NAFTA pullout bill fails to scare Ottawa

Source: CBC News

Fresh off a recent skirmish over "Buy American," some Canadian cabinet ministers are expressing confidence that a new protectionist push from some U.S. politicians won't succeed.

"We're always worried about protectionist tendencies," said Finance Minister Jim Flaherty.

Canada recently avoided a trade issue with the U.S. government when it worked out a deal on the so-called "Buy American" provisions contained in the U.S. stimulus package.

"Certainly our success in getting the Buy American deal penned ... is a demonstration of the Obama administration’s commitment to freer trade, so we anticipate we’ll continue to work hand-in-hand with them to deal with any threats of rising protectionism."



Read more: http://www.cbc.ca/politics/story/2010/03/09/nafta-us-pullout-ministers-vanloan-flaherty.html

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Tuesday, March 9, 2010 | 5:18 PM ET


International Trade Minister Peter Van Loan says he is optimistic the bill will not come to pass. (Sean Kilpatrick/Canadian Press)

The U.S. and Canada negotiated a free trade agreement before NAFTA which (after awhile) worked to the benifit of both countries, mainly because they had rough wage and work practice parity. The real damage to the American (and Canadian) manufacturing base only started when the U.S. entered into free trade agreements with countries that pay their workers only a fraction of the U.S. wage. (ie-Mexico and a number of others.)

So, even if the U.S. bailed on the NAFTA agreement altogether, as well as most of the other trade agreements, Canada and the U.S. (and probably the E.U.) should negotiate a free trade agreement. Free trade is good, so long as it's not exploitative and predatory, and as long as it doesn't give businesses access to slave-wage worker pools.

Has not worked to the benefit of both countries. It has worked to the benefit of corporations, which have no allegiance to any country.