Times-Advocate, 1988-04-06, Page 18Page 6A
Times -Advocate, Apri! 6 1988
Hear
- TV personality Ross Daily drew
an interesting analogy when he pre-
sented the pros and cons of the tree
trade issue to members of the Hu-.
ron Federation of Agriculture on
March.30. Speaking to the com-
bined annual dinner of Tuckcrsmith,
Godcrich and Stanley federations,
Daily said the free trade erwtroversy
was like standing in faint of a big
black door. People on one side are
ringing a bell and warning "Don't
go in there". On 'the other side
.stand others in straw hats and
striped vests saying "Step right up
to a new tomorrow. You can't af-
ford not to go through this door".
The trouble is, a peck around the
door shows only a short hallway
which takes a sharp turn, - and no.
one can sec around the corner.
Daily said both sides should re-
frain from insulting the other; the
issue cuts across all lines - social,
economic, religious, labour - and
well qualified "fully functioning hu-
man beings" who care about Canada
can be found arguing both for and
against free trade.
Daily cautioned that there is no
such thing as "true" free traL:.
-What -is being- negotiated is
"liberalized" or " enhanced" trade.
Arguments for free trade
A primary argument for freer trade
is the increased access this would
provide to a huge market south of
the border. The costs- of setting up
a production line are about the same
in both countries, but the US popu-
lation is 10 times the size of Cana-
da's. Growth limits on many Cana-
dian industries, including parts of
agriculture, keep many from realiz-
ing the economics of scale that go
with larger operations. For exam-
ple, the average dairy herd in Onta-
rio ranges from 30 to 50, while
some herds in the US run to 500 or
a thousand.
Another theory reasons that even
if free trade hurts some parts of ag-
riculture, the country as a whole
will benefit. If free trade helps the
major urban areas which are the
source of most tax revenue, govern-
ment will have more money to;dis-
tribute to agriculture, and people.
will have more money to buy more
agricultural products.
Western Canada, which supports
free trade, sees Eastern Canada as
unsympathetic. Historically, be-
cause of the freight rate situation,
oil, grain, livestock, potash and
electric power have always been
sold intern^!ionally.
The conference board of Canada
predicts 150,000 new jobs by 1997,
'business invcstm p 40 percent,
lower inflation export prices
down -22- cent because of in-
creasal productivity and compcti
tion. Canadians could bid on US
government work. -
Security of access is important to
industries such as steel. High tech
. companies, already among the best
in the world, expect to do even bet-
ter under free trade. Mining and fo-
restry want to do their processing
here.
Members of Canadian commodity
11
both sides of Free Trade agreement
groups support free trade. Pro pork
producers like the dispute -settling
mechanism. Free trade would stop
the American producers' demands for
countervailing duties.
A past .president of the Ontario
Cattlemen's Association says trade
with the US must be m:.:.:taincd,-:as
we ship down four times as much
beef as. we buy from them.
Ontario Corn Producers Associa-
tion vice-president Terry Dayna?d's
argument that free trade is better
than any alternative at this point is
shared by many. He foresees a pos-
itive effect, as the countervailing
duties on American corn will stay
in- effect until the US price is seen
as the competitive, and not -dump-
ing, price. Ontario's COP is lower
than Michigan's, and he expects
new markets in New England:
The soybean board president says
the agreement will have no effect on
raw beans, but will benefit soybean
oil sales.
Dairy industry leaders feel the deal
is the best they could hope for.
Marketing boards have been left in-
tact. American producers are angry
People who care about
Canada can be found
on both sides
about the list of import control list.
Right now,.egg producers are sat-
isfied. They have supply manage-
ment, -quotas and border controls.
As long as Canada.protccts Cana-
dian textiles against Asian imports,
this industry is in favour of free
trade.
Free trade would certainly result
in more business for consultants
and. lawyers. • -
Sonic think - international trade
through GATT (an amalgamation of
9d .countries) would cause even
more trouble than free trade with the
US. Others fear US retaliation if
John Turner gets the -chance to carry
out -his threat and tear up the current
agreement. • -
On the political side, proponents
argue that the US can't afford to let
this agreement with their -closest
and friendliest neighbours fail, as
the world is watching.
The other side
Opponents believe frcc trade is so
bad it has to be stopped at any cost.
They point out that at present, 80
perccnt of Canada's exports go to
the US, and of thesc,.80 perccnt go
duty free. They argue that Canada
is already arc too closely allied to
one customer whose economic
health is not all that good; the US
is now the largest debtor nation in
the world, with Japan buying 35
perccnt of each boni issue.. Why
tic ourselves to a dying giant?
Relying so heavily on one market
wi!I make us too secure and lazy to
try GATT, or sell more to Japan or
settle differences. with the EEC. Be-
sides, the argument goes, the Amer-
icans are becoming the, bullies of
the world, interfering in the govern-
ing of other countries.
The dispute -settling mechanism is
suspect. A report by a Bank of
Nova Scotia.econontist stated that
what has been agreed upon is con-
sidcrably- less than a binding ar-
.rangement:- - Disputes will be
brought before a panel consisting of
one representative from each coun-
try,-and.a-mutually acceptable chair-
man. Howeyer, the -only terms- of
reference arc: did the US act consis-
tently within. its own laws? •
• A -previous leaked study by. the
flank of Nova Scotia concluded -that
the agreement will hurt all sectors
except natural resources. -
Some opponents arc afraid the US
will erect new trade barriers not cov-
ered in the agreernent.
Enforcing the letter of the law in
areas like health regulations could -
cause trouble for Canadian exports
of perishable goods. The Saskatch-
ewan pork.,produccrs marketing
hoard blames Ontario. for a S 10 drop
in the price two weeks ago because
of the stopping of one truckload of
boxed pork into the US.
Frank Stronach, head of the giant
Magna Corporation, said Canada
should get its own house in order
first, as we have no longterm indus-
trial or economic policies or strate-
gies, and arc -ill- prepared to enter
into an agreement with a big part-
ner. -
Are we giving away control of
our natural -resources? OFA presi-
dent Brigid. Pykc took a copy of the
1,200 -page document with her when
she 'headed "south on vacation, and
found a clause that states our natural
resources,- including agricultural
products, minerals and water,. can
never he sold at a lower -price to Ca-
nadians than to Americans. Some
go so far as to see behind the nego-
tiations a conspiracy to give the
Americans open access to Canadian
- fresh water.
The president of the Canadian Na:
tional- Dairy Council secs no way
Canada can compete with the US.
One- American cooperative has the
capability cif -turning out -more but-
ter than_ is produced- in all of Cana-
da. Some believe marketing boards
are in jeopardy, asthcy could- be ac-
cused of being subsidized, and of re-
straint c:.;n..de. -Although they have
been excluded from the first round
of negotiations, some fear they will
brought in later. - - • --
- t'anada's -medicare system, which
the Americans term a subsidy, is
also under attack. - -
Economist James Laxer predicts
major disruptions -in -the labour
force. The promised new jobs will
be low -paid assembly -line ones.
Older workers who lose their jobs
will have great difficulty. finding
new ones. - - -
According to the Consumers As-
sociation of Canada, the advantages
would be mini:nal. Most believe
the federal government has overstat-
ed the benefits and understated the
costs. • They. oppose this deal, not
necessarily freer trade with the US.
• The recently formed "Women
)m soybeans white beans coloured bear
idneys wheat barley oats canola forage
reemerge postemerge spot treatment pr
tont incorporate application rates NPK mi
utrients liquid fertilizer dry fertilizer soil test
ustom blending custom application the fu
res market outlook contracting storage c
p marketing advice production credit con
)ybeans white beans coloured beans kid
fiecat barleyoats canola forages preem
lostemerge spot treatment preplant incorE
application rates NPK micro -nutrients liqui<
?rtilizer dry fertilizer soil tests custom blenc
ustom application the futures market outl<
:ontrcacting storage crop marketing advice
production .credit corn soybeans white bee
oloured beans kidneys wheat barley oat
When there's so many
decisions to be made in farming
today, it's nice to know you
really only have to make one—
Cook's—where you can trade
with confidence.
Hensoll
262-2410
Branches
Centralia Kirkton
228•-6661 229-8986
Walton
527-1540
887-9261
Division of Gerbro (1987) Inc.
Head Office •
t
'email. Ontario N,OM 1X0 15191 262-2410
Telex 064-7251 FAX 15191 262-3126
J r•
Against Free Trade" says the agree-
ment would. jeopardize everything
the women's movement has been
fighting for, and close off future al
ternatives for change such as subsi-
dized day care.
The federal= government would
-have to make up in • some way the
2.9 billion loss in duties now com-
ing annually into the treasury. The
president of the Conference Board
has said that tariff removal is a tax
cut, and unless it is offset the deficit
will get worse.
The US may move much assem-
bly work to Mexico, where wages
arc very low, and sell the finished
products to Canada. Wages in the
US south arc half those in the
north.
Will Canadian culture be
swamped with more -American
books and movies? Will Canadians
be influenced to become more ag-
gressive. less humane?
Christian Farmers
Federation opposed
Daily_ said that the Christian
Farmers Federation was opposed be-
cause the deal doesn't balance the
benefits of expanded trade with self-
sufficiency. As an example, he
pointed to Columbia, wticre farmers
are forced to grow coffee for export
instead of -food for themselves in or-
der that the Columbian government
can earn -foreign exchange to buy
arms. -
Spotting Bill Jonegan in the audi-
ence, Daily asked him to elaborate
on the CFF's position. Jonegan
said he gets nervous when he hears
his fellow farmers say they can
compete anywhere. Present govern-
ment policies protecting the family
farm could be wrecked by market-
driven forces. The Americans have
accepted "ghettos of the poor".
Joncgan - is also afraid this free
trade agreement might trade away
programs which arc addressing seri-
ous conservation problems in Cana-
da. Ile summarized his opinion -by
saying he believes the very essence
of the family faun is in jeopardy.
Make a decision
"It is essential that you make a
decision. In my view it is your ob-
ligation to make a decision", Daily
-said. Ile quoted Simon Reisman,
• earlier whom he had interviewed car cr in
the day, as saying Canada's chief ne-
gotiator expects the federal govern-
. mint of Canada will push the agree-
ment through the House of
Commons, it will also pass the US
Senate and House of Representa-
tives, and then Mulroney will call
an election and go to the people.
Township reps elected
Election of township represcrlta-
. fives to the Huron F of A followed.
Representing Stanley will be Steve
Keys, George Jcnoch, Harold Van
Aaken, Ken McCowan, Steve Tay-
lor and Murray Taylor.
Those elected for Tuckersmith
were Bob Fothcringhant, Jim Pap-
ple, Steve McGregor, Hank Binnen-•
dyk and Gerbcn Wynja.
Larry Sturdy was the only person
present from Godcrich township
who let his name stand.
FREE TRADE TALK - Sharing views with guest speaker Ross Daily after
the Goderich-Stanley-Tuckersmith annual dinner meeting are Huron F of A
president Paul Klopp, Stanley president Jim Armstrong and Tuckersmith...
president.and regional director Hank Binnendyk. -
11■I
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