Canada should revert to use of global trade rules

2005-08-29 00:00:00

It's often noted that the United States is so big
and powerful it barely notices Canada. Indeed, the
average U.S. citizen probably couldn't locate Canada on
a map of North America (and if he could, he wouldn't
bother to).

This sense of Canada's insignificance, drummed into
us constantly by our media commentators, has helped fuel
the mythology that we scored a great coup back in 1988
when we signed the Free Trade Agreement with the U.S.

In fact, that deal - and the subsequent North
American Free Trade Agreement - was more a coup for
Washington than Ottawa.

Contrary to mythology, Washington was keen to sign
free-trade deals with Canada for lots of reasons,
including winning guaranteed access to our energy, which
they got.

But the Americans are tough negotiators, and they
weren't willing to give us much in return.

The one thing Canada really wanted was a common set
of rules that would ensure Canadian goods access to the
U.S. market, and the Mulroney government promised not to
sign any deal without this.

But Washington never had any intention of agreeing
to this, although its negotiators teasingly hinted from
time to time that they were considering it.

After years of exasperating negotiations, the
Mulroney government, desperate for a deal, signed anyway.

The utter failure of NAFTA to guarantee us access
to the U.S. market has long been clear, but is now
undeniable. Despite a unanimous pro-Canada ruling
earlier this month by a NAFTA panel, Washington simply
refuses to remove punishing duties on our lumber.

This has led to much hand-wringing and even calls
for retaliation. Instead, we should simply bow out of
NAFTA, which we can do with six months' notice.

We'd continue to trade with the Americans but we'd
revert to our old way of trading with them - under the
rules of the World Trade Organization, a global trade
treaty formerly known as the General Agreement on
Tariffs and Trade.

This was the basis of our successful trading
relationship with the U.S. for almost 40 years, until we
were naïve enough in the 1980s to think we could do
better negotiating a one-on-one deal with Washington.

Washington was delighted, knowing it would have
more leverage facing one country (and a relatively small
one at that) than facing a whole array of nations.

It easily tossed us around on the mat.

NAFTA has done much to erode our sovereignty,
denying us control over our own energy resources,
creating a wide-ranging set of rights for corporations,
and limiting our power to protect the environment and
shape public programs.

Rather than rant and rave and retaliate, we should
finally acknowledge that we do better when we negotiate
with the Americans with a host of other nations on our
side.

There was a reason that the U.S. Congress quickly
and eagerly approved the one-on-one deal Washington
signed with Canada - and it wasn't because U.S.
congressmen have a soft spot for Canadians.

----------------------- Linda McQuaig is a Toronto-based
author and commentator.

Source: Published in the Toronto Star, August 28 2005.

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