that is why canada is leading some like-minded nations in wto reform. we think the international rules-based order is in the interest of all the nations who believe in free trade, growth and prosperity. that is our hope. if you are asking me to predict the results of the conversation between the united states and china, i will tell you i could not predict the conversation between canada, the united states, and mexico three days before we signed a deal because those involved in negotiating trade agreements no that until anything is decided, nothing is decided. there are no bottom lines until the agreements are signed. i wish them well in their negotiations. be toope the result will a world trading order that is based in rules through an organization such as the wto. >> before getting to more specifics, a quick question about what it is like to be the trade minister of a country cup between the u.s.-china economic and strategic rivalry at the moment. we know there has been negative ripple effect for canadian farmers and others. what has been your experien

what can the wto do to bring the u.s.cussion table again and start thinking about real estate solving all these issues from a multi-lateral perspective instead of just going at it alon alone? ment u.s. have very, very much involved in that we are trying to lead to subsidies, and the u.s. is one of the champions the suts is not saying that the wto should not exist i heard explicitly them saying the wto is important and it has a role to play, and if it didn't exist, it needed to be vented. however, having said that, it is not working properly, it is insufficie insufficient. >> vice governor is sthag trends of the chinese exchange rate will depends on economic fundamentals, key economic indicators are within a reasonable range this is the chinese central bank vice governor saying that the macroleverage ratio in china is basically stable and that fiscal and financial risks are under control. that the country's 4x are ample and international payments are largely balanced if perhaps it has overshot a little bit, but interesting

when youty about that, are we likely to see any retaliatory measures within the wto or from the wto versushe united states for going down this avenue to quote what you said, unilateral imposition of tariffs is illegal snoo that was section 232 measure, but the chinese tear ofs, which were progressively applied through last year, were not all under that heading some of them were under another section much u.s. statute, and that is why i said that those were illegal brsh that's what i would say on that point. you would have an argument about it, but from my point of view the person in the trade community and the trade world, what the americans are doing to the chinese is illegal and it's unilateral. i am just wondering does that mechanism face an imminent death essentially because of the skirting of the wto by the u.s.? >> well, some people certainly think imminent death collapse, et cetera is what might happen you risk putting the whole system in disarray the only dispute that settles that those that aren't -- it's not that many, and then if that isn't going to work, then the whole of the w

everybody in this room knows that wto's that we have an u.s. and china are members of the wto. wto works by all for one and one for all. everything the u.s. negotiates in terms of any outcomes applies to any foreign country. that is a plus. but these astronomical numbers when it comes to purchases which i think all of us will be able to poke holes in within hours, but still there will be some additional purchases which will come from some of the countries which will leave china vulnerable to challenges from every one of its major partners. the question would then be what they really want to take it to the wto as opposed to letting it slide. the administration in my view doesn't really care that much about whether something is wto compliant. but china is an administration that does care about it. >>> i would add that the administration obviously has some intense criticism of the wto's inability to deal with the issue with china over the past decade. other countries agree with those criticisms. there are some initiatives that cannot be dealt with bilaterally getting back to the f

unfortunately the chinese would not adhere to the wto wishes.ow true that was and with each president, different forces at play, but what did you make of that oddity? >> well actually, it's exploiting a weakness because the wto went against the president's declaration of national security exemption for tariffs on foreign steel, foreign metals, and also, the administration is blocking the appointment of judges to resolve these cases that go before the court -- go before the wto. china is doing this because they understand lighthizer, the u.s. trade representative, is very suspicious of international arenas to resolve trade disputes. he just distrusts the wto despite the fact that since china has come in dozens upon dozens upon dozens of actions have been filed in front of the wto and the chinese have lost virtually every single one of them. neil: do they make good on what the wto tells them to do? you get different reads. lighthizer says it's not worth the paper it's printed on. what do you make of that? >> look, i disagree. we are pretty good at

wto ta riffs things, to look at the cost of tariffs.ountry in the world trade just rudimentary, no other country in the world tradejust on rudimentary, no other country in the world trade just on wto tariffs. look at the impact it is going to have on the ability of our firms to compete and grow and then come back and make your decision is ——as leaders. businesses are resilient but let's be clear, there is no such thing as managing a no deal. it is impossible to prepare except for the very biggest companies. 85% of small companies can't prepare. they haven't got the money, they haven't got the time, to be able to put consist — but contingency plans in place. of course the world will carry on spinning but we will have lost jobs carry on spinning but we will have lostjobs and investment and damage our economy and that is what we're saying to the potential leaders of the conservative today. transport tech giant uber has released its first set of results since it listed on the new york stock exchange earlier this month. the business is growi

make china the bad player at the wto and seek to enforce wto decisions and consequences. we really haven't done that. so we haven't used the wto. this is one part of the international order china has signed up to. we need to pressure them there. finally on tariffs, look, tariffs is not going to get us to where we need to be. what it's doing is hurting american farmers, hurting american businesses and hurting american consumers. so it's not a smart way to go as it relates to achieving your ultimate goal. >> senator bob menendez of new jersey, thanks very much for joining us this morning. >> thank you. >>> 23 for 2020, new york's bill de blasio is the second mayor to join the growing list of democratic hopefuls. can you keep track of it all? >>> plus the president set to give his plan overhauling the immigrant system. >>> and attorney general bill barr says it is up to the special counsel if he wants to testify before congress. the latest on escalating tensions between the democrats and the administration just ahead. staining be done... and stay done through every season. b

it is a blanket coverage, that's the wto rules according to stea rate that's the wto rules according, it is the worst of all trade deals. because it means. . . worst of all trade deals. because it means... that is nonsense actually, that's not how it works. he said, he was talking a lot about this over the weekend, he is not anti—brexit but he is antilabor without a deal because it means if you don't impose ta riffs because it means if you don't impose tariffs on one trading partner, you can't impose on anybody. that leaves britain open to a flood of cheap imports which affect agriculture, affect the car industry. cheap imports would be brilliant for british consumers. not for other home—grown producers. british consumers. not for other home-grown producers. even if we had the average tariff that the eu has against products from all over the world, that 4%, that would cost britain about £5 million, but we are saving, billion, every yearwe britain about £5 million, but we are saving, billion, every year we saved 13 billion and the fees that we are paying for the eu to do all this trad

you were talking earlier about the wto. solve all of these problems come the market. there's a reason the market is undefeated against politicians. if the market wants to solve this, it is going to have to force our hand. alix: we are going to be sticking with you. we are still looking at a live shot of mexican president obrador, known as m low, -- known as amlo, speaking in mexico city. he says they have to look for options to solve the trade issue, and they will send officials to washington, but the options are limited for what mexico can do to pressure the u.s.. we will watch those headlines as the peso falls. this is bloomberg. ♪ david: mexico's president lopez now, ands speaking talking clearly about his response to president trump's announcement last night about across-the-board tariffs on mexican imports to target illegal border crossings. we welcome now the president of -- council of guest: good morning. it fundamentally undercuts what president lopez obrador is trying to do in mexico. the tariffs of 5% could be goi

we joined the wto you follow those rules.t the end of the day there is the chance there will be tariffs imposed on e of the products but they control their destiny. if they stop the practices, got them in trouble, the tariffs go away. that is really different situation we find ourselves with the china negotiations. they stand at polar opposites how you go about doing this? charles: the thing that strikes me, our complaint, we filed a lawsuit with wto on airbus in 2004. there was resolution in 2011, but it was on going process and 2018, more things were leveledded. i mean it just feel like we don't have two decades to resolve the china trade situation. >> i say done right. i didn't say done fast. your complaint is a fair one took a long, long time. it is largest dispute in wto history. it took a long time to be resolved. i didn't say it was perfect. i like the idea where you know what the next step is. you can prepare yourself for it. markets an anticipate how this will play out. very different than we're seeing with china rig

> what was the question >> i know you want the wto option. chelseaish home in the neighborhood, those are some of ae gifts received from billionaire leave supporter. those gifts are under investigation by the european parliament. faraj says they are nothing to do with politics. mep ataj was still an the time. we have mentioned immigration is .oming out these officers are patrolling where albania meets greece. here in france, the green's time has come. >> the green time has come. the others have had their chance, the socialists, the liberals, the center-right. they have had their chance and they have failed. justice,ed on social democracy, the environment. greencking with the theme, global warming is a clear and present d danger. ththe european environment ageny says sea levels are likely to keep rising. we went to the coastal city to find out how locals are preparing for their new reality. >> sonderborg, it is on the frfront linef global warming. he is seeing the effects for himself and his fishing men. [indiscernible] warmer and higher. what

that they're building this belt road initiative is going to put them in a position eventually where wtoy not be so valuable to them, and the moment they leave the wto, the first thing one should anticipate is that they will make rarers maybe a tenth of the price inside of china than the price outside of china, so companies like general electric who requires a lot and others like that move their manufacturing to china >> wow -- >> china is not so much concerned -- >> yeah, please. >> i was going to say. you just said a lot right there. i want to dig into it a little bit more i know you've spent a lot of time in china and speaking to officials in china as well as the administration here. do you believe that china could actually pull out of the wto >> well, the concern that we've at american elements advised our customers is to be concerned with the belt rose initiative, they may find the wto membership is too restrictive if they have the ability to, again, charge a tenth or some very low number for rare earths inside of china rather than outside of china, you're going to see movement to c

and what he is saying here is that the wto does not specify you cannot import chlorinated chicken. scope for us having a separate trade deal with the united states. what the us is doing is saying well, in all of its trade deals whether they are with the eu orjapan or china or the uk, chicken and agriculture more general are absolutely key because this is actually american voters voting for trump because it is the agricultural heartland. in the uk, a programme, the jeremy kyle agricultural heartland. in the uk, a programme, thejeremy kyle show has been pulled from itv. just explaining this for international viewers. it is similar to thejerry springer show which many may be familiar with around the world where members of the public come on and they are grilled about the private life. tragically, one of the people who was on the programme one week after he was interviewed and asked to ta ke after he was interviewed and asked to take elijah take the test he took his own life. consequently the programme has been pulled. there is big debate about reality television and whether these prog

setup is wonderful liberal orders, including united nations, world bank, imf, wto, you name it.hina embraced them all. so that things last for decades. can you believe it? china has lifted 800 million people out of poverty. actually, that's more than 10 percent of the global population. and also correspondent to 70% of the global poverty reduction. so larry summers, the former president of harvard came to a think tank about two months ago, and he said the transformation of china probably will go down in history as larger than the industrial revolution. so i think that since china joined the wto, china's gdp has jumped up ten times because china embraced the liberal international order. and also, china is the largest trading nation of over 100 countries benefiting from chinese economic activity. contribute over 35 of the gdp growth of the world. so it's become an engine of the world economy. so china has become now the second-largest economy in the world. china every year has 100 and 50 billion tourists traveling around the world, spending $200 billion for the local economy. chin

it was a real strength for the wto.; -- for the wto.uestion whether 1640 countries can make progress. problems wto has had in the background. negotiation continues on multilateral trade bodies. the aussie agreement has negotiationsget on that are to wrap up by the end of the year. negotionations on that are to wrap up by the end of the year. tpp-11 was a big -pacific.the asia agreement.d it includes rules relating to what trade is really about in this day and age. there are big issues for the 0---paficic asia-pacific region. there has been 25 negotiating haveions in seven years -- been 25 negotiating sessions in seven years. us,r: thank you for joining peter. let's get to the first word headlines. d: the fed vice chairman says the central bank is prepared to ease monetary policy if it sees mounting risk to the u.s. growth. but he stresses that the economy is in a good place. the risk assessment could be a trigger for the fed to cut rates. >> we are attuned to potential risk. we saw downside risk to the outlook. that could call for more

have an entity established in 1995 called the wto.u think about it, it is kind of the judge and jury. put in policies that are sometimes austere, discriminatory, protectionist. organizationde is designed to adjudicate. it is set up for countries that have the rule of law, so you have to look at a law, a rule, and say oh, that is bad. china does not put these things in writing, so they were able to get a free pass for what must what they do at the world trade organization. the trump administration and their team are getting more reform feared i'm hopeful the japanese will line an agreement and really push for real wto appeared as it stands right now, the wto cannot really discipline china the way that it should, and they have been able to get away with a lot of bad behavior. hasfe that bad behavior been damaging to global innovation good look at solar panels, for example. in america, to the last caller's point, we produce 55% of solar panels in the world, doing really well. the chinese came in and they targeted at as an industry that t

we would need agreement from 163 of the wto states before the 31st of october.been objections to how we would do that. how have we got time? we are going to need another extension even to leave with no deal, aren't we? there is still more work to be done. but for example, if you look at the work that has been done at our ports, on both sides of the channel, you get, for example, the president and chairman of the port of calais, saying that calais is ready. there isa saying that calais is ready. there is a huge amount of effort going into ensure that any additional checks are kept to a minimum. so i believe it is important that we stepped up preparations to make sure that we are ready on the 31st 0ctober, that we are ready on the 31st october, but a lot of work has already been done. voters in more than 20 eu countries will go to the polls today to select new meps. a number of countries — including the uk — have already voted, but the results can't be revealed until the polls have closed across the eu. here's our europe correspondent, damian grammaticas. (vt the

so much in placejust to operate straightforward because we need so much in place just to operate on wtogot suspension of a lot of negotiations and votes in parliament because of the recess and this contest. how will we even be ready by the 31st of october? you're correct that the new prime minister will face many challenges, not least the arithmetic in parliament. but a huge amount of work has gone into preparing for the possibility of a no—deal outcome. i hope the new prime minister will really make the case for a better deal from prime minister will really make the case for a better dealfrom europe and resolve the problems of the irish backstop, replace them with alternative arrangements, that if the eu will not agree to that, we should be prepared to leave on wto terms. even today that, we have to produce a schedule covering services and more than 5000 products would need agreement from 163 of the wto states before the 31st of october. there have already been objections to how we do that, how have we got time? we would need another extension to leave on no—deal, we don't we? there is

in the world trade is just on wto tariffs.ity of our firms to compete and grow, and then come look, make your decision as leaders. simonjack is our business editor. this is something we've been hearing from the cbi for three years, we've got to sort this out, no deal is a real disaster for businesses, and now she is directly appealing to those who ultimately will be making the decision, and we've seen so many of those contending for the leadership come out and say, "i will actually consider no deal." yeah, in actually consider no deal." yeah, in a sense there is a bit of deja vu about this, you've got the business groups say and, remember us, we are the conservative party's friends, free enterprise, we are the job creators, we're old friends, we've asked our members and please, please, please don't do something which most of them think is daft which most of them think is daft which is leaving the european union without a deal that the end of october. so, appealing directly to the 12, as things stand at the moment, candidates a

let's be clear about this: the wto is a basis for trading.ption, you say, is potentially cost free? significantly. the wt option, you say, is potentially cost free ?m significantly. the wt option, you say, is potentially cost free? it is a basis for trading. what happens thereafter as up to the british government. we could choose to make things more expensive because we could leave ta riffs things more expensive because we could leave tariffs on with european goods. we might not have a choice. of course we will, because alternately they sell us foseco, bmws and other goods, but it is up to us to make decisions. the idea that food prices would go up because we leave with no deal is for the birds. 0k. mark from selby: ‘who funds the brexit party? political parties need to be financially transparent. who funds you ?' we are the most transparent party in the uk. here is the exciting thing: we are approaching 100,000 people in less tha n we are approaching 100,000 people in less than five weeks who have signed up less than five weeks who have sign

>> well, china has been in the wto for closing on 18 years and behaved very badly as a wto member suddenly fixing the wto to deal with china seems extremely unlikely to me i agree we should not be dropping our concerns over intellectual property. we have other tools through the commerce department and the treasury department we haven't used the administration has put at the low end of chinese i.p. theft $225 billion, yet we see no sanctions against chinese firms. those two don't fit together so u.s. policy needs to be fixed. the deal will not work unless we have the right policies. >> but it just doesn't seem -- again, i'm trying to think about what are the outcomes? it's clear wall street wants a deal it sounds like the president is listening to this and wants a deal is there a way that he's going to be able to say, hey, look, i got some progress on this front if we know that that's been a sticking point in these talks? how could we get from here to there? >> well, if we were to change our approach somewhat and say, look, we know we can enforce purchases on a smaller trade balance because

the wto came along. we allowed china into the wto, and they became a rocket ship. you got to take a look at a chart sometime. do it. it'll be very interesting. an economic chart. they're here, and they went up like a rocket ship. well, they did it with our money -- and others -- and they did it because they're very smart, and they're good people. and i like the president a lot; he's a friend of mine. but i'm representing the usa, and he's representing china. and we're not going to be taken advantage of anymore. we're not going to pay china $500 billion a year. so we put very heavy tariffs on china, as of friday, and we put them on, also, eight months ago. and when people looked at the economic numbers, they were shocked. when they looked at the import/export numbers, they were shocked. they said, "wow, how did they get to this point? this was very good. that was a very good report." they'd never seen that for many years. i said, "try looking at all of the tariffs that china has been paying us for the last eight months." billions and billions of dollars. and that's

wto,started out with the and many of those provisions were not followed by china. i don't mean to pick on china. developing countries have all kinds of reasons why it is not a good idea to comply completely with a whole set of wto rules, but i think the message is china is big and powerful and wealthy enough to have graduated from that status. vonnie: exactly. and yesterday we did see china propose some changes to wto rules, clearly trying to be more adult. treasury secretary steven mnuchin is talking right now about trade. we will bring you any headlines that come from that. , in congress, steven mnuchin kobe grilled on why this is taking so long. what happens next in the breakdown of dialogue? how do you walk back, having walked to the cliff edge, how do you walk back something? prof. spence: you pay a price for it. the market reacted pretty significantly in a negative way across the globe, not just here in america. storyline is it's a mistake to be optimistic until you're more sure that you're going to get to the end. a slightly more subtle version is that the c

david: i mentioned that you had a senior position at the wto.had a senior position at the trade office. you used to negotiate these deals. tell us where we go from here, if you are robert lighthizer, how do you go to the next negotiation? the lead with mexico, china, with europe, how do you go, given this ground? rufus: i think if you can't tell your trading partners that you are willing to deals to cut tariffs and create reciprocal trade without the risk that the president will then turn around and completely appreciate those agreements, i don't think you have credibility at the bargaining table. i don't think other countries will be willing to put painful, politically difficult concessions on the table. i can't imagine japan and europe seeing what is happening here with our closest neighbor -- we have had a free-trade agreement with mexico for 25 years and we are overturning that -- i can imagine they will look at that and say, let's get in bed with the trump administration and do a really progressive trade deal. david: rufus, thank you so muc

again, i voted against the wto the wto -- and that's a large part -- the reaction of that is part ofrtual consentism among economists did more to cause jobs for working people, people at middle-level skills, than any other single thing. the problem with trump's strategy is this -- first of all, tariffs can help you stop tariffs, but he has a much broader agenda than china. he should. the chinese subsidy and intellectual property theft is terrible, but you don't get at that with tariffs. >> are you arguing against globalizati globalization? >> i am arguing against globalization if you do not accompany it with measures that provide for the people who are hurt by it globalization and trade -- >> joe, if i could interject for a second the wto has been a tremendous benefit to the u.s. economy for more than a decade, adding wealth and gdp growth throughout that whole period -- >> yeah, but not with china. dave, i agree with that. >> but overall, it's been great for the u.s. economy, and that's what we have to get back to. >> but dave, that's a false choice the question is not against the w

i don't think you will get those rule changes and updating of the rulebook simply from the wto. i think the big players have to work alongside the wto and ize what they agreed, so there is an enormous challenge. i wish president trump had more of a strategy that pave the way for that agreement, rather than short-term tactics. i am fairly confident the deal will be produced. >> none of the winds are pointing towards that multilateral approach. oha.d d i were there >> a great deal of president trump approaches writing -- g -- to close the market to its trading partners is hardly conforming with the standards and norms of wto practice. he is not a great man for these institutions. he doesn't care about multilateral negotiation. he wants a good deal for america. if that good deal as spinoff benefits for the rest of us, that is fine, but what we really need is a settlement that can be hammered out between china and its main trading partners that will endure into the future. >> on brexit, what deal will appease parliament? will there be no deal? this is to be put back to the people? >

the wto has said that both of us have sinned.n to try to find a solution to this instead of imposing tariffs. rules for rupees -- how to deal with this industry. that could be the norm for the rest of the world. there are other countries that should probably be a bit more disciplined. >> the trade tension between the u.s. and china is the big story right now. if you get a resolution to that trade tension, the u.s. what the eu would be discriminated against. would you have to tallied that in some kind of way? would that make you uncomfortable? >> we hope the u.s. and china can settle their conflict because the escalation of the trade conflict is that for the whole world. if they can find some sort of limited agreement, that is a good thing. we watch a very closely, but we don't know the content of these talks so far. we hope for the best, but the european union is negotiating with a variety of countries across the world both bilaterally and strengthening to modernize the wto. we keep busy. >> you are in talks with other countries,

the wto is a major agenda point for the g20, but the u.s.sn't see wto as a fair player, a way to discuss policy. how will we see xi jinping and president trump agree on something that is at a meeting that is really about the wto? i think the odds are unfortunately getting worse. anna: matt? matt: anna, i wanted to ask steen about a story you sent around this morning. u.s. stock correction odds jumping to 20%, if you look at options pricing. steen, how likely is it that we could see a 20% drop in stock du e to the trade dispute? steen: i think it is entirely dependent on the vix. we hadinto last week, the biggest session ever in short liquidity, which has been returns,driver of short volatility. so if we pass the magic threshold in vix of 22%, we will have the liquidity of the market -- we have two events at the same time. the fact trade is unresolved, but more importantly a liquidity -- illiquidity can have the market is positioned. a correction in my opinion would come from illiquidity of the vix index. anna: and what are you expecting from

it means using institutions like the wto.not going to solve every problem, but every case that the obama administration has brought before the wto against china, every single one has been decided -- has been in our favor. if the president is simply lying when he says the wto doesn't work. we need to have a conference of strategy for china, because they are a massive threat. but just wielding tariffs like a cultural because it makes the president look tough, that only hurts american families. >> chris: all all right, let's turn to the battle now, the escalating battle between the house and the white house over the russian investigation, where it goes from here. the president is fighting all subpoenas for documents and current and former advisors to testify before congress, and the house democrats are fighting back either in one case voting in a community for contempt of congress, and others threatening to vote come here was the president's reaction to that. >> with all of this transparency, we finish no collusion, no obstructi

to anotherint country that sibley does business on wto terms.ess, why are they trying to negotiate trade deals with other countries outside the european union? the dilution under which they think is one which i would be exposed in the referendum campaign. i give them credit for proposing this. i wish she had done it a bit earlier. now is ouring us international editor. great to have you with us. there has been a resounding backlash for theresa may's proposal. is this the end of the road for deal? >> and she said she would never into anotheres election. this is her last gambit. after her proposal the backlash came and it was swift from the tories and her party and labor outside her party. what we are hearing is senior officials in the tory party said to her, you need to kill your plan to have another vote on this deal next month. the deal -- you need to step aside and make way for another leader to have a go to get exit through. -- to get brexit through. manus: he is out in front as the potential next prime minister. so would he have any better l

. >> back to the wto 2001. >> right. nobody seems to want to fight them. china thinks they are entitled to get benefit. now the president says it's not immediate yet, i'm about to in post tariffs. what happens now? >> i think you got to take him seriously and take him at his word. they are different from us, make work with me, we're ready to go to contract. they were probably protecting the president would save a little so he get his reelection strategy and narrative in place. they are also predicting he would save because they were afraid the economy what we can. they are the two tactics the chinese use for they don't understand the president. if anything, the best line the president gave me, you got to be prepared to walk away from the table. if you are not prepared to do that, your not going to work. it's the home of his 45 years success as a politician so they should get that message from him. they should not be going tactically where they are right now. >> you would think they studied him. he's putting much knowing he's going to walk at any time. the

>> in the first decade they were in the wto, we lost 5 to 6 million manufacturing jobs. the consumer suffers under that a heck of a lot more than this transition back to a free mark. >> laura: we will see what happens with inflation. all of the predictions with doom and gloom, we have to see inflation or those predictions are false. my next guest said the obsession over russia allowed china to fly under the radar. china has been doing this near criminal behavior for a while. companies want to produce stuff cheaper in asia. they don't want anyone to tinker with the way it's been. what happens if the dynamic doesn't change? what is the alternative for america? >> well, your second guest said we should not take chemotherapy when we have cancer because it can be unpleasant. it is. it has side-effects. we tried everything. in the beginning we were told if we overlooked copyright infringements, they would get rich and be westernized and it would be no problem. then we were told the deficits are not that bad for us and surpluses are not that good for them. they disagreed obviou

the wto came along, we allowed china into the wto, and they became a rocket ship. got to take a look at a chart sometime. do it, it will be very interesting. an economic chart. they are here, and they went up like a rocket ship. well, they did it with our money. and others. and they did it because they are very smart, they are good people, and i like the president a lot. he is a friend of mine. but i am representing the usa. and he is representing china. and we are not going to be taking advantage of any more. we won't pay china $500 billion a year. we need to put very heavy tarifn china, as of friday. we also put them eight months ago. when people look at the economic numbers, they were shocked. they look at the import export numbers, they were shocked. they said, "wow, how did they get to this point?" that was a very good report. they had never seen that for many years. i said, "try looking at all of the tariffs that china has been paying us for the last eight months. billions and billions of dollars." and that's only because i gave them a break. because we were

the wto came along. we allowed china into the wto, and they became a rocket ship. you've got to take a look at the chart sometime. do it. it will be very interesting, an economic chart. they are here, and they went up like a rocket ship. well, they did it with our money and others, and they did it because they are very smart and they are good people. i like the president a lot. he's a friend of-mile-per-hour, but i'm representing the usa, and he's representing china, and we're not going to be taken advantage of anymore. we're not going to pay china $500 billion a year, so we put very heavy tariffs on china as of friday, and we put them on also eight months ago, and when people looked at the economic numbers, they were shocked when they look at the import/export numbers. they were shocked. they said, wow. how did they get to this point? this was very good? that was a very good report. they had never seen that for many years. i said try looking at all of the tariffs that china has been paying us for the last eight months. billions and billions of dollars, and that's

we know the white house has disdain for the wto so that might be an impasse.hinese subsidies to key industries of the united states wants that reduce or eliminate it. that is an issue and whether the existing tariffs will remain after any trade deal is hammered out and signed and shake on between xi jinping and donald trump. we are hearing overnight donald trump nati a couple of comments on the deal that is pending. we don't have a deals yet is a good chance to have a great china trade deal. this is what he has said all along and he threw in a political jiabao joe biden, saying his position on china is naive. never a dull moment, though. rishaad: aside from what donald trump is saying, as the u.s. side of the negotiations agreed with the chinese that things are not going as smoothly as all that and there is a sense that talks are changing? stephen: sure. chief of staffng mick mulvaney come out earlier this week and say things are going ok, but we have to get to a point where if we don't get the progress we want, we have to be willing to walk away. i paraphrase

. >> the wto, it is not perfect.lot of the ip questions that have come before it, there has been movement and china and other nations have respected to of those rulings. that is a better case. i don's good to conflate trade barriers and policy with intellectual property. the two are separate issues. the wto has been more effective than people realize. i think more engagement is better than less engagement when you are trying to work through issues. one last point i will make, it is undeniable that in the last two decades, the trade we have had with china has been positive. it has been a prosperity builder for the people of our nation. yes, there are problems but when you look at the overall balance sheet, our economy has become more prosperous whether it is for consumer products we buy every day or whether it is new markets for our farmers and businesses. yes, there are problems. this relationship has been an absolute benefit for the prosperity of our nation. >> you spent some time on capitol hill. will the republica

certainly, it echoes of the comments we heard from the director—general of the wto, the effects are beingobal economy. talk to me about investor sentiment and investor confidence. hasn't been held back as a result of the spread of the trade war between the us and china? very much though. directly a lot of japanese manufacturers in china and of course getting requests of price decline or possibly sell and as you suggest, if we are to see this trade war that would take place in both countries, japan will not be a simple bystander. it will be directly hit which is why one of the reasons why corporations are withholding investment and obviously, it would eventually affect the private consumption side as well, i believe. so certainly i can see a negative loop starting to appear on this. professor seijiro takeshita, thank you. let's go to the us now, where aviation regulators have defended their response to the two boeing 737 crashes in which hundreds of people were killed. the federal aviation administration has been meeting with regulators from around the world to co—ordinate efforts to ensur

to begin with or is the wto wrong for not enforcing and policing >> well, wto, even when i was commerce, it was a dysfunctional place. and to try to get results and speed decisions was impossible i think we were too optimistic about what changes would happen in china because of the opening of china and the economic opening. and we thought there would be political changes. we were all wrong. i think it's great that china is no longer a country with 1.3 billion people basically near starvation >> right. >> that's good for the world. >> right. >> and lots of things have happened in the world that are positive because of what's happened in china, but we're dealing with a very different world 20 years later. >> just going back 19, 20 years, we thought there would be political changes, meaning when you were in the white house at that point, people thought it would be like a glass nose sort of opening the way and bringing down -- >> yeah, not that there would be some collapse because the chinese always worry about it, like the russian model of a total collapse, but there would be fundamental c

exact opposite, he is been undermining phthalates across a period it means using institutions like the wtoit is not perfect, it will not solve every problem but every place the obama ministration has brought before the pto before china, everything has been in our favor. the simply line when he said the wto does not work, we need to have a plaintiff strategy for china because they are a massive threat. but just tariffs like a culture because it makes the president look tough? that only hurts american families. >> let's turn to the battle, the escalating battle between the house and the white house over the russian investigation and where it goes from here. the president is fighting all subpoenas for documents in current and former advisers to testify before congress and the house democrats are fighting back either in one case voting, and a committee for contempt of congress and others threatening to vote. he was the president's reaction to that. >> with all the transparency we finish no collusion of obstruction. then i get out in the first thing they said, let's do it again. i said that's e

trish: well, it's not just a statement, it's multiple reports including ed from the wto. about huawei, because that's -- >> sure, i don't deny those. no, i don't deny those. trish: right. you know, look, i think as i said we can all agree that if you're going to do business with someone, it has to be based on trust. and you don't want anyone stealing your valuable information that you've spent decades working on. anyway, china passed a law in 2017 requiring tech companies to work with the military and the government, so it's not just individual companies, right, that might be getting access to this technology, it's the government itself which is an interesting nuance. but i get that china is upset that huawei's not being welcomed into the u.s. markets. i totally get it. so let me just ask you this, it's an interesting way to think about it, i think. what if we said, hey, you know, sure, huawei, come on in. but here's the deal, you must share all those incredible technological advances that you been working on. you've got to share it with us. would that be okay? >> i think

they're not going by the wto rules.hey have attacked our farmers, trying to put a wedge between america, americans farmers, red states and president trump. they have done a lot of deliberate actions, knowing they will stir the pot. on one hand reminds me the elections with the russian meddling. understanding where we have certain issues in our own country, outsiders trying to make the most of it. how much do you think americans will fall for that? >> that is the thing. americans are smart. we're, you know, we're intelligent. we know our businesses, know that frankly we can reorient the supply chain from china. we can move to neighboring countries more favorable to the supply chains of the we know that china. this is why it is so important to heed president trump and the council economic advisors and robert lighthizer and certainly larry kudlow's words, china will suffer more in the long run than the united states can. we might take a couple on the chin but we'll land a haymaker. china knows that. we have to stick this o

wto, they have not abided by this. this is a very major challenge. the president i think is correct to try to change it. you have to come in with as much strength as possible. morningformed yesterday -- monday morning by the trade representatives that they were just going to take a walk from it. i wasn't surprised. robert: they told you they were going to take a walk this week? speaker pelosi: they said the chinese were going to take a walk. who knows. robert: the new tariffs could probably go in and get installed on friday? speaker pelosi: we will see. you have to take it one day at a time. this was two days ago. i guess friday night the chinese made their decision. i only heard from the trade representative on monday morning. he knows my ongoing interest in china, trade, human rights, and security issues. votet: how far away is a on the overhaul of the north american trade agreement? speaker pelosi: the answer to your question is we are as far away as getting an enforcement agreement. whatever you want to call it. robert: the administration doesn't

in a world where china is following its wto obligations and still expanding tremendously as an economicen you have a lot of division of in america. you might have president trump still saying he wants to shut down china where others of us are a little less afraid of china. they play by the rules, we feel confident the american worker can win on a level playing deal. paul: what does president trump need to be able to take a poll on the ground and say it was all a success, all worthwhile? >> president trump is a massacre -- master of what i call the inner of success. he completely failed in trade negotiations with south korea and had tremendous theater of success and failed with all of the most important things in the north american free trade agreement renegotiation, and he again not quite as good but fairly good theater of success. heck of a lota for president trump to convince anyone he has succeeded. the reality is he just does not have the leverage that he would a way thatceed in most experts in the united states would consider a success. he threw away the tpp leverage. his bluster a

when we let them, charles, when we let them into the wto they agreed to a whole bunch of things theyave been cheating on every single day. it is not like we haven't done this before. charles: when i hear folks saying hey, let the wto take care of this, we should rope in the european allies. they're begging for the belt and -- i wanted to say belt and suspenders but the belt and road program. i don't think italy, france, other nations have the wherewithal to join this fight. you were in business. started direct electronics. viper, step away from the car. that was your voice. you understand how this works better than anyone else. one part i'm curious about, nancy pelosi is on board, chuck schumer is on board. why doesn't the american business community get on board, we're willing to sacrifice margins for a quarter or two for the greater good? to your point, forget about the markets for a moment? where is your economy going to be. our preeminence will be 10, 20, 50 years from now? >> you're exactly right. every corporation you're hearing from, particularly the large winnings, they're de