(China breaks the rules, oh well)
(Tucker Carlson: Social Costs to Communities Most Important)
1. Important Links
CLICK HERE, for Canada’s trade deal consultations.
CLICK HERE, for archived link to Canada-China free trade.
CLICK HERE, for FAQ on Canada-China free trade deal.
CLICK HERE, for EPI study. Estimated 3.4M jobs lost from US to China 2001-2017.
CLICK HERE, for China’s currency manipulation.
CLICK HERE, for Stephen Harper supporting free trade with China.
CLICK HERE, for Justin Trudeau supporting free trade with China.
CLICK HERE, for Maxime Bernier endorsing free trade with China.
CLICK HERE, for NDP response to possible FTA.
CLICK HERE, for CATO Institute, Disciplining China.
CLICK HERE, for a CATO Institute brochure.
1. From Archived Pages
There have been many concerns with dealing with China. To name just some of them:
- Human rights abuses
- No respect for intellectual property
- Preferential treatment
- Unsafe products entering Canada
To put is bluntly, the answers are not reassuring. They are the political-talk we have come to expect that avoids giving concrete answers.
This all sounds lovely, but to a critical person, this seems more like an attempt to emotionally soothe than to persuade with facts.
3. Major Job Losses
Looking at the Economic Policy Institute Study, shown here, from 2001 to 2017, the US lost 3.4 million jobs to China as a result of a growing trade deficit. China can produce much cheaper and in much higher numbers.
Both increased imports and technical products have done a number on the US job market, who simply cannot compete.
While this is an American study, it would be wise to use it as a cautionary tale for Canada as well.
CURRENCY MANIPULATION EXPLAINED
One unfair way to gain an advantage over a foreign competitor is to manipulate the currency. China has been doing this for a long time, and it leads to an economic advantage that few can match. The Forbes article explains it well.
When the Chinese Government manipulates its currency, it does so in order to artificially cheapen the costs of its products, and to gain an advantage over competitors.
In a “free market” world, this sort of thing should never be allowed.
4. CATO Institute Hypocrisy
Note: CATO calls itself a public policy institute, dedicated to free trade, liberalization and free markets. It is based in the US. But its conflicting observations are disturbing. From their website, they post an article which contains these remarks:
Worth noting is that CATO doesn’t dispute the accuracy or factual basis of Donald Trump’s claims. They don’t dispute the one sided advantage that is posed here. However, there is an interesting brochure that CATO released:
An organization which promotes liberalized trade is okay when one of its members blatantly acts against the rules and its principles. Okay.
5. Main Canadian Parties Support This
However, NDP acts as the voice of reason.
The Liberals have failed to take action to address steel dumping by Chinese companies which put Canadian businesses at a dangerous disadvantage. China also has a questionable record on currency manipulation and unfair trade practices, and does not have market economy status, which means it would be very difficult to have a level playing field in a free trade deal.
What the hell? Why am I agreeing with the NDP on this? Since when did an openly socialist party become the voice of reason?
The again, a NATIONALIST approach would also conclude free trade with China is a bad idea.
6. Not Worth It
Watch the video with Tucker Carlson, at the top of the article. He explains that it is a better way to ensure stability of communities and jobs than to look at a purely profit motive. Well worth a watch. While the talk relates to automating vehicles — and putting truck drivers out of work — the same rationale can be applied here.
While there may be some benefits to an agreement with China, there are simply too many social costs to Canada that need to be seriously looked at:
- How many jobs will be lost?
- What will happen to communities with major job losses?
- What about environmental protection?
- Would we be rewarding sweatshop conditions?
- Can we protect people’s intellectual property?
- Will we be undercut by currency manipulation?
- Is getting cheaper products worth the social cost?
It’s not all about GDP, stock prices, or corporate profits. What will a free trade agreement with China do to Canada?
OUR PEOPLE COME FIRST.