Like I was saying, the North American auto parts industry is cross-border integrated. It has always been named as a *good* example of free trade (long before "free trade") -- one in which the interests of both parties are protected, and both parties, including the workers on both sides of the border, benefit.
http://www.caw.ca/visual&printlibrary/speeches&briefs/speeches/speech14.asp(1998 speech by Buzz Hargrove, president of the CAW)
How about dispute-settlement? This was supposed to be the greatest innovation of the FTA, and would protect us from arbitrary US policies. Yet the recently-concluded travesty of the battle over Canada’s magazine policy showed dramatically that old-style power politics dominate trade policy as much as ever. What is "rational" or "liberal" about a US threat to punish our steel industry because they don’t like our cultural policies–policies which were supposed to be protected under free trade?
... The fantastic claim that free trade would usher in a new era of stable, rational trade law is now a cruel joke. And I could give you a dozen other examples of this failure: softwood lumber, aerospace subsidies, the new barriers to our defense exports that the US has recently imposed. And the list goes on and on and on.
... And Canada, perversely, was a leader in the whole process: sacrificing our own reputation as a society which recognized the limits of markets, and replacing it with a naive and extreme faith in the virtues of unregulated competition.
... The auto sector accounts for fully one-quarter of the growth in Canada’s exports between 1988 and 1998. And it accounts for more than 100 percent of the improvement in Canada’s trade balance during this same time. In other words, without the auto industry, Canada’s merchandise trade balance would have deteriorated under free trade, not improved.
By 1988, of course, our auto industry was already mostly integrated with the U.S. under the Auto Pact. The Auto Pact was signed more than two decades before the FTA, but with a great deal more real-world foresight and intelligence.
Unlike the FTA and the NAFTA, the Auto Pact provided guarantees of domestic content that went along with the elimination of tariffs. Without those guarantees, we would probably not have an auto assembly industry today. With those guarantees, we have what is perhaps the most developed and sophisticated auto industry in the world, relative to the size of our economy and population. And a decade of incredible investment in the auto industry during the 1990s has cemented our advantages in terms of productivity, quality, and cost.
The principle of managed integration which underlies the Auto Pact is a model of how to capture the productivity and efficiency gains.
The Auto Pact prevented Canada from becoming a colonized market for US-made vehicles -- from having all our auto industry jobs
out-sourced to the US. It also contributed to keeping the entire North American auto industry strong, and protecting all the jobs in that industry.
Attacking Bush for riding in a "Canadian-made" bus that undoubtedly contains parts made on both sides of the border under an arrangement that benefits both US workers and
workers and consumers in the US's closest ally and biggest trading partner *is* irrational jingoism, and also an expression of ignorance. I'm at a loss to see how that can benefit anyone.
But hey, if it's just dandy to incite USAmerican workers to vote against Bush by misrepresenting managed trade with Canada as out-sourcing "American" jobs and ruining the US economy, well I guess the NDP up here had better sharpen our "anti-American" arrows for the upcoming Cdn election. Saying nasty things about our USAmerican cousins (enough of this Cdn-style "we don't hate you, we hate Bush!" politeness, eh?) is bound to be good for a few votes ...
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