Replies to post #17111 on The Rising Influence of Rising Affluence

[10nisman]

Considering NAFTA was written 25 years ago I'd think it was time to bring it into the 21st century.

I fully agree NAFTA needs to be updated. However, trying to update it and stating POTUS is doing well with trade is very different.

...Tax agreements will take years to evolve

The outcome of the TC&J Act won't take years to evolve. I've spoken with CEO's, CFO's, COO's, VP's of Tax, etc., of some of the largest companies in the U.S. (private and public) and they all say the same thing. No change in capital allocation (i.e., CapEx budgets, CapEx spending in the U.S. vs. ROW), no reorganizations (i.e., moving operations back to the U.S.) as a result of the TC&J Act, etc..

Why? No reason to move back to USA. Growth is overseas, labor is cheaper, and these companies will be able to repatriate at 0% going forward. Why move investment towards slower growth, higher labor costs, higher tax burden?

[DewDiligence]

Revised NAFTA—including Canada—will be called USMCA:

https://www.wsj.com/articles/u-s-canada-likely-to-reach-nafta-accord-sunday-announcement-is-imminent-1538360025