tv Washington Journal William Mauldin Discusses Trade Policy CSPAN February 14, 2017 7:31am-8:14am EST
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museum of african american history and culture. "> "washington journal continues. host: i first guest of the -- our, william mauldin first guest of the morning, william mauldin. can you give us a sense of what nafta means, particularly when it comes to our relations with canada and mexico? guest: nafta is an amazing economic partnership. there's $300 billion in goods that the u.s. imports from mexico every year. we are talking about trillions of dollars. for the u.s. and canada come it's part of a long-standing relationship. for mexico and the u.s., that accelerated in nafta, which took effect in 1994. u.s. sent a lot of agricultural products down to mexico and many things we enjoy every day and don't know where they came from
our imported from mexico. there is a big textiles industry that makes dean's. that makes jeans. has kept the country working closely together economically, it has prevented them from drifting into the orbit of another major power. according to many national security types, it has kept the peace here in north america. trumpwhat does president want to do with nafta? guest: it's important to was a dirty word in the 2016 campaign because of bernie sanders and donald trump. --lary clinton even said whose husband passed nafta in 1993. donald trump wants to totally renegotiate it or even ended if mexico and canada don't come to
the table. the rules of origin for autos, precise rules that determine when a car can be traded duty-free. and fixing the trade deficit with mexico. it's not as big as the trade deficit with china. it was $63 billion last year. for trump and many of the midwestern states who elected him and have seen audio jobs go south -- auto jobs go south of the border, this will be a difficult issue to tackle. host: yesterday, the canadian prime minister there for a visit. nafta -- how old was he on nafta -- how bold was he on nafta?
guest: as world leaders come to visit, some of the comments are a bit milder. we saw that with my minister abe. prime minister canada and mexico, they said they would consider renegotiating nafta but they are not ready to jump in head first. vague talk about discussions in the future between the two countries. you also had a donald trump saying we see reciprocal trade as big, meaning relatively balanced trade with canada. the u.s. has a surplus in goods if you exclude oil. he sees the deficit with mexico as a problem. there's the related issue of isigration with mexico that
sometimes linked to the trade issue by trump supporters. will belliam mauldin here to discuss these issues. he is here to take your questions on it as well. republicans, 202-748-8001. democrats, 202-748-8000. independents, 202-748-8002. the president was asked about nafta and what he said about it. [video clip] president trump: we will be tweaking it. it is a much less severe situation than what has taken place on the southern border. the southern border for many years, the transaction was not fair to the united states, it was an externally unfair transaction. we will work with mexico and make it a fair deal for both parties. i think we will get along very well with mexico.
they understand and we understand. "tweak"u think the word means an easy fix in his mind. and the relations as far as trade with mexico versus what goes on with canada. guest: when he said the word "tweak," that suggested small changes in nafta as far as canada goes. how do you update a trilateral trump prefers to do bilateral negotiations. how do you tweak a trilateral agreement on the canadian side and do a major overhaul for the mexican side? some people are skeptical this will work. maybe nafta could devolve into two bilateral agreements or disappear altogether. we have a lot of uncertainty here. language suggests if you are canadian, you don't have to worry about big trade barriers. host: the issues with mexico and
tradeited states, respects: canada, how much imbalance is there as far as imports in a court are concerned? guest: mexico last year had a $63 billion trade deficit with the u.s. about 294 billion of imports from mexico -- that is not as much of an imbalance as with china. with canada, we have a much smaller, $11 billion trade deficit. the trade relationship is quite different. overall, it is much more balanced than it would be with vietnam or china or even with germany. it everything is on par, what is the consequence of totally renegotiating or making these tweaks?
guest: that is very difficult to tweak a trade agreement. you are going back to the drawing board and looking at everything. powerful numbers of commerce looking at everything they like, don't like, agreeing. it could work, but only if all three countries' administrations agree and if all three of their parliaments and president trump fancies himself a great negotiator. but, this time, you will have more people to please right ready toe street believe the things he says on trade but they also have their own particular agendas on everything relating from labor to intellectual property. host: i first call is from
harrison, arkansas on our line for democrats. robert, you're on. caller: thank you. this has been a topic that i --e fought for years investor state dispute settlement is one of the main problems that we have had. ensued saying it was unfair and is committed against mexico and canada for us to know the origin of our meat, chicken and fish products. congressmen immediately set up to get the repeal of country of origin labels. these are also two gentlemen that turned around and supported trump when he talked about putting tariffs on mexican imports. . if we knew the origin of our food, mexico would put tariffs on us.
so, they cowered down and the congress passed an appropriation budget that repealed country of origin labels. i think it is outrageous. know where should our food comes from. host: thank you. guest: you touched on two very important issues. investor state dispute settlement has become a magnet for criticism on the right and left. and investor from one country to say there's something they don't like about the way thisbeen treated -- happened when transcanada sued the obama administration over its decision on the keystone pipeline. criticized chapter 11, sing they could strike it. would support getting rid
of that because they think it is an attack on sovereignty in u.s. courts. the country of origin, which is important for beef, probably important for arkansas, that is more of an issue between states where the states challenge each other and the country's challenge each other in the world trade organization or directly through nafta. there are many rules in the wto and nafta -- the rules for beef very controversial. mexico and canada thought they were being disseminated against -- the devil is in the details in these cases. what the proponents of nafta and it is good forther there to be rules of their own -- those are two items likely to
be at the top of the agenda. deborah is next in columbus, ohio. republican line. caller: hello. host: you are on. go ahead. caller: i want to find out what they are going to do about that nafta trade. our country is buying everybody else's stuff and not buying things from us. we should be independent and fix what we have here and have our own resources rather than buy them from these other countries. what do they plan on doing with that? do they plan on try to fix it to where we can be independent instead of buying from all these other countries and they're not buying back from us? guest: that is the very root of the issue that donald trump has seized upon in the campaign.
getting a slow start on trade, getting people confirmed and getting people into position. reciprocal trade, he mentioned it yesterday with the prime minister from canada. he wants traded to work both ways. -- trade to work both ways. the u.s. produces a lot of goods and products ranging from foreign cars to caterpillars and boeings shipped around the world. political leaders want to cut up our exports. if you start to restrict imports start to countries can .lock u.s. exports what can donald trump and his advisers due to restrict imports or put pressure on excessive or unfair imports? donald trump talk about wanting nafta to be fair and to have two
f's in it, free and fair trade agreement. there are a lot of countries around the world growing faster than the u.s. the ability to export into expanding markets could be a great benefit going forward. plan from the tax ministration and discussions in congress as well, how would that work and what would be the end result? guest: the border tax would penalize imports and give a break to exports. -- he would not be able to deduct the costs of your imports. it would be much better to buy products made in the u.s.
it.wto could rule against countries would challenge the u.s., might even slap on tariffs before that happens. it is considered a subsidy for exports and could run a file and of eto. foul in the wto. what is unclear that the white house is exactly ready to fully embrace the border tax. they mentioned it an interview with "the wall street journal," president trump said i have some issues with the border tax. as republicans like it. it could have a bit of resistance in the senate. retailers really hate it. host: a 20% rate on this tax. guest: you would lower the u.s. corporate text to 20% which would make the west much more competitive.
it's the differential treatment of imports versus exports that would put the u.s. in trouble with the trading system and the west would have to determine whether the risks are worth the benefit. cheapen currencies against the dollar, the effect of the tax on imports might be wiped away. economists don't know exactly when those currencies would realign. individual countries and central banks could resist that change. host: william mauldin talking about the north american free trade agreement. bonnie in maryland. republican line. hello. --ler: i want to work this this has nothing to do with nafta. let me try to explain it -- trump wants to say do as i say,
not what i do. all the trump brands are made in other countries. them?s going to affect whenirst thing he done canada's prime minister comes down, he has his daughter there so she can do her brand. when he met with japan, she flew becausem to mar-a-lago she wants to do her brand over there. him?there be tariffs on all he's worried about is his daughter's clothing line. guest: thank you so much. certainly come at him is in a couple of businessman and members of his family have dabbled in business as well. hasident trump for decades been skeptical of u.s. trade policy.
he has resisted the wave of imports that the u.s. has excepted from japan -- accepted from japan. on the other hand, he does produce some of his products abroad. a trade lawyer was a donald ,rump is exporting his brand exporting his inaugural property and the customer is importing products from asia that carry that brand-name. there's different ways of thinking about it. excessivebelieve that imports are a problem and the u.s. is being treated by other countries, you would want to make sure your businesses align with your political message. trump's case, he's agreed to step back from those during his presidency but those will be issues. we hear this legislation in the works that would make sure his make surecy --
there's a lot of resources in maryland, that corn crop for ethanol. host: many states would have to look at these trade agreements and look at their own individual states and what the export. his --robert has put every state has particular issues. congress has to approve the trade agreement. president trump does have something called fast-track work trade promotion authority power where he can summit a trade fast-track or trade promotion authority power where he can submit a trade agreement. you have to work with congress along the way. including giving a 90 day notice to restart negotiations. you have to work with the senate finance committee and the house ways and means committee and a lot of senators -- you seen
speaker paul ryan, conversations with canada that she feels canada supports his dairy industry to strongly. this is something many members of congress will look at. many democrats are interested in president trump's rhetoric on trade. they want to see how it affects their state. 202-748-8001 for republicans. 202-748-8000 for democrats. today's story in "the wall street journal" looking at the --ss conference yesterday yesterday, it was the prime minister just intrude out who trudeau --dustin
[video clip]er.com/cspanw >> there are many jobs in thethat depend on those relationships between our two countries. when we sit down as we did today and as our teams will be doing in the weeks and months to come, we will be talking about how we can continue to create good jobs for our citizens on both sides of the border and during this exercise, we continue to that we have to allow this free flow of goods and services and we have to be aware of the integration of our economies, which is extremely positive for both our countries. host: you talked about that integration. can you expand on that? guest: two things are happening here.
he is speaking very vaguely about jobs and integration. detroit is right on the canadian border. there is an awkwardness -- prime predecessordeau's negotiated the tpp agreement with president obama. no commit the u.s. has moved to the right and canada has moved to the left. has moved to.s. the right and canada has moved to the left. they are starting with the basics, talking about middle-class prosperity and jobs and integration. comments from canadian lawmakers and people from all parties were suggesting to prime minister trudeau, go down there carefully and don't burn any bridges over the border and over relations with washington. let's start out carefully and
see what donald trump has in mind. ,he message of the canadians hey, we work well with integration, we have a two-way and may thee attention will focus on mexico -- let's lay low and maybe the attention will focus on mexico. we have a pleasant, easy-going press conference with canada's prime minister. no press conference so far with mexico's president because of the issues over building a wall. host: a question about syrian refugees, canada takes them in, united states has taken a position to hold them off. donald trump has blended security issues come immigration and trade more than previous candidates. with china early on, he mentioned the one china policy in the same sentence as trade
since then, he has rearranged the one china policy, suggesting is not as much of for discussion. he's getting a feel for his -- when negotiation's it comes to borders commit these two things are being mixed. prime minister trudeau played it very carefully. he had a tweet criticizing the -- he's careful not to disagree with the president hours after being hosted in the white house. dan in new hear from york. independent line. you are on. good morning. caller: thank you for taking my call.
i used to be a dairy farmer in new york. a turn for theen worse for dairy farmers in this country. we dollar is so strong that lost our market with china and now, i've heard canada got rid of the system where they can make as much milk as they want -- even island is talking about companies going down to chile desk even ireland is talking about companies going out to chile. milk companies are getting rid of dairy farmers as best as they can because there's no market for the milk. milk butking some much there's no place to send it to. milk.much --st: using chuck schumer
you have seen chuck schumer concerned about the milk issue in regards to canada. i watched the tv discussions grind to a halt on maui -- the tpp discussions grind to a halt with new zealand wanting to export more milk to canada. northeasttes in the are criticizing canada for that dairy market support which they .elieve crowds out u.s. milk there is another u.s. dairy industry out west producing a whole lot of milk on giant farms very efficiently. they want to take advantage of free trade to send milk all over the world. there's a bit of division in the u.s. dairy industry. certainly in places like new york and wisconsin mother's
concerns about canada. these are the issues that will make any nafta renegotiation extreme a complicated some trade experts -- there's concerns about canada. these are the issues that will make any nafta renegotiation extremely complicated. it takes a lot of patience and time to get those sorted out, agreed-upon and passed through congress. here is tyler from kentucky, republican line. caller: thank you for taking my call. i've got two questions and one comment. the first question is i just don't understand why people voted president trump in. he has been in for less than 30 days, and they are already writing him off.
you caps off the world in 30 days. you can't solve any problem in 30 days. secondly, president obama had and from eight years as a small businessman, myself, i cannot tell a big difference to help me as a small business person. guest: thank you. everyone has their point of view on trump's first few days in office. journalists have had lots to write about. you will not hear about that you will not hear complaints from us. a reboot could be in order for the trump presidency, from an analysis of spending decades in washington.
there have been a few things that have seen a rocky start. i can speak to trade, myself. it has been a slower start than president trump would have wished. he said he would like to start formal renegotiations of nafta within 100 days. to do that, you have to give 90 days notice to congress if you want that deal to be considered under fast-track, without amendments or procedural hearings. in 120ets it started days, no one will notice, but part of the problem is his has not beenetary confirmed yet. we expect that maybe next week or this week. is u.s. trade representative has not had a hearing -- his u.s. trade representative has not had a hearing, yet. you need that team, to work with congress and with canada and mexico.
there is plenty of time left, but some of this stuff, probably some in the administration would have liked to have gotten a earlier start. host: anthony from illinois, you are on. caller: i have a couple questions. reform ideas of lowering the corporate tax rate to 15%. major companies are only paying about that percent, now. i don't see what the effect would be. a resulthe deficit is of low wages and operating cost. hours are much higher. -- ours are much higher. if you were to tip -- if you were to tax imports to offset , i would like to know how
difficult is it to negotiate bilateral agreements around the world with other countries, to replace these agreements that are more broadly used by countries? guest: a lot of difficult issues, especially on the taxes. i might have to have my tax reporter get back to you on the details. some companies are paying a much lower rate. some are paying the higher statutory rate because they don't have the same ability to make deductions. your point on inflation is a good one. consumer prices are dependent upon free trade. low consumer prices are helped by free trade. raising tariffs to any degree would affect consumer prices, even for intermediate goods. president trump has a lot of trade advisers from the steel industry. steel, push tariffs on
that could lead to higher prices in the u.s. and i could go into your automobiles. -- and that could go into your automobiles. as far as bilateral trade agreements, it will be interesting to see. there has been a multilateral push around the world because many think the wto has not been keeping up with changes in technology and the rise of china, so many have pursued multilateral deals among several countries, hoping to help company supply chains. many conservatives like a bilateral trade agreement, they don't want some international deal at the european union, they monoa sort of mono a talk. some of thesesee bilateral deals negotiated, but you can only do so many in four years.
host: jim from our republican line. caller: thank you so much for making my drive into work so entertaining these past few weeks. my question is for the guest. presidents can do very little to positively impact the economy, but they can certainly take the blame for negative things and take credit for good things. i'm wondering to what extent is trump's promise for jobs which resonates to me as a ex- detroiter. to what extent is his promise simply a smart politician taking advantage of economic conditions that are happening, anyway as it gets too expensive to send jobs to china question mark -- jobs to china? guest: that is pretty
complicated. i have spoken to our chief economic commentator and others about this. no one knows where the economy is going and where it will be in three years when the next major election heats up. say donaldeople trump can use the bully public to help keep a few top manufacturers and carmakers investing in america. battle have a knock on effect on parts producers, suppliers and knock -- that will have a on effect on parts producers, suppliers and others. aboutou start talking more major policies, sweeping trade agreements, they can have a broader economic effect, for good or for ill. that requires a lot more attention to detail, a lot more negotiations and work with congress. the results will only be known, years later when there is an
election or when economists weigh in on it. a lot of economists think nafta provides small incremental boosts to the american economy. that is a position of most economists. others point out the loss of certain jobs in the auto industry. many of those were going to happen because of automation. guess which grew faster since nafta was created, nat -- mexico or the u.s.? they grew at the exact same rate. they have grown the same amount, and the jury will still be out on that for years in the future. host: we go to kentucky, democrats line, for scott. caller: thank you for taking my call. it seems to me that when nafta was first sold to the american kind of put to us
the united protect states and american industry and canadian and mexican industry from the european union. the european union becoming a massive trading block and therefore, nafta giving us an opportunity to be able to counter that. if you could answer that question, i would very much appreciate it. guest: that was definitely the focus. analogy would be germany produces more and more of its auto parts in other european union countries. those parts are sent to germany to produce the final cars. north america has a similar trade agreement. the rules of origin i spoke about an nafta, that allows and even requires a lot of parts to be produced in mexico and canada for those to travel, duty-free. the rise of the european union
and the post-soviet border in europe was on the minds of a lot of people with nafta and it predates the wto. that a lot ofing people -- this is a minute has been around for a while -- this is something that has been around for a while. the bestseems like in case scenario, renegotiating is not going to happen in a four year term. guest: donald trump to prioritize it and he can do some tweaks -- wants to prioritize it, and he can do some tweaks and can do it quickly. the administration will learn that it is harder to get something done when you have parliaments and congresses and politicians involved. reporting for the wall street journal on trade and other issues, thank you for your time. coming up, we are joined by two republican members of congress.
the chair of the house freedom caucus and the chair of the andblican study committee we will have that discussion and we are joined later by representative radel all about -- washington journal continues after this. ♪ >> in case you missed it, here are some clips of c-span programming, last week. california senator gives her first speech from the senate floor. >> our country needs is secretary of education who estimates traded basic competency when it comes to issues facing children. many to know what they are talking about. -- they need to know what they are talking about. when answering questions, it was clear mr. voss did not know the
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-- by 17,00000 million percent. >> all of our programs are available on c-span.org. washington journal continues. host: joining us, two republicans to talk about their perspectives on policy and the agendas they hope to achieve. we are joined by mark walker of north carolina, chair of the republican study committee and joined by mark meadows, head of the freedom caucus and a representative of north carolina. thank you for joining us. guest: good to be here. host: we hear the term study committee and freedom caucus. can you tell us what it means to be a part of this body? guest: it is a pleasure to be here. in 1973, the republican study