HomeMy WebLinkAboutGoderich Signal Star, 2017-05-03, Page 66 Signal Star • Wednesday, May 3, 2017
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VOL. 26 — ISSUE 10
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Tariffs on Canadian lumber also increases
tensions in US -Canada relationship
Kathleen Smith
Goderich Signal Star
Last week many
national news outlets
featured stories on
American President
Trump's declaration that
the US will slap a tariff on
Canadian lumber.
The tariff at around 20
percent, would not only
affect the Canadian lumber
industry, which will most
likely lead to job losses.
Consequentially, it could
also lead to a decline in
economic prosperity, and
the American people are
sure to oppose such a tariff
as well.
According to a study last
year by the National Asso-
ciation of Home Builders, it
was found that even a 15
percent tariff would not
only increase new home
prices by 4.2 percent, but
would also cost approxi-
mately 4, 666 full time jobs.
Some Canadians might
ask the question, 'Well,
what does this negative
effect on Americans, have
to do with us?' There is a
simple answer: NAFTA.
The North American
Free Trade Agreement,
started in 1994 and incor-
porating• Canada, USA and
Mexico, is the world's larg-
est free trade agreement; it
allows for strong economic
growth and prosperity.
The trade agreement
demonstrates how free
trade can increase wealth
and competition, while
benefitting families, farm-
ers, workers, manufactur-
ers and consumers.
Trump's decision to tariff
the soft wood lumber com-
ing out of Canada will put
money in the pockets of
already wealthy, white-col-
lar men, while the lumber
industry, countless loggers
and home-building com-
panies will struggle with
the increase in price of
lumber.
According to Trump,
Canada's lumber is not the
only 'anti -American -agent'
that is threatening the
Photos by Kathleen Smith/Goderich Signal Star
A 20 percent tariff has been placed on Canadian soft wood,
leading to talks of renegotiating NAFTA.
prosperity of the American
economy.
Since the unimaginable
happened with the Inaugu-
ration of Trump, and the
US becoming a stage for
reality show antics, the US -
Canada relationship man-
aged to remain strong, with
no signs of tension.
That is, until Trump
decided to tweet on April
25: "Canada has made
business for our dairy
farmers in Wisconsin and
other border states very
difficult. We will not stand
for this. Watch!"
The leader of the "free"
and the brave appears to
be systematically breaking
ties and increasing ten-
sions with the two coun-
tries that have been peace-
fully operating with the US
through NAFTA, economi-
cally benefitting all three
countries involved.
Through these lumber
negotiations and the Twit-
ter attacks on the Canadian
dairy industry, President
Trump is now demanding
NAFTA renegotiations,
after threatening to termi-
nate the agreement.
According to US media
reports, Trump was close
to signing an executive
order that would withdraw
the US from NAFTA on
Wednesday last week.
On April 27 Trump con-
tinued to inform the
world on the "progress" in
regards to relations with
Mexico and Canada: "I
received calls from the
President of Mexico and
the Prime Minister of
Canada asking to renego-
tiate NAFTA rather than
terminate. I agreed sub-
ject to the fact that if we
do not reach a fair deal for
all, we will than terminate
NAFTA..."
Although I am sure that
these leaders can reach a
new agreement for NAFTA,
what bothers my rational
mind is, the question of
'why' for renegotiations.
NAFTA has been in oper-
ation since 1994, with nor-
mal fluctuations in differ-
ent industries and has
been a positive and pros-
perous agreement amongst
the three nations involved.
Perhaps President
Trump is acting under his
mantra of "make America
great again" to bring more
money into the US.
Perhaps Prime Minister
Trudeau genuinely agrees
that the terms of NAFTA
need to be enhanced and
renegotiated, in order to
move forward.
Perhaps this
LADY AND THE TQAMPOLINE
renegotiation of NAFTA
will be fair for all nations
involved and will make
some significant but neces-
sary changes in order for
all three nations to con-
tinue to grow and prosper
economically.
One thing that needs to
be guaranteed is that all
three leaders act accord-
ingly in respect to those
whom these renegotiations
and new tariffs will affect
the greatest.
The lumber and dairy
companies, but also the
farmers, the truck drivers,
the loggers and the fami-
lies that will be affected by
these changes.
These people are the
backbone of the North
American economy and do
not have a platform nor
power to insight positive
change for our communi-
ties and our economy.
It is the duty of the town,
municipal, regional, pro-
vincial and federal leaders
to work for the people - to
allow our countries to grow
and prosper economically,
while maintaining positive
and peaceful relations with
the other nations.
The efforts of Mexico's
President and the Cana-
dian Prime Minister, to
make changes for the
improvement and prosper-
ity for all three nations
involved are apparent.
Koat Tales
When it comes time for
negotiations, will President
Trump be able to replace
the "I" with an "Us"?
In a time of uncertainty,
with the term "anything is
possible" not holding a
positive or optimistic value
anymore, I fear there is no
reaching Trump.
I fear there is no rene-
gotiation with Trump,
but rather the American
government running
through the NAFTA rene-
gotiations like a bull in a
china store.
I fear Trump has created
tensions with Canada
where no tension was nec-
essary, which could result
in more being affected
than just the lumber and
dairy industries.
I fear Trump's renegotia-
tions will benefit the Amer-
ican government and
economy and no one else,
which is the exact opposite
of a properly functioning
free -trade agreement.
Despite all this fear and
pessimism, for reasons
unknown, I have faith that
the leaders will act
accordingly to make our
nations and inter -nation
relationships strong and
peaceful.
As a nation, we can only
hope the Canadian govern-
ment is as strong as the
people it governs.
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