Senate Finance Committee Chairman Chuck Grassley held a mark-up hearing today to review the USMCA and vote the agreement out of committee.  After debate the agreement passed with a 25-3 vote.  Pat Toomey (R-PA), Sheldon Whitehouse (D-RI), and Bill Cassidy (R-LA) voted against the agreement (full hearing video below)

The USMCA is now sent to the full Senate for a vote this month; however, it is interesting to hear the reasons why Toomey, Cassidy and Whitehouse oppose it.
Senator Whitehouse (D) opposes USMCA because it doesn’t address climate change and have the provisions within it to support the Paris Climate Treaty.  Senators Toomey (R) and Cassidy oppose USMCA because it is not friendly to the Wall Street multinationals.
Senator Toomey doesn’t like that the Senate cannot change the USMCA to make it more favorable to the Wall Street multinationals who are invested heavily in China.  Toomey, speaking on behalf of several, noted the Trans-Pacific-Partnership (TPP) is a better trade construct.  Quite a remarkable mask-dropping was visible during the hearing.
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White House economic and manufacturing advisor Peter Navarro appeared on Fox News today to discuss the procedural process anticipated for the USMCA passage as early as the end of next week. Additionally, Navarro highlights the upcoming signing for the U.S-China ‘phase-one’ agreement on January 15th.

(Reuters) – A Chinese trade delegation is planning to travel to Washington on Jan. 13 for the signing of the U.S.-China Phase 1 trade deal, the South China Morning Post reported on Sunday citing a source briefed on the matter.
The Chinese delegation will return on Jan. 16, SCMP said here
The trade delegation, led by Vice Premier Liu He, had originally planned to set off earlier in the month but had to change plans after U.S. President Donald Trump sent a tweet here claiming that he would sign the Phase 1 trade deal with China on Jan. 15. (read more)

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The 2020 Davos economic conference will be a little more important to watch this year (as it was in 2017) due to the completed U.S. Trade Agreements (S Korea, Japan, Mexico, Canada, and China) and the predicted focus for the Trump administration to pivot from Asia to the EU and U.K. for the next critical phase of the ‘America-First’ global trade reset.

As a result of the recent U.K. election, pending Brexit, a favorable $7.5 billion WTO ruling and USTR Lighthizer’s new $2.4 billion EU targeted tariff program, the administration has significant advantages going into a trade discussion with the EU in 2020.
Team USA has the world’s strongest economy, the largest market, legally bolstered tariff authority and a quiver full of powerful economic arrows.
Meanwhile Team EU has: (1) the UK leaving; (2) severe drops in German industrial manufacturing; (3) a shrinking French economy; (4) yellow-vests in the streets; and (5) demands for greater economic autonomy from many key member states.
Overlay Germany, France and Italy large economy challenges such as: their promise to meet NATO obligations – and their attachment to the strangling Paris Climate Treaty, and the EU’s collective economic position is precarious at best.

WHITE HOUSE – Today, President Donald J. Trump announced the Presidential Delegation that will attend the World Economic Forum in Davos-Klosters, Switzerland, from January 20 to January 24, 2020.

The Honorable Steven Mnuchin, Secretary of the Treasury, will lead the delegation.

Members of the Presidential Delegation:

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White House Manufacturing and Trade Advisor Peter Navarro discusses the state of the U.S. economy heading into 2020. The Fox crew uses the strawman poll: “some people feel”, to create a narrative that cannot easily be countered; however, the reality in the economic stats cannot be refuted.
Main Street workers are confident; wages continue to increase; inflation is low –  employment is high, consumer spending is strong and the future looks bright.

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Peter Navarro discusses the Trump administration’s trade agenda and some predictions for the state of the Main Street U.S. economy heading into 2020.
Navarro highlights the completed agreements with South Korea, Japan, China phase-1, and the U.S., Mexico, Canada USMCA agreement and what they can deliver next year.

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It really is quite remarkable that President Trump and the economic team could simultaneously diminish the interests of multinationals, focus on Main Street USA, and still create a situation where Wall Street stocks are growing.
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As expected the House of Representatives has passed the USMCA trade agreement with an overwhelming 385 to 41 vote.  Pelosi’s political objective was to use USMCA to water down the toxic political environment created by her impeachment fiasco:

Also as expected, after passing the USMCA the House went into immediate recess for the Christmas holiday without any movement on the fraudulent impeachment articles.
In the time-frame between today and the return to the next congressional session in January, House lawyers will attempt to use the passage of the articles to support their background court cases: (1) McGahn forced deposition; (2) access to Mueller 6(e) grand jury information; and (3) possible access to Trump family financial records.
[PREDICTION for bookmark: Upon return in January Speaker Pelosi will refuse to allow impeached President Trump to deliver a State of the Union address in the House.]
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Earlier today President Trump and First Lady Melania welcomed Guatemala President Jimmy Morales and his wife to the White House.  Prior to their bilateral meeting the two leaders held a press availability in the Oval Office. [Video and Transcript Below]

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[Transcript] – PRESIDENT TRUMP: Well, thank you very much. It’s a great honor to have President Jimmy Morales and Mrs. Morales —
MRS. MORALES: Thank you.
PRESIDENT TRUMP: — of Guatemala with us. We’ve had a tremendous relationship over the last two years, on the border. We’ve signed agreements with Guatemala that have been tremendous in terms of really both countries, but our country, with respect to illegals coming into our country. We just can’t have it. And it’s been very much slowed up. Guatemala has been terrific. Honduras, El Salvador, likewise, have been excellent.
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Great interview with United States Trade Representative Robert Lighthizer as he described the goals, objectives and outcomes of the USMCA and U.S-China Phase One agreements.
While answering a question about Wall St. journal criticism of the USMCA, Lighthizer discussed the dynamic of Wall Street -vs- Main Street as part of the bigger picture objective in the revised deal. He avoids the words “globalism” -vs- “nationalism” but the sentiment as described is there.
On China Lighthizer emphasizes the “phase one” deal is really a test to see if it is even possible to have an enforceable trade agreement between a communist state-run economy (China) and a free-market economy (U.S).

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At the same time Beijing is reportedly promising internal reforms to retain access to a vital and necessary U.S. market for Chinese goods, Beijing is threatening Germany if they block Huawei technology from their 5G network China will announce German autos are unsafe for import…. Chancellor Angela Merkel is in a pickle.

According to Bloomberg analysis, German automakers sold approximately seven million cars to China in 2018.  The Chinese Ambassador to Germany said this weekend: ” “If Germany were to take a decision that leads to Huawei’s exclusion from the German market, there will be consequences. The Chinese government will not stand idly by.”

(SCMP) […] The Chinese ambassador in Berlin has stirred up a fresh controversy over the tech giant Huawei after he threatened “consequences” if it was excluded from Germany.

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National Economic Council Chairman Larry Kudlow appears on Fox News for a discussion of the status of the U.S. economy, the USMCA and the U.S-China trade agreement.
The Wall Street GOPe, positioned primarily in the senate, are preparing to punish the administration for their restructuring of global trade against the backdrop of the senate influence over impeachment.

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