>> brennan: welcome back to "face the nation." following donald trump successful meeting, declared him to be a tariff man. that word set the stage for stock market turmoil major u.s. market indices took 4% plunge and other uncertainties on the market including questions about american interest rates. we'd like to now welcome to "face the nation" ambassador robert lighthizer to the he is u.s. trade representative a very key voice in these talks. but i want to quickly get to matter of domestic politics first. the "new york times" is repor reporting that you are one of the candidates being considered for the chief of staff job to step into the role by john kelly.

is that a job you want? >> let me say first of all, i love john kelly, there are few people with his qualities and grit and determination and devotion. i think -- he's done a great job for the president. having said that now, the president has given me what is a very difficult job. i'm very, very happy doing it. if i focus on entirely there's some reasonable chance i'll get it done well. i'm excited that the president wants me to be united states trade representative. >> brennan: you've got a big job, just to be clear has anyone at the white house talked to you about chief of staff? >> no. >> brennan: what i'm hearing from you, you're not interested in the job? >> i haven't spoken to ayone en focused on what i'm trying to do and it's difficult as it is. >> brennan: today we heard from beijing they h

demanded some answers about this question regarding huawai and one of their top executive who was taken into custody in canada at u.s. request. how is all of this going to impact the talks that you're leading? >> well, it's my view that it shouldn't really have much of an impact. i can understand from the chinese perspective how they would see it that way. that is a criminal justice matter, it is totally separate from anything that i work on or anything that trade policy people in the administration work on sore for us it's criminal justice. we have a lot of very big, very important issue, we've got serious people working on them and i don't think they will be a fact by this. >> brenn trump offered that, i guess, comfort to president xi has he talked to him after the cfo was taken into custody. >> not that i'm aware of. >> brennan: from beijing they have direct interest in this company, and the warning they're going to be consequences, many are wondering if this adds up to

a threat that it could impact the talks? >> it's entirely a criminal justice matter. nothing to do with anything i'm working on. >> brennan: you do have talks scheduled to begin when? >> we have conversations ongoi ongoing. we have had conversations ongoing for over a year on these matters. and they will continue, we have phone calls and we'll set up other meeting, there's been a lot going on. i really think with all this talk about trade war is important to pull back for a second and say that trade really has increased very much in the last year. it's not down, it's up. exports are really up. importsr ues up. the united states is very much engaged in trade and doing so very successfully at this time. >> brennan: this isn't just any trade negotiation, though. this is the world's two largest economies who are locked in this dispute at the moment. so, one of the biggest sticking points here has been china's --

is accused of intellectual property for years and years. the president says he wants to maintain u.s. dominance in technology. what exactly do the chinese need to do for you to come to agreement? >> so, let's just put on the table a little bit of backgrou background. china has a policy of theft of intellectual property from america and other companies, technology transfer and cyber theft and state capitalism. technology is the most important advantage that americans have economically. we are innovators, we're excellent at technology. so, you have policy from china that is designed really to get at this technology and not economic grounds and one of the most important elements of the u.s. the president said, do a study to us at uscr we d government study, we spent eight months, came out with a report.

the president then put in place tariffs in order to get china to change this policy. it's extremely important that china does that. that it opens its market that it takes these steps. so-- >> brennan: they promise to do things like that before this is inherent part of the chinese business. >> you are completely right. >> brennan: why would they change now? >> the first time this came up you was 1991 under presidency of george herbert walker bush. under the obama administration alone they made ten independent commitments to get rid of some of these things. i believe the reason is now this president has a determination that past presidents have not had. he realizes the seriousness of it. we followed a different strate strategy, it's not just a dialogue strategy it's a strategy of tariffs and taking hard lines. and this president is determin determined. in addition to that i think he has a very good relationship with president xi that will be another positive factor. but in this w w need,

we need ur ces andmarketpeiee ae ng on of noneconomic technology. >> brennan: what happens if they don't agree to that, the sweeping occasion? should the u.s. consider a ban on chinese technology? had senator marco rubio he wants to intr introduce legislation to something like that. >> right now the way this is set up is that at the end of 90 da days, once again this is a -- you say years even in our case over a year of negotiations. at the end of 90 days these tariffs will be raised on $200 billion to 25%, if we don't get a satisfactory solution. my hope is to focus on that if there is a deal to be done, the president wants us to make a deal. as you say it has to be verifiable, it can't be just

promises like we've seen over the last 25 years. >> brennan: you have until march but you could extend these talks that's not a hard deadli deadline. >> as far as i'm considered it's a hard deadline. when i talked to the president of the united states he's not talking about going beyond mar march, he's talking about getting a deal if there is a deal to be gotten in the next 90 days. >> brennan: the tariffs don't have to do with technology in the technology space should we expect more actions like the arrest of the hauwai cfo. but there are those who say chinese telecome should be completely band from american companies. >> it's not my position that we should ban telecome from china into the united states. it's certainly is true that there will be continuing criminal justice matters that will go on, it will come up, there's been a number of indictments, a number of actions in this space generally. for me those are separate. they are separate from the negotiations. we're looking for structural changes and market access that's what we're looking for. criminal justice process will

continue, we have independent system as you know in this country. >> brennan: when the markets open tomorrow, can they be r reassured that these talks with beijing are happening that you're making progress? >> they can be reassured that if there is a deal that can be made that will require, assure the protection of u.s. technology, very part of our technology, everything from services to manufacturing, even farming is a technology industry now in the united states. we will protect that technology and get additional market access from china if that can be done the president wants us to do it if not we'll have tariffs. >> brennan: this is a very big if. >> we'll see. it is a very important matter, there's a long history of having things not work out so you're right. >> brennan: very quickly. the free trade deal, you did negotiate, with mexico and canada, new nafta, how quickly

will that move through congress? >> there's a process under the trade promotion authority i'm expecting in the next months that it will have a vote on, i would say this -- >> brennan: in the new year. >> certainly within next few months. this is the strongest and best trade agreement the united states has ever negotiated. it's the biggest, $1.2 trillion worth of economy, worth of tra trade, it's the best on labor, it's the best on manufacturing. the ip protections are unheard of in the past, we have currency provisions in there we have this whole digital trade, financial services. there's a lot of very, very important innovation in here built on things that people have done in the passed most far reaching agreement the united states has ever negotiated. i believe witness be a model for future. >> brennan: when will the president withdraw from the existing nafta that he is said he's going to do? >> we'll see. this that's a decision that's up to the president of the united states. >> brennan: thank you very much for coming on. ambassador, we'll be right back

with the managing director of the imf, christine lagarde. ♪ when i first came to ocean bay, what i saw was despair. i knew something had to be done. hurricane sandy really woke people up, to showing that we need to invest in this community. i knew having the right partner we could turn this place around. it was only one bank that could finance

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country. they overturned cars, set them fougk er caons, tear the ministry saidmore than 1200 people were arrested, that is unprecedented in this round of rioting, 120 people were injur injured, none said to be that serious. we saw heavy police presence, 89,000 security personnel deployed throughout the country. now, away we saw protesters smashed windows, they lit fires, barricades, even awesome young people looting from shops. now these yellow vest demonstrations began weeks ago in a protest of a fuel tax hike, president macron scrapped that idea now this whole spectrum of complaints of people that we have spoken to largely having to do with low wages, high taxes, distrust of the government. many are calling for mac crohn to resign. his 'ralph rating plunged to 20

20%. the president will address the nation tomorrow night but hard to know what he plans to do to calm such widespread anger. margaret. >> brennan: charlie d'agata, thank you. we're joined now by managing director of fund the imf, christine lagarde is with us, imf has 189 countries that works to promote global economic cooperation and trade, madam lagarde, welcome to the broadcast. >> thank you. >> brennan: we saw the pictures of protests in your home country of france, the french finance minister says this will have an economic toll on the country, you used to have that job. what do we make of the kind of anger and economic grievances that we're seeing in the streets there? >> these are very sad images and to see what is happening in paris is extremely sad. will have economic impact, no doubt about it. i really hope that the dialogue estsh,hat people can express their views,

grievances can be heard that they can be addss well. i any there is a lot of interesting developments about yellow vests, a lot of people who have infiltrated those movements who are demonstrating with violence and that is not the way it should be conducted. >> brennan: i think these pictures are interesting, if you look at the globe right now it brings up something i know you've been warning about, which is you see us on the verge of an age of anger. what do you mean by that, what are the risks that you're seeing? >> well, the risks are that rising and excessive i inequalities between people. aging ofant address the concerns of many. and i believe that it's a question of protecting people, having a dialogue, making su between nations as well.

because what affects one is going to affect all. when you see a pandemics, financial disruption, you see a climate change, it is going to affect all countries and i think it's critical that all of us be together when facing those issues. the same goes with cyber security, same go with terrori terrorism. we are in this together and we have to close ranks and be together. >> brennan: you heard on this program just few moments ago the chief negotiator for the u.s. what are incredibly important talks between world's two largest economies, china and the u.s., you say what happens in one has global impacts these days. what do you make of these hard line arguments here, that as ambassador said, everything has failed when it comes to trying to iron out trade differences, we have to take this hard deadline, everything has to be agreed to by march.r a potential escalation in this trade war. >> i used to be trade minister for my country back in 2005, i know how difficult those

negotiations can be and how long it takes to cut the deals. so, i wish the ambassador the best of luck in reaching completion of something which will not be ultimately final trade arrangement or agreement. i hope they can establish the parameters, framework, the timeline, the steps along the way because that is what it takes. it takes both parties, u.s. and china, to be determined to reach closure on this. it's vitally important, because trade is a major engine for growth. trade, if it is damaged, if it is threatened is going to affect growth, less growth, less jobs, less investments because people suddenly who are in the business of investing and creating jobs, will lose confidence, will be concerned as to what the rules of the road will be. and they need that. >> brennan: when you hear the threat of further tariffs, that causes you concern, that this will eat into economic growth. >> yes, it does.

you can model that and as true as a model can be, reality will determine eventually what the impact is. but if you model complete tariff increases, all the rest of it, you end up with about .8% less growth in a matter of two years. that's a big number. that means, less jobs, less investments this is not what anybody wants. i very much hope that the dialogue, the agreement can be reestablished and that we can come to terms with this. >> brennan: you are seeing in the marketplace right now some concern that engines of growth here in the u.s. have been chugging along but the market showed some real worries this week. what do you forecast here? are we headed towards the recession that some fear? >> not not short term, this is not what we see. we have forecast for this and next around 3.7%, not bad, actually. and we don't see signs of

recession in the near term based on the information we have at the moment. but it is true that if trade is in the threat, if people sort of wonder, where should i invest and should i completely change my supply chain that will have an impact. it will have an impact on peop people. because if you look at the low income family today, thanks to trade, the cost of living are reduced by two-third. so, the clothes that we're wea wearing, many of the things that we're using are made in vietnam or china, whatever. if we lose the benefit of that, then it will have an impact on consumers. we're not seeing it now. it's true. but that is the threat. >> brennan: we're coming up on anniversary of the global financial crisis, you were key at the time as f minisr he globa response. do you see a direct line between

what happened then and the kind of dislocation and anger that you're seeing now? >> yes, i do. i do, because i think that the legacies of the crisis have not yet been completely healed and the wounds are still there, number one. number two, i think that some people have lost out of that time have not been able to recover and some have been able to recover, there is that inner sentiment of unfairness. and we have done our best at the imf. we've really put a lot of money on the table to rescue countries in particular. because this is our job. the job of the imf, a bit like if you have family and somebody in the family is gambling all the time and nobody is rs.ntually going so as fami unit trustee says, i need money. what are you going to do? you're going to lend. because i can't operate, i can't work out, i can't feed the

family. but you lend on the basis that he's going to be de-addicted that's what we did since ten years ago. we've been telling you, we're going to lend you short term. but we didn't ask you to fix your finances, ask to you work on your deficits. you cannot continue spending more than you earn. and we've done that thing, we are still doing it because some countries have not gone through that path yet. >> brennan: this week, one of the most powerful women in the world by "forbes" magazine, you've been outspoken about the need to be inclusive of women in global economy. what was that -- what does that quantify as, what does it add up to, to have more women in the workforce? >> i'll give you two numbers. in this country in the u.s. if there was equal participation of women in the labor market, gdp

would be up by 5%. if it operated in the same way, in india or egypt, for instance, gdp could be up by 27%. so this is not small numbers. it's a big addition to an economy that we want to grow and where we want jobs to be creat created. women can be a phenomenal force for growth for our economies to do better, for more prudence a s well. women are lot more prudent and less risk takers which is sometimes not a bad idea. i would like to celebrate one thing. chancellor merkel is now being replaced at head of the party by another woman. that doesn't happen very often i'd like to take my hat off to her. >> brennan: certainly an economic engine there in europe. thank you very much, madam lagarde. we'll be back with a report from yemen, stay with us.

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♪ whatever it is that floats your boat... ...or tickles your tastebuds... ...or brightens your day... ...even if you've never tried it before... ♪ ...just know that... you can, in portland. >> brennan: we to take a look at yemen site at what the united nations is the world's worst humanitarian crisis. senior foreign correspondent are in yemen for cbs news. here is a report.

>> here in the coastal city there is no fighting. it's the government of yemen c. o the cruel con t there is is plenty of food in stable areas like this at least for people who can afford it. and that is just one thing prime minister two months into his new job has to try to fix. there's a real catastrophe, hunger, looming. is it manageable? can you deal with it? a catastrophe caused by fierce fighting. government troops have saudi arabia's military backing against fighters supported by iran. the saudis rely on u.s. weapons and intelligence. so that may be about to change. >> the americans are backing

away from the saudis in the wake of the murderer of khashoggi. >> u.s. once stands with yemen, shouldn't fight. it's important and country have relation with the u.s. for decades. >> you are saying that there's a big role for america to play directly with the yemeni government not going through the saudis. >> it cannot ignore the region. >> the fact is, the yemeni people are trapped in adi ia ad iran. the prime minister's government is clearly on the saudi side for military and financial reasons. but hisly to the u.s.audi arabia leave you to and us. but the war rages on with

cruelty and abuse on both sides. if there's any hope for the yemeni people it rests with peace negotiations going on right now in sweden where the two sides are actually still talking. >> brennan: liz palmer inas th! yemen. we'll be right back. ♪ you ok there, kurt? we're about to move. karate helps... relieve some of the house-buying... stress. at least you don't have to worry about homeowners insurance. call geico. geico... helps with... homeowners insurance? been doi 'gh good idea! get to know geico. and see how easy homeowners and renters insurance can be.

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>> brennan: that's it for us today. we'll see you next week. for "face the nation" i'm margaret brennan. captioning sponsored by cbs captioned by media access group at wgbh access.wgbh.org when you humble yourself under the mighty hand of god, in due time he will exalt you. hi, i'm joel osteen. i'm excited about being with you every week.

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the north carolina mountains get buried under a foot and a half of snow. also tonight the incoming chairman of the house judiciary et committee says federal prosecutors have outlined impeachable offenses against president trump. >> they were committed in the service of fraudulent office. >> a colorado mother missing since thanksgiving. her cell phone last sent a signal 800 miles from home. >> she has a 1-year-old child. she wouldn't just leave her. kyle r murray wins the