In Nafta Rewrite, Canada Took Cue From Mexico: Make a Big Concession

As Trump’s deadline for the negotiation neared, Canadian negotiators struggled to make the U.S. give ground

Mexican Economy Minister Ildefonso Guajardo offered advice: Make a key concession to the U.S. to break the logjam. Mexico had bent to U.S. pressure on policies aimed at shifting auto production from Mexico back north, opening the way for Mexico and the U.S. to strike a broader deal a month earlier.

.. For Canada, the equivalent of Mexican cars was dairy. Canadian negotiators had already been thinking along the same lines, and the next day, Canada sent the U.S. a document that included detailed plans for easing curbs on American milk and cheese products, a Canadian official said.

.. Two sectors drew outsize attention in the talks—auto and dairy—that came to be dubbed by some the “cars and cows” negotiations. The path to the deal had plenty of twists and gambits that backfired over the 13 months of meetings, as Mexico and Canada at times accused each other of betraying their early oath to present a united front.

The tone for the Nafta talks was set in October 2017, when Mr. Lighthizer made a number of controversial demands that would recast the pact, such as injecting a “sunset clause” making it easier for a country to terminate the pact and weakening the mechanisms allowing challenges to American trade penalties.

Among the most controversial proposals was one requiring that half the content of cars built in North America come from the U.S. Both Canada and Mexico quickly rejected that as incompatible with the core principles of an agreement designed to tighten integration of a continentwide bloc.

.. But behind the scenes, Canadian officials thought they could work with the idea. They asked a longtime trade bureaucrat to find a creative way to satisfy U.S. goals without capitulating to U.S. demands. He put together a plan that would change the criteria for what qualifies as “North American content,” in a way that would emphasize higher-value input such as software.
.. “It became clear at that stage that Lighthizer wasn’t going to give us anything at all until he knew the outcome of negotiations for the auto sector,”
.. At the end of August, Messrs. Trump and Peña Nieto announced a deal that included the requirement that 40% to 45% of North American auto content be made by workers paid at least $16 an hour.
.. Though the Nafta dairy market is worth a fraction of the auto industry—and the U.S. runs a dairy surplus with Canada—it became an important issue for Mr. Trump after he got an earful during an April 2017 visit to Wisconsin. The president made Canadian dairy a staple of stump speeches and tweets complaining about how Canada took advantage of the U.S.
.. Mr. Kushner had come to play a behind-the-scenes role in the Nafta talks, and Canada’s negotiators wanted him to see right away a document that included Canada’s formal offer on dairy. The key concession had been made and the U.S. soon responded by giving in to some of Canada’s key demands.

Reply All: Journalist in Mexico is Trolled to Amuse Politician’s Troll Army

After Andrea Noel is attacked by a stranger in Mexico City, she just wants to figure out who the guy was. Investigating this question drops her right into the middle of one of Mexico’s biggest conspiracies.

Migrant Caravan Moves North in Mexico as Trump Warns of Foreign-Aid Cuts

At the end of last week, the caravan arrived on the doorstep to Mexico. Under pressure from the U.S., Mexico offered the migrants asylum but said it would only let in groups of 150 to 200 people a day to process their requests. Anyone crossing the border illegally would be deported, Mexican officials warned.

The Honduran government estimates that 2,000 migrants returned home. Mexico says another 1,000 or so have applied for asylum. But the majority—about 5,000, according to the Mexican government—crossed the border illegally, mostly on rickety rafts run by human smugglers.

.. “We can’t get to the northern border all together” said Irineo Mujica, the head of People without Borders, a U.S.-Mexico nonprofit that has backed the caravan since its arrival in Guatemala. Such a huge group moving across Mexico days before the U.S. midterms, he added, would embolden Mr. Trump. “If this full caravan arrives to the U.S. border, it would be like a declaration of war,” Mr. Mujica said.

.. Most migrants say they want to get to the U.S. but generally don’t know what legal options they have ahead. Many said they were determined to abandon Honduras, which has among the world’s highest rates of violence. When they saw news on television that a caravan had left from San Pedro Sula heading north, many thought it was the right moment to leave.

.. She said a criminal gang extorted her family business and demanded a “war tax,” calling it that because “if you don’t pay the gang destroys your business and kills you.”

.. For many would-be migrants, leaving in a caravan is attractive because they can avoid paying some $5,000 in smugglers’ fees and are safer traveling in numbers.

.. On Oct. 5, Honduran social activist and leftist politician Bartolo Fuentes shared the information about the caravan on his Facebook account
.. “Most Mexicans are sympathetic to the migrants, so politically it becomes very difficult for the government to move against the caravan given it has such visibility,” he said. “On the other hand, you don’t want to anger the U.S. and be seen as just allowing migrants to cross through your country freely.”
.. On Sunday, Mr. Trump warned the migrants on Twitter that if they didn’t accept Mexico’s offer of asylum, they would be denied entry to the U.S. He said Monday the caravan included “criminals and unknown Middle Easterners,” without offering evidence.
..  For fiscal year 2019, the U.S. plans to send about
  • $70 million in aid to Guatemala,
  • $66 million to Honduras and
  • $46 million to El Salvador,

according to the State Department. Most of the funds go to

  • violence prevention,
  • justice and rule-of-law programs, along with
  • funding for border and narcotics enforcement.

.. Cutting aid to Central American countries would be a mistake, since U.S. aid dollars fund programs that reduce violence, strengthen the justice system, and encourage investment that make them more attractive places for their citizens, said Marcela Escobari, a senior fellow at the Brookings Institution.

.. Studies have shown that once a country’s GDP per capita reaches between $6,000 and $8,000, the gains from migrating somewhere become less attractive, who served under President Barack Obama as head of Latin America for the U.S. Agency for International Development.

“We need to stop these countries from becoming failed states, because that’s what’s going to cause a tremendous exodus,” she said.

.. Immigrants asking for U.S. asylum either at a legal border crossing or upon being arrested by the Border Patrol for crossing illegally are subjected to a “credible fear” interview to decide if their request should be heard by an immigration judge. More than 75% of immigrants pass the so-called “credible fear bar,” according to U.S. government statistics. Those who don’t pass that initial interview are subject to deportation.

.. Immigration authorities can jail asylum seekers until their case is decided, but bed space is at a premium as the Trump administration steps up immigration enforcement both at the border and in the U.S. interior.

For those released into the U.S., a final decision could take years amid a backlog of more than 764,000 cases pending in federal immigration court. During that time, they can live in the U.S. and apply work permits, something Mr. Trump has repeatedly criticized.