bother doing tpp? what is the point? we have these rules and standards ingrained in the region and that is a huge benefit. there are massive commercial gains in new zealand from the tariff and the market exodus but down the line the greater economic gain is removing barriers and having clear, consistent standards in the region. for new zealand, i don't want to reject the premise of this event but i want to say new zealand's approach, the reaction, if you like, is not just the us and china but a whole bunch of things we see coming down at us in the world and it is related to the common nature of the economy, massive distance from everywhere, very small scale. i enjoy comparing 500 employees, in new zealand, less than 10. we really don't have -- we have a couple, 2 or 3 or 4 that you could pull major size businesses but the whole economy -- we have a series of things to talk about in a second that we are doing, not just because the us and china are having a scrap but because of the nature of our economy

say why bother doing tpp 11? what is the point? this is the point. we have the rules and standards ingrained in the region. that's a huge benefit. and of course there are massive commercial gains for new zealand. but down the line, the greater economic gain for new zealand comes from removing barriers and having clear consistent standards in the region. you know, for new zealand, i guess i don't want to reject the premise of this event, but i just want to say that new zealand's approach, the reaction, if you like, it's not just going to be to the u.s. and china. it's too a bunch of things we see coming down at us in the world. and it's related back to the nature of our economy. massive distance from everywhere. a small scale. otherwise enjoy comparing what it means to be the u.s. -- less than 500 employees, i think, and new zealand i think we define it as 50 or less than 10. we have a couple of businesses you could call, you know, major sized businesses but the whole economy is -- and so we're not -- we have a se

doing tpp 11? what is the point? the biggest economy -- this is the point. now that we have rules and standards ingrained in the region, that is a huge benefit. massive commercial games in new zealand, and down the line, the greater economic gain comes from barriers, having clear consistent standards in the region. i didn't want to reject the premise of this event, but new zealand's approach, the reaction is not just to the us and china but a whole bunch of things that are coming down at us in the world and related to the nature of our economy. very small scale. i enjoyed comparing 500 employees in new zealand, we define that as less than 10. we have a couple, 2 or 3 or 4 businesses you could call a major size but the whole economy, so we have a series of things we will talk about that we are doing, not just because the us and china -- because of the nature of our economy and i mentioned the us and china but we see restrictiveness, trade restrictiveness across the world. increasing disruption, comi

so korea is seriously looking at joining tpp. there are some political issues but they are watching very closely nobody wants their country at a competitive disadvantage. who will be the biggest beneficiary? frankly i think vietnam and malaysia that are well positioned to geographicall geographically, lower wage rates, improve infrastructure and high standard standards, comprehensive policies and rule of law and they could have a high level of predictability in those markets and most importantly they are opening their markets for their own competitive reasons when the us and korea first negotiated many people asked why does korea want to do this? they had to make significant changes at rewrite a lot of their lies and open things up and had to fertilize the playing field trip i will steal your line. why? because they live in a tough neighborhood and they knew for their future competitiveness they needed to open up and that liberalization was the best way so countries like vietnam and malaysia are following the same path from my pe

is it through a vehicle like tpp? is it through some new pluri-lateral initiative that we've yet to formally hear about? and how can their countries play a role in trying to resolve this, or is that participation not welcomed by the trump administration? >> was that for any particular panelist or whoever wants to bite? okay. [laughter] anybody want to -- >> sure, i'm happy to jump in. i think the economies today, the wto rules really haven't changed significantly, but the world has. so i think definitely we need to see updates to the wto rules regarding not just china's system, but all systems. the tpp was originally envisioned as a way, again, a race to the top. and initially, you may recall that the chinese were very critical of tpp. they thought it would be, it was designed to contain them. but when japan joined the negotiations and countries continued outreach to the chinese that, no, we want to brief you on this, we want you to be aware of it, and we want you to join, we want you to, again, race to the top, they

well for well ends those remaining in the tpp. they rebranded and we will see how quickly canadian exporters jump on this. they have been a little slower than their counterparts in the past. some of those exporters, we know that it is all about the auto traders. it has been a little bit controversial. how do they feel about the deal? josh: there were two big trade deals. whichs a nafta deal, sucked up a lot of bandwidth. and one was the tpp, under the radar. workersafta deal, auto pretty happy. it will help the sector. on the tpp side, the opposite direction. they were upset witht -- with that. that is not insignificant when you have parties that rely on centerleft support, being angry with something. they are cautious about how this will work out. , when itular, vietnam comes to cheaper auto parts making their way into canada and displacing some of the sector here, but vietnam has not ratified tpp yet, for now, the fears will be reduced. taylor: we know the u.s. has pulled out. how did we get from that moment to where we are now

that wanted to have a kind of both ways, thinking back to the 0bama administration, wanted to be in tpp but also wanted to have very close relationships with china, that kind of flexible friends with everybody approach is increasingly less possible in a world in which kind of china sees the rest of asia very much as it's kind of economic hinterland —— china. very much not america's, and the united states kind of somewhat confused about how it wants to play out its asia strategy. now to tokyo, where former nissan chairman carlos ghosn has been indicted by prosecutors for underwriting his compensation. carlos ghosn has also been rea rrested carlos ghosn has also been rearrested and is likely to be detained until at least the end of the year. he has denied all charges. 0ur analyst told us earlier what the cases highlighting. what this whole incident has brought to the fore is really very inadequate corporate governance measures at nissan. and so the first thing for the three independent direct this is to select a new chairman. but after that, the keyissueis a new chairman. but after th

increasingly recognizing these technology changes with that fta negotiation then given momentum with tpp alone they would have supported but not without us backup but because of this result they may have lost those abilities that opporte trade with the us. and with that position we are talking about. . >>. >> maybe lee i - - maybe i can add how they try to navigate this environment and to make the strategic choices. and the south koreans don't want to be pressured. and that better strategy where south korea is soft. but also another factor that determines long-term is who is shaping international order? with this direct competition but what the south koreans are saying that to be more of power based hierarchy and to know what that feels like and looks like historically so as this competition emerges that south koreans will look hard and also traditionally they have gone with living successfully. . >>. >> we just have a question. . >> and there are two dynamics , i guess there are three for which our allies and the natural evolution of that. the second is the united states going to our al

they were not part of tpp. >> yeah, i know, that was the point. we were getting together with our allies, these other countries who were similarly victimized and using that to pressure china and we pulled out of that deal. >> my point is this, we have had these tariffs now for many months now on china, and it's hurting their economy. >> and ours, too. >> this is the untold story. china's production has been cut significantly this year, and their stock market is down 20%. trump is using the club of tariffs to get beijing to behave, and my problem with what you are saying is this approach has not worked well. we have to start using the other tools to get china to behave because we can't go on with them stealing -- >> the issue is that we are punishing china and also punishing our own companies and our own consumers. if you look at the kinds of things we put tariffs on, it's largely products that american firms that rely on global supply chains purchase, and not to mention farmers and manufacturers that are suffering. soybean farmers, china was the b

ironically most of it taken from the tpp agreement the president pulled o out of. then there were a few things we call poison pills that were unacceptable to canada mexico. most of them t have been compromised. on the whole i think people have positive feelings about it. >> host: would you say that everybody one in the negotiations, bill mauldin? >> no,on not everyone. and trade negotiation, first of all, as bill point out there's some issues left to be resolved including this deal and aluminum tariffs on canada and mexico. guiding the steelworkers union wants steel tariffs on candidate. the business communityee and get rid of that. that's a problem. there were big compromises. canada had to keep a dispute resolution system called chapter 19 that u.s. trade representatives ambassador lighthizer, wanted to get rid of turkey wanted to kill that thing. he had butted up against it as a trade lawyer for years and that was a major priority. they had to let canada keep that. next he tried to make deep compromises that could affect whether manufacturing once to locate ther

agreements is tpp or what you said about over tpp is not a japanese position. said about market access as well, u.s. would like to have more cars manufactured in the u.s. in that agreement on september as well. stephen: we are hearing the u.s. might push for a provision in any new agreement on currency devaluation. there are allegations japan has been at times a currency manipulator. is that possible? >> i don't think so because i had not heard japan has been a currency manipulator. we have been relaxing interest rates, but that is following the steps of qe. up to qe4. the interest rate is going up now. japan has not followed yet, but i have never heard japan called them currency manipulator. stephen: there is an allegation. >> even china has not been -- stephen: they haven't been labeled, so maybe -- i will give you that much. let's talk geopolitics. i came back from the apec summit , and there was sensitivity about the chinese delegation what they perceived to be ganging up on what is called the quad, the united states, japan, australia and india. do you see

china could also participate in tpp as well. it has already agreed on the higher level of the service of the trade. so china could be part of tpp. we could look into that as well. tom: is there any sense you are getting from the government that they are willing to enact further measures and policies to open up other sectors of the economy? >> that is quite obvious. this years the 40 years anniversary of opening up. 40 years ago, allowing special economic zones, allowing foreigners and multinationals to come in. president xi express that at the forum. now we are at another cycle of 40 years, starting at much higher levels of opening up. anotherwe are having opening up celebration this month. havexpecting that we will a much higher of opening up again, sending a signal to the world. china is still welcome to investment. china still wants to facilitate the free trade as well. that has become already a party line, become a new consensus in china. so these next 40 years, we should expect much more open, higher level of opening up of

tonight marks the beginning of the new nafta, sorry, the new tpp redrafted. get europe-japan coming to fruition in february. perhaps we are missing some of the other building blocks of growth story 2019. are we? >> i think so. politically we have seen many governments change. xi are like trump and currently in discussions rate up to march 1. those discussions will be stepped up from january 7 when the team from america drops to beijing. as we saw over the weekend with the telephone call trump and xi had a, what we have to realize is tpp is starting today. companies european are going to be at a disadvantage. when the european-japan trade villas of lamented, american companies are going to be at a disadvantage. both trump and xi need to get this deal done. these other trade deals are like sticks have to overcome. over,.they have to to overcome. manus: i want you to reflect on this chart. 1929, down 45% in two months. sessions. i do not think we can call any of this good volatility. is this a refresher in our minds that volatility is a press and issue 2019? >>

but with this crisis were colombia, peru, brazil and my concern from the tpp perspectivehe is to manage that migrationgr crisis working on counter narcotics issues and increased cocaine production and in columbia we still need to work on attacking that. so that is a concern from our mission perspective but the state department is working with the colombian government. >> it is incredible with the importance of the drug trade it's not the heart of but and in the transit routes it is a separate conversation about fascinating to hear and very much appreciated. >> there was a press conference in may 2017 with secretary tiller's and in both acknowledged us drug demand was creating incredible challenges and to take ownership of that. that extends to central america that the legal framework creates a draw those thatec affect that we have to confront that. >> one of the things that i pointed to a very effective public relations campaign with the diamond trade with the blood diamonds and how people participate in illegal trade it is chaos they are but i cannot figure out why we cannot do the sam

my concern from the tpp perspective is the ability of partners to manage that migration crisis and still work on counter narcotics issues we have seen an increase in cocaine production and extending down through ecuador not only for us found cocaine but with australia and new zealand. but the department is working with the colombian government in particular. >> it's incredible the importance with the drug trade and so many other different ways. and to these issues of central america it is a whole separate conversation we very much appreciate it. >> and with that press conference may 2017 was secretary kelly and with demand with the incredible challenge of violence in mexico to take ownership of that issue on the cocaine flows and i would add one there that legal framework also creates profits for those that affect the whole region. so we have to confront that as we make public policy. >> one of the things i pointed to that with the public relations campaign in relation to the diamond trade and how they participated in illegal trade are participating in chaos in countries where diamond ar

what would -- in an alternate universe if we had passed tpp here, if we had moved to t continue with europe, if we had gone back and investigated a bilateral investment agreement with china, we would be having a very different discussion. i think thek constituencies in china for getting back on the path of reform and opening and growth and sustainable growth would have had some backing. so when i think about it, it is not xi versus structural. it is -- i think the largest i would say reason we are seeing this is because we have dropped a winning hand that would have put us in a really much better position to leif ran some reasonable change in china. i don't see china's mercantilism as inevitable. i lived through this with japan and korea and taiwan. chris, i will say now if we ask countries to choose -- except in the high-tech sector. the combination of'd that, mercantilism, ipr evident this, plus our investment investment protection which is go well beyond what you sigh in print to include lighthizer calling b ceos and things like that, what the japanese used to call administrative

led tpp. we spoke with the new zealand prime minister in singapore. >> we are a trading nation. we are geographically isolated, linked to the world through our trading ties. for us, maintaining that is incredibly important. that does not mean we don't have a job to do domestically as well. opec nations have been discussing for a couple of years how to have greater inclusion. how do we ensure more more people benefit from trade? we have seen some corners in the world a push back from people who don't see those benefits. see the cost of globalization. we are trying to rebuild that mandate and if we follow trade rules and take upon ourselves the responsibility to see everyone's well-being. that is a recipe for success. >> did you manage to convince the u.s. to make an exception to steel? >> i am such a broken record on this. i use every opportunity i have to raise it. yes, i did raise it. it was a conversation. >> it has been stalled, countries like china and singapore wanted to push through by the end of the year. that is not likely to be. what caused the stall? >> we are looking

we saw that tpp christy without the united states. we saw malaysian and mildest and sri lanka, extend to a degree which back on aspects of china's long-term strategy of developing influence their investment. this was done at the united states instigation. this wasn't foreign players. other nations, their interests are constraining us so we don't have blocks. what do i suggest is that of a cold war? iy say we stick with u.s.-china relations. [laughing] perfectly served -- >> is not a very good headline. >> but it admits and complexity, it's balis, seems me that it is still a very useful phrase and it doesn't tie' into any framework. the last part of the question was are we heading there. could we get there? there's some worrisome signs coming from both capitals, one of which we saw just last week when the american administration announced a new africa policy. instead of frame it in terms of american inches these of the african nations or the needs of africa, it was phrased in terms of countering china in africa. i think this is first b

trump elevated it to an art form, but, you know, pulling us out of the tpp and the paris climate agreement and the jcpoa, again, some of the obama administration totally oversold that to our peril and loss by pretending it was more than what it was. they let us know 72 hours before and that was done. the saudis weren't asking. they were telling us. for someone of my generation, that was unthinkable. the saudis would be in that kind of position. i think as you say quite rightly, that may not be where they wanted to be but it's where they are. then the irony of us not having been there at the creation they're saying it's not going well. you need to pull out. that's also a reality, if you look at the senate vote yet or the day before. the turks and the kurds i was very much involved in the run up to the march 2003 as deputy secretary covering the gulf with the effort to make our efforts in iraq a successful as they could possibly be. one key element in that was having a northern front to bring me fourth division down through turkey and into northern iraq. that didn't happen thanks to the turk

tpp. the consensus around things like free trade. it did not fully address the fact that although net-net, the whole world was doing better because of globalization and the internet and global supply chains, there were folks whose factories were being closed and suddenly found themselves to be redundant workers. you suddenly had a winner take all economy, where back in the 1960's, the ceo may be made 10 times more than the guy on the assembly-line, and now it is 200 times or 300 times. and the capacity of nationstates to regulate global capital so that at least they have some control where they say, let's speed things up, slow things down, let's ease the transition for communities that are being hurt by, whether it is automation or foreign competition, that becomes harder to do because everybody is worried about what their quarterly reports will look like on wall street. now that creates frustrations and contradictions. we -- i thinkhat a legitimate critique of that consensus, you know, i consider myself to be a part of and still bel

ironically, most of it taken from the tpp agreement. there were a few what we call poison pills that were unacceptable to canada and mexico. most have been compromised. on the whole, people have positive feelings. host: would you say that everyone won? guest: not everyone won. as bill points out there are issues to be resolved, including and aluminum tariffs on canada and mexico. not even the steelworkers union wants steel tariffs on canada. that is a problem. there were big compromises. disputeot to keep and resolution system called chapter 19 that u.s. trade representative's wanted to get rid of. he wanted to kill that thing. yet butted up against it as a ande lawyer for years they had to let canada keep that. mexico had to make deep compromises of where manufacturing could locate.they had the laborn to hire requirements, etc. car had to behe made by workers who makes $16 an hour? guest: that is correct. we are hearing from the auto industry it is workable. it depends on the supplier. their r&dr in some of and high wage work. it is no

this closure isn't going tpp until tonight but it's going to have an impact on people traveling between d.c. and virgini over the weekend. take a look at the specifics here. memorial bridge, it wil completely shutdown starting at 9:00 toght. will remain closed, so completely closed until 5:00 a.m. on mony morning. so the entire weekend. crews are going to be installing temporary support structures underneath the mide arch. they're going to remove steel from the center span. it's part of an overall of the bridge. the work won't bticompleted un 2021. so this bridge in need of a major overhaul. it's in the process of happening but there's going to be some inconvenience. the bridge s completelytdown for the entirety of the weekend, so people are going to have to find a work around. back to you. >> thanks for that info. it's going to be -- >> i don't go anywhere near that place. >> it's going to be a problem. >> it cause a lot of traffic back ups. >> there's many ways to get across the river and through ths wood to grandma's house. m >> that was preferred way. but not anymore. >> all right.

last time i checked, cato's for open borders, more trade deals than the tpp. >> we are for trade and i agree with everything the other guests mentioned aboutpp capitalism. i am all for opportunity everywhere the country, equal treatment. these zones only touch about one quarter of low income neighborhoods in america, so three quarters of the neighborhoods left out are going to be losers because the investments are going to go to the winning zones. trump's new counsel that he announced is going to put more spending subsidies just in the zones, leaving out the other areas. i like equal treatment especially at the federal level, not special deals for special groups of people. >> laura: do you think donald trump concocted this whole thing? >> no, no, no, it's a very well-meaning thing. >> laura: you are not part of that crowd. >> mr. kushner sounds like he does own a lot of the land in the opportunity zones. they have all experienced capital appreciation for doing nothing. >> laura: i don't think it's doing nothing. you are taking a risk. pastor, you are taking a risk by putting investme

you could go back into tpp which is 11 countries around china. you could look at economic espionage. if they are stealing stuff, have the ftc go after them. liz: he is. in fact, they have arrested, they have lured people to amsterdam and arrested 12 chinese nationals. then you see the arrest of huawei. we have to run. thank you so much. >> congratulations. i love all the success. fantastic. liz: the show is, what, you said it. >> number one. number one. liz: number one show. market afternoon, most important hour of trade. we owe it all to you guys and robert. thank you so much. all of our great guests. closing bell ringing in eight minutes. up next, it's a race to the finish for 2018. our "countdown" closer on whether that much-awaited santa claus rally is around the corner or stuck in the chimney. we're coming right back. ...i just got my ancestrydna results: 74% italian. ...and i found out that i'm from the big toe of that sexy italian boot! so this holiday season it's ancestrydna per tutti! order your kit now at ancestry.com . . at fidelity, o

starting off with tpp, where he undermined 11 -- 10 other nations and signing an economic agreement that would have, in fact, been in our overall interest, starting there and just systematically going after criticizing publicly our nato allies. and they should have been criticized, but in the way you demean them. >> questioning their commitment to nato, as well. >> and questioning their integrity and undermine nato. putin was in favor of brexit. now we have a chaotic, disorderly world. now that's going to come back to continental united states, thinking we're safe. i think that's a big mistake. we're in more danger now than before. >> there has been this debate through the trump administration for senior advisers in this position, who believe he's damaging the country. do they resign or do they stay? clearly mattis reached his breaking point, and went through his breaking point. in your view, should other senior defense officials resign? >> every person who serves in a presidential cabinet, serves at the pleasure of the president. if it comes to the point where you no lock elonger feel t

he walks away from the tpp, gets nothing. he puts three quarters of it in the deal with canada, by the way, and mexico. walks away from the climate change deal, notwithstanding all the evidence that is there. walks away from the iran deal without negotiating a way to bring our allies on board and create a unity of effort to get a follow-on agreement. and now walks away from syria. so this is the great walk away presidency, you know, and i think people are going to notice it. >> on an important night, our thanks to john kerry for calling in and reaching us by telephone. mr. secretary, thank you so much for being on the air with us tonight in reaction to today's news. >>> our next guest responded in real-time on twitter, and one got our attention. after word of mattis' resignation, tom nichols had this caution. our national security is in danger. i do not say this lightly. >>> we know him well enough to confirm that he doesn't say this lightly, and with us tonight is tom nichols, a professor of national security affairs, a spec

your party supported tpp. george bush sr. brought about nafta and now you have a president who's not a free trader at all and nobody seems to chal tlaeng in your party. your thoughts? >> i push back. we do challenge it. you see a lot of people challenge it. you've heard a lot of criticism for this essential -- essentially a bailout of industries who are being damaged by the president's trade policy. so there's been a lot of that out there. of all the issues where you have seen push back against the president, i think you've seen more push back on the tariffs issue than anything else. the siecond issue, chris, national security, i and some others were very critical of his conduct at nato and equivilizing putin's levels. those are the two issues where i think the president has really up ended what i would call your father's republican party or my father's republican party. and we are struggling, to be clear, how to wrestle with that, how to get beyond that, how to be clear the kind of party we are or we're going to lose those k

and more of this there is no pushback that is significant enough in the alternate universe if we had tpp here and go back to the treasur treasury, we would be having a fairly different discussion and for china getting back on the path of sustainable growth to have some backing. when i think about it it isn't structural but the largest is because we have dropped a winning hand to put us in a better position to reach that reasonable change in china. i don't think it is inevitable but to say that if we are asked to choose they will choose except in the high tech sector the combination with japanese companies plus the investment protections which go well beyond things like that but all of these have an impact out in hong kong to banker types they will not touch ideal and the high tax and that is new and it's almost universal as far as i can tell. so on those sectors but if it is a strategic section nobody will sign on to that strategy beyond the high tech we are dealing with china forces countries to choose i don't think china will like the answer is like to say we have much less leverage in

as you know, i was a supporter of tpp. i think it should be brought back on the table. no one can tell me china slowing or china markets down is good for the global economy. i'm a little confused on that. our market is down 12% since this all began. we're down for the year. so it hasn't been good for us as well. i'd also like to hear your views of a strong dollar. considering we're very low on exports, manufacturing slowing, that can't be too good for us as well. i know the president tweeted about success of the strong dollar. so i would love to hear your views on that. >> really what i'm saying is if you go back to our estimate from last year, let's just say, i will pick a number, china, if they are stealing 500 billion dollars a year in ip from the u.s., that's a heck of a lot of benefit we can have; right, from getting a new deal with china. for sure, there's been turmoil in china, especially because of our, you know, desire to change the game. and that turmoil has been bad for their markets, but it's it's showing them that president trump is really serious. if we mo

this was one of the biggest concerns that i had around tpp trade deal. it was being negotiated and being brought to congress in the previous administration. it did not take into account the impact on our domestic jobs, our american workers or the impact on our environment. it actually had provisions that would undermine the sovereignty of our government. in our ability to make decisions and enforce the laws of our own country. ... and as we deal with countries like china and others, we have to recognize there are consequences to ratcheting up tensions in taken adversarial positions that could lead down a path towards another military conflict. we have to be careful in how we are building relationships and how we deal with the challenges that exist with china and the region as a whole. >> i'm going to take seven more names appeared on the back, what's your name? can i believe. tom. yes, what's your name? >> liam >> what's your name? [inaudible] >> all right, dan. i'll get to you if there's time. we're going to and at a quarter to 5:00 here go ahead. what'

president trump has elevated it to an artform, pulling us out of the tpp, the paris climate agreement, the jcpoa, which -- again -- the obama administration oversold that. by pretending it was more than what it was, and what it was was a reasonably good arms agreement, not a treaty of peace and friendship. so what are the consequences going down the line? saudi arabia -- they took a look around and said we are on our own, so we are going to go -- they let us know 72 hours before , to lloyd austin at central command. the saudi's weren't asking, they were telling us. you have neighbors we'd like to have but if you don't want to, go in any way. for someone in my generation it was unthinkable that the saudi's it ever be in that kind of position. as you say, that may not be where they wanted it to be but it is where they are and the irony of us it saying it's not going well and you need to pull out, that's also a reality if you look at the senate vote the day before. a couple of other quick things. the turks in the kurds -- i was very much involved, i was very much involved with the effort

this was one of the biggest concerns that i had around the tpp trade deal that was being negotiated and was being brought to congress in the previous administration, that it did not take into account the impact on our domestic jobs, our american workers or the impact on our environment, and actually had provision that is would undermine the sovereignty of our government and make the decisions and enforce the laws of our country. >> by the way, i read a lot of your work for a long time. i've been watching you. [laughter] >> okay. >> i'm here. >> i'm not telling you anything you don't know. >> right out there, they need to know it. >> as we talk about peace and we talk about the cost of war, and as we deal with countries like china and others, we have to recognize there are consequences to ratcheting up tensions and taking adversarial positions that could lead us down a path towards another military conflict. so we have to be very careful in how we are building relationships and how we deal with the challenges that exist with china and within the region as a whole. thank you. >> thank you

. >> did his withdrawal from tpp harm them? >> no question. >> how? >> the japanese spent a lot. they've got the agricultural lobby in japan, incredibly strong. prime minister abe got rid of that because he was promised by the americans that joining tpp was a top priority. obama believes truleaves, trumpd he rips it up. they're nice to us because we're the big kahuna. this played out with the western ally. suddenly things changed. >> john heilemann said that. >> a second ago you used the phrase "big kahuna." no doubt the united states is the big dominance in the world. i'm sure at this stage the difference between talk and action you've been laying out through the course of this segment, does the world look at the united states as a big kahuna and also the leader or is there a different perspective what role the leadership plays in terms of keeping the economic order together? >> it definitely has diminish. no one wants it. our markets really matter. yet we don't write checks the way we used to. it's a tiny thing. you've got one belt, one road. you're talking trillions of dollars

, we didn't do that. >> nafta is now the treaty formerly known as prince we can take tpp and say it's now this other thing >> yes >> make some changes good for a start >> we have to run. appreciate your perspective as always grover norquist. >> tariffs are taxes, by the way. >> let's end on that so we don't forget >> that was his tweet. tariffs are taxes. tariffs are taxes. tariffs are taxes. >> exactly >> all work and no play. >> coming up, the ceo of walmart speaking out on the health of retail and consumer spending highlights from becky's interview coming up. we're watching the futures after yesterday's roller coaster ride in the markets starting to go back down stay tuned you're watching "squawk box" on cnbc you might take something for your heart... or joints. but do you take something for your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. >>>welcome back. stocks to watch, lululemon -- >> i know. they're doing well >> i just want to make sure. >> third

one thing we are watching is this a new tpp, the comprehensive and aggressive agreement for transpacific partnership. say that 10 times. ontakes effect sunday december 30. on monday, xi jinping is said to deliver a new year's address as those kim jong-un. rishaad: much to watch out for. .ooking at china releasing manufacturing and nonmanufacturing pmi data. very important as to where we are going at the moment. year, ahead to the new wednesday, january 2, expect ofutes from the bank thailand. before we leave, have a look at markets. quite a few markets will be closed on new year's eve. we will be here, won't we? this is what it looks like. nikkei, .6% down. yvonne: losing steam after what they have been doing, following the u.s. in stunning reversals. some people saying this is just a technical rebound here, but modest we are seeing losses of .6%. take a look at the rest of the market. volumes are really thin here today. we are well into the holiday weekend. the trading week as well. hang seng, up 36 points. asx 200, up .4%. jakarta up here today. rishaad: talk about light volumes, they

argentina was part of the tpp that the united states was in. it is a big loss for the united states. i think the reason trump was elected to do as much damage as he could in as many places. it is going to take a long time to recover. there is a lot of farmers around here declaring bankruptcy. host: let's hear from andy in new york. go ahead. caller: hello. thank you for taking my call. i totally support president trump for his global trade. he has done a lot of things. -- big benefits from the saudi's. like in the yemen issues -- he can earn lots of money -- in burbank, california. go ahead. caller: i am in total support of what front is doing -- trump is doing. i give him the most credit of any president we ever had that took the bull by the hand and is dealing with other countries and let them know we will not take this anymore. host: what about the deals do you support? caller: you name it. what shouldn't we support? he has been -- the main support of our country since he has been elected and he is not given the credit by the american people

what would, in an alternate universe, if we had tpp here, if we had gone back, sent stephanie back to the treasury to negotiate a treaty with china, we would have had -- we would be having a very different discussion. i think the constituencies within china for getting back on the path of reform and opening and growth, sustainable growth, would have had some backing. so when i think about it, it's not xi versus structural. it's i think the largest i would say reason we are seeing this is because we have dropped a winning hand that would have put us in a really much better position to leverage some reasonable change in china. i don't see china as inevitable. i'm not sure i understood exactly the question, but i would say if we asked now to choose countries would choose, except in the high tech sector, i think in the high tech sector we will find that countries are choosing already. the combination of import substitution, forced technology transfer, ipr theft, plus our investment protections which go well beyond what you see in print to include lighthizer calling ceos and things like th

we saw the tpp proceed without the united states. we saw pakistan pushback on long-term china's strategy of developing influence through investment. this was not done at the united states' instigation. other nations are constraining us a we don't have blocs. what do i suggest instead of a new cold war? i say u.s.-china relations. balanced, it seems to me that it is still a very useful phrase and it does not tie us into any framework. the last part of your question was are we heading there. could we get there? comingre worrisome signs from both capitals, one of which we saw just last week when the american administration announced a new africa policy and sit of framing it in terms of american interests vis-a-vis african nations or the needs of africa, it was phrased in terms of countering china in africa. i think that this was bad africa policy and it implies a desire to set up blocks. we also do see in chinese diplomacy a tendency to want to spread chinese influence which is counter to international best practices, a desire to have n

we saw the tpp proceed without the united states. we saw malaysia and sri lanka and pakistan to a degree pushback on aspects of china's long-term strategy of developing influence through investment. this wasn't done at the united states' instigation. so we don't have blocks. what do i suggest? i say we stay with u.s.-china relations. [laughter] mr. daly: not a good headline, but it admits the infinite complexity. it seems to me that it is still a very useful phrase. it doesn't tie us into any framework. are we heading there? could we get there? there's some worrisome signs a very useful phrase. coming from both capitals. one which we saw just last week when the american administration announced a new africa policy. instead of framing it in terms of american interest, it was phrased in terms of countering china in africa. i think this is first that africa policy and secondly it implies a desire to set up blocks. we also do see a tendency to want to spread chinese influence which is counter international best practices. a desire to hav

and all of the other forms of warfare, we have doctrine, we have tpp, we practice them, and then once the war starts, we tend to start to develop and improve them, we have time, not enough ever, but time to start to combine and form forces to go through and result. that is not true in electromagnetics or high end air missile defense. so i submit those already have to be in place. the technique, the knowledge, the equipment, the ability to operate in an integrated fashion. and to me the integration has nothing to do with the fact that on active duty, the three of us wore a different color uniform. it has to do with how the capabilities, no matter who they're manned by, work together, from the tech to engage, from sensor to shooter, so the common defense article, i agree with. i believe just like in the electro magnetic world, if you think about it, we have a coherent, cohesive, and single focused directed capability. it is owned by cyber com and nsa. each of the services have their own guys and own com guys and so forth. but trust me they're following the direction of cyber con and nsa

trump has elevated it to an art form by pulling us out of the tpp and the paris climate agreement, and by the way someone in the obama administration totally oversold that to our peril and loss. and by pretending it was more than what it was and what it was, was a reasonably good arms control agreement. not a treaty of peace and friendship, so again what are the consequences going down the line? saudi arabia, for example as you point out, took a look around and said well, we are on our own here. so we are going to go whack the yemenis, because they desperately need it. they let us know 48 hours, 72 hours before and that was done milk to milk. -- mill to mill. and the saudi's weren't asking they were telling us, we are going in, you got some neighbors we really would like to have and we hope you will give them to us. but if you don't we are going in any way. for someone in my generation, it was unthinkable that the saudi's would ever be in that kind of position. and i think as you say quite rightly, that may not be where they wanted to be but it's where they are. and then the iron he is