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Is the U.S.-Canadian Trade Agreement Pro-Consumer? |
| Section: CURRENT ISSUES / ANALYSIS |
| Author: Sheldon L. Richman |
| Publication: The world & I online |
| Issue Date: 1/1/1988 |
| Size: 2,677 Words, 16,713 Characters |
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After 16 months of negotiations between the world's busiest trading partners, the last-minute agreement to liberalize trade between the United States and Canada was nearly aborted for one reason: Canada does not trust the U.S. Congress.
Can Canada be blamed? In the last few years, several hundred protectionist bills were introduced in the House and Senate; this year is no exception. At this moment, there is pending in the Congress a major piece of protectionist legislation that includes the notorious Gephardt amendment, which would mandate retaliation against countries that have large trade surpluses with the United States. (That is, the dollar calue of what they buy from us is smaller than the dollar value of what they sell to us.) Canada is one of those countries. Canadians also fe...
. . .
...to the benefit of us all.
This is the real moral of the U.S.-Canada trade agreement. Despite flaws and pitfalls, it recognizes that beggar-thy-neighbor is beggar-thyself. Execution of agreement will unleash economic activity and increase the wealth and welfare of Americans and Canadians. Trade produces harmony. Those who oppose free, or even freer, trade are out of tune with progress. vbcrlf
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