Bruce W. Wilkinson

Canada-U.S. Free Trade and Some Options

The topic of Canada-US free trade, or some variation thereof, has been around since well before Confederation, so it is unlikely that this symposium will produce the last word on the topic. Yet, with any luck at all, we may be able to clarify some of the issues and viewpoints. With the Tokyo Round of GATT tariff reductions underway, perhaps discussion of whether we have some form of free trade is, for many industries, largely academic. Freer trade is in the process of occurring in a multilateral framework. Nevertheless, I have been asked to consider policy options we might undertake apart from and/or prior to negotiation of a free trade arrangement with the United States. Before doing so, however, I believe that it will be useful to have another look at the estimates of net gains that are supposed to accrue to Canada from free trade. This will be the first purpose of this paper. My position is that these net benefits may well be exaggerated and that Canadians should not enter into negotiations with any illusions on this matter. Next, in considering alternatives, the premise will be not unlike that of many who strongly advocate free trade, namely, that free trade, by itself, will not resolve the complex problems of the Canadian manufacturing sector. Many other supporting policies will be necessary if manufacturing in Canada is to survive and prosper. My overall position is that free trade might well be the final objective, but we should first be preparing ourselves for it more fully.

Canada-United States Free Trade: The Current Debate

a lot of my old car which is, by the way, a product of our advanced North American technology. To make it start, one has to turn the key on, wait for about 10 seconds, pump the gas pedal about 15 times, and then attempt to engage the starter. Frequently, all one gets even then is a whine or a whirring sound, but no turning over of the motor. After this occurs a few times, the starter will suddenly engage, the motor will burst into life, and much smoke is emitted. After the motor warms up somewhat and is shifted into gear, it will roar a bit more, but the car does not initially move. Some seconds must pass before it will slowly begin to inch forward (or backward as the case may be). And only after it has moved several blocks will it reluctantly shift out of first gear. Finally, once it is warmed up, it chugs along fairly well, although it burns a lot of oil and shakes when it is driven about 60 kilometres an hour.