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One of the severe problems noted in the recall disaster of 2010 was that practically all important quality and safety decisions are made in Japan. Without key American decisionmakers in the process this leaves Toyota exposed to all sorts of errors like the errors that ocurred in stalling the National Highway and Traffic Safety investigations into acceleration and braking accidents in Toyota vehicles. To compound theses errors managment at Toyota focussed on the $100 million in savings that avoiding or minimizing the recalls would generate, as revealed in internal documents. Early warning signs of similiar problems in Europe were not linked to problems in the U.S.. All this was ocurring against the backdrop of a change in management at Toyota- with the Toyota family once again regaining control of the company- and the failure of the management under Watanabe and previous CEO's to put quality before rapid expansion. The new changes are to have 2 new senior executive positions in the U.S. to focus on quality and safety. A chief safety executive will focus on safety and recalls, and a chief quality officer coming from the top ranks of the American operation will now sit on a special committee for Global Quality led by CEO Akio Toyoda. The commitee for Global Quality will address the global quality issues around one table with the highest ranking executives at Toyota right at the table to talk things out. ...

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Boeing's $3.8 billion takeover of Embraer SA of Brazil is becoming a political issue in upcoming Brazil elections in October 2018. Embraer was privatized in 1994, but is seen as national asset in Brazil.

Embraer's commercial business which brings in 58% of revenue is being sold to Boeing. Boeing takes an 80% stake in commercial airplane and services business with Embraer owning 20%. A strong partnership between Bombardier of Canada and Boeing was threatening Embraer's leading position in the market for regional planes. The North American market brings in 57% of Embraer sales with only 13% in Brazil. As a result the government of Brazil knowing that Embraer's success depended on its global focus did not interfere in any way. The front runner in the upcoming October election favors the deal and the the president of the Workers Party opposes it.

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Former prime minister Nawaz Sharif's PML-N party wins 125 of 269 seats in Pakistan's parliament. The Tehreek-e-Insaf party of Imran Khan won 31 seats and the PML-N party of the current president Asif Zardari won 32 seats mostly in Sindh province. Independents won 31 seats and some of these independents are likely to support Sharif in forming a new government. Election turnout of 60% showed a large degree of enthusiasm in this election and hopes for economic revival in Pakistan. The focus of Sharif will be on improving the economy, tackling electricity shortages, and building infrastructure. Sharif promised to pursue peaceful relations with India and Afghanistan, and keep the focus on the economy. Sharif and his advisers are bringing a new deftness in the dealings with the Army, the Pakistan Taliban, saying he would call for a halting of drone strikes, limiting the role the U.S. plays in the region, both positions popular in Pakistan, separating differences with former president Musharraf from the institutional role of the military. Small business owners and large business support Sharif's efforts to tackle electricity shortages, with an estimated loss of $12 billion in idled factories alone. The long period of political conflicts between the military, the judiciary and the political parties have led to neglect of Pakistan's economy, as neighboring countries in Asia surged ahead. The realization that popular pressure for improving standards of living and the economic opportunities are both huge has led to an extraordinary election, and put Sharif at the centre of an important new beginning for Pakistan. ...

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Prime minister Modi's visit to the US comes at a time when US president Biden is eager to show the US is fully engaged in the Indo-Pacific region with its allies in the Quad 4 countries- Australia, Japan and India. The recently announced Aukus defense agreement brought together 2 members of the Quad 4 the US and Australia, plus the UK. Aukus is designed to strengthen US presence as a naval power in the Indo-Pacific region in the Indian and Pacific oceans around India, Southeast Asia, China, and across the Pacific. After a futile engagement in Afghanistan the US is reorganizing its presence where it is strongest- in the oceans. In a way that Britain once did in the eighteenth and nineteenth century, the US is dominant in the high seas. US naval power far exceeds that of all navies in the world combined. This is meant to reassure India, Bangladesh, Sri Lanka, Thailand, Malaysia, Indonesia, Philippines, Vietnam, Australia and Japan, which together have close to twice the population of China, that the US has not diminished its presence in any way from that it had in the 1950's following the Second World War. With this new framework India enters discussions that will focus on health to deal with the pandemic and its after effects, with security and rule of law in the Indo-Pacific region, with trade, technology, new supply chain manufacturing structure in which India plays a key role. With this new focus and clearing past engagements made by other US  presidents, including some mistaken policies, the US emerges as a new force in the Indian ocean, China seas and Pacific ocean region.  On September 23 Modi meets Tim Cook for what could be new supply chain arrangements that Apple could be preparing as it and other US corporations build new supply chain structures to rebuild US manufacturing technologies capabilities that were lost to China over the period 2000-2020. During that period manufacturing technology knowhow was shifted out of the US in a mistaken policy that assumed design and invention were sufficient for the US to keep. The first step in this direction was a change of CEO's at Intel Corp with US president Biden pushing for new US technology reclaiming policy. Following that the new CEO at Intel Corp, Patrick Gelsinger, completely reassessed Intel's mistaken policies of ceding its entire semiconductor manufacturing technologies capabilities to Taiwan and China. Intel made a U turn and is now investing all or most of $50 billion in the US instead of in China or Taiwan.  On September 24 Modi meets Mr Biden to discuss trade, investment, defense, and security. On the same day the leaders of Japan, Australia, Mr. Suga and Mr. Morrison join Modi and Biden for the Quad 4 talks. Indian infrastructure capabilities and Indian economic growth would be key goals to strengthen India along its land borders along Tibet occupied region and Himalayas as part of the overall effort to build a new US and allied presence in Asia.  On September 21 Modi attends a Covid Summit that will look at the way forward in the aftermath of the pandemic and ways to vaccinate the remaining unvaccinated population in the world, as well as vaccination passports.  ...

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In a time of relative prosperity in the first months after the boom years uptil 2007, in April 2008 to be specific, it is strange but true that food crisis is overshadowing the credit and housing crisis in the USA. At the G7 meeting, World Bank president, Zoellick, made a passionate statement about the crisis that is developing across Asia and developing countries elsewhere as food prices go through the roof. The World Bank and the IMF are stepping in, but the focus at the G7 meeting was on the US dollar and the world financial system. There have been serious problems about food shortages in Philippines, Indonesia, Haiti and Egypt, and even in other countries like China and India the increase in the price of rice by 146% makes for a serious food crisis. See the link to this.

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The practices of Bain Capital under Mitt Romney, as it merged management consulting with private equity to take stake in companies that it would be asked to turnaround. The main focus for this type of investing was to harvest as much capital out of the acquired company as early as possible, leading to management decisions that were driven by this overriding aspect. This meant large layoffs to reduce costs, loading the company with debt which in many cases led the company to bankruptcy yet benefitting the investors. The practices were adverse to the accumulation of human talent.

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The Even Hotels brand of IHG which operates Holiday Inns will focus on frequent travellers in the U.S. who want to keep their exercize routines. It will have fitness centers 3-4 times larger than existing ones, located right near the lobby, benches that can serve as exercize benches, a mat for exercize, bathrooms that let in natural light, cafe with healthy items on the menu. This segment is also being served by Courtyard Marriott, and Hilton Garden Inn. IHG will convert existing hotels and rooms with 100 hotels planned by 2015, the first opening in 2013.

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Khairat el-Shatar, financial leader of the Muslim Brotherhood was nominated as the party's candidate for president in Egypt. The Muslim Brotherhood controls the newly elected parliament and the body that is writing the new constitution. It is in a struggle with the military about limiting the military's role under the new constitution. The Brotherhood sees the election of its candidate as president as important to not diluting its influence in relation to the military and other parties. Khairat has committed to following a moderate course in setting Egypt on a new path, with a focus on reviving the economy.

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China's state owned China Development Bank signed an agreement to finance a new pipeline that will carry 600,000 barrels a day of Venezuelan and Colombian oil through jungle and the Andean mountains to the Pacific coast. Colombia plans to shift its focus to export much of its 1 million barrels a day of oil production to China. Talks also were held with China on developing central Colombian coking coal reserves and building a railway to the Pacific coast. Colombian plans are based on slowing demand for Colombian oil in the U.S., with increased supplies of natural gas and shale gas in the U.S.

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Faces of migrants to Germany as Germany sees the migrants as what German chancellor Merkel calls- "A huge national challenge, not only for days or months, but for a long period of time." German civil society shows openness, and German educational institutions offer support. About 800,000 refugees will be accepted in Germany in 2015, says Merkel. An adult migrant is given 143 euros a month for pocket money and 216 euros for basic needs, medical costs are covered. Children are taken care of or attend school while their parents applications are reviewed. Registered migrants are given housing and food. The system works like nowhere else in the world, as most migrants focus on getting to Germany. The condition of the migrants is desperate- one child had not eaten for 4 days. And local doctors examine migrants, with some referred to local hospitals.

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A food scare for Danone's Dumex baby formula brand in China hurt sales. Danone has decided to swap the Dumex brand for additional stake in China's dairy company Mengniu, for a 12% stake in the company. Danone will focus on ecommerce business in China which has grown rapidly to about 461 million consumers as more baby food products are sold online. About 7% of total sales are from China for Danone. Danone has also decided it will keep the medical nutrition business line because of better future prospects. Earlier Danone sold off its majority stake in a joint venture with Wahaha in China. Business decisions at Danone are made by two executives Mr. Ribaud and Mr. Faber, the CEO. Fresh dairy unit of Danone faces several challenges, including rising price of milk, and margins dropping from 15% in 2010 to 10% in 2014. Fresh Dairy generates over 50% of revenues.

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German exports to Russia are growing at a rate of 25% for the first quarter of 2008, according to Mangold of the Ost-Ausschuss, a group promoting trade with Russia, even though it is only 3% of all German exports. Russia- Germany trade has reached 57 billion euros for 2007. German exports to Russia are vital to the continued growth of the small and middle sized companies in Germany. About 4600 of these companies operate in Russia today. These companies produce chemicals, autos and machine tools. The promotion of this trade was the focus ofa conference in Dresden last month with top level officials from both countries.

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The local elections in Britain in 2019 show voter dissatisfaction with the mainparties. Both Conservatives and he Labour party each took 28% share of the vote. The big winners were the centrist Liberal Democrats with 19% of the vote. The Greens party also was a winner in the vote. About 8400 seats were up for election in this vote. Conservative party lost 1300 seats. The Labour Party disappointed because it was expected to win more seats as Conservatives did well in the last election in 2015, by winning 81 seats. The Liberal Dems and the Greens won 850 seats between them.  The stridently pro-Brexit Nigel Farage Independence Party did not put up candidates and a anti-Brexit party called ChangeUK also did not have candidates. Both will field candidates in the European elections causing the main parties to lose even more of their support that has dropped to 28%. This means Labour party leaders Corbyn and McDonnell might continue negotiations with Theresa May on Brexit plan. But as Rachel Sylvester reports in The Times today with May lacking support from her Conservative Party, her tenure as prime minister uncertain, there is little incentive for Labour leaders to go against the wishes of a majority of Labour MP's, voters, and members who are against Brexit. Corbyn also want to focus coming elections on austerity not Brexit. So this is not on Labour's agenda. Sylvester says a confirmatory referendum is looking like the only way out of the mess.    ...

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James Cameron, director of the movie 'Avatar" and a member of the NASA Advisory Council for 2003-2005, talks about bold space exploration plans for NASA under the plans in the new budget. Under the new plan private industry will continue the work of the Constellation program, and NASA will focus on deep space exploration with R&D for robotic explorers that will pave the way for human exploration of the moon. He says most of the people he met at NASA started as starry-eyed childhood dreamers, who may have been geeks like himself peering through a telescope in the backyard until their moms started yelling for them to get back inside the house.

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Ms. Ursula von Der Leyden, who was a strong advocate for women on social issues, is the new defense minister in the Merkel cabinet for 2014. Frank-Walter Steinmeier of the Social Democrats is the new foreign minister, a position he held in the coalition of 2005-2009. SDP leader Sigmar Gabriel- who worked hard to get the approval for a coalition in a vote of the rank and file of the SDP- is the new Economics and Energy minister, with responsibility for shifting Germany away from nuclear power. Wolfgang Schauble continues as Finance minister. The new term for Merkel is likely to focus on domestic issues such as building infrastructure, education, the shift from nuclear energy, and immigration.

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The US Justice Department has its case against Google- US et al v. Google. 

Ms. Wood said in the U.S. District Court for the Eastern District of Virginia.

“Google is not here because they are big, they are here because they used that size to crush competition.”

US says Google rigged the rules to profit immensely from the arrangements it made after acquisition of Double Click in 2008, so that it controls every link in the chain for the software that sells adspace online, Ms. Wood for the US told Judge Leonie Brinkema on September 9, 2024.

Tech monopolies have acted in ways that have hurt the interests of the American people, in a way that Big Pharma, Big Oil, and other industries have acted to focus on profit at the expense of The People of America.

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This editorial in Der Spiegel magazine sees something positive emerging from the current state of politics in Germany with the fragmentation in political parties. It says this situation is something that is happening for some time now. In the Netherlands there are a number of parties working together in a coalition government. And in France the Macron movement swept away the old parties. Something similar is also happening in Italy with the Five Star Movement as elections approach in March 2018. This may be a positive development in that the days of 100 percent convention votes, and of career politicians who move up the ranks from one political committee to another, are over. Voters are acting in individualistic way, don't trust the elites and old big tent parties with career politicians who may not be responsive to people's needs.  Young people are eager for more participation, and this may be a good thing, says Der Spiegel. It points out that not just parties like AfD are gaining as a result. SPD support dropped to 16 percent in one poll same as AfD. The Christian Lindner's Free Democrats in Germany also are benefitting,Macron in France is benefitting, Sebastian Kurz in Austria is benefitting. Their parties they prefer to call as "movements" with some marketing and political platforms that appeal to young people. Macron's movement moved aside the old political system and brought in younger people, revitalizing the decaying political system. The conclusion for Der Spiegel is that this change is not entirely good or bad, its a challenge. Our focus should not be on propping up obsolete structures, breathing new life into old political structures could be a good thing with new younger voters looking for participation. So don't be afraid of voters. ...

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Isaacson's new book on Musk says Musk's story is a cautionary tale. The compulsion to be drama magnet or mean are not prized traits, say others.  More sinister (the hell) is celebrating a culture that does not respect the need for worklife balance, of respect for nutrition and exercize for good health. Musk's methods which he calls "algorithm", a word known more for obscurity than meaning, are nothing new. For years as the US, Japan and China, now India have innovated there is a focus on simplifying things, and to do this questioning the existing way of doing things by breaking down the existing method into pieces and reorganizing the pieces of the puzzle leaving out unneeded pieces. What is the key to his success as it was for Jobs at Apple is creating a culture in which people would invest in and take risks for innovation at the high end of the price spectrum. Jobs used design and new stuff like the iPod and iPad, iPhone to do this. Musk does this through playing the role of a social media icon but a dangerous one that does not respect worklife balance and good health habits of nutrition, exercize and mindfulness. In processes this can give you a process that takes less time and money- how India's moon mission and rover Chandrayan 3 was done for $78 million showing these work practices of Musk are nothing new, and universally adopted by successful companies and nations. Newer ask your employees to do what you would not do, is also adopted by the best managers. By turning it into a mantra it obscures the fact that America today is a country of massive inequalities where two thirds of 4th graders cannot pass ACT reading test and half of retirees have zero savings, working people and families face a cost of living and health crisis and are badly neglected. How does it help to role model as an icon and popularize a culture that tolerates and accepts such conditions that would leave men deeply troubled, including America's leaders Washington, Lincoln and FDR if they were alive today. ...

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Leslie Gelb says US should focus on its strengths, on the areas that it can build on to come up with something of enduring value and not focus all one's energies on situations and troublespots that siphon off a lot of American energies. This is a good idea and should be something that policymakers at State and the National Security Council and advisers to the President could keep in mind. There is alot to be said about the Truman example of the Marshall Plan in building western Europe after the war. At the same time its not as clear cutthat troublespots and the difficult work can be avoided. Was the Berlin airlift a troublespot? And Truman had little time to respond to the invasion of South Korea from the north, acrisis he would have chosen to avoid, if he had the choice. Instead he was drawn into along drawn out war on the Korean peninsula. Still the idea that you want to save your energies and not dissipate them in conflicts which can't clearly be won is a useful one. The Korean war was fought on conventional terms so the US could point to success years later in South Korea. But for conflicts fought in the jungles of Vietnam or in the remote mountainous terrain of Afghanistan, limited objectives and willingness to consider history, customs, and local tribal cultures is very constructive. ...

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France's Foreign Minister Ayrault says of Boris Johnson: "He lied a lot to the British. Now, he is the one with his back against the wall." He sees missing in Johnson the "clear, credible and reliable" person with whom he can negotiate. Ray Stegner, deputy chairman of Germay's Social Democrat Party says "May looks weaker after such a choice of personnel. Now he is negotiating Brexit. Enjoy the trip." In China he is seen as a celebrity not a serious person. Bildt, ZDF, see in this a part of British humor. Jurgen Hardt, foreign policy spokesman for Christian Democrats Party in Germany had a different take on Johnson- seeing this as an astute move because if the government one day comes to conclude that Brexit should not be completed then having Johnson on board to explain it to the people would guarantee support in her party and with the people of England. In her first speech May emphasized that she was a "Unionist." Her first important meeting was with Nicola Sturgeon of Scotland and made Scotland's agreement necessary before invoking Article 50. Her talk of "burning injustices" for the poor and the underprivileged also goes to address the root of the problems behind the Leave vote. By having Johnson on board she can focus on the issues that really matter and which were on the minds of people in England, Wales, Scotland and Northern Ireland- to ensure that the economic system works for all.   ...

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Early elections in Turkey for parliament and the presidency called by president Erdogan are giving the opposition a chance. The economic growth during the early Erdogan years is beginning to fade with Turkey's rising debt levels, companies with large debt repayment, and the loss of half the value of Turkish currency Lira since 2014.  Muharram Ince of the Republican People's Party, CHP, is able to connect to religious voters from his secular base. The CHP has allied itself with the Islamist SP Party, and the nationalist party Iyi led by Meral Aksener. This alliance is now poised to challenge Mr. Erdogan in the coming election with a different combination of forces loosening Mr. Erdogan's grip on Islamist voters and nationalist voters, by bringing together the nationalist, secular and Islamist in a new way. The focus of this alliance is not dividing the country between Islamist and secular as in recent elections, but more along the lines of keeping some of the basic elements of democracy eroded in Mr. Erdogan's efforts to setup what the opposition leader Mr. Ince calls a "one man regime." As in Malaysia's recent election corruption is also an issue raised by the opposition. ...

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This WSJ analysis shows China giving Huawei a total of $75 billion in subsidies through grants, credit facilities, tax breaks, and other forms of financial assistance. It is this state support that enabled a little known vendor of telecom equipment to become the largest telecom company in the world. This also made it possible for Huawei to offer generous financing terms and undercut pricing of competitors by as much as 30%, according to analysts and customers. The WSJ analysis shows loans and credit lines from state lenders of $46 billion, tax breaks of $25 billion from 2008 to 2018 with state incentives to the tech sector, $1.6 billion in grants, and $2 billion in land discounts.  In the developing countries lacking financing the Chinese state lenders and government financed a project and Huawei built it. In competitive bidding Huawei's bids came with financing from state lenders that made Huawei a much stronger bidder than competitors such as Ericsson of Sweden and Nokia of Finland. With this kind of steady support and its own determined founders Huawei changed from a small vendor when 4G was first introduced into a pioneer and leader in 5G networks in 2019. Lacking this kind of support and without clear focus of the American and European governments American and European companies now lag behind in 5G technology.  This has caused tensions in the U.S. and Germany over loss of technological leadership in key areas. The Trump administration in its trade tariffs and other actions against Huawei is responding to the issues of state subsidies in China, intellectual property of American firms, shift of factories to China, and loss of tech leadership, leading to a loss of American jobs, risks to national security. ...

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Michel Barnier is approved by 52% of French people in an Ifop poll, yet 74% think he will not last long. The NFP will call a no confidence motion when its candidate 37 year old Lucie Castets of the Finance Ministry was turned down by Macron. The RN of Marie Le Pen will support Barnier for now and Marie Le Pen says she expects new elections within 1 year. Barnier supports halting migration to France for 4 years, a position RN of Le Pen supports. Denmark with a socialist government has taken similar position. By taking strong action on migration as northern and southern Europe both shift to this policy including Socialist parties, the EU as is happening in the US can address fundamental issues of cost of living action, infrastructure investment and investment in education, healthcare, science and technology competitiveness, renewable energy. Removing the migration issue can put a clear focus on the action needed to address these problems.

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Hardeep Puri writes in the Indian Express that one of the biggest problems in development in India was that government programs for development just kept getting delayed, and there were leakages of funds that could never be tracked. It is the sign of a developing country that it remain perpetually a developing country when it does not find a way to overcome this situation. Most of Asia, Japan, South Korea, China has found a way out, and it is a sign of character in a country and its administration that real implementation takes place to transform a developing country into a modern country organizing and combining the inputs of land, capital, technology and human resources. Just one example is the Pradhan Mantri Awas Yojana to build housing in India's cities to promote quality of living. In the last 7 years Puri writes in the Indian Express that 11.2 million houses were sanctioned, 4.9 million built and the rest to be built by March 2022. Compared to 1.2 million in the prior 10 years. To do this investment jumped by about 10 times. In the US infrastructure was neglected in the last 2 decades. In India urban infrastructure was delayed by never ending delays and leakages of funds. Across a range of projects from Metro urban transport to rail, bridges and road, infrastructure was slow and wobbly in India for most of the decades since 1947. The Smart Cities Mission is being financed with an investment planned of Rupees 2 trillion or over $200 billion to change the urban landscape with people centred priorities. As Puri writes silently, non performers are being weeded out, loopholes plugged, targets set, in scrutiny and monitoring of projects all the way to the prime minister in a way that has never happened before. There is relentless focus on monitoring the missions, problems to overcome, targets and dates of completion. Bringing to life a new national character and spirit for India during the pandemic. ...

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The Trump administration sends an official notice to Congress that it intends to renegotiate the NAFTA treaty with Mexico and Canada. The new U.S. Trade Representative Mr. Lighthizer served as Deputy Trade Representative under president Reagan in 1983. He says the focus of the negotiation will to promote economic growth and jobs by making improvements to the treaty. The notice does not mention major modifications of the type that were hinted at by president Trump earlier. The leaders of Canada and Mexico had asked president Trump to renegotiate. Republicans in Congress and business in the U.S. favor improvements instead of the drastic changes. Mr. Lighthizer's approach is stated in his letter that said "NAFTA was negotiated 25 years ago, and while our economy and business has changed considerably in that period, NAFTA has not." New provisions will be needed said Lighthizer for intellectual property rights, state owned enterprises, labor and environmental areas, with effective enforcement.  Because of the rhetoric and language used in the election campaign, it is important to note that Lighthizer has in the past negotiated favorable terms for the U.S. steel industry to prevent dumping from overseas. His style is the opposite of the president. He has stated- "I am friendly when negotiating. I am not theatrical. The art of persuasion is knowing where the leverage is." ...