Tag Archives: trade

How NAFTA Works

From Bloomberg

Global trade involves a complex web of cross-border journeys, seamless and often invisible to American consumers. As President Donald Trump seeks to rewrite Nafta and other trade accords in an effort to bring jobs back to America, he would do well to follow the meandering path of a single lowly capacitor, a pinkie tip-sized component that stores electrical energy.

Its journey illustrates how U.S. manufacturers rely on numerous border crossings and thousands of miles of travel to produce goods at the low cost and high quality that customers demand. Nafta, in particular, allows goods to travel back and forth to Mexico with minimal delay and at no cost.

Of course while the graphic is cool and the article makes sense to most of us, Trump hates it.  He wants EVERYTHING to be made in the United States and doesn’t realize that it was automation and globalization that changed manufacturing forever, not NAFTA.

I don’t understand Trump voters.  On one hand, they hate NAFTA and blame it for everything but then line up for deals at Walmart to buy goods that almost all made in China.  Why?  Because it is cheaper.  It’s that behaviour that is killing manufacturing in the United States, not NAFTA.

City of Saskatoon to seek exemption for international trade deal

This still boggles my mind.

Saskatoon should request an exemption to a large-scale free-trade agreement being negotiated between Canada and Europe, a city committee agreed.

City councillors, sitting as an executive committee, voted 5-4 Monday to seek a permanent exemption to the proposed Canada-European Union Comprehensive Economic and Trade Agreement, or CETA, a free trade and economic integration pact between Canada and the 27 European Union countries that is in the final stages of negotiation.

The resolution still requires council approval in February and will face some difficulty with two right-of-centre councillors, Coun. Myles Heidt and Coun. Randy Donauer, absent at the committee Tuesday.

I know this will die in council with Heidt and Donauer’s return but still…

Access to government procurement at federal, provincial, municipal, regional and local governments, as well as Crown corporations and utilities, is Europe’s main goal in the pact. Saskatoon has seen interest from European firms on a small number of major infrastructure projects, including the $300-million Circle Drive South project, which drew a bid from a Spanish firm.

Cities only have to be concerned about the effect on construction contracts, not the takeover of city-owned utilities, according to a briefing from provincial officials, Jordan said

“I’m confident from the information I’ve received there’s not much need to be concerned about that aspect of it,” [Michael] Jordan said.

Okay, at least the city managers are thinking clearly on this one.

Coun. Charlie Clark questioned if the private sector could challenge the city to open up municipally operated services such as Access Transit, the lift-equipped bus service, or if city hall could no longer enact a local food first policy or a bottled water ban under the agreement.

“There’s enough unknowns about how this could impact the city and because we don’t have a seat at the table it’s best to request an exemption,” Clark said. “I think that as a democratically-elected city council we should make sure we can make the decisions we need to make to protect citizens and there’s no real benefits from what I can see for cities to be included — so it’s easier to be excluded.”

Can local municipalities actually be excluded under international trade agreements?  The truth is that on big projects like the bridges that we are building are being designed and built by international firms because of their complexity and scope and the consolidation of international design and engineering firms (which as a city we benefit from).   I also hate the idea that we need to protect local companies from international competition.  The reason we need to protect them is that we think as the city grows, they aren’t good enough.  Sometimes they won’t be good enough (which is why international firms exist and why there has been increased consolidation around the super engineering firms) but protecting them from competition doesn’t make them any better either.

Of course all of this was grandstanding because the city doesn’t even have a local procurement policy.

The bigger impact is the New West Partnership which will open up construction contracts over $200,000 to companies across the west.  It will have a far greater impact on small and medium businesses in this province than CETA will, yet that passed.