Neither NAFTA nor USMCA have any stipulations requiring exported goods to be manufactured by unionized workers, or in factories with robust environmental and workplace safety rules.

The point of NAFTA/USMCA is to goose profits by despoiling the environment, maiming workers, stealing their wages, paying them less, all while poisoning the Earth.

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Trump's "new" NAFTA was just the old NAFTA with some largely cosmetic changes so that Trump's base could be (temporarily) fooled into thinking Trump was righting the historic wrong of NAFTA.

However, there was one part of USMCA that marked a huge departure from NAFTA: the "IP" chapter. USCMA bound Canada and Mexico to implementing brutal new IP laws.

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For example, Mexico was forced to pass an anti-circumvention law that makes it a crime to tamper with "digital locks." This means that Mexican mechanics can't bypass the locks US car companies use to lock-out third party repair. Mexican farmers can't fix their own tractors. And, of course,

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Mexican software developers can't make alternative app stores for games consoles and mobile devices - they *must* sell their software through US Big Tech companies that take 30% of every sale:

pluralistic.net/2020/09/09/fre…

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Shamefully, Canada had already capitulated to most of these demands. Two Canadian Conservative Party politicians, Tony Clement and James Moore, had sold the country out in 2012, throwing away 6,138 negative responses to a consultation on a new DRM law (on the grounds that they were "babyish" views of "radical extremists"), siding instead with the 54 cranks and industry shills who supported their proposal:

pluralistic.net/2024/11/15/rad…

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When Canadian politicians are pressed on why these anti-interoperability policies are good for Canada, they'll say that it's a condition of free trade, and the benefits of being able to export Canadian goods to the US without tariffs outweigh the costs of having to pay rents to American companies for consumables (like car parts or printer ink), repair, and software sales.

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Sure, when Canadian software authors sell iPhone apps to Canadian customers, the payments take a round trip through Cupertino, California and return 30% short. But Canadian consumers get to buy iPhones without paying tariffs on them, and the oil, timber, and minerals we rip out of the ground can be sent to America without tariffs, either (oh, also, a few things that are still manufactured in Canada can do this, too).

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Enter Trump, carrying a 25% tariff on all Canadian goods, which he has vowed to impose on his first day in office. Obviously, this demands a policy response. What should Canada do when Trump tears up his "big, beautiful" trade deal and whacks Canadian exporters? One obvious response is to impose a 25% retaliatory tariff on American exporters:

mishtalk.com/economics/canada-…

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Canada Says It Will Match US Tariffs If Trump Launches Trade War

Canadian prime minister Justin Trudeau says Canada will respond in kind to Trump’s tariffs.

^MishTalk

After all, Canada and the US are one another's mutual largest trading partners. American businesses rely on selling things to Canadians, so a massive tariff on US goods will certainly make some of Trump's business-lobby backers feel pain, and maybe they'll talk some sense into him.

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I think this would be a huge mistake. The most potent political lesson of the past four years is that politicians who preside over rising prices - regardless of their role in causing them - will swiftly feel the wrath of their voters. The public is furious about inflation, whether it comes from transient covid supply chain shocks, Russia's invasion of Ukraine, or cartels using "inflation" as cover for illegal, collusive price-gouging.

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Canadians are *very* reliant on American imports of finished goods. That's another legacy of NAFTA: it crashed Canada's manufacturing sector. Canadian manufacturing companies treated the US as a "nearshore" source of non-union labor and weak environmental and safety rules, and shipped Canadian union jobs to American scabs. Canada's economy is supposedly now all about "services" but what we really export is stuff we tear out of the Earth.

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Countries that are organized around resource extraction don't need fancy social safety nets or an educational system capable of producing a high-tech workforce. All you need to extract resources is a hole in the ground surrounded by guns, which explains a lot about shifts to the Canadian political climate since the Mulroney years.

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Since Canada is now substantially reorganized as an open-pit mine for American manufacturers, cutting off American imports would drive the prices of everyday good sky-high, and would be political suicide.

But there's another way.

Because, of course, Canada - like any other country - has the capacity to make all kinds of things, including high-tech things.

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Sure, it's unlikely that Canada will launch another Research in Motion with a Blackberry smart-phone that will put the iPhone and Android in the shade. The mobile duopoly has the market sewn up, and can use predatory pricing, refusal to deal, and other anticompetitive tactics to strangle any competitor in its cradle.

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But you know what Canada *could* make? A Canadian App Store. That's a store that Canadian software authors could use to sell Canadian apps to Canadian customers, charging, say, the standard payment processing fee of 5% rather than Apple's 30%. Canada could make app stores for the Android, Playstation and Xbox, too.

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There's no reason that a Canadian app store would have to confine itself to Canadian software authors, either. Canadian app stores could offer 5% commissions on sales to US and global software authors, and provide jailbreaking kits that allows device owners all around the world to install the Canadian app stores where software authors don't get ripped off by American Big Tech companies.

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Canadian companies like Honeybee already make "front-ends" for John Deere tractors - these are the components that turn a tractor into a plow, or a thresher, or another piece of heavy agricultural equipment. Honeybee struggles constantly to get its products to interface with Deere tractors, because Deere uses digital locks to block its products:

honeybee.ca/

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Canada could produce jailbreaking kits for John Deere tractors, too - not just for Honeybee. Every ag-tech company in the world would benefit from commercially available, professionally supported John Deere jailbreaking kits. So would farmers, because these kits would restore farmers' Right to Repair their own tractors:

pluralistic.net/2022/05/08/abo…

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Speaking of repair: Canadian companies could jailbreak every make and model of every US automobile, and make independent, constantly updated diagnostic tools that every mechanic in the world could buy for hundreds of dollars, rather than paying the five-figure ransom that car makers charge for their own underpowered, junk versions of these tools.

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