the first is nafta. think we are all for looking at ways to improve nafta. however, as you think we are aln becomes reaction. there could be a reaction from our allies and partners, trading partners. agriculture is specifically. the u.s. produces more food than we can consume. and i'm worried about any type of retribution that either mexico or canada can take on our u.s. farmers. i know you are aware of this but i wanted to get your thoughts on insuring that we protect agriculture in the upcoming negotiations on nafta. very important. i have testified on this before. there has been winners and losers in the nafta process as it has developed over the last 23 years or 25 years. agriculture has been a winner. that, asay, even with footnote that there is even a deficit in agriculture. it is very important that we do no harm. our very high priority will be making sure that we do not disrupt our sales in agricultural products. butither canada or mexico presumably you're are mostly thinking about mexico. it is a legitimate worry. >> no question that canada can do a

the first is nafta.hink we are all looking for ways to improve nafta, however, as you know with all negotiated trade, with every action becomes awry action and there could be a reaction from our allies and our partners, trading partners. agriculture specifically, the united states produces more food than we can consume and i'm worried about any type of retribution that either mÉxico or canada can take, canada can take on our u.s. farmers and so i know you're aware of this but i wanted to just get your thoughts on ensuring that we protect agriculture in these upcoming negotiations on nafta. >> congressman, that's very important. i've testified on this before. we realize there have been winners and there have been losers in the nafta process as its developed over the 23 years, 25 years since the negotiation themselves began. agriculture has been a winner, i would say even with that i would drop a footnote and say that although we have a $4.7 billion in deficit even in agriculture but not the product that i

whatever premise we sat up with nafta or the renegotiation of nafta is going to set the president or the other countries that see how we manage the situation and how the u.s. is looked at, if we're a willing seller and a buyer. the dispersed ones' going to be the biggy. >> another question here. question up front, if we can do that and i think we're going -- >> thanks. yeah, itc is looking into tariffs now of ideas for new tariffs or duties on mexican products as part of this renegotiation. is that one of the things that concerns you? in other words, if you put -- if there are new tariffs on mexican products, i mean, there are no tariffs right now on corn or wheat or soybeans. is that what you consider to be collateral damage maybe? a possibility? >> there is no tariff on corn right now going to mexico. what we've heard is there could be a 37% tariff. which makes brazilian and argentinnian corn cheaper than u.s. corn. the mexican officials we've talked to, we had a reverse trade mission just last week where we had mexican grain buyers and feed manufacturers here in d.c. and they've a

nafta certainly is among the things that was being shaken. what can you share with us about that kind of commitment to do no harm? can people not take it as a given that the idea we're going to tear up the agreement is no longer part of the conversation? sec. ross: the president never announced he was going to tear up the agreement. that was speculation, mostly in the media. so i don't think you can hang that on him, or for that matter, on me. mr. grumet: fair. [laughter] mr. grumet: all the list that you mentioned, you talk about tpp concessions, where you see some of the lower hanging fruit that could be the engine of that negotiation? you have a lot of places you can start. where are some places you might pick first? sec. ross: well, the easiest ones will be the ones that were not contained in the original agreement because that is new territory, that is not anyone giving up anything. by and large, though should be the easiest issues to get done. but they are important because one of our objectives will be to try to incorporate into nafta

the first is nafta, we are all for looking at ways to improve nafta. however, as you know with all negotiated trade, whatever actionbecomes a reaction so there could be a reaction from our allies or partners . agriculture specifically, as you know the united states produces more food than we can consume and i am worried about any type of contribution that either mexico or canada could take. canada could take on our us farmers so i know you're aware of this but i wanted to get your thoughts on ensuring that we protect agriculture in these upcoming negotiations on nafta. >> congressman, that's very important. we realize there have been winners and there have been losers in the nafta process as it's developed over the 23 years, 25 years as negotiation of sales began, agriculture has been a winner. i would say even with that, i would say that although we have a $4.7 billion deficit in agriculture, is not for the kind of products you were thinking about. and it is very important that we do no harm. so our very high priority would be making sure that we do n

the first is nafta. i think we're all for looking at ways to improve nafta, however, as you know, with all negotiated trade, any action could be a reaction and there are former allies and partners and trading partners. agriculture specifically, as you know, the united states produces more food than we can consume and i am worried about any type of retribution that either mexico or canada can take on our u.s. farmers, and so i know you're aware of this, but i wanted to just get your thoughts on ensuring that we protect agriculture in these upcoming negotiations on nafta. >> congressman, that's very important. i've testified on this before and i realize there have been winners and there have been losers in the nafta process as it's developed over 23 years since the negotiation themselves began. agriculture has been a winner. i would say even with that i would drop a footnote and say although we do have a $4.7 million deficit and it's not for the kind of products that you were thinking about and it is very

the first is nafta. we are all for looking at ways to improve nafta however as you know with all negotiated trade when action becomes a reaction so it could be a reaction from our allies and our partners. agriculture specifically as you know the united states produces more food than we can consume and i'm worried about any type of retribution that either mexico or canada could take on our u.s. farmers. i know you are aware of this but i wanted to just get your thought on ensuring that we protect agriculture in these up coming negotiations on nafta. >> congressman that's very important. i have testified on this before. realize there have been winners and there have been losers and the nafta process as it's developed over these 23 years, 25 years since the negotiations began agriculture has been the winner. even with that i would drop a footnote down and say we have a war $.7 million deficit but it's not for the products that you are thinking about and it is very important that we do no harm. our very high

they really benefit from nafta. fibers here and then we send them to mexico to then e into products and bring them back into the country and canada is a huge partner, as well. seeing a lot of retailers step out and say, you update nafta, great, it is more than 20 years old, online account for commerce, a lot of things could be improved with nafta. i keep hearing from retailers, first, do no harm, this agreement is working for have a trade surplus with don't mess up, on't make major changes that will add cost to the industry that is stretched thin and struggling. does create jobs in the retail industry, particularly in frompparel sector, that is sort of production side of hings all the way up to the sales force. so, yeah, retailers are idea nafta out the will be renegotiated and they really want to see it the same.lly stay host: one more policy matter in topic of tax reform, one thing border adjustment tax that might take place between goods traveling across border, what is ultimate impact on retail? come outll, reta

how would we add that into nafta?ink that there are some very important things with regard to data. it is obviously a growing field. i think we have to be really careful as we update these agreements and change things as far as data are concerned. you know to protect cybersecurity, to make sure that you know, individual, you know, there is individual protection for privacy is and things like that, but there is an awful lot of scope for improving things. you know, you just mentioned a minute ago, regulation. one of the things we've been working with the administration on is how do we find ways to harmonize regulations between canada and the united states? whether that is within nafta or even separately. liz: right. >> to make it easier for small, medium-sized businesses on both sides of the border to do business without it costing too much money? we had a great response from the administration. i think you will see really good news on that front in the months to come. liz: let me shift gears quickly, you being the cana

so it's being i'm sorry i'm trying to wrap my head around the entire nafta conversation let's not act on the trade front because we've got so much of this t.p. now after the eurozone going on why should we be looking for in the coming months it's a big question yes i was trying to just go through the list of everything we should be watching out for but what's really at the top of the list so there's a few things but one thing that's not specifically trade but you'll know this what i say at the g. twenty meeting in which a lot of the seventh and eighth meeting in hamburg germany perhaps president trump going to have a hamburger and from french fry you know they'll say something like it like that potentially but you know that the g. twenty is meeting and there is their theme is shaping in interconnected world and not where he's coming from all right so we'll see how this this goes if he sort of has the big foot and some silly things and has to some of the other g twenty leaders smirking as they did at the nato meeting we'll see about those but then there is the transpacific partnership

nafta brought it to life.le long, that pulled it along, and it's difficult to argue that was just nafta contingent. there are core dynamics between our economies that make it reasonable for us to trade, to integrate, to have markets. to participate in the global economy as a block. the largest block in the global economy for the foreseeable future is the north american economic block. we think there is space to modernize nafta so we can do better. many things are happening today that would be natural to include in a regional integration program. either it doesn't exist only to have the economic ability to put this on the table in 1994, and now we do. >> we had a rocky year last year. i think that a lot of the correction that is taking place has been the result of policy actions that have been taken in the monetary side, the foreign-exchange side, the fiscal side. basically, we are going to through dynamics, keep it consistent with the one off week inflation shock. we are expressing some confidence of what we h

then, nafta and the whole u.s. mexico texan -- tension comes up in the election season.s in every thing is heightened, everything is muddied, and it is hard to see a clear path to the future. it is essential that this gets squared away as soon as possible. macgregorou to sarah pokitdok --athon -- >> all the losses that we saw in light of the dollar trump's election victory and the concerns over the wall has been raised. >> like it never happened. the second headlines with mark richt and. scarlet, thank you buried the us government is that i claims from u.s. government report saying that russia did intervene in one aspect of the election. when article that was published yesterday said a russian elle intelligence -- a russian intelligence agency would send a fishing email to representatives. is cook said the company else british officials investigate terror attacks. mr. cook spoke to my colleague emily chang. >> in cases where we had information, and they had gone through the lawful process. but, we do give it it's very promptly. law-enforcement officials have criticized a

nafta brought it to life. it's difficult to argue that was just nafta.re core dynamics between our economies that make it reasonable for us to integrate, have markets. to participate in the global economy -- a block. continue forlock the for seeable future -- the north american economy. think this is to modernize nafta -- so we can do better. maybe things are happening today it would be natural position original integration program. -- the abilityot to put this on the table. the iraqi year left -- we had a rocky year last year. a lot of the correction taking of --has been the result things we have done and the monetary side, the foreign-exchange side. basically, or going into dynamics -- consistent with inflation shock. we are expressing some confidence. it will be sufficient for from now on until next year. turn to say. >> renault the volatility in the , bysury market and the peso historical standards is right now very low. is the market optimistic or realistic? >> you would have to ask the market. i think in general, markets have been -- we have been d

as i do a little pollyannish on this there are things that make sense to tweak on nafta i mean this is an agreement that was from you know ninety three didn't go to affected told ninety four originally started with talk about h.w. bush earlier it was really an h.w. bush initiative brian mulroney president salinas of mexico they started it came into into force when president clinton was there so it could be updated i mean the digital world technology agriculture there's lots of things they could do to update nafta renegotiating we'll have to see the mexican say we don't want to go shoot any stink and quotas or tariffs so that's off the table that of office but now we've got threats from from mexico and corn from elk. absolute answer but let's talk about august i'm a little skeptical as i usually am here august recess it's august people aren't even watch much t.v. let alone washington at that time it seems a very advantageous time to paul this what does it mean for this town aside from the august time line but what does well renegotiate their already close to one hundred eighty lobbyists

because nafta has to be renewed. we can change like the energy sector is a sector that is highly competitive in north america and there will be a lot of -- to really strengthen energy in nafta. >> so you are optimistic that we will reach some sort of an agreement on nafta by the end of this year? >> i am positive but there are ways we can find common agreements, that's the only way an agreement is going to be approved in the three branches of mexico, canada and the u.s. and i think that we should target for convenience to try to do it the sooner the better for stability of financial markets. and for the future. you see now the peso, the peso just went back to the same levels before the november election in the u.s. which send you a signal that the stake holders are very confident that we can reach an agreement. >> that's a very good point. secretary, thank you very much for joining us today. and we look forward to seeing you at 1:30 this afternoon. >> thank you. thank you becky. >>> before we go to break, a third twe

product even though it came from outside nafta.tomotive, they specify particular parts to which the percentage is applied. perhaps those parts are not even used in cars anymore because automotive technology has progressed. there are many things like that that need to be fixed. i think everybody is up to the idea of fixing them. david: is currency manipulation on the agenda in negotiations with canada and mexico? sec. ross: well, neither canada nor mexico in my view is a currency manipulator. as you are aware, the congress had specified that determining whether currency is manipulated is the purview of treasury. congress has laid out very, very specific tests to apply. those tests are applied twice a year, generally in april and october. they recently, treasury secretary mnuchin released the results of this year and found that there are no current two-minute goshen. -- currency manipulation. that is quite different from the question -- are there misalignments? i think for example the mexican peso been very weak against the dollar, p

if he pulled out of nafta.nder a lot of pressure from farm state senators because the u.s. is a huge exporter of agricultural products. so if you pull out of nafta, people think, oh, that's good for manufacturing workers in ohio and maybe at the margin in the long run, that's true. but it's bad for people who work in farming in iowa, so he would see direct effects not just from corporate interests but also from various consumer sectors in the economy. >> and it's of course the wall, which is another part of the legendary promise. he talked about the wall more than he talked about paris. build the wall and make mexico pay for it. it's been harder to deliver on that promise. >> right, yeah. you know, maybe he'll eventually get to build a small section of the wall. i mean the wall, i don't think -- it's not like nafta where i don't think there's a big, you know, financial constituency that stands to lose out a lot from the wall. but if you want to really build the wall the way he describes it, 40 feet high along t

who's taking the real decisions on nafta?we were wondering what are the american priorities regarding the renegotiation that are upcoming? [speaking french] >> well, i think as we've said, nafta's an old agreement. and i think we all agree anytime you have an agreement that is this old, it makes sense to reopen the agreement and look at different provisions of this. and as it relates to canada, we obviously have a very important two-way trade relationship of both goods and services, services which are a very important part of the u.s. economy. it's a big part of our relationship. and i think whatever we do our objective is to make sure that this is positive for the u.s. economy ands positive for the canadian -- and positive for the canadian economy to continue to allow the commerce that we have between us. >> i can only wholeheartedly echo what secretary mnuchin just said. we know that this relationship has been extremely strong and very positive. we know that in any trade agreement that's been in existence for as long as naf

this whole thing, nafta brought it to life. argue it isult to just nafta contingent. economies that can make it reasonable for us to trade, integrate, and to participate in the global economy as a block. the largest block will continue conceivable future the north american economic block. we think we can do better. many things are happening today that will be natural to include. or don'tat don't exist have the economic capabilities. i think there are opportunities for canada, the u.s., and mexico to come out with a better integration process. we are coming to a consensus it makes sense for us to find --eements on the graces basis of what has already happened. competitiveness and dynamic schism -- dimon the dyanism. and -- of they economy has been reduced. these possible outcomes have been bounded by economic realities behind the integration process. the desire is to reach a constructive and positive agreement. guy: the mexican finance minister. up next, the paris air show. stocks to watch. announcing the building of a nice new plane. we will talk about that, plus the

the only caveat i would add is this is something you are better off dealing with in a nafta negotiation so we have to think about that and the stakeholders have to think about it, members have to

we are strong supporters of maintaining nafta.nna: is the white house listening to you and your voice? given the contributions you have made? tim phillips: we stayed out the last year but we have made the position clear that free trade is a winner for the american people. yes, we want to see trade that deals that are reasonable and fair. nafta has been good and we think free trade is one of the crucial pillars of getting this nation moving. we have made this point. we think they are listening. anna: thank you. tim phillips president of americans for prosperity. a check on the markets. stocks takingu.s. them to near highs of the session particularly the nasdaq which is up 1.2%. dow is always up. financials higher, tech higher, materials gaining. here is one group doing better than the major averages thomas small caps gaining up by 1.6%. also wanted to update you on fedex. pendinges were halted the news and the company came out with a statement saying worldwide operators at tnt express unit have been "significantly affected by a cyb

nafta is also unveiling the new wheels of its own. of hollywood. to transfer people across marts. the new hotel is that is looking to find success under the sea. we will tell you about it. we await a decision on whether or not the nation's top justices will hear a white house challenge to lower court's suspension of the temporary travel ban from six predominantly muslim countries. present trumpet may be sinking seeking his own case on twitter. george, a former candidate for that general position among the critics. we need a travel be in. for certain dangerous countries. let's bring in the fox news senior analyst. he just made a face that said it all. i made a face because i had been arguing for months that the first executive order was constitutional and the second executive order which rescinded the first one is attacking those orders and giving judges the ability to invalidate them had been the words of donald trump as candidate trump. now we are hearing words as president trump which are also giving them fodder for the canon as wel

just exam, nafta. his staff put out word that he was going to pull out of nafta. at the last minute, he got phone calls from the prime minister of canada and the president of mexico. he backed off it and said no, i'm going to renegotiate it. a lot of efforts there. and some of the people in the white house were going to people outside like elon musk, the big tech person or tim cook, the head of apple and having them call the president and put pressure. musk even threatening that -- he's on a bunch of presidential advisory boards. that if he pulse out of the accord, he will pull out of some of the advisory panels. there was an inside out game here. people inside the white house getting outsiders to put pressure on him. there were people in carbon emissions industries like coal and coal unions that were very much pressuring the president to keep his campaign promise and to pull out of this. it will be interesting to see pulls out of the s it. agreement, it's as john roberts has suggested, a three-year process. this won't happen until 2020. the new president, that co

nafta has been a disaster.o we'll renegotiate it successfully which would be my first choice or terminate it, and that's going to be that. now, the paris agreement -- and it's amazing how the people of this country get it because the press coulds it so unfairly. the paris agreement would have cost americans millions of lost jobs and millions and billions of lost dollars, and put us at a permanent economic disadvantage. china doesn't kick in until 2030. i could tell you stories and give you stat, i could go on all day. it's a catastrophe if we agreed. they all say the many non-binding. when we get sued by everybody because we thought it was none binding. then you can tell me it was non-binding. i was elected to serve the citizens of iowa, ohio, wisconsin, florida all 50 states and all 320 million american citizens. [cheers and applause] by the way, this is a big place. this is a big place. i used to say during the campaign. we are not even campaigning and look at this crowd it's easier during the campaign the pl

it is unknown whether that came about because of nafta or nafta came about because there was somethingense in and of itself. , buto has a lot of fda's the integration of the north american region is something that complements our economies well. light andght it to brought it along, but it is difficult to argue that it was just nafta contingent and not some core dynamic between our economies that make it reasonable for us to trade, to integrate, to have markets and to participate in the economy as a block. the largest bloc in the global economy will continue into the foreseeable future, the north american economic lock. we think there is space to modernize nafta and scope to do better. many things are happening today that will be natural to include in a regional integration program. idea did not exist or we did not have the economic abilities in 1994, now we do. that was bloomberg's exclusive interview with mexico's finance minister. tomorrow, another exclusive interview with the outgoing bank of mexico governor. you won't want to miss that interview. julia: the last few days have shown

on nafta? where are we in the process of renegotiating nafta and who's responsible?league? >> as to where we are, we are right now awaiting the maturation of the 90 day letter we are required under the trade promotion act to send to the congress. that clock ticks on the 18th of august. 30 days before that, we will be revealing to the congress a more detailed negotiating strategy than we had discussed with them before. is a redof august letter day for trade. that, we have a big day very soon into the middle of july. that's our next announcement and meeting session with the chinese. as you know, we have a cop is wete a little bit ever sense had a conference with him and we hope to achieve still more deliverable items in the near future. ourd: we want to welcome listeners on bloomberg radio and tv. china, let's go back to nafta -- you say mid july, a more detailed outline of the negotiating strategy will go to congress in august 18 is when the negotiations. after that, what is your hope on the timetable when you might have something concluded with the canadians and the

nafta brought it to life.difficult to argue that it was just nafta contingent and there is some core dynamic between our economies that make it reasonable for us to trade, to integrate, to have regionalized markets, and to participate in the global economy as a bloc. the largest bloc will continue to be for the foreseeable future, the north american economy bloc. we think the space to modernize nafta so we can do better, then a things are happening today that would be natural to include in an integration program. i think this opportunity is for canada, the u.s., and mexico to come out with a better integration process. after the dialogue happens, that would -- with nafta as it was. it makes sense for us to find agreement on the basis of what has already happened and what we want to continue to see in terms of maintaining competitiveness. >> wendy you expect agreement? >> i think from the perspective of uncertainty, which again, many of the indicators show that the uncertainty and the anxiety around the mexican

that was another nafta catastrophe that by the way we are going to renegotiate.f nafta and i have always told you we are going to renegotiate. we will terminate nafta so i announced that essentially it was going to terminate that i got a very nice call from prime minister trudeau of canada, from the president, a good guy of mexico asking me not to terminate it. could we negotiate and i'm always willing to negotiate. i'm always willing so we'll see how it goes. [applause] but it's been very unfair to the united states. all you have to do is look about the empty empty buildings and plants and factories all over the country. nafta has been a disaster so we are going to renegotiate it successfully which will be my first state terminated and that's going to be that. [applause] now the paris agreement, and it's amazing how the people of this country get it because the press covers is so unfairly. the paris agreement would have cost america millions in lost jobs and billions and billions in lost dollars and put us at a permanent economic disadvantage. china doesn't kick

he said the window to change nafta remains open through next january. trade tops the agenda as vietnam's prime minister became the first southeast asia needed to meet president trump. vietnam was seen as a beneficiary from the tpp and was to sign -- wants to sign bilateral agreements now that the united states has abandoned the pack. over america'sn $32 billion trade deficit with vietnam. >> we are already in discussions , including trade. we have a major trade deficit with vietnam, which will hopefully balance out in a short time. rosalind: malaysia airlines flies from airline -- melbourne to kuala lumpur was turned back after a passenger tried to enter the cockpit. the flight landed safely in melbourne before midnight and the carrier offered no further details. malaysia airlines is recovering from two fatal and unexplained disasters in 2014. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: yuan bears are being beaten up as the currency jumped to its highest level in s

. >> we have nafta which was a total and complete disaster. >> i was going to terminate nafta as of twothree days from now. i decided rather than terminating nafta, which would be a pretty big shock to the syst system. >> can you imagine, we're going to announce you're a currency ma anymore lator tomorrow. >> let me bring in tonight's panel. the chief correspondent for the "washington post." >> there you go. dan, let me start with this. does this headline deserve the but? he pulled out of paris climate deal. but. it does seem as if this is almost classic trump. he doesn't want to be definitive on anything. he is leaving himself some wiggle room. >>> this seems like pretty difinitive decision. i think the notion of a but, i don't know what the way back this actually is. it is a little like britain and brexit. once you're out, you're out. you can't say i want to be halfback in. i think that was a rhetorical phrase. >> i don't think it carries any weight. >> i think it is more, it is a very trumpian thing to do to say that might be a better deal and i would be the guy who could make it. he

chris, before i let you go, you were at this nafta hearing.t when we have this big trade fight that all ag policy is local. you said the midwesterners, the weak guys don't want to see nafta change but the florida guys do. you have 15 seconds. >> the florida guys strawberries, oranges, tomatoes, et cetera have lost a lot of market to mexico because it's cheaper to produce food over there and they can produce it year round. in the midwest do no harm. don't touch anything that will mess up what we're already sending down there. >> you would have assumed florida was the free trade state and the midwest that powered donald trump would be the anti-nafta and it's economically the other way around. thank you. we'll be right back. just like the people who own them, every business is different. but every one of those businesses will need legal help as they age and grow. whether it be with customer contracts, agreements to lease a space or protecting your work. legalzoom's network of attorneys can help you, every step of the way. so you can focus on what

he sent nafta to congress for review. some people suggested to him, as with nafta, could you propose fixes, to make it better for the class base. that's the part of the coalition that includes the most democrats. that they need to watch. wasn't zero with that part of it. >> except for the climate skeptics and the climate deniers. >> they don't send to be the working class voters. >> one, a utility you'll hear from the president is this doesn't measurably help the climate. that's just science that we haven't seen the back-up for. er the goal here, and it is very hard to get your head around, if we do everything right for the next 50 years, we will prevent the earth from moving 2 degrees higher than it was. >> in the marshal islands. >> it is hard to say, you'll eliminate my entire industry for 2 degrees? >> when you poll the question of the paris accord, it is very popular. when you poll the idea of broadly speaking, addressing climate change, something we should be dealing with, absolutely you find broad support. when you

i announced somebody get rid of nafta. i will needtold you to rid negotiate terminate nafta.o i announced that essentially a determinate, but about a very nice call from prime minister to drill of canada from the president, a good guy, of mexico. asking me not terminate it, could we negotiate and am always willing to negotiate. so we will see. we'll see i goes. but it's been very unfair to the united states. all you have to do is look at all the empty buildings and all the empty plants and factories all over the country. nafta has been a disaster, so we are going to even negotiate successfully, which would be my first choice or we are going to terminate it, and that's going to be that. [applause] now, the paris agreements -- it's amazing how the people of this country get it, because the press covers it so unfairly. but there is agreement would have cost america millions of lost jobs and billions and billions of lost dollars, and put us at a permanent economic disadvantage. untildoesn't kick in 2030. i can tell you stories, i could give you step, i could go on all day. it's a

>> well, the trump administration has told congress that they want to renegotiate nafta. next month or two, they will lay out their precise objectives for that negotiation. so that will be our first important data point. i think the question in terms of how fast this will go really depends on how ambitious they are and what they're asking for. if they are seeking to negotiate basically what we got from mexico and canada in the context of the trans-pacific partnership, i think this could go pretty quickly and get it done before the mexicans, in particular, find themselves wrapped up in their election campaign next year. if they're asking for a lot more or fundamentally restructuring nafta or our trading relationship, then it seems very doubtful that they'll get it done this year. >> ambassador, read the tea leaves in terms of what we've heard both from the president and people like wilbur ross and others in terms of how big a restructuring you think that they have in their minds? >> well, secretary ross and others in the administration have said that they see the trans-pac

it could set the stage for the white house's path to renegotiating nafta. a look at president trump street agenda in today's quick take. in the black-and-white world of economics, free trade is good, each country figures out what it does best and then exchange is it with other nations, creating wealth on both sides. of two centuries, the virtue free trade when almost unchallenged. now is the target of a populist backlash that helped to propel donald trump to the white house. the intrigue critics argue that free trade can aggravate inequality, cut waivers standards, and weaken democracy. last month, president trump notified congress he intends to start renegotiating the north american free trade agreement. notably he chose not to withdraw from nafta completely, as he had been threatening. meanwhile, he continues to blast nations with big trade players -- surpluses with the u.s., including germany. one of his first moves as president was to withdraw the u.s. from the transpacific .artnership that doesn't bode too well for stalled free-trade talks between the

do you see a shift in their attitude towards negotiating nafta?: i think we have seen a lot of shifts. be in thes to campaign trail and with what running in administration looks like. that is a pretty consistent theme across most administrations big what you tend to get is more mild been wild and i think that is what we are likely to see here. caroline: more wild been -- more mild than wild. i like that. in terms of what might happen with trade in the united states, how much does it affect the disintegration of tpp and what does it mean with their own trade negotiations and partnerships with the u.s.? michael: one, it is exhausting, so you never know when the next tweet will hit you. i think really, it is solidarity reinforced within the eu. i would say they have political mojo back to a certain extent. the european economy seems to be firing on all cylinders at the moment in terms of economic performance greatly we'll see how long that lasts, but right now, they feel -- performance. we will see how long that lasts. right now, they clearly voiced

during the campaign, she never mentioned one word about nafta. anybody who has ever lived in this country in the last 20 years has seen the devastation that nafta brought. it was never addressed. on the subject of elections and what happened, we heard about the election of 2008 and we hear about it in the election of two but no one speaks about the one in 2012, where she backed down and took a government position. don't really care what happened at that point. i can tell you that my perspective, for donald trump, two wrongs make a right with this guy and he is completely off script. he needs to be removed and this whole presidency needs to reset. take everything off that he has written in. just remove them and start afresh. we need a new start. this is hideous. pedro: that is in nevada. james giving comment on the president, the president mentioning a lot of activities for tomorrow, especially as the hearing takes place with jim comey. if you want to see it for yourself, go to our website at c-span.org for more information. tune in this coming th

one could argue whether that came about because of nafta or whether nafta came about because of a realt made the north american region something that made sense in and of itself. mexico has a lot of free trade agreements but none of them have resulted in the level that the north american region has seed. -- has seen. it complements our economies well. napster brought it to life and naftad it along -- brought it to life and prodded it along, but it is difficult to argue it was nafta contingent. there is a core dynamic between our economies that make it reasonable to trade, to integrate, to have markets, to participate in the global economy as a block. the largest bloc in the global economy will continue to be, for the for seeable future, the north american economic block. we think there is space to modernize nafta. we think we can do better. many things are happening today that would be natural to include in an integration program either that don't exist or that don't have economic capabilities of putting it on the table, and now we do. i think there is opportunities for canada, the u.s

trade deficit with our nafta nation partners. our current deficit with nafta nations, the current one, is $74 billion. this red translates into tens of thousands of u.s.-lost jobs with north eing depressed for america's. and trade balance for this country and that translates into lost jobs. president trump has failed to correct these trade deficits. in fact the frayed zavets has ballooned to $22 billion in the same period. balanced trade accounts in five years should be first on our agenda. my bill, the balancing trade act requires the administration to address trade deficits of more than $10 billion and as negotiations near, let's focus on key principles, one, vigorousry enforce a first world rule of law, include labor provisions that allow workers across this continent to improve their standard of living and outlaw labor trafficking. number three, environmental standards for human health. and fourth, an agreement that helps displaced farmers, reform the tribe unionals so they work for people and not big corporations. address cu

. >> and the related question here on nafta. would you say that nafta has played a role in driving impoverished mexicans and central americans in order to make ends meet. >> nafta has benefits and costs and that's part of american commerce. if you're an american manufacturer or a manufacturer sector worker, nafta has been threatening in some respect. i think it has to be viewed in the context holistically. by and large, the relationship between not just mexico, the united states and canada, the market has been a general positive. like any trade deal that was created before the internet exploded and before google and all of these other -- amazon existed. there is a need to modernize it and there is an effort to do that now and it's been moved in a way that's been positive up to this point and ultimately, i think it behooves us. i think nafta properly modernized is an answer and not a problem. >> one final question -- >> let me just add one more thing. you want to get into crop replacement and you want to the go in and basically c

host: the trump administration is moving forward with renegotiating nafta. here is secretary of commerce wilbur ross at an event in washington talking about that. >> by and large, and a big change would need congressional -- any big change would need congressional approval which is why we labored so hard to deal approvals, the so-called fast-track, and that has procedural steps that we need to follow. we did send the so-called 90 day letter on may 18 and that will and that isgust 16, when the formal negotiations can first get going. there is also a way station in between in mid july, 30 days before the end. we have to have a full discussion with the congressional committees about more detailed objectives then we have put forward so far. obviously that would be the formal negotiations. there have been quite a bit of informal conversations going on between the three companies. those have been trying to clear away some long-standing issues between the countries. in the case of mexico, sugar is the principal one and in the case of canada, there are really two, t

nafta was written 23 years ago, so a lot has changed.al to the u.s., and those are the type of changes that would be positive, as opposed to changes and forceil imports other countries to retaliate. david: carlos gutierrez, former secretary of congress that commerce. thank you for joining us today. jonathan, there is a lot of talk on trade. i'm not sure if i have a clear view of the overall approach in the trump administration. jonathan colin -- jonathan: on cuba, i do not get it either. nobody is talking about this week, but that is the bottom line, really. coming up later, bloomberg real yield will be live from black is trading floor -- black force trading floor. new york, this is bloomberg. ♪ ♪ >> president trump faces another growing headache in d.c., and the global reflation stories continues. chair yellen keeps on hiking. strategists remain calm. for the first time since 2012, we arrive in june and wall street terms have on average let their s&p 500 forecast is from the start of the year very much intact. the marketwn to open, this