Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • CCPA's National Office has moved! May 11, 2018
      The week of May 1st, the Canadian Centre for Policy Alternatives' National Office moved to 141 Laurier Ave W, Suite 1000, Ottawa ON, K1P 5J2. Please note that our phone, fax and general e-mail will remain the same: Telephone: 613-563-1341 | Fax: 613-233-1458 | Email: ccpa@policyalternatives.ca  
    Canadian Centre for Policy Alternatives
  • What are Canada’s energy options in a carbon-constrained world? May 1, 2018
    Canada faces some very difficult choices in maintaining energy security while meeting emissions reduction targets.  A new study by veteran earth scientist David Hughes—published through the Corporate Mapping Project, the Canadian Centre for Policy Alternatives and the Parkland Institute—is a comprehensive assessment of Canada’s energy systems in light of the need to maintain energy security and […]
    Canadian Centre for Policy Alternatives
  • The 2018 Living Wage for Metro Vancouver April 25, 2018
    The cost of raising a family in British Columbia increased slightly from 2017 to 2018. A $20.91 hourly wage is needed to cover the costs of raising a family in Metro Vancouver, up from $20.61 per hour in 2017 due to soaring housing costs. This is the hourly wage that two working parents with two young children […]
    Canadian Centre for Policy Alternatives
  • Mobility pricing must be fair and equitable for all April 12, 2018
    As Metro Vancouver’s population has grown, so have its traffic congestion problems. Whether it’s a long wait to cross a bridge or get on a bus, everyone can relate to the additional time and stress caused by a transportation system under strain. Mobility pricing is seen as a solution to Metro Vancouver’s transportation challenges with […]
    Canadian Centre for Policy Alternatives
  • Budget 2018: The Most Disappointing Budget Ever March 14, 2018
    Premier Pallister’s Trump-esque statement that budget 2018 was going to be the “best budget ever” has fallen a bit flat. Instead of a bold plan to deal with climate change, poverty and our crumbling infrastructure, we are presented with two alarmist scenarios to justify further tax cuts and a lack of decisive action: the recent […]
    Canadian Centre for Policy Alternatives
Progressive Bloggers

Meta

Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

The New ABC: Abitibi Bowater Conservatives

As sometimes happens, I started writing a comment on Jim’s excellent post and then realized that there was enough material for a new post. I agree with Jim that Ottawa’s $130-million settlement with AbitibiBowater deserves more attention, but I have been waist-deep in potash.

I think that my initial take on Abitibi’s NAFTA challenge still holds up pretty well. But here are three further thoughts:

1.) Jim writes, “There is no constitutional way for Ottawa to force Newfoundland to pick up the tab.” Constitutionally, it would actually be quite easy for the federal government to deduct $130 million from its transfer payments to the provincial government. But that would be politically toxic.

2.) It is not unusual for governments to contribute to the restructuring of economically significant, but financially bankrupt, companies like Abitibi (which has many operations in other provinces). So, I wonder to what extent Harper is using the NAFTA challenge to characterize the $130 million as compliance with trade obligations rather than as a “bailout.”

Of course, an explicit federal bailout of Abitibi would be preferable because Ottawa could attach public-interest conditions to the money, obtain equity in the company, and not set such a rotten precedent for future NAFTA challenges. But as Jim notes, federal Conservatives probably view that precedent as “a desirable loss of sovereignty.”

3.) Harper has set another precedent: provincial governments can disregard NAFTA with impunity (although I am not convinced that Newfoundland really violated NAFTA in this case). If “foreign” investors challenge a provincial policy, Ottawa is left holding the bag.

I believe that is one of the federal government’s main motives for encouraging inter-provincial “free trade” deals like TILMA. The goal is not to remove unidentified inter-provincial trade barriers, but to have provincial governments directly commit to NAFTA-style rules.

PS – The old ABC was Premier Williams’ “Anything But Conservative.”

Enjoy and share:

Write a comment





Related articles