The Revised NAFTA Deal Will NOT Fund Trump’s Border Wall, Directly or Indirectly

Lori Wallach

Lori Wallach Director, Publi Citizen's Global Trade Watch

Note: In his Oval Office address, Donald Trump again falsely claimed that somehow his revised North American Free Trade Agreement (NAFTA 2.0) will fund his border wall.

Donald Trump keeps repeating the ludicrous claim that somehow the revised NAFTA will fund his wall even though it remains unclear if the deal will be enacted and if it is, the text does not include border wall funding directly nor would it generate new government revenue indirectly given it cuts the very few remaining tariffs, not raises them.

A back of the envelope calculation reveals a new 20 percent tariff would have to be imposed on all imports from Mexico to put the money  to construct the wall into the U.S. Treasury and that money would come from importers, not the Mexican government. All imports into the United States from Mexico have been duty free for more than a decade, meaning that NAFTA trade does not generate money from Mexican importers for U.S. government coffers and nothing in the NAFTA 2.0 changes that.

So much for Trump’s great negotiating skills, given its obvious that trying to connect NAFTA to funding for his wall decreases the likelihood Congress passes the revised NAFTA, even if Trump’s NAFTA-wall-funding claims are entirely without merit.

Perhaps the strongest evidence that nothing in NAFTA 2.0 forces Mexico to pay for Trump’s border wall is that Mexico, which has made clear it will not pay, signed the deal.  

 

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Posted In: Union Matters

Union Matters

A Few Hundred Million Good Reasons Not to Care

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

Millions of American families are still reeling from the aftershocks of the financial crash a dozen years ago. But a key architect of that debacle, Countrywide Financial CEO Angelo Mozilo, is feeling no pain — and no remorse either. In the decade before the crash, Mozilo took $650 million out of Countrywide, a hefty chunk of that just before the subprime mortgage scam Countrywide exploited started to implode. Earlier this month, Angelo described Countrywide as a “great company” at a conference appearance and declared subprimes as “not the cause at all” of the nation’s 2007-2008 financial wreckage. Added Mozilo: “Somehow — for some unknown reason — I got blamed.” The former CEO is acknowledging that all the blame did at one point bother him. And now? The famously always tanned Mozilo notes simply: “I don’t care.” 

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