NAFTA Revisited

[pandiana]

I would like to invite you to have a look at some articles from a much more enlightened American, John Ikerd, Professor Emeritus at the University of Missouri. He appears to be committed to preservation of the small farm way of life (i.e. non-corporate) and has some very interesting perspectives on free trade and globalization. Such as "First, trade is truly free only if both partners are “free not to trade.” Participants in “free trade” must have an “interdependent” relationship. Interdependence implies that people relate to each other “by choice,” not “by necessity.” If one trading partner is dependent on another, the dependent partner may have no choice but to do whatever is necessary to maintain the relationship. “Interdependent” relationships can only be formed between two otherwise independent entities. When both are independent, neither is compelled to either form or maintain the relationship. Under such circumstances, trading relationships are formed only if they are beneficial to both and continue only so long as they remain beneficial to both."

http://www.ssu.missouri.edu/faculty/jikerd/papers/TorontoGlobalization.html
http://www.ssu.missouri.edu/faculty/jikerd/papers/Smfmfed.html

[pandiana]

Extracted from a previous post.
According to Wendy Holm, a journalist that specializes in public policy in agriculture, Canada has a good weapon its not using: the Free Trade Agreement. "closure is based on politics, not science, and that's not permitted under NAFTA...NAFTA has a whole chapter on agriculture. The right to restrict trade because of health concerns from diseases such as hoof and mouth, blue tongue and - yes - BSE falls squarely under the Sanitary and Phytosanitary sections of NAFTA. And the referee is SOUND SCIENCE, not protecting markets in Japan. NAFTA also guarantees investors rights of access and compensation when those rights are denied" http://www.cbc.ca/insite/COMMENTARY/2003/8/14.html

[pandiana]

I think cowman's post is right on in this context

"Without a doubt GLTUSA has a few good points! One is the problem we have had relying so much on the American market. Everything is fine until the protectionist forces in that country decide to crack the whip. I guess the one thing this whole political trade war(the BSE crisis) has proved is we can't rely so heavy on the US. Perhaps it's time we started moving back towards our roots in Europe? It's not inconcievable that we could get into the EU? Or do we just wait out the unfriendly administration in the US? Unlikely Bush will get back in after basically destroying the American economy. But the BSE thing has shown us it is not a good thing to be in bed with an elephant because when he rolls over...? "

[GodLovesTheUSA]

DENY DENY DENY
It is extremely important for Canada to face the reality that its population is not that much bigger than the state of New York (20 million).
You are extremely, extremely reliant on exports. It does not do any good to threaten your customers, unless you are in a position to carry it out.

I agree with what you say about free trade and that John Ikerd is a more enlighted American that I am. What you can not see is how much I love the Canadians and care about their situation or I would not be taking the time to do this. I have contacted my governor about this issue several times. He cares as well, its just there are other things to do right now. I do not think that there will be a large change in the BSE problem in Canada until our next federal election.
Maybe when your leader is gone things will change a little.

I was hoping that Canada could take this really bad situation and learn from it. You have so many ways that you could develop your foreign markets.
Your foreign trade minister should be one of the smartest and best people in your country. You might want to look that this fellow that you have.
Every last person in Canada should be looking for ways to increase foreign sales of their products.
Instead you waste your time cuddlying up to gays and lesbians, polishing your medicare and kicking your military in the rear end.
Get with it boys, You are going the wrong direction. There is no way for me to be popular and say this. Quit being so self righteous and stupid and get after making a living for your country, and your families. Why can you not see that the tradegy that has befallen your industry could happen elsewhere. You had better rely on a lot more than a NAFTA agreement when you consider the devastation your beef industy will suffer if this goes on for a year the way it is.

[cleegfarms]

To God bless America

Be advised that 90% of Canadian Beef is produced in Western Canada, and Western Canada does not support what the governments have been doing in regard to our Military and Gay marriages. As far as Medicare is concerned, what is wrong with every person having access to Health Services at affordable prices? You are correct when you say Canada should develope it's own export markets for it's products. However, is the US prepared for the lower prices when Canada competes directly with the US for customers. With free trade between the two countries we enjoy higher prices on both sides. Competing for the same markets would just drive prices down. We both need to find a solution to this problem.

[rusty1]

To our American friend
After almost three months of bad news, the good news finally came early last month in the form of a partial lifting of the ban on Canadian beef allowed into the United States.
But the trade opening was a small one in that Canada’s farmers can only send selected beef cuts while still being denied access to 75% of their U.S. markets.

Half a loaf is better than no loaf, but a quarter of a loaf?

Let’s do the numbers:
Beef is B.C.’s second largest agricultural product (after dairy), with 5,000 ranches employing 10,000 people, with annual sales of nearly $300 million. Last year B.C. cattle exports from to the U.S. totalled $120 million, and the country as a whole exported more than $2 billion in cut beef.

Heady numbers, aren’t they?

Stunning actually, when one solitary cow infected with BSE can cripple an annual $7.9 billion industry. With the discovery of a BSE-infected cow in May, the U.S., Japan, Mexico and 31 other nations banned shipments of Canadian beef.

Why? We all know by now that the closure is based on politics, not science.
And that is not permitted under NAFTA, the free trade agreement. The report of the international scientific panel investigating Canada’s response to the BSE scare and the safety of our food inspection system was tabled June 26. Canada got top marks. The U.S. border should have been completely open by Canada Day.

Instead, here we sit, and count the passing days as the federal government sits on its thumbs.

The only thing the Americans respect is strength.

Instead of running to Japan – hat in hand – saying ”What can we do? What can we do?” Canada should be challenging the Americans under NAFTA.

NAFTA has a whole chapter on agriculture. The right to restrict trade because of health concerns from diseases such as hoof and mouth, blue tongue and – yes – BSE, falls squarely under the Sanitary and Phytosanitary sections of NAFTA. And the referee is sound science, not protecting markets in Japan.

NAFTA also guarantees investors rights of access and compensation when those rights are denied. Canada’s ranchers have invested in the production of beef for a continental market. By not opening the border, Washington is expropriating the value of that investment and its profits. Canada is fully within its rights to demand compensation.
Some say a NAFTA case would be too slow to defend Canada farmers. It’s not a silver bullet, that’s for sure. But perishables get fast-track consideration. And slow is relative.

Look at softwood lumber.

Canadian officials have said it could be years before the border for cattle reopens.
Instead of sides of beef, it’s Canada’s farmers who are hanging on the hook. Ottawa needs to fully protect farmers and farm communities from an economic disaster they didn’t create until this is resolved.

To pay for it, we need to put the Americans on notice that we will be looking to Washington for cost recovery under NAFTA. Somewhere in the neighbourhood of $11 million a day.

The provisions of NAFTA were designed to defend Canada’s farmers from politics. What’s missing, it would seem, is the political will to stand up to the Americans and use them.

Some have said that since Washington’s blatantly political closure of the U.S. border to Canadian beef, NAFTA isn’t worth the paper it’s written on. Quite the contrary, if our reluctant leaders allow a major industry to die, it is they, not NAFTA who are at fault.

Inspired by a CBC Radio One commentary by Wendy Holm.

[ivbinconned]

What’s wrong with this picture….oh ya its coming now…I see it. Maybe what we need is a Western Canadian Beef Control Board! With directors appointed by the P.M.!
Set up in such away that beef exports can only be exported through such a board and if any one else tries to do it on there on volition, they will go to jail. Not with out first having seen, a federally appointed judge of course. I digress…
With such a system firmly in place there can be no doubt that the feds would utilize international agreements and run to our defense.
Or could it be that the feds would like to see the mighty economic engine that has developed in the west brought to its knees? Its happened before.

[cowman]

Oh I doubt they want to see this happening. Stops and reverses the flow of money to Ottawa you see. This isn't like the oil grab back in the early eighties. That was designed to bring more money into the heartland from the colonies. This BSE thing is a loser for all concerned.

[ivbinconned]

Cowman; I think you give our eastern master to much credit for thinking rationaly. Remember the "moron" statement.

[cowman]

You know we all have a pretty negative attitude of old Jean but he is no dumbie! He has done what he had to do over the years to stay in power. He is pretty much what he says he is! Very much an eastern politician and power broker. To bad we didn't have a few toughies like him out here!
Actually Chretien never called Bush a moron, it was some aide. Whether you or I agree with that assessment is our personal choice! Personally I don't think he is a moron at all...but I don't think I'd buy a used car from him!
I don't think many out west will be very sorry when Chretien goes. Maybe the same can be said for Bush?

[ALICIA]

I kind of hope USA has a case of Mad Cow so that us Canadians can watch and lead how this great god loving country handles the mess.

[almoy]

The US would never admit to having a case of BSE.

[ivbinconned]

Yes Cowman I know who made the statment. The point is that she felt comfortable saying it and her boss let it slide untill the preasure got to much and then she dissapeared.
Yes Chretien has followed the rules of survival that all ruling parties in this country have to follow. That is, on any important issue the question is, what does Quebec want, and what does Ontario want.
This is just the way the math works. And we should quite complaining, or get surious about fixing it.

[cowman]

Well I guess we'll have to stop complaining then! Don't see anything happening in the future to fix it!
Way back in the eighties there was this party the WCC that started out looking pretty good but they were a little too wild for your average voter I guess. They had some good ideas but then they got sidetracked and came out with some outrageous things. In the meantime Lougheed got out the checkbook and bought off the ones who were wavering. Result...end of the only separtist party that ever elected anyone. It was a big deal at the time. The WCC packed the halls in the rural area I live in.
Then we got the Reform party! Which was going to get us a better deal right? They morphed into the Alliance and are now in the process of morphing back into the Conservatives or liberal lights if you will! Do you think they will stand up for us? I doubt it.
The only time you really hear any of our provincial premiers bashing Ottawa is when they need to get reelected or the books don't look too good because of their mismangement. Everybody thinks Ralph Klein is some kind of neo-conservative when in fact he is nothing but a spendthrift and wastrel! It's pretty easy to look good when you own the goldmine!

[pandiana]

Wasn't it David Orchard that agreed to throw his support behind McKay provided he agree to review NAFTA.
I guess I am more and more convinced that we have to renew this agreement because at this point I have to be reminded what it was that we are supposed to benefit from this agreement.
We are forced to sell our natural resources (non-renewable) at market prices (including water...again see Wendy Holm) and US adds value and resells them back to us. Even US agricultural products must be given equal opportunity to ours. When is the last time you bought a Canadian apple. Climate dictates that American product reaches our shelves much sooner that ours and we have no choice but to accept them. Our cold, short season climate also influences input costs which are lower in warmer climates.
What about price increases? Produce is the grocery stores has increased at least 30% over past few years and even vegetables that grow quite well in our shorter season are being displaced by imported product. Subsidized imported products make it difficult for innovative approaches to extend our growing seasons because of initial input cost (I am thinking of recapturing heat from gas plants to warm green houses).