Clinton News-Record, 1987-12-02, Page 16CLINTON NEWS -RECORD, WEDNESDAY, DECEMBER 2, X987 --Page 15
Ross Daley of CFPL London (centre, with tie) was in Clinton pros and cons of free trade. Here he discusses the issues with corn -
November 26 at St. Joseph's Roman Catholic Church to discuss the munity members. (Paul Rudan photo)
Ross Daley speaks on free trade
By Paul Rudan
The opinions expressed by Ross Daley at his
free trade forum are not necessarily his own
views but those of political leaders, labor
leaders, media and others.
CLINTON - Ross Daley of CFPL Radio in
London was here on November 26 at St.
Joseph's Church to discuss the pros and
cons of free trade. One of the opinions he ex-
pressed was if we had free trade, there
would be a consolidation of farms for sure -
meaning a loss of jobs for farmers.
The basement of St. Joseph's was filled
with people who listened carefully as Mr.
Daley presented arguments for and against
free trade.
"This meeting should have been held a
year ago," said Mr. Daley. "But people
understood very little back then and there is
not a lot of understanding about it (free
trade) now."
Mr. Daley began with pro side of free
trade. He extensively quoted free trade ad-
vocate, John Bullock, President of the Cana-
dian Federation of Independant Business.
Mr. Daley said, "According to Mr.
Bullock, There is all good and no bad (if
Canada goes for free). Free trade would be
a tiny blip in the economic adjustment that
our society is going to go through. In the last
10 years, half the manufacturing companies
in Canada have disappeared and the same is
true for the United States and most of the in-
dustrialized world. We've seen more adjust-
ment in the last 10 years, then we're ever go-
ing to see. If we have survived these last 10
years, we'll survive free -trade."
Another argument of Bullock's, is that the
United States owes $130 trillion to various
countries around the world and they're not
in a position to pay it back. Their only choice
is to re -industrialize now (in order to pay
back ti eir debts). Anyone who has free
trade with a nation that has re -
industrialized, is in a very good position, ex-
plained Daley.
Canada is the only industrialized nation
that doesn't have a market of 100 million
people or more. Therefore, Canadian com-
panies have shorter production runs, mean-
ing higher costs per good and less profit. If
Canada had the United States as a market,
companies would be able to have longer pro-
duction runs, resulting in cheaper prices,
more jobs and bigger profits.
One other argument for free trade is: if
we don't have free trade now, the United
States will increase its protectionist
policies. This would further damage the
Canadian economy.
On the con side of free trade, there are
negative aspects for agriculture and
livestock production.
Canada would lose its grape and
asparagus crops and some fruit crops. As
well, the growing season is shorter com-
pared to that of the southern United States,
where they can grow crops all year. On-
tario's best corn growers pull in 160 bushels
per acre and for theth it's a big deal. To
compare, in Louisiana, corn growers take in
160 bushels per acre all the time and if they
didn't, they would think they were failures.
For livestock,. the bottom line is that it
would cost more in Ontario to produce a
1,000 pound steer then it would in the state of
Florida (Florida is the United States' big-
gest producer of feeder calves). The reason
being the cold weather. Ontario cattlemen
would have to pay more for either feed or
shelter compared to Florida cattlemen.
Another school of thought provided by Mr.
Daley is, that the United States is a dying
giant. If Canada was to be tied by free trade
to a dying nation, Canada is sure to go along
with them.
The counter argument to the theory that
the United States will become more protec-
tionist is, that their creditors will not allow
them to do so. The United States owes so
much money that its creditors will able to
dictate their trade policies, thereby, forcing
the United States to drop its protectionist
policies.
One final argument is that Canada cannot
compete with a country 10 times its size. An
example being the Land -O -Lakes margerine
company produces more margerine per
year than all Canadian companies
combined.
Opponents of free trade state that Canada
should develop trade in other areas such as
GATT (General Agreement on Trade and
Tariffs). GATT is a world-wide trade body.
Also, instead of free trade, what Canada and
the United Stategshould really have is freer
trade. Meaning that certain regional areas
of the country and economy would be open
for free a . e �'th the United States.
OFA presents brief on free trade
"The proposed Canada -United States
trade agreement could be the most profound
force for change the agriculture industry
has felt for decades" claimed Brigid Pyke,
President of the Ontario Federation of
Agriculture. She questioned "is free trade
and tax reform the Federal government's
one-two knock -out combination for farmers
staggering in the face of low commodity
prices and high debts?"
Expressing disappointment that too little
time and information had been provided to
allow meaningful discussion of the proposed
deal, Pyke also took critical aim at those
who ..."characterize food producers as
timid, backward and lacking in confidence
if they raise questions about the wisdom of
this deal. Canadian farmers wrestled with
world markets and took their licks long
before other industries looked beyond the
border."
"Security of market access was the agri-
Workshop for farm
couples is available
Calling all farm couples. Partners In Suc-
cess - weekend seminars for farm couples
are again being sponsored by the Ontario
Ministry of Agriculture and Food. Four
seminars (three English and one French)
will be held during February at various
locations across Ontario. Aside from the op-
portunity to get away from work and family
responsibilities for a mini -vacation, this
weekend program offers a couple the oppor-
tunity to gain new perspectives into their
own personal situations.
Workshops will be offered in communica-
tions, goal setting, confidence building and
dealing with change. The entire weekend
package, including meals and two nights'
accommodation, is yours for only ;175 per
couple.
For further details and to obtain an ap-
plication form, contact your nearest office
of the Ontario Ministry of Agriculture and
Food.
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food sector's main objective in the bilateral
discussion" Pyke emphasized. But the OFA
"...is not optimistic the dispute settlement
mechanism will diminish the enthusiasm of
U.S. business for using trade remedy law to
harass Canadian exporters."
Another way to enhance security for
Canadians in the U.S. market would be bet-
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and what's not. OFA is "disappointed with
the failure to negotiate any improvement in
the rules" and "frustrated by the inability of
the discussions to bring any clarity to the
subsidy issue."
The OFA's brief reviews the impact of the
deal on various commodities. Reaction
ranged from favourable for red meats to
potentially devastating for grape growers.
For many commodities including supply
management, the impact is still an open
question and may depend on further govern-
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