[lbo-talk] [Pen-l] James Laxer on opening NAFTA

Robert Naiman naiman at justforeignpolicy.org
Tue Mar 4 18:32:38 PST 2008


I suspect that this lies at the heart of a lot of the alarm in Ottawa and Mexico City, don't you? It's kind of hard for the Mexican and Canadian governments to tell their citizens that renegotiating NAFTA is off the table when it's very likely that the next President of the United States will be on the record as saying that it isn't.

On Tue, Mar 4, 2008 at 8:13 PM, ken hanly <northsunm at yahoo.com> wrote:
> Many Canadians would be quite happy to re-open NAFTA
> as Obama and Clinton suggest. Laxer gives some of the
> reasons for doing so.
>
> http://www.jameslaxer.com/blog.html
>
> Obama and Clinton Have a Point: Let's Take a Hard Look
> at NAFTA
>
> Barack Obama and Hillary Clinton have been squabbling
> over which of them is more serious about standing up
> to Canada on the shortcomings of the North American
> Free Trade Agreement. In her last ditch effort to
> seize victory from the jaws of defeat in Ohio (we'll
> know the result tonight), Clinton has been accusing
> Obama of talking tough to hard hit workers while
> reassuring Ottawa that he's only kidding.
>
> Neither of these candidates is remotely pro-Canadian.
> As a border state senator, Hillary Clinton has been
> happy to bash Canada for its supposedly lax security
> whenever that suits her. Not that we should be
> surprised that the Democratic front runners could care
> less about Canada. That's normal, despite the
> dewy-eyed proclivity of some Canadians to seek
> salvation from American politicians.
>
> We ought to be thankful though to Obama and Clinton
> for insisting on the renegotiation of NAFTA if either
> of them reaches the White House.
>
> Canadians have pressing reasons for taking a hard look
> at NAFTA.
>
> NAFTA and its predecessor, the Canada-U.S. Free Trade
> Agreement were negotiated at a time when petroleum
> prices were much lower than today and the world was
> much less queasy about petroleum supply than it is
> now.
>
> When the Mulroney Conservatives negotiated the free
> trade deals, one of their major objectives was to
> ensure that no Canadian government could ever again
> pursue a petroleum policy that did not suit the oil
> companies, the Conservative government in Alberta and
> the U.S. administration in Washington. And while they
> failed miserably at gaining secure access for Canadian
> exports to the U.S. (witness softwood lumber), they
> succeeded brilliantly in tying the hands of Ottawa on
> petroleum.
>
> Under NAFTA, Canada is required to continue exporting
> petroleum to the United States at a level which must
> not fall below the average of the past three years.
> This remarkable commitment stands even should the
> regions of eastern Canada that rely on imported oil
> fall short as a consequence of a supply interruption.
> Not only does Canada have no strategic petroleum
> reserve---a point driven home by the recent work of
> the Parkland Institute in Alberta---under the terms of
> NAFTA Canada must make exports of petroleum to the
> U.S. a higher priority than meeting the energy needs
> of Canadians.
>
> >From the start, NAFTA has been an "unequal treaty" for
> Canadians. The Mexicans, also major oil suppliers to
> the United States, are saddled with no such outrageous
> commitment, for the simple reason that Mexicans would
> never have stood for it.
>
> With petroleum shortages now a real threat in the
> world, Canada needs to renegotiate NAFTA, and if the
> United States is unwilling to reach a deal that
> removes the petroleum export commitments as they
> stand, Ottawa should give notice that Canada will
> withdraw from the trade deal.
>
> Under the Harper Conservatives and the newly
> re-elected Stelmach government in Alberta, the highest
> priority of Canadian economic policy is to increase
> petroleum exports as rapidly as possible, despite the
> ruinous environmental consequences, and the disastrous
> effects of the policy for Canadian industry.
>
> Finance Minister Jim Flaherty has gone to war with
> Ontario insisting that the province slash its
> corporate taxes. By promoting the rapid increase in
> petroleum exports, the Conservatives are directly
> responsible for driving up the value of the Canadian
> dollar so quickly that Canadian manufacturing has had
> no chance to adjust.
>
> The Conservatives have skewed Canadian economic
> development to the long-run detriment of all
> Canadians, including Albertans who face the reduction
> of large regions of their province to a polluted
> moonscape.
>
> Thanks Barack and Hillary, for putting NAFTA back on
> the agenda. In our own national election, which can't
> come too soon, Canadians ought to put the issue front
> and centre.
>
> Blog: http://kenthink7.blogspot.com/index.html
> Blog: http://kencan7.blogspot.com/index.html
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