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tv   Government Officials Discuss U.S.- Mexico- Canada Trade Agreement  CSPAN  February 22, 2019 5:28am-6:58am EST

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[captions copyright national cable satellite corp. 2019] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> thank you so much for joining us. we to have lunch. we'll take a quick break. we'll reconvene to talk about tariffs. be there, be square.
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>> are we ready? we've looked at nafta pretty tooply. now we want to put it in a broader global context. we have three great people. howard dean the former governor of vermont. also with us is ambass the dorkergen former canadian ambassador. also former mexican ambassador to the u.s. now a consultant. let us talk.
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>> if he doesn't withdraw you have the current regulatory framework with some challenges because the uncertainty if he's going to do it.
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or he's going to now accept that the worst deal ever is going to be the law of the land. but more importantly, when you look at what's happening in the world and you see the the concerns in this city over china, the greatest question is what does this do to the ability of north america to remain strategically competitive in the asia pacific and with china. >> you want to weigh in? >> it is going to be a complete mess. some people say well if nafta doesn't go we go back to the free trade agreement. somebody said this morning it was conducted the the last cently doesn't take into account we have a situation where if you don't have regulated trade among the fr the draw bridges and putting up the motes and we'll all be poorer as a result. all those cross-border ties that hidden wiring that we talk about that makes this three-way
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arrangement so strong will start to fray badly. it will obviously have an impact on personalities and how people, canadians, mexicans, and americans regard each other. i think it's bad politically, a disaster economically, and this particular part of global real estate will affect the rest of the world. >> is it problematic? because we could work as a unit in negotiations with other parts of the world. we'll be less likely to do that. >> i think there's a couple of principles. one is despite the best work, the result wasn't here to stay whether we like it or not. >> is it? >> yes, it is. >> why are you so confident? >> the younger generation is all globalists. second, we are too small a world with all the interactions. it's a ridiculous debate. it matters. second, to the matter at hand what happens if we get rid of nafta and that's how the president wants to put pressure on everybody?
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not going to happen. here's why. trump won in all the farm states. the farmers are already really upset at what's going on. somebody in trump's staff is going to tell him if you do this you're not winning reelection. you'll lose iowa, michigan. i'm not one to list bitter states. but, you know, this is a political disaster for the republican party. it wouldn't entirely surprise me -- although it will be democrats for trade reasons who don't want to do this. it wouldn't entirely surprise me if the president did somehow lose his mind -- which some would argue he may have already done so. but if he does do that it's possible that there will be a two-thirds majority in two houses to override him in that action. so this would be america's brexit. that's how incredibly disruptive it is. people up here previously have talked about cars crossing the
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canadian-american border five times. every supplier for every manufactureer has to get parts from mexico and canada. so it's not just bad for canada and mexico, which are proportionately more dependent, it is really bad for the united states. >> so you think the political realities, will that also mean he will lift tariffs in order to to get -- >> tariffs are a problem and tariffs are bad for the industries and bad for americans. they were smart about
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doing that. >> good luck in negotiating those. >> that's going to be a nightmare. think this there's something else happening.
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of those issues that are satisfactory where we were. the greater narrative here is, regardless of what happens this my way of the highway approach seems to be forcing mexico or canada. the disciplines needed to be included in this agreement.
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these to rest on steel and aluminum with national security -- a narrative being fed by this -- are not your allies. >> is weaponization the right world -- word for trade? >> i would say yes. peter navarro mentioned those names this morning. and at trade as a weapon the biggest economy has the largest weapon. >> and not a precision weapon at that. >> it is creating a lot of pain in back states that slept with toies by mexico in response paris. we are replicating what we did. you may remember this back in
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2009, when mexico responded to the u.s. decision not to comply with mexican trucks to the united states. we did the same as what is being done now. >> i have a question for the ambassadors. mexico and canada have traded with the e.u., is that the safety net against nafta withdrawal by trump? >> very much so. renamedingly enough, we our international trade mr. with international diversification. 79%. exportsexports -- vary going into the united states. given the way the white house is operating, we have had to operate quickly. not that they are taking away from. negotiated our
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european well before mr. trump arrived on the scene. is wehe situation as it recognized it is imperative for find new move and markets given the uncertainties we are finding in the north american market. are moving mean we away from markets, and as we have a few extra pistols in my -- and about. >> we modified the agreement with the european union. officer tcp will play an important role in this. i think we see these as plan b's pods if things go
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haywire in the north american market. >> the chinese has invested in the mexican auto industry. what trump has done is made as an unreliable partner in trade and defense. that is a bad place for what has been the most powerful nation on earth. >> we have another question about the auto industry. you have concerns over the impact long-term over the north american long-term as a competitive layer in the global market place -- marketplace as in laura -- europe? laura -- europe? >> absolutely. the auto industry is one of the most important industries in terms of jobs and revenue. to the extent we are isolated, we are weaker. >> we have gone back to manage trade and went in europe, where
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it is going to affect sales is fastest, meaning korea, india, china. that is where we need to be competitive and are shooting ourselves in the foot. >> yes. in theof the hold up u.s. -- holdups in the u.s., the democrats on the hill. will democrats vote for msn pa -- msnca? >> i do not believe free-trade has had a huge number of negative consequences, certainly has in some areas. she is not wrong. i in michigan have lost jobs but free-trade has lifted a billion people out of poverty. it has made us better neighbors. the value of treat--free-trade is extraordinary.
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river ridge is one of the largest plants in the world. that would have produced in the 50's is the heyday of the automobile industry. the auto workers were producing the same number of cars with one third of the workforce. that has nothing to do with trade agreements. has to mention the elephant in the room. >> i think strategically democratic -- would not want on the defeat of msnca. the problem would be the mechanics and timelines. one of the primaries is going to be increasingly difficult. to echo one of your initial comments, governor -- there are some freshmen democrats who have just come in to replicate the anti-free-trade positions of the
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democratic party in the past. i spoke to a lot of freshmen in california of the pacific northwest--they have an outlook outlook onifferent trade and are more aggressive in terms of ensuring free-trade is an estimate for economic competitiveness. it is a mixed bag. i would not simply say the dems are going to do what they have always done on trade. >> that is right. if you look at where our votes are, that is were traded important. trouble.rat is in the same is true with the eastern states. this is trickier than it was 20 years ago. >> we have all three nations represented here. what is the sequence going to be? >> that is the united states. >> we are all going to wait.
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either we are going to wait for the u.s. to actually push the buttons and vote, but certainly for mexico the feeling in mexico city, though there may be different views is we need to wait and see how congress to the club once there is clear there is a roadmap and this will happen. you will start seeing logistical movements in mexico. >> and the tariffs. was to put this in a global context so we have to talk about china. does the white house, does the president get credit for shaking the cup? we have heard about -- shaking things up? we have heard about china and its trade practices for decades. he has called their bluff. does he get points? >> the answer is yes. he does get points. i do not think he did it intentionally.
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president gave the credit. >> i do not think he did it intentionally. i won't say it. but sure. the chinese trade agreements has been valuable because the truth is a stronger economic china a more stable economic china. most people have forgotten under george w. bush's administration. six weeks after he took the oath of office, an american spy plane was down. a chinese fighter jet ran into it. we landed safely on an enormous air base and plane, although taken to pieces and photographed was sent back. that would not happen 20 years ago. at that time, $800 billion of trade was something the chinese were not ready to give up. our relationship has been
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problematic and it did need to be shaken up. as consumers good bargains from china with their manufacturing. and the walmart of these had the trading relationships with the china individually. this sucked us in. w t oh comes in and tries to come in and we are are under this illusion they are played by nwto rules. rules. it is part of a larger strategic issue. it is like great britain and the united states at the beginning of the 20th century, both economic rivals, one coming up, one going down. huge difference is both of the
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democracies, to be charitable and exterminate potential military rob, the game is more serious. as much as the president may get an agreement on this particular problemse fundamental with china will remain and it looks like it is going to be a challenge for all of us. it was a stunning for the how thet day one as to u.s. was conceding this instrument to eventually engage china. that is the first strategic mistake. the second blunder committed by this white house is not in expanding how a strong resilience competitive north america that is converging economically and trade was is the way to engage china going forward.
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that is where the strategic equation coming out of the white -- at least in regards to north america fits into a larger strategic puzzle. it does not make sense. >> anybody want to hazard a guess as to whether we are going to have an agreement with china by the first? >> no. let washington talk about that. >> no. but --t a chinese expert >> i am not sure trump of the tariffs on because of an up and economic\from his supporters. >> we are going to be talking to the governor of kentucky. another indication of this world of multilateralism is falling apart? fallingnot think it is apart. the europeans need to do things that are smarter than what they
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have been doing. i am exceeds benefit european union just i am a huge fan of the european union. -- i am a huge fan of the european union. that comes from being in power for too long. you cannot run a democracy without transparency. they have got to get their act together. i understand why the brits voted the way they did. if they can vote today looking down the barrel of the gun, they would reverse exit. brexit.s it -- >> there is something not too dissimilar to what happened here what was expressed by the 2016 president election, which is the conveyor belt between citizens and public policy is broken. broken here, it is broken and that european union between what is going on the streets and in the u.k. or
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germany or spain are feeling. it is more related to how do you public policyw and citizens. >> any thoughts on how we do that? >> it will be interesting to see what the impact will be on north america. the u.k. will use -- lose protections it has from the europeans customs arrangements and so forth. that brings them into a wto situation of treatment. which may mean some of our exports may go into a more favored way. secondly, the financial issue disintegration presumably of month and in terms of moving to frankfurt or dublin or elsewhere has a big impact on the big financial interests in the united states, in mexico and canada.
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the third thing is the brits are -- somehow we are going to arrange a free trade agreement with the united states or canada. we know nafta organizing free-trade agreements is something for quite a long time. that christ is there is opportunity. you never let a good crisis go to waste. we have a free trade agreement with the european union. if the brits leave, we both will probably be looking at a free-trade agreement with the u.k. given the trumpet ministration has spoken about a free-trade agreement with the u.k. there is synergy with the north american free trade agreement brexit does happen. >> that is a good points. you are seeing is integrating the world financial capital. i do not think it is going to be frankfurt. it could be toronto. [laughter] >> you have all mentioned the
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wto. trump on thetick world trade organization? appointedzer appellate judges and they are holding back. of the guilt, canada has taken a lead of countries of which mexico is one to see how we can find some sort ,f formula to reform the wto get better negotiations. we had meetings in data most -- davos. the countries that we depend on trade are living together to see what can we do to reform? nothing will happen unless the white house decides they want to be more positive towards the wto
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and it is not looking positive now. the recipe is not throwing out the baby water -- the baby with the bathwater. weaken mechanisms. investingmpanies another countries have in terms of framework they can pursue? i want to ask a couple meta-questions. we see economic relationship praying or strained. what are the implications for national security? >> they are enormous. trade policy is defense policy. it is the setting of an alliance because trade helps us and helps the relationships with vietnam and other places. the philippines is a great example. we are losing influence in the philippines because they have set up illegal islands off the coast of the philippines, but
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partly because we are withdrawing. we are not a bit gdp. enormous blunder. this is not the end of globalism. you are going to the shipping of alliances in a global world. the trouble is the united states is going to come up on the short end of all this shifting. , whichomic nationalism sets countries up against each other, we see this with protectionism in trade. we are putting a barriers -- up barriers. you are establishing confrontational ranges with your trade partners. a gimmick.ed we have seen the beginning of that. last year in munich the europeans were quiet. this year they must back hard.
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vice president pence did not get a warm reception. absolutely became passionate about this. not saying that is a result of the trade issue but it is a symptom of the problems. security locations are real and too many people in this city have taken mexico for granted. there have been fundamental events. one of them nafta in 1993 and the second one 9/11, which andged the way mexico erected intel. if you continue to use north american general nafta but more importantly mexico's political any mexican government to continue doing what it has done with the united states
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particularly since 9/11 goes out the window. >> we have to leave it there on that cautionary note. that is the governor. thank you all. [applause] >> this next discussion should be a fun one. you will remember when we introduced mexico's ambassador, we said she was the first woman to hold the job of mexican ambassador to the united states. in symmetry for the first time, we have a woman as the u.s. ambassador in canada and she is with us today. she found that a successful marketing and advisory firm. she served on the university of kentucky board of trustees. like investor, successful in business and
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served as a city counselor. thank you both. happy coordinated washington, d.c. after all the snow. >> when we landed it was beautiful compared to toronto. we have seen nasty cold weather the last couple weeks but it is great to be here. >> it is great to have you. i have not been the premier since valentine's day last week. it is every man's dream could take their wife to the auto show and that is where i was. he has always promised to take me parking but that did not happen. the same time as the auto show, performers were making an important announcement about not motive plan. >> we were announcing our strategy for the automotive industry to give people the perspective we are one of the largest manufacturers of
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vehicles in north america. 2.2 millionver vehicles out of ontario every year. we are the only jurisdiction that has five manufacturing companies, boards, toyota, chrysler, gm and honda. they have large facilities producing great vehicles and they needed help. let me back up. of a government prior to us, we lost over 300,000 manufacturing jobs because electricity costs in north america so the highest taxes in north america, regulations amid table, 380,000 regulations. we have the largest national debt inherited in the world of $340 billion. we are a government for 15 years spending like drunken sailors to drunkengize
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sailors. they were spending out of control. it was $40 million a day they were spending more than what we were taking in. that is what we inherited. we went in and made massive changes when we went in there and looking at the red tape of 380,000 regulations and we're ,etting rid of 25% of those working hand-in-hand with the automotive industry. we told them every dollar you invest and -- in technology will match that -- technology, we will match that. i do not believe in corporate welfare. i believe in working with companies hand-in-hand. the most important item they want is someone to listen, government to listen. every automotive company and ceos have my personal cell number.
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commie directly. -- call me directly. >> that is a fact. >> everyone has my cell number. i will give it to you later. down listening. when it comes to companies around the world, there is one thing -- well many things -- but they want certainty. there was uncertainty for 15 years in ontario. i will give you another example. we looked at a sector. andre going to regions municipalities around ontario and encouraging them to work with us, to put sites together. tennessee did this with the automotive sector. they attracted over $5 billion in investment. what works for other regions can work for ontario. we are making sure we accelerate any permanent. some companies come in and need
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1000 acres. 1000 acres is a large beef of land and a lot of municipalities that against it. they do not want a big manufacturer. some regions do not want to large plane of their backyards so we are sourcing out regions that want manufacturing jobs. for the statework department i have loved about red tape. i am impressed with the initiative you have taken, especially with the college trade. can you explain how that helps? >> it is for construction trades of the most part and it was another layer of bureaucracy. i will give you an example. the steam fitter. it is a small company. they have three or four employees and their sunken to cameto lift stuff -- son
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to work to lift stuff. not get involved in manufacturing or installation i should say. the call to trade with show up. let me see your union card. you do not have it? me give you a fine. it was a bad situation. everyone was complaining. it did nothing for the trades. one from was five to journeyman to some of starting so they were stifling the growth of people that wanted to get into the trades no matter if it was a pipefitting plumbing or electrical, they put a big roadblock against it so the unions controlled it. we ended up getting rid of it. >> you did all the regulations, pages and pages. staggering.
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you put it into perspective. there are 380,000 regulations. how do you do business with 380,000 regulations? the people who know the regulations the best is the industry. we are sitting down with the industry and asking them to support a, help us because -- us because-- us, help us half of it is duplicated with the federal government. regulations? we put a regulations what to together from our economic development department and we have a team that focuses on racks. we have an internal competition. ofspeaking of getting rid regulations, that opens up the job market and with our employment rate of countries being low, we have a shortage of workers.
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with president trump's america first agenda, that is the people he campaigned on behalf of -- what can we do together to promote skilled workers? .> that is a problem in ontario you worry about unemployment. we came in ontario only a couple weeks ago. jobs are the lowest it has been in decades people are feeling just decades. people are feeling confident. this attack is going down. we suffered cap and trade carbon tax. tax youax is the worst could put on the backs of the people and on the backs of businesses and put the word carbon in front of it. it is the biggest waste of money.
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it makes us uncompetitive in jurisdictions around the world. byy talk about admissions 2030. .e already hit 22 percent the preminger was to bring in this nasty carbon tax. it is going to make us uncompetitive. every item you buy in the store -- gas is going up, every product you buy in the store is made of carbon, one source or another so it is a tax. absolutely nothing for the environment so stay away from the carbon tax. it is a bad tax. today we have heard about the steel and aluminum tariffs and i am interested to hear your take
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on this. i heard about this this morning so tell us what you're thing is. >> it hurts both countries. the canada -- canada and the u.s. are unique. there are no countries in the world connected like canada and the u.s. i was in chicago and i still have a facility in chicago and a printing business. just to make sure cameras are rolling, i spent 20 years in chicago and another facility in has beeny canada around forever. .t is hurting both countries let's talk about the automotive industry. when we ship apart, some parts go back and forth across the border eight times and every time they go across the get
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dinged 25% with steel and aluminum. it is hurting both countries. it is hurting the u.s. more than it is hurting canada. for every job they think they are creating, they are losing 16 jobs. we have the same lifestyles. everything is connected. it is not the u.s. competing against mexico. it is a different lifestyle. week. have an agenda this you want to talk about one or two of your meetings i have plans? we are going to meet with -- >> we are going to meet with the ambassador. we have large problems and are
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doing $500 billion of to a trade around the world. my friends are doing 489 billion of that with the united states. 19 states, the largest trading partner is ontario. eight other states, we have the second largest trading partner. trade is massive. we want to tell everyone south of the border ontario is open for business, it is open for jobs. we are getting project legislation in. it is called bill 148. it was a terrible bill. they increase in wage by 25% overnight so lord people -- more people lost their jobs. everyone was getting eight days paid automatically. i have no regrets on them getting paid for holidays but it
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made us uncompetitive. a lot of companies will give you paid holidays anyways. it depends on union. it depends on what is in the contract. we have to be competitive in ontario. we are the size -- almost twice the size of texas geographically and we have 40 million people so we are a large player in north america. >> when i first met you we talked about the in open for business and we got a few people with their checkbooks and they are going to have to choices -- does good choices. kentucky or ontario. our governor is going to be here in a short while. what initiative are you taking to promote business in ontario and how can we work together bilaterally to promote jobs? , our region --
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there are so many tech companies. blackberry started. we went on a tour and some people they were coming out with you would not even think of it. and tied his automotive -- and tied into automotive, google or any tech companies in the .utomotive industry we have the whole package in ontario. .e have more natural resources we have the smartest and bravest people in the entire world. it is the most diverse multicultural desperado is the culturalrse counter -- city in the world. you lived in toronto. you have people from your country there somewhere. it is a great area.
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>> speaking of technology and data, you have four daughters. i have two daughters. gotten -- never have because technology was not available. that is one thing i am proud of his investor lighthizer, to premodern eyes nasa. -- read modernize nasa. it is going to be a work in progress. what are you doing to help the u.s.mca?ion of >> your hands are tied to a certain degree. what i love to sit down and hammer out a deal? i could hammer out a deal in a day. i am.
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we could sit down and get it working with the federal government. i will work with anyone. i do not care if they are liberal, conservative, whatever. if they can bring business to ontario, i will stand shoulder to shoulder with our federal government. we are showing ontario we are standing shoulder to shoulder with our federal government but let's cut through the nonsense. >> you are meeting with my governor and a note other people with the mga and rga and that is the way to promote this andtionship, that provincial to our legislators and that is something i must say your part minister has been good at reaching out across the border and discussing trade issues with each individual state because it is an individual needs. kudos to you because you have reached out. that is one of the first ways we , and the horse racing for
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all you kentucky horse racers. we were at the queen's place in toronto, at a course rates and we were there with friends of ours from kentucky and california that had a horse that was a favorite. i see the -- this guy and he has on a white polo shirt and it is 116 degrees. >> it was hot. >> i like that guy. that is one brave person to come in here and -- >> i remember going up to you and saying, i apologize because it was 110 degrees. i am a big guy. i was drenched. and i cannotense go in there with a golf shirt and jeans. when i saw the ambassador, i said i apologize i am just this way. -- she that is great
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said that is great. i'm 18 and t-shirt gal. >> i'm in toronto often. he draws such a crowd. we were at the honda race in toronto the same weekend as the queen's race. i thought maybe one or two of the racecar drivers -- you got two of the best racecar drivers in other racecar industry. i thought, oh my gosh. there is one of the guys out there i really like. i am going to say hello to him. it was this guy in the center with all the young adults, which was cool. open.e so vivacious and he was already late to meet with come i was waiting on you to this area we were going to be meeting. here he was holding court with
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50-60 young adults which was cool. folkappreciate the common up there and i give all the credit to my brother, robert. >> can you talk about your brother, rob? >> i think one of my favorite reporters of the there. how are you coming katie? wonderful person. we used to work together in city hall. as katie saw, it was interesting. you can laugh. he was a rock star when he walked out to the public. the average person in government , he was there for the common folk. he returned every phone call.
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who knew canadians in the ethnic community, they always knew whether voted for rob. they would come to canada not knowing anyone and you would .ble to call rob he would show up to their door and help them out. they did not have to be political insiders. they do not have to be part of the establishment. that is the way we were raised, to return phone calls. i am going to give you my cell number. if you want to text me, take this number down. it is in my pocket. >> he will respond. >> i get a couple hundred texts. 56.'s5-" "
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it,he reason you do sometimes we say you get caught in the bubble. ottawa,er if you are in or city hall get caught in the bubble sometimes and you never lose track of the people that brought you there, that voted for you. and someone can get hold of you. there's 50 layers before someone to get a hold of you. gone oury, come not door. i do not care how small of that issue it is. every day we help people. to some folks who think it is a small issue, to other people it is massive. .t is massive every day i get calls and text i need help. we need to do our best. >> we live in the greatest
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neighborhood in the world. i am a beneficiary of that. i arrived in ottawa and anybody about --about cash about and i can say firsthand that canada, ottawa, ontario. we want to work together. we want to especially work together run a business relationship and you're the , well you drawme people in. >> i appreciate that and i think it is just beneficial for both countries. we both want a mutually rewarding relationship, the closest allies in the world. the largest unprotected border in the world. i count my blessings every day.
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everyday that we have neighbors to the south of us. >> kaman, moved to kentucky. >> i was born in 1964. company back in the day and i was 12 years old. we listened to music. my grandparents said was sort of album? want a and i said i cassette of the star-spangled banner. i played that star-spangled banner with my walkman on and my parents said come up from when you were 12 years old i knew you were going to the u.s. one day i got up and new year's eve and glue it to chicago and i illed my dad the next day and
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said happy new year. i am in chicago. then, i spent 20 years there and loving the people. do not make no mistake. i'm a patriotic canadian but i love the u.s. and i love the people in the u.s. [applause] i was going to ask if you have any parting words but how can we promote our country better than to have you here in washington, d.c. promoting canada? >> i appreciate that. likewise for the united states. we are very fortunate. you want to tell us about your family? you are surrounded by women. i have a beautiful wife and four girls.
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i am a girl maker i guess because i have four girls in less than five years and the oldest is 27 inches 27 to 24. >> one is my daughter's age. >> how are you doing? we have heard so much about you. we will chat later. if there is one thing about girls, they always take care of their dads. they spoil me rotten. the worry about me. are you ok? it makes you feel a million dollars and i is -- i'm very grateful to have a great family. >> we are grateful you joined us today and you are part of our family. once here, you're always here. you are welcome to kentucky anytime. everyone is and just to speak with you and thank you so much for being here today. >> thank you, ambassador. [applause]
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>> that is truly his phone number. >> what is that? [laughter] [indiscernable] >> let's have met give out his cell phone number. governor, you have competition with the premier.
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>> hey. oh my gosh. [indiscernable] >> he is a rock star. yeah. his birthday is tomorrow. thank you. [no audible dialogue]
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>> thank you. it is now my pleasure to kickoff the final discussion of the day. no good deed goes unpunished. we have one more dialogue. ok. what you may also know being from kentucky is we are home to , bluegrass,ports bourbon, basketball, and are contributions -- our country visions to the toronto raptors. is the embodiment of a leader whose characteristics can only define fervent leadership. i am proud for what my governor
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has done for the state of kentucky in cutting the red tape and leading us into the 21st century. .ven more so i am excited it is my pleasure to introduce .y governor [applause] one thatbe the only does not have a tariff associated with it. we will get to that. thank you for joining us. a reminder for those of you out there watching the livestream. text for governor bevin. thanks for joining us. we just heard your perspective on trade from the premier of ontario. now let's get the perspective
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for the u.s. state. first i want to talk about kentucky's relationship with canada. canada is a huge trading party for kentucky -- partner for kentucky. for thosewhat we ask in canada. without a question, canada is our largest trading partner. that has been the case and is likely to be the case in the foreseeable future. i doubt it will change based on the trajectory. we are running a trade deficit with you. sometimes we cure about it the other way around. we export $7.7 billion worth of things made, goods and services from kentucky to canada and we , so it is abillion good relationship. 37 canadian owned companies that just employthan more than 8000 people directly as well as others lives touched
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fromat based on direction canada. canada is our second-largest investor so very strong. significantly, financially important connections. >> since we are talking about a trilateral agreement today, talk about the relationship with mexico. with mexico and protected, it is smaller. there are 11 companies employing 3900 people in the exchange -- and the exchange and goods of services is smaller. it is important. our conversations are going to take us to the integrated supply chain. there is no longer an american made car or canadian made car. there are north american made cars. there are goods made up and down across our borders.
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these are north american and this is a north american issue, which is why the usmca is important. >> kentucky is the center of a lot of land. >> kentucky is the largest per capita for dessert of automobiles in the u.s. and the third-largest in volume. although chevy corvette maybe the world are made in kentucky. the largest toyota plant in the world is in kentucky. every ford super duty truck is made in kentucky. the ford escapes, etc. so it is a powerhouse of automobile production which is why this issue is as critical as it is. >> 95,000 jobs? >> i do not know the exact number. largest planthe as i said. plant, i mean the most
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prolific ford production in the >> there has been a lot of talk today about tariffs on steel and aluminum. have you been feeling the effects? >> if you think about the ruling it, it was done on national i was speaking, just a moment ago with one of your ministers and with your ambassador.
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when it was first put in place, candidate isn't the problem. canada has never been the problem. nobody believes the issues lie with canada. they were broad brushes intentionally being used. candidate was being painted with that broad brush. this is essentially what has come of it. you asked about the impact, we have benefited as a state to some degree, 40 percent of the aluminum in the automobile industry, 40% is made in kentucky. yet, back to the point about what happens to the material after it's made, the same could be said for stainless steel grade 40% is made in kentucky.
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kentucky must be loving this. what comes of those basic materials? they are fabricated and turn into things and how you -- value gets added. for every job that is protected and saved on the one hand, there are 100 that are negatively affected on the other. the end result of this is the consumer pays for everything. the consumer who has the option of consuming or not pays more. if the average cost of these automobiles we were just bragging about goes up $2000 per vehicle, there is a cost to that. nobody wins if there is not resolution. stillelatinous state being in limbo and ratification, if we don't get resolution, we
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kentucky, we america, speaking for canada, all of us lose if we don't get this resolved. what you have a good line of communication with the white house. i'm sure you've made your feeling known. it are the tariffs going to be lifted? for thet going to speak white house. i have had conversations with the president and secretary ross and i will say a couple of things broadly. the president is serious about this. not just in the metals industry but on a number of fronts that the united states through recent decades has not gotten in its current state the same degree of equity as a
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relates to trade agreements that it has given. the president believes that to be true. this level of modernization weather for nafta or other trade agreements that exist needed to happen. years, modernizing things is good. he is serious. he thinks there needs to be modernization. he understands as does secretary ans who has been given ability to exercise the president's desires. they want to see movement. what secretary ross has said is he wished he would have patience. it frustrates him as a business person.
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andface of politics especially enter country politics is glacial. we're making resolutions. there were some who would believe it would come to four. people on september 29 were not sure it was going to happen. the president wants resolution here. also, they are conducting this on a much broader scale suggest our three countries. >> we have a question from the audience. could you explain the rationale for holding up holding this up with tariffs on aluminum and steel when the real problems is chinese overcapacity. >> i wasn't going to name any particular countries.
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don't kid yourself. this is what it's about. to a degree, also india. they are acting in their own best interest. they should. so should we. so should canada. we have a responsibility to our citizens to ask -- act in our best interest. they have to meet in some semblance of a middle. it's hard for me to figure out what to say. why is it still out there? i'm not making excuses. there a limited amount of bandwidth. there are multiple fronts upon which this conversation is taking place. team, respect for his they have 24 hours in a day. they have a fairly limited amount of ability to fight all
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of these fires at once. some are larger. it's not forgotten. it is extremely topical. there is not one governor in america that wants to see where we currently are stay in place. our president wants resolution. it's a function of time. >> another question from the audience related to automobiles. 75% of the cars components have the u.s., mexico, and canada. again, it's very gelatinous. this number has always moved when it needed to grade the president said we were talking about numbers that were very different.
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i depended on who was talking. this is the nature of these things. is it impactful? the most american-made car in america is a toyota. it's made in kentucky. it's about 75% made in the united states. it's not an issue at all. this will be fine. the extent to which any model is to squeeze the bullet a little lip to make that work, it will be fine. linkedall inextricably in automobile production. we could not unwind it to the benefit of any automaker or country at this point. that's not a big issue. >> the aluminum and steel tariffs have provoked a reaction.
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>> i haven't noticed. they specifically hit your state. bourbon, playing cards. industry employs a fair number of people. >> it does. it affects billions of dollars worth of products. i say this not dismissively. i will come back to what you are driving it. people in canada bought more bourbon in 2018 then 2017. canadian government made extra money off of it. this is a money grab on a lot of people. grade my countries do point is nobody is well served. nobody expected to stay here for
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the long-term. that, i get any earful from these people for whom it has had an effect. it was designed to hurt. is it putting people out of business? it's not. what it over the long-term is left in place western mark conceivably. playersay of two big muscling each other out. in the end, these things will roll away and we will all go back to playing hockey and enjoying ourselves. horse racing. advantage ingain the negotiations. the negotiations are done. tariffyou've still got on our bourbon. the the of usat
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are winning anything by this. backe gaining something that we have had taken. nobody is waiting in the long-term. is foris really means everyone of our citizens who buys anything whether it's toilet paper or catch up or yogurt or bourbon or playing cards, every one of the consumers is paying more for these things. product atthe best the cheapest possible price, these things will follow it. >> let's take it beyond u.s. and canada. let's talk about china. you do soybean production in kentucky. how much are you hurt by tariffs? >> if you look at what the federal government has done with the willingness to back stock
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any losses, making funds not going tois is have a negative impact on our farmers. sourcese only two major . are thelargest sources u.s. and brazil. soybeansnot enough being farmed in the world to meet the demand of people who want soybean products. china can punish us, they will go to brazil. does brazil have the capacity to fulfill the demand? at the end of the day, things intended to punish come back and ricochet onto. >> they are not afraid it's going to hurt the farmers? >> where they going to find them?
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there have been some issues going on that of not been good. there potential win any type of trade negotiation is going on. absolutely. not only between our nations, but between the u.s. and anyone over the last 100 years. it has gone from nothing to everything. this is the way it works. at the end, the more we meet in the middle on the less we actually have a many tariff on anything, this is where we will when we arecially joined the. i'd like to differ.
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i think it's presumptuous to assume you understand the white house strategy. >> on tariffs. >> it has worked really well. >> unless it's holding up this agreement. i want to talk about the farmers. contactors --for farmers in kentucky? >> of course. all of these things, no question. ratification is the implementation of a much better product. it's good for both of us. the clarifications are good for both of us. it's why it will get done and it will get ratified. the short-term pain will be gone. made of of this was this agreement.
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is there benefit in that for kentucky? >> we have a decent barry -- gary industry. dairy industry. maine, that was problematic. there are things needed on both sides. both sides will be better when this is ratified and tariffs are removed. >> what are you trying to do to get ratified? >> i'm talking to the people. this is decided by 535 people. there are a proportional number in canada. they have to bring this forward. it's topical in the senate more so than in the house. we just met with speaker pelosi and talked about this issue.
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this puts it on the floor, it will pass. nobody has an appetite in the legislature or the populace to go back to this well. it's a function of elevated to the point where it's voted on. conversation on one of the other channels. want to seeovernors this thing done. 100%. this's date of where we are is in play. even a pure zero-sum game. both sides lose. it's not like we are winning and you are losing. it's the same for mexico. canadian and american
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conversations, we need one another. we are better together. mindfulnt we want to be of our role on a global scale, we would be mindful to think of ourselves in some measure that europe does see themselves as a trading entity. it's coming. democrats whoome aren't crazy about the labor positions. is that an obstacle? >> you don't really want my comments. in the long run it, i don't think it will lead. yours is a very similar form of government. different views on any number of things, including labor issues and come
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to a resolution where our quality of life is better than 99% in the world. this will get resolved. representsconnell your state. captain not to take this up during the lame-duck session. its bandwidth. how much time is there? i say this as a compliment. there is nobody liked the canadians. minister and and prime minister, everybody is just loving on us. nobody is more charming than our own ambassador.
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seey would like to resolution on this more than you. it will come. i don't want to over charm americans. it's a fine line the care -- line. it's going to get done. will it be as expedient as people want? no. nothing ever does. the domestic situation in the ,nited states politically >> we are going to see the president for a long time. he's going to be reelected are in something under seen happening. >> you are a politician and you understand the landscape. if this didn't get done before
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2020? >> it will affect your elections more than ours. it will affect the canadian side of things more in terms of their elections. and is why chicken and tariffexemption removal, removal, it matters. i hate to say, it matters more in canada than in the u.s. that's not to say it doesn't matter. not a chance that the u.s. election will turn on this issue. >> you are in kentucky. do your constituents get this issue? >> no. disconnect?the
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inthis is people everywhere a free world where we can care about the things we do. people care more about how their college basketball team is doing. to care about it. even if we don't know anything about critical issues that affect our lives. we still get everything we want when we want it. it's just human nature. in the western hemisphere, we can afford to be apathetic. that's a dangerous position to be in. haveople like us conversations, those of us who , we aren entrusted
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responsible for moving this dialogue forward. this is continuing to hammer this out. we continue to sit down at the table and move these things forward. that's how it will get done. >> we have another audience question. you have a big ups facility in your state. this would be critical for them. ups in kentucky, dhl has their north american shipping. amazon is building a hub in kentucky. second largest building in the world.
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we have said this a number of times. the sooner it's done, the better it is for everybody. >> what would the impact before you as the governor? >> everybody will lose something they don't need to give up if we get it resolved. it's part of a bigger piece. if it was just about the u.s., canada, and mexico, we can have this buttoned up in it number of days. much bigger was a. there are a lot of moving parts. is a little bit of this ratification that has been caught up in a dialogue happening with other entities.
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continue. to there will be some short-term pain. it's why i'm not second-guessing at all. this has brought people to the table. --s discussion of tariffs this is important to understand. people talk about our president as if he invented tariffs. all he has done is applied to many countries. world, we are only now saying to people who are charging us 25% to import our cars, they are just as successful as we are. they are charging us 25% to put them in. we are charging 2.5%. maybe there should be some equilibrium.
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they are very powerful. it's a very powerful tool to have a serious conversation. it needed to be modernized. it needs to be ratified. it will be. >> we have to leave it there. thank you very much. [applause] concludes our discussion here. i want to sing the praises of scotty, who pulled this all together. [applause] >> thank you so much for your leadership. thank you. it's been a pleasure. you.ank on behalf of the board of directors, we thank all of you.
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thank you to our moderators. i want to say thank you to all the people who worked hard today. thank you very much. [applause] >> we are ending on time and we still have cookies left. we are adjourned. thank you so much.
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