifts lamp to the united states for $3 cost $5 to make it in the $2.., then tax should be if you use this for every the world, it will the for every country, then
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only difference will be the quality of the product, that is based on.ould be host: hear from our guest. guest: thank you, david, good to ear from someone in mississippi, where i'm from, steams, especially. ou know, donald trump has defended tariffs and the use of tariffs and taxes at the border level playing field. i think there is definitely taxes and tariff, ou generate revenue and raise prices for consumers. it is a great luxury to buy from around the world, it doesn't help manufacturing, but it is certainly something that improves the economy and helps working people afford necessities. eliminate unfair trade practice abroad, but free system, be able to get some benefit from low-priced goods. jody wants historical
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perspective, bill clinton signed nafta, gingrich wrote the bill, or both? blame one guest: it is complicated. igning blame for the disadvantages of nafta is pretty and difficult task. you know, certainly that was where the world was at the time. soviet union was falling apart, the world trade organization was coming to be at that point. a lot of economists and a lot of politicians saw the benefits of trade and didn't want the u.s. to be left behind in we don't trade as much as other nations. it is complicated. think the main thing, there wasn't a big enough safety net, robably they could have insisted upon higher standards n original nafta, criticism that companies would move south of the border to mexico to cut corners. on the other hand, ertainly former president bill
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clinton and al gore did add provisions to the bill. sort of depend which is aspect of nafta you like or to assign where credit or blame, but certainly having north american good cturing platform is for the continent as a whole, certainly the loss of u.s. jobs of provisions to deal with that problem, including agreements hurte this country politically and economically. host: our guest william mauldin, reporter for "wall street journal," read more of his work colleagues, is thanks for the explanation so the attempt to renegotiate nafta. guest: thank you, paul. host: we have a half-hour left in the program. we'll hear from democrats only for this next 30 minutes about health care. this time of the failure of the g.o.p. to round p votes to move forward with its agenda to repeal and perhaps replace the bill.
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zone, and central time the number is 202-748-8000. mountain e out west, and pacific, 202-748-8001. right back with democratic calls only on the health care issue. >> i sat in my wagon with my dog and watched the riot. was directly across from the paper station, a clothing store called jack's place. i saw a guy come out of the clothing store with 10 hats on literally in a stack of things, bundles of clothes with him. the 50th anniversary of the 1967 riots, sunday noon eastern, american history t.v. s live from the detroit free
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