New America Mexico Canada Deal paves the way for India America Deal

In this video, we will talk about USMCA Deal

How America Mexico Canada Deal

Reference -
https://www.vox.com/2018/9/24/17883506/trump-korea-trade-deal-korus
https://ktla.com/2018/10/01/trump-to-discuss-new-trade-agreement-with-mexico-and-canada-during-address-at-white-house/
https://www.census.gov/foreign-trade/balance/index.html



Transcript - 
Hello Friends, welcome to Real Quick Info channel. Lets discuss our Original Real Quick Analysis.


You all know, America has finally concluded north american free and fair trade deal, which will be known as US Mexico Canada Agreement or USMCA.



While announcing this deal, President Trump made few remarks against India willing to enter into trade deal with America.



As expected, whole Indian media has missed the point, and started negative propaganda as if India is selling its self respect to make president Trump happy.


As we believe, Indian media is just copy cat of American media.



As per American media, this new trade deal is having only cosmetic changes to earlier north american free trade agreement.



Few days ago, when this deal was looking very impossible, same media was saying that President Trump is fighting with friends like Canada and Mexico, when he should have rather fought with enemy like China.



Now, All three countries have finalized agreement covering trade worth 1200 Billion Dollars, the same media is finding fault in it.



On the same lines, Rather than talking about virtues of India America free and Fair trade deal, they have indulged into negative campaign, so that it becomes very difficult for India to enter into trade agreement with America later on.



Be it American media or Indian media, they protect Chinese interests more than interests of their own nations.



Anyways, before talking about USMCA, we will talk about South Korea America free and fair trade deal concluded last week. 



Last year, America exported goods worth 48 Billion Dollars to South Korea but South Korea exported goods worth 71 Billion Dollars to America. Thus America had to suffer from 23 Billion Dollar trade deficit.



Earlier each american auto company could sell only 25,000 cars in south Korean market without any Korea specific modification, after this deal, each American auto company would be able to sell 50,000 cars in South Korean Market.



This point will obviously be favorable to American car companies.



But if you can recall, few months ago America has imposed 25% tariffs on all Steel import from all nations in the world. Now South Korea is exempted from this tariff for 70% quantity of steel that South Korea has sold to America last year.



The point we are trying to make here is simple, Two parties enter into negotiation with inclination to give and take.



As long as both parties can talk and find mutually beneficial deal, it should be welcome.



Now, coming to recent USMCA deal, 



Last year Mexico exported goods worth 314 Billion Dollar to America and America exported goods worth 244 Billion Dollars. Resulting into American trade deficit of 70 Billion Dollars.



Talking about Canada, Last year Canada exported goods worth 299 Billion Dollar to America and America exported goods worth 282 Billion Dollars. Resulting into American trade deficit of 17 Billion Dollars.



The majority of American trade deficit is due to car sell. Even after the deal, America will continue to buy cars manufactured in Mexico and Canada.



But Significantly 75% of part in each of these cars should be manufactured in North America.



As per old deal, 62.5% parts in each of these cars should be manufactured in North America. But majority of part in old deal are no longer used in any car sold in north America. So all these parts are imported in Mexico and Canada from Europe and Asia.



Now, the list of these car parts will be revised on regular basis to ensure that 75% of a car is made in North America.



Making 75% car in North America will ensure north america retains the ability to manufacture cars in the future.



America, Mexico and Canada cannot afford to become car assembly plant of China.





More importantly, 40 to 45% of car component should be made by a labor who is being paid at least 16 dollar/Hours.



Needless to say, labor is cheap in Mexico but with this deal, they will get higher wages in mexico.





So far as Canada is concerned, it has granted more access to American dairy products and wheat.



The bottom line is simple, these two deals confirms when two parties enter into negotiation, they both win.



Moreover, if both parties fight, both will lose. Strategic Enemies conspire and compete, but strategic partners talk and collaborate.



So far as India is concerned, Last year India exported goods and services worth 48 Billion Dollar to America and America exported goods worth 26 Billion Dollars. Resulting into American trade deficit of 22 Billion Dollars.



lets Look at this, Total trade in between America and Korea stands at 119 Billion Dollars.



Total trade in between America and Mexico stands at 557 Billion Dollars.



Total trade in between America and canada stands at 581 Billion Dollars.



But Total trade in between America and India stands at 73 Billion Dollars.



The point, we are trying to make, South Korea, Canada and Mexico are much smaller than India, but they all have much bigger trade with America than India.



Lets face it, America is world's largest consumer, if we want to become manufacturing country, we would be fool to fight trade war with America.



Now look at this, Total trade in between America and China stands at 654 Billion Dollars with America having trade deficit of 375 Billion Dollars.



When China is ready to fight trade war with America, we have opportunity worth 375 Billion Dollar before us.



Can we Indians not manufacture cheap but good quality clothes, toys, shoes and furniture, if huge american order is confirmed?



As we have discussed in our other videos, President Trump will have no problem if American trade with India goes up from current 73 Billion dollar to 200 Billion Dollar in next couple of years, as long as American trade deficit with India remains at current level of 22 Billion Dollars or declines. 



It would mean, India exporting goods worth 111 Billion Dollar to America and America exporting goods worth 89 Billion Dollar to India.



If the size of Indian trade with America increases, Indians will get jobs in the factories producing goods for American market.



Many of our viewers comment, that we always favor America.



Frankly, we will favor any country, if it helps in creating more jobs in India.



If China can help create jobs in India, we will support China also. 


Now, China is reducing import duty on Indian goods. but Sorry, the credit for this Chinese generosity on India directly goes to President Trump.





China has rebuilt itself by having trade with America. but few Indian experts dislike to have trade deal with America, even if it ends up rebuilding India.





Having said that, Trump administration is fighting for American interests that effectively means Modi Administration must also fight for Indian interests.



Any free trade agreement with America must be fair. If we are giving something, we must take something.



If you look closely, no expert sitting in TV studio has fore casted, that America would be able to renegotiate free and Fair trade deal with  Mexico, Canada and South Korea.



Now, America is actively engaged with Japan and European union on new free and fair trade deal.



Hopefully, Soon India will also enter in to free and fair trade deal negotiation with America.



Point is simple, Democratic countries must collaborate, not compete with each other.



So far as what Trump has said in public about India must not divert our attention from getting free and fair trade deal with America.



As per your analysis, Should India not enter into free and fair trade deal negotiations with America?

Please let us know your views in comment section below.



Please find the reference links of this video in the description box below. Thank you friends for watching this video.