ArmchairMayor.ca is a forum about Kamloops and the world. It has more than one million views.
Mel Rothenburger is the former Editor of The Daily News in Kamloops, B.C. (retiring in 2012), and past mayor of Kamloops (1999-2005). At ArmchairMayor.ca he is the publisher, editor, news editor, city editor, reporter, webmaster, and just about anything else you can think of. He is grateful for the contributions of several local columnists.
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Focusing on Trump’s delivery style or personality, whether one likes it or not, shifts attention away from the underlying mechanics of the issue. Rules of origin, corporate circumvention through processing, false claims, or routing via preferential partners, and the resulting loss of tariff revenue are technical trade problems that predate any single administration and exist under NAFTA/USMCA as well as side agreements such as the Canada–Chile and U.S.–Chile FTAs. Those agreements create legitimate preferential pathways, but they also expand the corridors that can be exploited if origin rules are not rigorously enforced
Rules of origin (ROO) determine whether goods qualify for preferential (zero or low) tariffs under free-trade agreements such as NAFTA/USMCA, as well as side agreements such as the Canada–Chile and U.S.–Chile FTAs. When these rules are weakly enforced, corporations can use processing, relabeling, repackaging, re-invoicing, or false origin, often called illegal transshipment or circumvention, to obtain tariff treatment they are not entitled to.
The immediate beneficiaries are the corporate profits (and their shareholders or pension holders); governments lose tariff revenue. Broad tariffs or trade measures then hit wider populations through higher prices and disrupted supply chains, even though the direct actors are corporate. Violation of the Rules of origin are captured as private profit whuich affects delivery of CPP, health and education as well a many other programs that we collectively benefit from.
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The Hawk fire (I believe the name) has caused the evacuation of thousands of people from Reno.
An opportunity exists for PM Carney to send a message of hope and sympathy to those people. May Canadians be different from the man who believes we want to be his 51st State.
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What benefits?
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