Publications

According to the Wall Street Journal, Canada and Mexico have rejected the Trump administration’s proposal to rework NAFTA’s existing corporate arbitration system. The current system, which allows multinational firms to avoid protracted and costly legal battles, would be modified to allow countries to opt out of the dispute-settlement process, though Canada and Mexico’s opposition to these changes means that the entire system could be removed from NAFTA. WSJ

The Washington Post reports that the NAFTA renegotiation process may stretch into 2019, as Canada, Mexico, and the U.S. have failed to reach agreement on the most contentious trade topics. Looming elections in Mexico and the U.S. may mean that negotiations will be dragged out until new politicians have taken office. WaPo

The Wall Street Journal reports that new tax rules are incentivizing factory owners to implement more automation and robots in their factories. The ability to fully and immediately deduct the cost of equipment purchases for the next five years has driven owners to pull forward investment that they may have otherwise put off due to the old tax structure. WSJ

Ben Leubsdorf of the Wall Street Journal writes that the recent recovery in U.S. business investment has been driven in large part by the rebound in oil prices. Firming oil prices and healthy global demand have spurred robust investment in nonresidential structures and equipment, including oil rigs and associated infrastructure. WSJ

The Wall Street Journal reports that the Trump administration’s infrastructure push aims to reduce regulations and permitting times in order to encourage spending on infrastructure projects. The infrastructure program proposed by the Trump administration will also seek the majority of its funding from non-federal sources, and fewer regulatory barriers will expand the pool of available funds, supporters say. WSJ

The Wall Street Journal reports that the Senate has confirmed Jerome Powell as the Federal Reserve Chairman. Powell, who was confirmed in an 84-13 vote, will take over in February and is expected to continue Janet Yellen’s approach of cautious and gradual rate hikes. WSJ

According to the Wall Street Journal, Treasury Secretary Mnuchin is unconcerned that eleven nations forged a Trans-Pacific Partnership (“TPP”) agreement after the U.S. withdrew from the deal. Mnuchin reiterated that the Trump administration is amenable to bilateral deals where they do not yet exist and will continue to pursue “America First” trade policy. WSJ