Wednesday, October 22, 2008

The "third option" refrain...again

In the news recently is a renewed call for a trade pact between Canada and Europe. See Canada and Europe ponder trade pact. When will Canadians dispense with nationalistic pretenses and whole-heartedly embrace the good fortune of being America's primary trading partner? Fears about having all your eggs in one basket are misplaced. While the glorious effects of globalization have lifted the economic clout of Europe and the Far East, America remains a powerful and dynamic market. Canadians would be better served to work toward an improved North American trade framework, freeing up labour mobility and capital constraints. Yes, there are expanding markets abroad, but unfettered trade will gravitate Canada toward trade among partners in this hemisphere. Better that Canada work with the U.S. to improve the economic vitality of Latin America than to play politics with Europe and China. There is tremendous potential that can be unleashed here in the Americas.

3 comments:

zbarlici said...

"Better that Canada work with the U.S. to improve the economic vitality of Latin America than to play politics with Europe and China."

... true enough, if not for the presence of a dozen or so powerful lobying groups in the US(non-govt), that seem to screw up the NAFTA, with their bitchin, and whining, and imposing of tariffs at Canada`s expense(job loss, etc). Prime example is the Softwood Lumber dispute within the last 10 years.

I do not agree with a North American Union, as it is done fot the Big corporations only. You need the resources of Canada, because you seem to be running out of, and so expand borders because thats the only way the economy can survive. But my government is selling out my children`s bright future by agreeing to an NAU now, when instead they could be holding out a little longer until the true price of resource is realised, and THEN bargain. This is being done behind closed doors for this reason. The general public would not approve. If the govt was to announce that they are preceeding with plans to make a unified N. America, you would see canadians take to the streets like never before. What`s wrong with the way things stand today?

zbarlici said...

what will happen when there are no resources left in Canada? This will be within 100-200 years, as there are no resources left in the US, which depleted quite rapidly too. Where exactly do you suppose that we will expand our borders then? Renewable? If it was so America would not need this N. American Union... open your eyyyyyees. The NAU is because of realisation that there are not too many renewable resources left in the USA, as it already happened to Europe. And then when all the forests in Canada are gone, there will be no other places to take from, there will be this one huge economy crash, because of unsustainability. I`m not a tree hugger, btw, i just been doing a little looking up online on these issues.

sea2sea said...

Thanks for your comments. Dissenting voices are much more numerous than supporting ones, so your arguments are familiar. Likely, there can be no more than an agree to disagree`` result here.

Currently, there is no political will for NAU. My belief, though, is that it is a matter of time before union is thrust upon us by the evolution of the global economy. Fears about exploitation, like the one`s you present, rule the day now. But there is magic in the marketplace. Those that see it are capitalists, entrepreneurs, and many free market thinkers. Your lack of faith in free markets is understandable and shaped by empirical evidence that on the surface seems damning, but underneath is woefully weak. We live in an economy with imperfect institutions and policies that inhibit free markets. Look at the root of most market failures and you will find the paws of regulations and other well-intentioned interventions.