US trade leader REVEALS what happened with US-Canada deal

TRADE REPRESENTATIVE JAMESON. GREER. BRET? >> Bret: THANKS, CHAD. >> WE HAVE SUCH INTEGRATED. MARKETS. WE DON'T UNDERSTAND WHY THE. AMERICANS WOULD WANT CANADA TO. BE WEAKER. >> CANADA HAS TAKEN ADVANTAGE OF. US. THEY RIPPED US OFF FOR YEARS. NOW WE'RE TURNING THE TABLES. >> TRUMP HAS BEEN COMPLAINING. ABOUT THE TERRIBLE TRADE DEAL. WITH CANADA. WHO CONCLUDED THAT? TRUMP. IN HIS FIRST TERM. IT'S ONE OF HIS FEW REAL. ACCOMPLISHMENTS.

THE USMCA. >> Bret: TRADE TENSIONS. ESCALATING. BOTH NATIONS TRADING BARBS. JOINING US TONIGHT, THE SUSTRADE. REPRESENTATIVE, JAMESON GREER. THANKS SO MUCH. >> GREAT TO BE HERE. >> WE UNDERSTAND THE U.S. HAS. BEEN SAYING, YOU'VE BEEN SAYING, THE PRESIDENT HAS BEEN SAYING. THAT CANADA SHOOK HANDS AND WALK. AWAY FROM THE DEAL FOR POLITICAL. REASONS. CANADA HAS INTIMATED THAT THE. U.S. CHANGED THE TERMS AND.

WALKED AWAY. WHAT EXACTLY HAPPENED? >> HERE'S WHAT HAPPENED, BRET. THE PAST 1 1/2 YEARS THAT TRUMP. HAS IMPLEMENTED TO RESHORE AND. PROTECT AMERICAN MANUFACTURING, CANADA HAS HAD THE BEST DEAL. ANY TIME ANYTHING SATISFIED THE. RULES, IT WOULD COME IN. DUTY-FREE. THEY'VE HAD THAT. WE TOLD THEM -- THEY CAME TO US. SAID WE WANT A DEAL. IF YOU'RE INTERESTED IN A DEAL, WE CAN WORK ON THIS. I TOLD THEM WHAT WE COULD. DELIVER. I SAID WE COULD GIVE YOU THE.

BEST DEAL IN WORLD ON STEEL, ALUMINUM, AUTO. HELP YOU OUT WITH LUMBER. WE MANAGED TO MOVE THE LEVERS OF. THE GOVERNMENT TO GIVE THEM THAT. DEAL. HANDSHAKE ONE EVENING BETWEEN. THE PRESIDENT AND THE PRIME. MINISTER. THEY WENT BACK TO OTTAWA. I DON'T KNOW WHAT HAPPENED. BETWEEN THE CALL WITH THE. PRESIDENT AND OTTAWA. THEY TALKED TO PREMIERS. WE KNOW THERE WAS SOME PRESS. ABOUT THE DEAL UP THERE. WHEN THEY CAME BACK, THEY WANTED. MORE. THEY WANTED MORE TARIFF RELIEF.

IT WASN'T GOOD ENOUGH TO HAVE. THE BEST DEAL IN THE WORLD. THEY WANT IT EVEN BETTER. THAT KIND OF THING. THESE ARE THINGS WE COME. ACCOMMODATE. >> Bret: WHEN THEY SAY LUTNICK. STEPPED IN AND EVERYBODIRY THING. GOT SCREWED UP, THAT'S NOT TRUE? >> THAT'S NOT TRUE. I'VE BEEN WORKING WITH THE. SECRETARY. >> Bret: HERE'S THE PRIME. MINISTER OF CANADA. LET'S TAKE A LISTEN. >> THERE'S FEW ISSUES THAT THE. UNITED STATES WAS ARGUING RIGHT. UP UNTIL THE LAST HOUR. RED LINES WEREN'T GOING TO. CHANGE. BOOM. IT'S IN THERE. IT'S OUR WAY OR THE HIGHWAY.

TAKE IT OR LEAVE IT ATTITUDE. NOW THEY'RE NOT. >> Bret: YOU'RE SAYING THAT'S. DISINGENUOUS. >> HE SAID THINGS WERE RED. LINES. THAT'S NOT A WORD I USED. THAT'S A WORD THEY USE. THEY USE WORDS LIKE RED LINE. THEY USE WORDS LIKE. NONNEGOTIABLE. WE WERE THERE FOR A DEAL. WE GAVE THEM THE BEST DEAL IN. THE WORLD. DID IT GIVE THEM EVERYTHING? NO. DID WE GET EVERYTHING WE WANTED? NO. >> Bret: DO YOU BELIEVE THE. CANADIANS WERE NEGOTIATING IN. GOOD FAITH?

>> I THINK SO. I HAD CONVERSATIONS WITH DOMINIC. LE BLANC. WE GOT TO A POINT WHERE WE HAD A. CALL AND THIS IS THE DEAL WE. WANT TO MOVE FORWARD. I DON'T KNOW WHO HAPPENED IN. OTTAWA OR QUEBEC. >> Bret: WHEN IS THE LAST TIME. YOU TALKED WITH THEM? >> I'VE HAD SOME TEXTS AND. OUTREACH. BUT WE HAVEN'T HAD NEGOTIATIONS. >> Bret: YOU SPENT A LOT OF TIME. TRYING TO GET THIS DEAL GIVEN.

EVERYTHING THAT TRANSPIRED, WHAT. WOULD IT TAKE FOR THE U.S. TO. SIT BACK DOWN WITH CANADA AND. WORK ON A DEAL IN THIS. ENVIRONMENT? >> WELL, REMEMBER, WHEN CANADA. BACKED AWAY, THEIR LEADERSHIP. WENT ON TV THE NEXT DAY AND SAID. WE'RE SUSPENDING NEGOTIATIONS. WE'VE BEEN ATTACKED, ET CETERA. THIS IS A COUNTRY THAT SENDS. THEIR GOODS DUTY-FREE TO THE. UNITED STATES. THEY'RE THE ONLY ONE BESIDES. CHINA THAT HAS RETALIATED. >> Bret: IS THE RETALIATION.

PAINFUL? A LOT OF STATES THAT INVOLVED. THE MID-TERMS WHERE THEY COULD. HAVE AN EFFECT. >> CANADA HAS BEEN RETALIATING. AGAINST US SINCE LAST YEAR. THEY BANNED THE SALE OF AMERICAN. LIQUOR. THEY EXCLUDED AMERICAN COMPANIES. FROM PROCUREMENT. SINCE BEFORE THE SECONDS TRUMP. TERM, THEY LIMITED OUR ABILITY. TO SELL DAIRY IN TO CANADA AND. THEY'RE IMPORTING THINGS FROM. CHINA AND TRYING TO GET THEM. DUTY-FREE ACROSS OUR BORDER. SO DO WE WANT THESE FIXED? YES. DO WE THINK HOUR DAIRY FARMERS. SHOULD HAVE A FAIR SHOT IN.

CANADA, WE DO. >> Bret: COULD YOU FORESEE. GETTING BACK TO THE TABLE? >> YEAH. THEY SAID THEY'RE SUSPENDING. TALKS. IT'S NOT SOMETHING I ANNOUNCED. >> Bret: THINGS ARE GOING BETTER. WITH MEXICO. WHAT HAS MEXICO DONE DIFFERENTLY. AND WHERE ARE YOU WITH THE. MEXICAN ADMINISTRATION? >> I MET WITH THE MEXICAN TRADE. IN ADMINISTER THIS AFTERNOON. WE HAVE FREQUENT CONVERSATIONS. AT THE HIGHEST LEVELS. THE PAST YEAR, WE HAVE GIVEN THE.

MEXICAN OFFICIALS MANY THINGS. WE'D LIKE THEM TO CHANGE IN. THEIR TRADE RELATIONSHIP WITH. US. THEY'VE BEEN RESPONSIVE. WE HAVE ISSUES ON INTELLECTUAL. PROPERTY. WE HAVE ISSUES WITH SECURITY. IT'S NOT SPECIFICALLY TRADE, BUT. THEY HAVE BEEN RESPONSIVE. THEY ARE EAGER TO DO THINGS TO. PROTECT NORTH AMERICA FROM. CHINESE IMPORTS. THEY HAVE RAISED TARIFFS ON CHIN. AND VIETMAN. >> Bret: BACK TO CANADA. 19 STATES HAVE CANADA AS THE.

LARGEST IMPORT AND EXPORT MARKET. IS. THERE PRESSURE FROM THOSE. GOVERNORS AND REPRESENTATIVES OF. THOSE STATES THAT PUTTING ON YOU. AND THE ADMINISTRATION. POLITICALLY? WE'RE UP AGAINST THE MID-TERMS. HERE. SOME OF THOSE STATES ARE CRUCIAL. TO REPUBLICANS. >> SO THE NUMBER 1 TRADING. PARTNER OF THE UNITED STATES IS. THE UNITED STATES. MOST OF OUR TRADE AND COMMERCE. ACTIVITY HAPPENS WITHIN OUR. BORDERS. THEN WE HAVE CANADA, MEXICO, CHINA AND OTHERS. I'VE HAD A LOT OF CONVERSATIONS. WITH MEMBERS OF CONGRESS, BOTH. SIDES OF THE AISLE, ABOUT THIS.

ISSUE. I HAVE TALKED TO THEM ABOUT THE. CANADIAN REACTION. MANY OF THEM, AGAIN ON BOTH. SIDES HAVE SAID HOW CAN WE HELP. THE CANADIANS GET BACK TO THE. TABLE? I SAID YOU HAVE TO HELP THEM. UNDERSTAND THEY HAD THE BEST. DEAL ON OFFER AND THAT'S THE WAY. FORWARD. THEY NEED TO GET POINTS ON THE. BOARD. >> Bret: THE U.S. TRADE GAP. BALLOONED IN JULY. THE TRADE DEFICIT OF GOODS AND. SERVICES TRUE TO THE BIGGEST GAP. AS AMERICA IMPORTED MORE. ELECTRONICS. THE MONTHLY TRADE DEFICIT HIT.

88.6 BILLION AND AN INCREASE OF. 24% COMPARED TO JUNE. BY ALL ACCOUNTS, YOU KNOW, THE. TREASURY SECRETARY HAS TALKED. ABOUT A BOOMING ECONOMY. IF IT WASN'T FOR THE IRAN WAR. THAT PERHAPS IT WOULD REALLY BE. TAKING OFF. IS THIS HINDERING THE ECONOMY IN. SOME WAY, THIS BATTLE, THE TRADE. GAP, THE TARIFFS? >> NO. LET ME PUT THAT IN CONTEXT. IF YOU LOOK AT THE TRADE DEFICIT. FROM JANUARY TO JULY OF THIS. YEAR AND YOU COMPARE IT TO THE. SAME PERIOD LAST YEAR, THE TRADE.

DEFICIT IN GOODS HAAS GONE DOWN. BY 20%. DID IT GO UP MONTH ON MONTH? YES. BUT CAME IN UNDER EXPECTATIONS. THE GOODS YOU'RE TALKING ABOUT, THE CHIPS, THE COMPUTERS, THESE. ARE THINGS FUELLING PRODUCTIVITY. AND FUELLING AUTOMATION AND. FUELLING MORE FACTORIES. SO THE COMPOSITION OF OUR. IMPARTS, IT'S GONE AWAY FROM. FINISHED ITEMS AND MOVING TO. CAPITAL GOODS, WHICH INCLUDES. COMPUTER AND CHIPS. THE KIND OF STUFF YOU PUT THE IN. ADVANCED MANUFACTURING. >> Bret: SINCE THE SUPREME COURT. RULE, YOU'VE HAD TO CHANGE THE.

WAY YOU DO TARIFFS. IT'S A LONGER PROCESS. SHOULD WE SEE MORE OF THIS DOWN. THE ROAD WITH DIFFERENT. COUNTRIES? >> THE THING TO REMEMBER IS. PRESIDENT TRUMP IS COMMITTED TO. TRADE ENFORCEMENT. SO WITH THE SUPREME COURT RULING. BEFORE THAT, WE HAD THE IEPA. LAW. THE PRESIDENT COULD ADDRESS ALL. UNFAIR TRADING PRACTICES IN ONE. FAIL SWOOP. NOW HE CAN'T DO THAT. SO WE'RE GOING COUNTRY BY. COUNTRY, PRACTICE BY TRACK TIS. USING OTHER TOOLS TO INVESTIGATE. THESE UNFAIR PRACTICES, TAKE. ACTIONS IF WE NEED TO. THAT IS PART OF HIS TOOL BOX.

IT'S PART OF HIS REPERTOIRE TO. LEVEL THE AMERICAN PLAYING. FIELD. >> Bret: WE'RE THREE WEEKS FROM. PRESIDENT CHI COMING TO D.C. THERE'S A LOT OF TARIFFS WITH. CHINA. IF YOU LOOK AT THE U.S. GOODS. TRADE WITH CHINA LAST YEAR, IT'S. SIGNIFICANT, IN THE HUNDREDS OF. BILLIONS OF DOLLARS. THERE'S A TRADE DEFICIT OF CHINA.

WITH 207 BILLION. A DECREASE OF 2024. IF YOU LOOK AT THIS MEETING AND. CONSIDERING WHERE WE WERE IN. BEIJING, WHAT DO YOU EXPECT FROM. THIS AND HOW MUCH CAN WE GET. DONE IN THIS MEETING HERE BY. PRESIDENT XI? >> REMEMBER, WE'RE NOT LOOKING. FOR A GIANT COMPREHENSIVE TRADE. AGREEMENT WITH CHINA. WE'RE LOOKING TO MANAGE THIS. RELATIONSHIP. PART OF THIS IS GETTING THE. DEFICIT DOWN. THE DEFICIT HASN'T BEEN THIS LOW. WITH CHINA FOR MANY YEARS.

THEY'RE NO LONGER THE LARGEST. DEFICIT, IN FACT. SO WHEN PRESIDENT XI COMES, WE. EXPECT THAT WE WILL PROBABLY. HAVE MORE ANNOUNCEMENTS ON. AGRICULTURE AND NONTARIFF. BARRIERS RELATED TO AAGRICULTUR. WE EXPECT WE'LL HAVE. DELIVERABLES ON THE BOARD OF. TRADE. WE'RE GETTING TOGETHER --. >> Bret: THAT'S BASICALLY. LOOKING AT DIFFERENT PRODUCTS. THAT CAN GO DOWN TO ZERO. >> IT'S LOCKING AT DIFFERENT. PRODUCTS.

IN THE FUTURE IF WE TAKE TRADE. MEASURES, THESE ARE AREAS TO. LEAVE ALONE. MAYBE WE DON'T HAVE A LOT OF. U.S. PRODUCTION AND DON'T FEEL. STRONGLY ABOUT IT. MIGHT BE TOYS AND GAMES OR. FIREWORKS. THAT KIND OF THING. IT'S NOT SENSITIVE. WE NEED TO FIND AN AREA WHERE WE. CAN TRADE WITH CHINA IN A. BALANCED WAY THAT DOESN'T. THREATENING OUR ECONOMY. >> Bret: YOU'RE OPTIMISTIC? >> I AM. THE CHINESE VERY MUCH WANT TO. HAVE A STABLE RELATIONSHIP. THAT'S THE WORD THEY USE. STABILITY. WE'RE IN FAVOR OF THAT AS WELL. AT THE SAME TIME, WE'RE. PROTECTING OUR NATIONAL. SECURITY.

WE CONTROL OUR EXPORTS TO MAKE. SURE THEY DON'T HAVE THE HIGHEST. TECH STU.