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    Canadian Centre for Policy Alternatives
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    Canadian Centre for Policy Alternatives
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    Canadian Centre for Policy Alternatives
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    Canadian Centre for Policy Alternatives
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    Canadian Centre for Policy Alternatives
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The Progressive Economics Forum

The IMF and the Canadian Manufacturing Crisis

A background study for the latest IMF report on Canada (see pages 42 to 51) adds further weight to the argument that the rise in the exchange rate of the Canadian dollar, driven in large part by high commodity prices, has underpinned a sharp decline in the US market share of Canadian manufacturers since 2000 and a major shift in the composition of Canadian exports from manufactured goods to energy and minerals.  This report notes that China has taken market share in the US at the expense of Canadian manufacturers without underlining the fact that China’s currency is closely linked to the US dollar ie. the high Canadian dollar puts our manufacturers at a disadvantage compared to both US domestic producers and China based exporters to the US.

Add this to the list of authoritative references which refute the view of Harper et al and the Macdonald-Laurier Institute that the manufacturing crisis has nothing to do with resource dependency and the exchange rate.

Enjoy and share:

Comments

Comment from Paul Tulloch
Time: February 15, 2013, 2:04 pm

A very thorough assessment. The report on manufacturing and exchange rate is the deepest and it must be labelled, most unbiased report than I have seen on the subject. Great technical skills by the researchers.

Comment from Jesse Prasad
Time: April 8, 2014, 10:20 am

hi guys im currently in the process of filming a documentary that touches upon Canadian manufacturing and how it is becoming destroyed by globalization.
If you are in the Toronto region and wish to participate in the documentary please msg me for details. We are currently filming a documentary, depicting the the social and economic impact of factories shutting down. The documentary will take a close look at how globalization creates wealth for developing nations but destroys the lives and people of the local market.
The documentary will also serve as a learning tool for people who care to know about the decisions made in the boardroom as to whether they should down a factory or not.

Will you be willing to participate in the documentary by discussing your take on factory closures?
We would like your expert insight that will give viewer’s a better understanding.

Here is a link to our trailer and part 1
http://youtu.be/cCitKZwROCs

http://youtu.be/qhQC5iV9XKo

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