Trump Sets Nafta Goals: Dilute Pact’s Force, Loosen Regional Bonds

Proposals spark a backlash from Mexico and Canada and from business groups in all three countries

 

U.S. trade officials have made that theme clear in recent days, prompting a backlash from Mexico and Canada and from business groups in all three countries, casting new uncertainty over the talks as they resume in Washington.

One provision designed with that objective is a “sunset” clause that would force Nafta’s expiration in five years unless all three countries act to renew it, said people briefed on the plan.

Other proposals, these people said, would weaken or eliminate the mechanisms aimed at settling disputes between the three countries and curbing the unilateral threats and sanctions that frequently roiled trade ties in earlier years.

.. The administration wants to “change the incentives to disincentives,” and “create more uncertainty and reluctance for U.S. businesses to invest in Mexico,” 

.. Another pending proposal would require for the first time that certain products contain not just a certain level of Nafta-regional content, but U.S.-specific content. That plan, applied to autos and auto parts, would require 50% of Nafta products come specifically from the U.S.

.. Business groups say the U.S. plans—particularly the sunset clause and the one weakening the “investor-state dispute settlement” process—would make it harder for executives to plan the cross-border investment feeding regional supply chains that Nafta has encouraged and that, they say, has raised the efficiency and competitiveness of the North American economy.

How to Roll Back Fanaticism

We’re living in an age of anxiety. The country is being transformed by complex forces like changing demographics and technological disruption. Many people live within a bewildering freedom, without institutions to trust, unattached to compelling religions and sources of meaning, uncertain about their own lives. Anxiety is not so much a fear of a specific thing but a fear of everything, an unnamable dread about the future.

.. Donald Trump is the perfect snake oil salesman for this moment. He lacks inwardness and therefore is terrified by the possibility of anxiety. He has been escaping self-scrutiny his whole life and has become a genius at the self-exculpating rationalization. He took a nation beset by uncertainty and he gave it a series of “explanations” that were simple, crude, affirming and wrong.

.. Trump gave people a quick pass out of anxiety. Everything could be blamed on foreigners, the idiotic elites. The problems are clear, and the answers are easy.

.. The alt-right, which has emerged in support of the Trump administration, is marked by the same conspiratorial epistemology. It provides explanations for complex events that allow its followers to avoid anxiety.

  • .. The world is secretly controlled by the globalists.
  • The Sandy Hook school shooting never happened.
  • There’s a child abuse ring run by Clintonites out of a pizzeria in Northwest D.C.
  • All the ambiguities of life can be explained by pointing to the malevolent webs of secret power

.. If the alt-right thinks the globalists secretly and malevolently control society, the neo-Nazis go back to the original version and believe that a conspiracy of Jewish bankers does. For them, tribalism is not only a way to feel some vestige of pride in their own lonely selves, it’s also an explanatory tool.

.. The world can be a bewildering place, but not if you see it as a righteous war between whites and blacks, between straights and gays. The neo-Nazis are not the first group to discover that war is a force that can give an empty life meaning, even a race war.

.. The age of anxiety inevitably leads to an age of fanaticism, as people seek crude palliatives for the dizziness of freedom.

.. I’m beginning to think the whole depressing spectacle of this moment — the Trump presidency and beyond — is caused by a breakdown of intellectual virtue, a breakdown in America’s ability to face evidence objectively, to pay due respect to reality, to deal with complex and unpleasant truths.

.. In fact, the most powerful answer to fanaticism is modesty. Modesty is an epistemology directly opposed to the conspiracy mongering mind-set.

.. Progress is not made by crushing some swarm of malevolent foes; it’s made by finding balance between competing truths —

  • between freedom and security,
  • ‘diversity and solidarity.

There’s always going to be counter-evidence and mystery.

Sean Spicer Resigns as White House Press Secretary

Mr. Trump asked Mr. Spicer to stay on as press secretary, reporting to Mr. Scaramucci. But Mr. Spicer rejected the offer, expressing his belief that

  • Mr. Scaramucci’s hiring would add to the confusion and uncertainty already engulfing the White House,

according to two people with direct knowledge of the exchange.

  • The president’s health care effort foundered in the Senate last week, and next week promises no respite, with his son
  • Donald Trump Jr. and son-in-law, Jared Kushner, due to testify before Congress on questions about their contacts with Russia.

His rapport with the president establishes a new power center in a building already bristling with rivalry.

The president has no intention of changing his behavior — he merely believes his communications staff needs to defend him better — and Mr. Scaramucci even suggested his role would be to unshackle an already unfettered president.

.. “We have accomplished so much, and we are being given credit for so little,” he said. “The good news is the people get it, even if the media doesn’t.”

.. He had hoped to last a year as press secretary. He quit after six months and a day.

.. He attained a notoriety unusual for a presidential spokesman, his combative style spawning a caricature on “Saturday Night Live.”

.. The eventual appointment of Mr. Scaramucci was backed by the president’s daughter

  • Ivanka,
  • Mr. Kushner and the commerce secretary,
  • Wilbur Ross

.. Mr. Kushner has grown increasingly critical of both Mr. Spicer and Mr. Priebus, whom he regards as party establishment figures who operate out of self-interest.

.. Mr. Priebus and Stephen K. Bannon, the president’s chief strategist, both strongly opposed the appointment of Mr. Scaramucci — in large part because he enjoys an easy banter and direct line to Mr. Trump, potentially threatening their positions

Mr. Trump, aggravated by their opposition, dressed the pair down in a testy Oval Office exchange around the time he decided to offer Mr. Scaramucci — known in Trump’s circle as “The Mooch” — the job.

.. one of the reasons he hired Mr. Scaramucci was to cut down on anonymous leaking — and took a swipe at his two advisers.

.. He asked them how the leaks were happening, according to a person familiar with the discussions, and called Mr. Spicer a “good guy” who leaks only when told to by Mr. Priebus.

.. He is said to be especially high on Sebastian Gorka, a blustery foreign policy official who has been accused of having ties to far-right groups in Europe.

.. Mr. Priebus urged Mr. Trump to hire Mr. Spicer and another lieutenant, Katie Walsh, as deputy chief of staff. But Ms. Walsh left the White House after a short time when Mr. Kushner and other West Wing officials forced her out

.. In recent weeks, Mr. Trump had told people that Mr. Spicer was no longer “tough,” one of the harshest insults he can level

.. Mr. Spicer told friends he was tired of being blindsided by Mr. Trump, and weary of Mr. Trump’s constant criticism.

.. He instituted the highly contentious practice of holding off-camera briefings, less so to snub reporters than to avoid Mr. Trump’s critiques of his performance

Cheaper Mortgages Could Spur Housing Market

Drop to 3.97% for a 30-year fixed-rate mortgage could encourage home buyers

“Almost the entirety of the Trump bump [to mortgage rates] has been washed away,”

That, in turn, could spur the housing market

.. Economists said a surge of additional buyers this spring wouldn’t be entirely welcome. “It’s driving more demand into a market that doesn’t have much in the way of supply,”

.. U.S. home prices rose 5.9% in the 12 months ended in January, the fastest rate since mid-2014

.. On the other hand, continued uncertainty in Syria, North Korea and France or a failure by Republicans to deliver on promised tax overhaul and economic growth could help keep rates lower.