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 Trump Can Harness the U.S. Energy Boom

The embrace of new technologies to extract oil and natural gas at an unprecedented rate has transformed one of America’s enduring vulnerabilities into a strategic asset. Thanks largely to fracking — hydraulic fracturing of rock — the United States is now the largest producer of oil and gas combined in the world. America consumes large quantities of energy, so this expanded production has not yet made the country energy independent. But it has greatly decreased its dependence on foreign energy: About a decade ago, the United States imported nearly two-thirds of the oil it consumed; that percentage is now closer to one-fifth.

..  an improved trade balance and a stronger economy. The boom has also improved the country’s sources of soft power, in part by underscoring America’s enduring edge in innovation and ingenuity.

.. American producers of oil from shale rock have introduced a new business model to the scene: Small investments in exploration and production can bring oil to the market quickly. This weakens OPEC, by making it more difficult for its production cuts to result in sustained increases in oil prices. For the first time in more than a century, the market determines the price of oil with much less influence from any cartel, commission or band of big oil companies.

.. The energy boom has also weakened many of America’s competitors, particularly Russia, by both decreasing its revenues and reducing its ability to use its energy resources as a political cudgel.

.. The boom also expands opportunities for the United States to forge new partnerships. For instance, given China’s growing dependence, and America’s waning reliance, on Middle Eastern oil, Beijing may be more likely to work with the United States to stabilize that part of the world. Such changes put America in a stronger position to reinforce the international order.

.. Many non-energy policies of the Trump administration undermine the energy boom and all its potential advantages.

.. On climate, Mr. Trump’s pledge to withdraw the United States from the Paris agreement could also hurt the American energy boom. Natural gas stands to gain as the world takes strides to tackle climate change: As countries transition to more sustainable energy, they often move away from coal to natural gas. American natural gas exports could benefit from this transition — but not if countries like China and India also weaken their commitment to tackling climate change and drag their heels in curbing coal consumption.

.. Mr. Trump’s talk of retrenchment overseas has made friends and foes nervous about America’s willingness to continue to use its vast sea power to maintain open shipping lanes. Over half of the world’s oil supply and a growing percentage of the natural gas it consumes is transported through these waterways.

.. Mexico is by far the largest foreign consumer of American natural gas — a trend that will increase with recent Mexican electricity reforms. Yet President Trump’s talk about a border wall has spurred a revival in the presidential candidacy of Mexico’s own populist, Andrés Manuel López Obrador, who is committed to reversing these and other energy reforms. That would not only shrink the largest market for American natural gas but would also dull prospects of the United States, Canada and Mexico of reaching North American energy independence.

Forget Comey. The Real Story Is Russia’s War on America

Why are we focusing on who leaked what to whom, when our democracy is under siege?

The starkest aspect of Comey’s prepared statement was the president’s lack of curiosity about the long-running, deep-reaching, well-executed and terrifyingly effective Russian attack on American democracy. This was raised more than once in the hearing — that after Trump was briefed in January on the intelligence community’s report, which emphasized ongoing activity directed by the Kremlin against the United States, he has not subsequently evinced any interest in what can be done to protect us from another Russian assault. The president is interested in his own innocence, or the potential guilt of others around him — but not at all in the culpability of a foreign adversary, or what it meant. This is utterly astonishing.

.. Even if the president and his team were correct, and the Comey testimony definitively cleared the president of potential obstruction of justice or collusion charges — even if that were true, that does not also exonerate Russia. Nonetheless, this is a line the president seems to want drawn.

1. No matter what is true or not, we have moved toward the fractured, inward-looking, weakened America that President Putin wants to see.

.. The Russian narrative is increasingly being echoed by far right media, and finding its way into mainstream conservative media. Episodes of violent unrest, and the potential for wider chaos, don’t seem far off.

.. Meanwhile, no one seems to be watching what Russia is still doing to us. No one is systematically speaking about the tactics of Russian hybrid warfare, and that these go beyond “fake news” and “hacking” into far-reaching intelligence operations and initiatives to destabilize Western countries, economies and societies. No one is talking about how Russia provides training for militants and terrorists in Europe, even as U.S. generals say it is supporting the Taliban as it attacks American forces in Afghanistan. No one is leading a unified effort to roll back Russian influence in Europe or Asia or the Middle East. No one is commenting on Russia’s new efforts to entrench its presence near eastern Ukraine, escalate the fighting there and destabilize the government in Kyiv.

.. Even behind closed doors, Trump reportedly did not once mention Russia to the NATO heads of state — not to discuss Russian attacks against our allies, and not to discuss Russia’s menacing of NATO skies, seas and borders. Instead, he browbeat our allies. Maybe it’s news to the White House — but it was Russia’s aggression, not Trump’s hectoring, that inspired the alliance to boost national military spending.

.. the president’s tirades against countries hosting our men and military assets — Qatar, South Korea, Germany, etc. — complicate our ability to execute on-task.

.. Even Putin admits that “patriotic” Russian hackers were behind the attack on America — a fact the president will still not mention without caveat.

.. A constantly misunderstood narrative was revisited during the Comey hearing — questions about whether Russian actions “changed” the vote. The focus on whether this means Russia physically changed votes is the greatest diversion tactic of all. Ironically, D.C.’s political class — whose existence is based upon the ability to deploy narratives that get some people to vote, and others not to — refuses to admit that outside interests could change a small percentage of votes in the Rust Belt.

.. If the Trump campaign itself has openly discussed its use of data-backed information operations to conduct targeted voter-suppression campaigns, possibly at the individual level — why would we believe the Russians wouldn’t be experimenting with the same tools and tactics?

.. In fact, you can track the radical changes in the belief of certain narratives during the time period Comey identified as when the most intensive Kremlin-led activities were underway (beginning in summer 2015 through present day). During this time frame, Republican views on free trade agreements dropped 30 points, from roughly the same as Democrats to radically divergent (Democratic views remained relatively steady). Putin’s favorability rating increased

.. An isolationist America that is softer on Russia and more in favor of authoritarian traits in leaders fits right into the narratives that the Kremlin nurtures and spends billions to promote. And if views changed so dramatically on these aspects of Russian narratives — why is it we believe their efforts didn’t change any votes?

.. This tactic works because it prays on doubts and grievances that are already present — as the best information warfare does. Truth doesn’t matter. Once we know how we feel about something, who cares what the truth is? And information is just one act of Russia’s shadow war.

.. And yet the most concise encapsulation of the Russian concept of hybrid warfare — the chart depicting the “Gerasimov doctrine,” developed by the Russian chief of the general staff — shows that information warfare is the constant through all phases, and that the ideal ratio of nonmilitary to military activities is 4:1. The more important war is, by far, the shadow war.