Last week (Feb. 2nd) I drove up to London, Ontario, to shoot some film footage of the locked-out workers picketing outside the Electro-Motive Diesel plant for a documentary I am working on. The company, the only one to make locomotives in Canada, is owned by Caterpillar Inc., the world’s largest equipment manufacturer. They’d locked out the entire workforce of 450 […]
Read moreCanadian free trade negotiators are going all-out to get a deal with the EU on a new free trade agreement. The Harper government wants a deal badly for largely symbolic and ideological purposes, to show that the free trade agenda is back on track under this “stable majority government.” Many valid concerns have been raised about the implications of a […]
Read moreCBC National News reconvened their “Bottom Line” economics panel (including yours truly) last night to discuss the twin debt crises (Europe and America) that are currently roiling financial markets. Here’s the link to the webcast for aficionados. In the last segment, Pater Mansbridge asked all the panelists how the debt problems should affect individual Canadians’ personal strategies and behaviour. (My answer […]
Read moreA month ago, Canada’s federal, provincial and territorial governments volunteered to be directly sued by investors under the Agreement on Internal Trade. This quiet announcement from Brudenell, Prince Edward Island, seems to have gone almost unnoticed. But it is a huge step toward imposing the Trade, Investment and Labour Mobility Agreement (TILMA) on all Canadian jurisdictions and inserting investor-state provisions […]
Read moreThe CAW has just released a 20-minute video featuring none other than yours truly giving a short lecture about the economics of the proposed Canada-EU free trade agreement (a.k.a. CETA). This link takes you to the film, which can be downloaded for free and shown at information meetings or any other organizing events.
Read moreHere is an interesting piece from the Financial Times on how Chinese companies are rapidly grabbing global market share from Germany of all countries across a swath of technologically sophisticated capital goods industries, from solar, to high speed rail, to the German fortress of mechanical engineering and machine tools. Had China heeded the mainstream view that its comparative advantage lay […]
Read moreThere’s a shockingly honest and accurate article about Canada’s deteriorating trade performance in today’s Globe and Mail by Barrie McKenna. It notes that Canada’s trade balance improved dramatically in November (almost completely closing October’s $1.5 billion). However, it cited some Bay Street economists lamenting that this was for the “wrong reasons”: namely, a sharp slowdown in Canadian spending and hence […]
Read moreTrade Minister Peter van Loan goes after Maude Barlow with a letter in yesterday’s Globe and Mail, responding to her fine recent op-ed on the Canada-EU free trade talks. Among other cheap shots, van Loan once again cited as “proof” the findings of a computable general equilibrium model that was commissioned by the EU and the Canadian government to support […]
Read moreGabriella Moldonado looked like someone who was thoroughly whipped by life. This past October I was standing on the front stoop of her sagging home in Laredo, Texas, interviewing the middle-aged, portly woman for a television documentary about Mexico’s drug cartel wars. Laredo is a city of 230,000 that lies on the Rio Grande river just across from Mexico. It […]
Read moreHere’s an amusing epilogue to my recent CCPA report on the possible economic and employment impacts of a free trade agreement between Canada and the EU. (Here is the report; here is my blog on it.) The day after the report came out, reporters asked Trade Minister Peter Van Loan to comment on its predictions that Canadian industries (mostly in […]
Read moreThe Canadian and EU governments are working toward a free trade agreement that would comprehensively liberalize trade in goods and services, government procurement, foreign investment, and other important economic interactions between the two parties. Canada enters these negotiations with a notable disadvantage in terms of both quantitative trade flows, and the qualitative composition of trade. Canada currently incurs large bilateral […]
Read moreMy Globe and Mail column today looks at the issue of trade imbalances in global trade. Countries like Germany have stimulated their own recoveires (for now) by deliberately targeting large trade surpluses; this strategy has also been followed for years by China, Japan, Korea, and others enamoured with export-led growth (which is a totally different animal, keep in mind, from […]
Read more           Canada’s federal government made an important announcement this week.  It was kept deliberately quiet: with a news release issued at 4:45 pm on a calm Tuesday in the middle of the late-summer news “dead zone.” But it should set alarm bells ringing for anyone concerned with the anti-democratic direction of global trade law.
Read moreI’ve found the politics of the Buy American controversy very odd. President Obama, to help sell his massive stimulus package to the American public, added measures to maximize domestic content in stimulus-funded projects. From his perspective, that was sensible both economically (reduces the import leakage from the stimulus) and politically. If anything, it should have reinforced our nascent efforts in […]
Read moreThe downturn in global trade is stunning — a sure sign that this is no garden-variety slowdown we are experiencing. And in Canada’s case, the cyclical downturn in trade lies on top of a deeper structural change: our increased reliance on resource exports, which produced (via Dutch Disease mechanisms) a corresponding shift of output and employment into non-tradeables, and a […]
Read moreIt is amazing to see the charged responses to the idea of a made-in-Canada policy for procurement related to infrastructure stimulus spending. Perhaps it is just that all economists are supposed to accept free trade as the One True Policy. But what I am seeing are largely moral arguments for free trade in the abstract rather than an examination of […]
Read moreEveryone’s favourite non-issue came up again at last week’s First Minister’s meeting. The outcome of two amendments to the Agreement on Internal Trade was another bit of “progress”, I suppose (see backgrounder below). As usual, the release offers no details on actual trade barriers that are presumed to exist in Canada. With the long-standing margarine case settled as of last […]
Read moreOf all the high-flyers and assorted fraudsters now coming down to earth, this one is just too rich and comical to pass by. Owen Lippert, now scandalized as the wholesale plagiarizer from Australian Prime Minister John Howard in a speech he wrote for Stephen Harper, was the former Director of the Law and Markets Project at the Fraser Institute before […]
Read moreToday at the Canadian Economics Association meetings, the PEF officially awarded the first John Kenneth Galbraith Prize in Economics to co-winners Mel Watkins and Kari Polanyi Levitt. We had a packed room for the event, which featured opening remarks by Jamie Galbraith, and a historical retrospective of their works by Jim Stanford. Below is the text of Mel Watkins’ Lecture. […]
Read moreJanuary 2 will be the 20th anniversary of the Canada-US Free Trade Agreement’s signing. (Of course, the deal did not come into force until January 1, 1989, after the 1988 federal election.) The leading lobby for this deal was the Business Council on National Issues, which has since been renamed the Canadian Council of Chief Executives (CCCE). The promise of […]
Read moreEarlier today, the Prime Minister announced that four by-elections will be held on March 17. Earlier this week, a most fascinating controversy emerged in one of the affected ridings: Desnethe-Missinippi-Churchill River (northern Saskatchewan). David Orchard, the Saskatchewan-based activist whose grassroots organization helped Dion win the Liberal leadership, has declared his candidacy for the Liberal nomination. However, Ralph Goodale is pushing […]
Read moreThe October issue of Policy Options from IRPP is devoted to free trade at 20 – now that we are 20 years on from the signing of the FTA with the US.  http://www.irpp.org/po/index.htm With one modest exception, the articles are all written by pro free traders – including key architects of the deal like Derek Burney, Stanley Hartt, Charles McMillan, […]
Read moreHere’s a Freudian slip worthy of the internet age. Go to the home page for the Department of Foreign Affairs and International Trade: http://www.dfait.gc.ca/index.aspx To find their section dealing with free trade negotiations, you go to the menu on the left, under a category titled “Services for Business.” We certainly couldn’t list free trade negotiations as constituting a “Service for […]
Read moreAn interesting memo just cropped up from Costa Rica in the midst of the debate about the Central America Free Trade Agreement (CAFTA), one of the latest installements in the string of plans to free trade and capital flows in the Americas. This memo came from the YES campaign and advocated interesting strategies, such as fostering fear: Beyond what can […]
Read moreThis post is in response to the following excellent comment from Stephen Moore, the man who will trounce Ralph Goodale in the next federal election (or at least do better than I did): April 2007 testimony before the parliamentary committee on International Trade saw Industry Canada, DFAIT reps and others stress the importance of the SPP (Security & Prosperity Partnership) […]
Read moreIn today’s Leader-Post, Bruce Johnstone makes the same point as I did about the Saskatchewan Party’s reversal on TILMA: that it is intended to minimize the agreement as a potential election issue. He also makes the oft-heard argument that, since a couple of other “free trade” agreements allegedly worked-out fairly well, TILMA must also be pretty good. If the AIT was […]
Read moreRecent commentaries from CIBC and Export Development Canada argue that the manufacturing crisis is not eroding job quality. Both note that a surge in construction employment, added to the relatively few new jobs in non-renewable resource extraction, nearly equals the number of manufacturing jobs lost in recent years. As emphasized on the front page of yesterday’s Financial Post, this argument […]
Read moreThe following letter is printed in today’s Globe and Mail: Re Harper signals shift from Africa to Americas (June 8), Announcements by Prime Minister Stephen Harper and International Trade Minister David Emerson that Canada intends to negotiate a free-trade deal with Colombia can only be described as chutzpah. Consider: More union leaders are killed in Colombia than in all of […]
Read moreOn Tuesday, I testified before the Saskatchewan Legislative Assembly’s Standing Committee on the Economy, which is holding public hearings on joining TILMA. The Legislative Assembly is broadcasting the hearings and promptly posting the recordings. To see my presentation, click “Video 1” for June 5 and use the bar immediately below the screen to advance the time to 48.5 minutes. A […]
Read moreAll economists are always in support of “free trade” all of the time, right? Some interestings conversations are happening in the econo-blogs about international trade theory and reality. First, I love how Dani Rodrick is challenges the conventional wisdom on international trade: One of my favorite stylized facts about development is contained in the graph below, which comes from a […]
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