We Don’t Need No Stinkin’ Mexican Oreos!

Nabisco, owned by Mondelez International, is the maker of Oreos, America’s alleged favourite cookie.

It was announced that Nabisco is laying off American workers and investing in its Mexican operations.

Your Oreos will be made in Mexico.

Why?

Are high American sugar tariff’s to blame as this article suggests?

Would removal of the sugar tariff have saved those jobs?

Are other factors at play?

Mexico is to put it kindly a much less regulated environment.

The Chicago workforce was unionized as well, that had to factor into the decision.

I suggest the sugar tariff is likely the result of crony capitalism but are tariffs always a bad thing?

  • tom_billesley

    More importantly, will they be halal….

  • k1962

    Cars and now cookies. Maybe free trade isn’t such a good thing after all, especially if nothing is being produced in Canada or the U.S.

    • I am curious about the history of the sugar tariff, Canada has a government enabled oligopoly on Sugar as well.

      I need to learn their history of why.

      I am beginning to wonder at Free Trade agreements as well, the wealth gained is clearly not equitably spread.

      • k1962

        How can you have free trade when Mexico pays people like $2-$8 an hour? How can our workers who make a living wage compete? We are the ones buying the cars and cookies. If we aren’t making them, we shouldn’t be buying them!

        Don’t know anything about this sugar tariff you mentioned.

        • Valid points, Canada and the US have both ignored their treaty granted entitlement to enforce labour standards in Mexico.

          Why I have no idea.

          • Exile1981

            Look into the cheese tariff as well. It’s a huge scam.

      • andycanuck

        It’s a redpath to hell paved with good intentions.

    • Tom Forsythe

      It isn’t free trade when the US has tariffs on raw materials. Protectionism hurts American businesses.

    • Tom Forsythe

      If you want to get paid more than an illiterate peasant, you need more skills than an illiterate peasant.

      • k1962

        I’m sure you don’t need to have a Phd to build a car or a cookie whether you live here or in Mexico. However, if you want the average Canadian Joe (or Mo) to be able to afford to buy goods, they need jobs that pay a living wage. If that’s not important then be ready to live with security guards, high fences and guard dogs because that is what the future will hold if our “illiterate peasants” don’t have jobs.

        • Tom Forsythe

          Canadian poor people have more than the rich had a century ago, with fewer skills than the average peasant.

        • canminuteman

          The last 50 years were an anomaly in human history. Westerners invented pretty much every technology of the industrial revolution and the whole world was our market because everywhere else was a stone age dump. Europe destroyed itself in WW11 which gave us huge markets and no competition for another 30 years. Now, the rest of the world has caught up, and there is really nothing we can do about it.

    • a6z

      The U.S. is having a great resurgence of manufacturing, as it so happens.

      A lot of old jobs have gone, especially in “blue” states. There are lots of new ones, especially in “red” states. There is a reason for this.

      Overall, while the manufacturing output is abundant, the jobs outlook stinks to high heaven. The problem isn’t in Mexico. It’s in Washington.

      • canminuteman

        It’s also in automation. Automation means there will never be many people employed in manufacturing ever again. It would be better if the jobs were here, but even if they were here, it’s not that many people.

        • a6z

          But why are manufacturers paying the money to buy robots rather than pay people? Up to a point, it’s Washington.

  • Norman_In_New_York

    Donald Trump told his audience in Alabama last that he is swearing off Oreos.

    • Did he really?

      • Norman_In_New_York

        I saw that part of his speech on Fox News, which broadcasted it live. He had the largest audience of any political speaker so far in this campaign, exceeding Bernie Sanders by 2,000.

        • David Murrell

          I caught the pre-speech discussion on CNN News, when the stadium was still half-empty, and filling up slowly. The CNN reporters spent all of the time claiming that Trump made a “mistske” chosing a large stadium as a venue, since “it was impossible” for hm to fill it up. But when I woke up the next morning, CNN says 30,000 were there to hear him. This is the type of media Trump faces.

          • Buggers.

          • andycanuck

            There was some establishment con (an NRO RINO???) that a commenter at Ace of Spades HQ was paraphrasing also trying to pretend that “only” getting 30,000 out so a stadium was “only” half full was some sort of defeat for Trump as well.

          • Drunk_by_Noon

            AoSHQ is a waste.

          • andycanuck

            And here’s a fuller report on the MSM’s downplaying of the Trump event. (Including hiding that there was a change of venue from a 2,000-person site to the stadium at the last minute.)
            http://pjmedia.com/instapundit/212997/

          • Dana Garcia

            The Fox guy on the scene said essentially the same thing, ignoring the fact that it was a work day and not everyone could arrive early or even on time.

          • Clausewitz

            Hard to take John (JD) Roberts seriously since we all know he started his career as a VJ at City TV on the New Music.

        • Norman_In_New_York

          Here is the portion of Trump’s speech where he talks about Oreos.

          http://www.youtube.com/watch?v=ZgYeeOCe688

          • El Martyachi

            Holy shit.

        • Justin St.Denis

          The ENTIRE speech can be watched on YouTube. I saw it this morning and came away thinking “Donald is actually going to pull this off. He’s going to become POTUS, and he actually KNOWS it already. I could actually smell it.

          • Millie_Woods

            He seems to be the only candidate who understands that Mexicans don’t have a God-given right to enter the USA and settle there. And he isn’t afraid to say it.

    • a6z

      He doesn’t eat enough Oreos to matter much.

      • Clausewitz

        No but you add in several million supporters and it starts to have an effect.

        • a6z

          Ah, but how many of those cheering supporters will abstain from Oreos for him? It remains to be seen, but if I were Nabisco, I wouldn’t be nervous.

  • BillyHW

    Chinga tu madre Mr. Christie!

  • simus1

    Many of Chicago’s confection companies were already moving production to Ontario and Quebec so they could get their sugar at closer to world market prices when making their products for free trade export into the US. The rent seekers in the US were quite displeased about that turn of events. Like our marketing board protected farmers, these American sugar growers have had a good run ripping off consumers. Now the American and Canadian companies will all be heading for Mexico. Time for the trough to be shut down and sugar cane growing to be left to places like the West Indies, Brazil, and India.
    Mexican Coca-Cola is made with real sugar. How about that?

  • Richard_Romano

    This is my last comment on your site, BC. Unfortunately, your site causes my computer to crash! I don’t know what it is, but I wish you were still on the old site’s address. Sigh. Bless you.

    • Send me an email blazingcatfur@gmail.com let me know more about what is happening.

      • Richard_Romano

        I can use my Iphone, so that allows me to access the site, so whew. It’s your popups — they come up and crash my computer. I have ad blocker and everything enabled, but somehow it just keeps coming up and crashing. Sigh!!!!

        • simus1

          Windows 7, 8.1, 10?
          Have you tried running free Superantispyware and free Malwarebytes? They might not be able to cure the problem but they could help detect the cause.

        • andycanuck

          If you use Pale Moon or Firefox, then I suggest you get the add-on Adblock Latitude (up to version 3.0.2 currently)

        • What Browser?

        • I suggest Malwarebytes.

      • Exile1981

        The last week there has a pop up on my cell trying to get me to join twitter but not on my laptop.

    • Maggat

      Strange how that works. I have absolutely no problems with almost all sites. Breitbart and the Blaze being the exception. They both lock up my computer and I can’t explain it.

      • Breitbart and The Daily Caller are the ones I have problems with. It’s gotten to the point that I can’t read Treacher any more.

        • Drunk_by_Noon

          Breitbart is horrible and I avoid it if I can.
          The Daily Caller, I don’t really go there.

          • Raymond Hietapakka

            How BB does that when I have 25mb download connection and a quad-core i7 PC, I’ll never know…

          • Drunk_by_Noon

            Next to Pam Geller’s page (and that is better now than it ever was yet still it’s not good), it’s one of the worst coded webpages out there since “Time Cube”.
            Breitbart are such whores that the reader there is totally at the mercy of whatever slop code their advertisers decided to run on their popup banners.
            You have to wait for that then you have to wait for the next ad and so forth. That’s why it’s so slow.

        • Daily Caller is terrible.

      • Raymond Hietapakka

        …BCF would lock up my BB Playbook, but only when down in S.Ontario…

  • andycanuck

    The Mexican sugar cartel philosophy:
    https://www.youtube.com/watch?v=Ti5AkLup1mI

    • a6z

      The sugar cartel is Floridian.

  • Denis

    for my and my families safety I do not allow the buying of any food product made outside of Canada, the USA or western Europe. The rest of the world does not have acceptable food safety!

    • That is a valid issue, look at the poison that has been issued from China.

    • El Martyachi

      I’d add Poland and maybe Japan to that list.

      • Exile1981

        Japan vastly increased the allowed radioactives in food after their little accident.

    • Clausewitz

      Israel’s produce and standards are actually much better than the US and Canada’s.

      • Denis

        agreed, I would buy Israeli produced food if I could find any out here in the prairies!

  • Justin St.Denis

    Low-fo voters think “free trade” means trade without costs. Nithing could be further from the truth. Free trade is about the free ability to trade, not the ability to trade for free.

    Tariffs and free trade go together like coffee and cream.

    • FactsWillOut

      As I see it, it’s a bunch of jerks who restrict economic activity here negotiating with a bunch of jerks who restrict economic activity elsewhere so as to restrict economic activity globally.

  • Millie_Woods

    Mondelez is the snack-food division of Kraft. It was spun off a couple of years ago. I believe Warren Buffet is now the majority shareholder. I guess the U.S. isn’t letting Mexicans into the country fast enough for him so he’s sending the jobs there instead.

  • Raymond Hietapakka

    First it was messing with the Twinkies, now this?

  • a6z

    Yes, tariffs are always a bad thing. Econ 101.

    However: Some Americans have been fooled (indirectly) by tariffs into bad human-capital investments. Steelworkers, for example. They are stuck. Since America’s tariffs made them stuck, a principled case can certainly be made for buying them out in cash with public money–but in exchange for getting rid of the steel tariff.

    It would pay off for the steelworkers immediately, for the government within ten years, and most dramatically for America as a whole. It might even be good politics, if somewhat entrepreneurial. But it would leave insufficient opportunities for graft.

    • OK. But what about dumping by a nation whose labour standards and wages are abysmal in comparison to your own?

      • a6z

        You have confuted two different issues, on the one hand “dumping” and on the other labor standards and wages.

        “Dumping” is the alleged delict of selling something below the cost of production. This no one would ever do; if they did, it would be both stupid and ungracious to refuse the gift. “Hey, ma, look what the kind Japanese taxpayers sent over as a housewarming gift! A hunnert-million long tons of steel, F.O.B. Seattle!” Nevva happen. Mucho good for us if it did. Not so good for Japan, though.

        Lower compensation (I will roll “conditions” in with “wages” as compensation, ignoring for now the further complexity that “labor standards” are not just voluntary perquisites) is another issue altogether. The short answer is that it balances. See “doctrine of comparative advantage” at your local encyclopedia for a good explanation.

        If it is more profitable for them to specialize in (say) steelmaking, it is only because it is more profitable for us to specialize in (say) dairying. Specialization is how trade is supposed to work. What if the trade account doesn’t balance? No problem. The trade account plus the capital account always balances.

        But aren’t we running up too much debt to overseas lenders? (I hear you ask, because I assume you ask all the usual questions.) We are running up ‘way too much debt, but it doesn’t matter a whit that it’s to overseas as opposed to domestic lenders. “We owe it to ourselves” is a stupid myth; always was.

        Actually, in a way it’s a good thing it’s to overseas lenders. When we dishonor it–and we will: debts that cannot be paid will not be paid–we might as well dishonor all the debt to the government and state-owned-enterprises of countries hostile to our own. What are they going to do, send gunboats to collect?

        • Exile1981

          I’ll disagree. The chinese have been known to engage in dumping to drive foreign competitors out of business.

          • a6z

            “known”. yeah.

            Convicted before the courts! I saw a woman successfully sue for loss of her extrasensory powers in a personal injury accident. The jury ruled that it happened, and the judge let it stand! Proved in court!

            Nevertheless, nevva happen.

            Mucho good for us if it did, though. The Chinese dumping thing, not the ESP loss.

  • Dana Garcia

    I don’t think I’ll be interested in the new taco flavor Oreos they have planned.

  • Maurixio Garciasanchez

    That’s not new since the free trade came over corporations had move out.

  • Tom Forsythe

    What difference does it make; it was Mexicans doing the work in the US, too.

  • Uncle_Waspy

    !Muy bueno nuevas Oreo cookietos y fecez de ratas adicionales!

  • Hard Little Machine

    When we ship enough of the American economy to Mexiricastan they won’t have a reason to come here. That’s Obama’s plan. Destroy America.

  • Canadian

    I never liked them anyway.