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About The Observer. (La Grande, Or.) 1968-current | View Entire Issue (May 24, 2019)
➃➄➅➆➇➈➉ ➊➇➈ ➋➌➉ ➋➍➎➏ ➐➑➒ ➓➔→➒➣↔➒➣ On the Fence What type of trade agreements are most beneficial to our local economies? Bilateral trade agreements are the most beneficial for Eastern Oregon Free trade agreements — good, bad, indifferent ... you decide The most notable trade agreement is the United States-Mexico-Canada Agreement (aka NAFTA 2.0) signed on November 30, 2018, which aims to re- place and modernize the North Ameri- can Free Trade Agreement. Trade agreements between nations — even nations run by thoughtful, experienced leaders — are inevitably born of compromises between com- peting political agendas. Imagine, then, how much more dif- ✁✂✄☎ ✆☎ ✆✝ ☎✞ ✁✂☎ ✟ ✠✡✟✄ ☛☞✡✌ ✞✌✡ ✞✍ ☎☞✡ national leaders involved is unpredict- able, temperamental and often unin- formed. Seen in that light, the trade pacts, NAFTA 2.0, and those with China unfortunately are less likely to ✎✡✌✡ ☎ ✄✞✁✟✄ ✏✂✏✟✄ ✡✁✞✌✞✑✆✡✝ ✞✍ ✝✁✟✄✡✒ ✓✟✔✡ ✌✞ ✑✆✝☎✟✔✡✕ ✆☎ ☞✟✝ ✎✡✡✌ ✠✆✖✁✂✄☎ for negotiators to keep their eye on the ball on this one. This updated agreement therefore should not be mistaken as a revolu- tionary new trade deal. Pundits have dubbed it “NAFTA 2.0” for a reason; apart from the ease of pronunciation, this deal is simply an updated version of NAFTA. Only a handful of U.S. in- dustries will see noticeable changes, of which Union County interests are ✌✞☎ ✝✆✗✌✆ ✁✟✌☎ ✟✌✠ ✑✞✝☎ ☛✆✄✄ ✁✞✌✠✂✁☎ business as usual. While the changes in North America are not tremendous, reaching a deal does add a new dimen- sion to the ongoing trade spat with China. Article 32.10 in the USMCA creates rules against negotiating with nonmarket economies. This has the potential to dictate how negotiations with China work for the U.S., China and Mexico. In case someone may not appreciate ☎☞✡ ✡✘✡✁☎✝ ✞✍ ✆✑✙✞✏☎✝ ✟✌✠ ☞✞☛ ☎☞✡✚ ✟✍ - fect the economy: Imports are foreign goods and ser- vices bought by residents of a coun- try or, in our case, Union County. Residents include citizens, businesses and the government. It doesn’t mat- ter what the imports are or how they are sent. They can be shipped, sent by email or even hand-carried in per- sonal luggage on a plane. If they are produced in a foreign country and sold ➽➾➚➪➶ ➹➚➘➴ ➦➧➨➩➧ ➫➩➦➧➭➯ ➵➲➩➷➲➳➼➼➨➬➳➼➮➱➳✃➩➫➲➻➭➼ to domestic residents such as through Walmart (one of the largest import- ers), they are imports and controlled in part or whole by one or more free trade agreements. Here are the biggest changes: Country of origin rules: Automobiles must have 75% of their components manufactured in Mexico, the U.S. or ✛✟✌✟✠✟ ☎✞ ✜✂✟✄✆✍✚ ✍✞✏ ✢✡✏✞ ☎✟✏✆✘✝ ✣✂✙ from 62.5% under NAFTA). Labor provisions: 40-45%of auto- mobile parts must be made by work- ers who earn at least $16 an hour by 2023. Mexico has also agreed to pass laws giving workers the right to union representation, extending labor pro- tections to migrant workers and pro- tecting women from discrimination. The countries can also sanction one another for labor violations. ✤ ✥✒✦✒ ✠✟✆✏✚ ✍✟✏✑✡✏✝ ✗✡☎ ✑✞✏✡ ✟✁✁✡✝✝ to the Canadian dairy market. ✤ ✧✌☎✡✄✄✡✁☎✂✟✄ ✙✏✞✙✡✏☎✚ ✟✌✠ ✠✆✗✆☎✟✄ trade: The deal extends the terms of copyright to 70 years beyond the life of the author. It also extends the pe- riod that a pharmaceutical drug can be protected from generic competi- tion and includes new provisions to deal with the digital economy, such as prohibiting duties on things like music and e-books, and protections for inter- net companies so they’re not liable for content their users produce. ✤ ★✑✡✏✆✁✟✌ ✟✂☎✞✑✞✎✆✄✡ ✆✌✠✂✝☎✏✚✩ ✧✌ more than 25 years since the signing of NAFTA, Mexico’s minimum wage has increased only slightly, to about $4.70 per day in 2018, while U.S. auto work- ers have seen their pay increase at a ✝✆✗✌✆ ✁✟✌☎✄✚ ✝✄✞☛✡✏ ✏✟☎✡ ☎☞✟✌ ☎☞✟☎ ✞✍ other countries. Mexico, for this rea- son and its proximity to the U.S., is a strongly desired location for manufac- turers of all types (farm equipment in- ✁✄✂✠✡✠✪✕ ✝✙✡✁✆ ✁✟✄✄✚ ✟✂☎✞✑✟✔✡✏✝✕ ✟✌✠ has directly contributed to the decline of the U.S. domestic industry. This is unlikely to change. The short answer: Bilateral free trade ✟✗✏✡✡✑✡✌☎✝ ✟✏✡ ☎☞✡ ✑✞✝☎ ✎✡✌✡ ✁✆✟✄ ☎✏✟✠✡ agreements for Eastern Oregon. Another way to state this claim is that a negoti- ated agreement between two parties with ✑✆✌✆✑✟✄ ✞✂☎✝✆✠✡ ✆✌✫✂✡✌✁✡ ✍✏✞✑ ☎☞✆✏✠ ✙✟✏ - ties typically results in each party getting ☎☞✡ ✑✞✝☎ ✍✟✆✏ ✟✌✠ ✎✡✌✡ ✁✆✟✄ ✠✡✟✄ ✙✞✝✝✆✎✄✡✒ There are a plethora of reasons for this but I will put only three to you for consider- ation now: customization, pliability and empowerment. ✤ ✛✂✝☎✞✑✆✢✟☎✆✞✌✩ ☎☞✡ ✟✎✆✄✆☎✚ ✍✞✏ ✡✟✁☞ party to directly engage the other in ne- gotiating the most relevant, pressing, valuable, responsive and rare or unique factors that are pertinent between the two parties. For example, a wood products manufacturer in Eastern Oregon might ✌✠ ✟ ✬✡✏✚ ✠✆✘✡✏✡✌☎ ✝✡☎ ✞✍ ☎✏✟✠✡ ☎✡✏✑✝ ☎✞ ✎✡ ✑✞✝☎ ✎✡✌✡ ✁✆✟✄ ✠✡✙✡✌✠✆✌✗ ✞✌ ☛☞✞ ☎☞✡ ✝✙✡✁✆ ✁ ✎✂✚✡✏ ✆✝ ✣✡✒✗✒✕ ✁✂✝☎✞✑✡✏ ✠✡✑✟✌✠✝✕ desired features, sub-uses, etc.) and whether the buyer is located in Portland, New York or Shanghai (e.g., transporta- tion, time to market, applicable laws, etc.). Negotiating directly allows for maximum value for both parties to be derived while preserving the ability to tailor terms for a ✠✆✘✡✏✡✌☎ ☎✏✟✠✆✌✗ ✙✟✏☎✌✡✏✒ ✭☞✡ ✗✏✡✟☎✡✏ ☎☞✡ number of parties involved, the less ability to customize and the less fair the deal will be to some of the parties involved. Closely related to this idea is pliability. ✤ ✮✄✆✟✎✆✄✆☎✚✩ ☎☞✡ ✁✟✙✟✎✆✄✆☎✚ ✞✍ ✡✟✁☞ ✙✟✏☎✚ to be situationally aware, sensitive and responsive to changes in market condi- tions, party and counter party needs, and geopolitical events such as military actions, diplomatic postures or regula- tory shifts, that might occur between the two parties. So, a cattle rancher in Union County can meet unexpected regula- tory changes that occur for one customer without causing operational problems or negatively impacting other custom- ers. This factor is particularly important for long-term relationships as well, by allowing for easier accommodation or renegotiation when factors inevitably change (e.g., political leadership, natural resource utilization, population/cultural demographics, etc.) for one or both par- ties. Lastly, is empowerment. ✤ ✯✑✙✞☛✡✏✑✡✌☎✩ ☎☞✡ ✙✡✏✝✙✡✁☎✆✬✡ ✍✞✏ SUBSCRIPTION INFORMATION Phone: P◗❘❚❱❲❳❚❳❘❲❘ NEWSSTAND PRICE: $1.50 Subscription rates per month: ❑② ✴✵♣♣✾❡♣❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅■▲▲❅▼◆ ❑② ❃✵✾❀❖ ✵❀❀ ♦✹✽❡♣ ❯❅❙❅ ❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅❅ ■▲❏ An independent newspaper founded in 1896 ❹❺❻❼❻ ❽❾❾❿❽➀➁➂ ❛✽❡ ❤t✷❡♣✈❡♣ ♣❡✷❡♣✈❡✷ ✹✽❡ ♣✾✿✽✹ ✹♦ ✵❄⑤✳✷✹ ✷✳t✷✴♣✾✸✹✾♦✶ ♣✵✹❡✷ t② ✿✾✈✾✶✿ ✸♣❡✸✵✾❄ ✵✶❄ ❃✵✾❀ ✷✳t✷✴♣✾t❡♣✷ ✺◆ ❄✵②✷ ✶♦✹✾✴❡❅ ⑥❡♣✾♦❄✾✴✵❀✷ ✸♦✷✹✵✿❡ ✸✵✾❄ ✵✹ ❴✵ ❵♣✵✶❄❡❖ ❤♣❡✿♦✶ ❬❪▼❏◆❅ ⑥✳t❀✾✷✽❡❄ ⑦♦✶❄✵②✷❖ ⑧❡❄✶❡✷❄✵②✷ ✵✶❄ ❫♣✾❄✵②✷ ⑨❡⑩✴❡✸✹ ❶❡✴❅ ❩❏❷ t② ⑧❡✷✹❡♣✶ ❈♦❃❃✳✶✾✴✵✹✾♦✶✷ ❸✶✴❅❖ ▲✻◆❭ ❫✾❢✹✽ ❙✹❅❖ ❴✵ ❵♣✵✶❄❡❖ ❤❝ ❬❪▼❏◆ ⑨❯❙⑥❙ ❩❬❬❁❩❭◆❷ COPYRIGHT © 2019 A division of ❞❣✐❥❣❦❧ ♠♥qqr❧s✉①❥s♥❧✐ ③❧✉④ each party to operate from the strongest respective position it is capable of having when engaging the other party, which ✑✟✚ ✎✡ ✬✡✏✚ ✠✆✘✡✏✡✌☎ ✎✡☎☛✡✡✌ ✝✡✙✟✏✟☎✡ counter parties (e.g., you are dealing with Idaho vs. China). Additionally, bilateral free trade can work extremely well with an interest-based bargaining negotiation strategy. This is a strategy where the par- ties are operating and negotiating with a focus on achieving their and the counter party’s interests instead of their respec- tive positions only. Interest-based ne- gotiation typically leads to substantially ✑✞✏✡ ✬✟✄✂✡ ✞✏ ✎✡✌✡ ☎ ☎✞ ✡✟✁☞ ✙✟✏☎✚ ✬✝✒ when another strategy (like distributive negotiation) is used. Inevitably, when there are a greater number of distinct ✝✡☎✝ ✞✍ ✆✌☎✡✏✡✝☎✝ ☎☞✟☎ ☞✟✬✡ ☎✞ ✎✡ ✝✟☎✆✝ ✡✠✕ the less likely interest-based approaches ✁✟✌ ✎✡ ✂✝✡✠ ✡✘✡✁☎✆✬✡✄✚✒ ✭✚✙✆✁✟✄✄✚✕ ✟✌ ✟✙ - ✙✏✞✟✁☞ ✞✍ ✌✠✆✌✗ ✰✁✞✑✑✞✌ ✗✏✞✂✌✠✱ ✞✏ “what is good for most” of the parties is ✟✠✞✙☎✡✠✕ ☛☞✆✁☞ ✄✡✟✬✡✝ ✄✡✝✝ ✆✌✫✂✡✌☎✆✟✄ parties at an unnecessary disadvantage. Questions like who decides what com- mon ground is and what “most” means can also become problematic, again, placing some parties at a disadvantage. ✲✌✡ ✁✟✬✡✟☎ ☎✞ ✡✘✡✁☎✆✬✡ ✡✌✗✟✗✡✑✡✌☎ ✟✌✠ success in bilateral free trade is that any party coming to the table must have done their homework, be prepared and other- wise be “smart cookies.” Critical thinking, situational awareness, cultural awareness, technical perspective and clear expecta- tions are minimum mandates to par- ticipate. Fortunately, our folks in Eastern Oregon have these features in abundance ✟✌✠ ✁✟✌ ☎✟✔✡ ☎☞✡ ✡✄✠ ☛✆☎☞ ✁✞✌ ✠✡✌✁✡✒ We need state and federal leaders to un- derstand and support this perspective as well if we really want to rapidly acceler- ✟☎✡ ✑✞✬✆✌✗ ☎☞✡ ✌✡✡✠✄✡ ✞✌ ✡✘✡✁☎✆✬✡ ☎✏✟✠✡ agreements and obtaining available value. In short, the most advantageous, value unlocking and empowering type of trade agreement for Eastern Oregon, America and any sovereign interest, is bilateral free trade. STAFF SUBSCRIBE AND SAVE ❨♦✳ ✴✵✶ ✷✵✈❡ ✳✸ ✹♦ ✺✻✼ ♦❢❢ ✹✽❡ ✷✾✶✿❀❡❁✴♦✸② ✸♣✾✴❡ ❂✾✹✽ ✽♦❃❡ ❄❡❀✾✈❡♣②❅ ❈✵❀❀ ❆❇❉❊❋●❍❊❍❉●❉ ✹♦ ✷✳t✷✴♣✾t❡❅ ❙✹♦✸✸❡❄ ✵✴✴♦✳✶✹ t✵❀✵✶✴❡✷ ❀❡✷✷ ✹✽✵✶ ■❏ ❂✾❀❀ t❡ ♣❡❢✳✶❄❡❄ ✳✸♦✶ ♣❡❜✳❡✷✹❅ ↕➙➛➜➝ ➞➟➠➡➢➤➥➥ ➦➧➨➩➧ ➫➩➦➧➭➯ ➲➳➵➦➸➺➨➫➻➧➼ THE OBSERVER ❛✽❡ ❤t✷❡♣✈❡♣ ♣❡✹✵✾✶✷ ♦❂✶❡♣✷✽✾✸ ✵✶❄ ✴♦✸②♣✾✿✽✹ ✸♣♦✹❡✴✹✾♦✶ ♦❢ ✵❀❀ ✷✹✵❢❢❁✸♣❡✸✵♣❡❄ ✶❡❂✷ ✴♦✸②❖ ✵❄✈❡♣✹✾✷✾✶✿ ✴♦✸②❖ ✸✽♦✹♦✷ ✵✶❄ ✶❡❂✷ ♦♣ ✵❄ ✾❀❀✳✷✹♣✵✹✾♦✶✷❅❛✽❡② ❃✵② ✶♦✹ t❡ ♣❡✸♣♦❄✳✴❡❄ ❂✾✹✽♦✳✹ ❡⑩✸❀✾✴✾✹ ✸♣✾♦♣ ✵✸✸♣♦✈✵❀❅ Toll free (Oregon): ▲❁▼◆◆❁✻❩❩❁✺▲▲◆ Fax: ❏✻▲❁❬❭✺❁❪▼◆✻ Regional publisher.........................Karrine Brogoitti Home delivery advisor.................Amanda Fredrick Regional circulation director ....................Kelli Craft Customer service rep ......................... Mollie Lynch News clerk....................................Lisa Lester Kelly Advertising representative......................Karen Fye Sports editor .......................................Ronald Bond Advertising representative...............Juli Bloodgood Email: Reporter................................................Dick Mason Advertising representative...................... Amy Horn Website: Reporter.....................................Amanda Weisbrod Graphic design supervisor................Dorothy Kautz ❂❂❂❅❀✵✿♣✵✶❄❡♦t✷❡♣✈❡♣❅✴♦❃ Classifieds ........................................ Devi Mathson Graphic design ..............................Cheryl Christian ▲✻◆❭ ❫✾❢✹✽ ❙✹❅❖ ❴✵ ❵♣✵✶❄❡ Customer service rep ................Sharon Magnuson ✶❡❂✷✇❀✵✿♣✵✶❄❡♦t✷❡♣✈❡♣❅✴♦❃ Street address: POSTMASTER Send address changes to: ❛✽❡ ❤t✷❡♣✈❡♣❖ ▲✻◆❭ ❫✾❢✹✽ ❙✹❅❖ ❴✵ ❵♣✵✶❄❡❖ ❤❝ ❬❪▼❏◆ Periodicals postage paid at: ❴✵ ❵♣✵✶❄❡❖ ❤♣❡✿♦✶ ❬❪▼❏◆
