bout de papier, Vol. 3, No. 1 (1985) — March 1985 // Mars 1985, p. 16
Canada’s largest province has a new premier: Frank Miller, chosen at a leadership convention in Toronto in January, was sworn in as Ontario Premier February 8. Trade relations with the U.S. is a major issue, especially since the government announced it would be looking closely at this area as part of its discussion on “How to Secure and Enhance Canadian Access to Export Markets” In a speech to the National Press Club on December 6, Mr. Miller singled out access to U.S. markets as the economic issue of greatest current significance to Ontario and Canada. “While the obvious responses to these problems is to pursue a free trade policy,” said Mr. Miller, “there are four difficulties with this approach.”
*”Free trade is too much of a good thing for many of our businesses. There are industries in Ontario which were founded on the basis of tariffs. We cannot simply abandon them or the jobs they provide. *”We really don’t know how multinational firms operating in Canada would react to free trade. Freedom is intoxicating. It doesn’t always lead to responsible behaviour. There is no free lunch in trade negotiations.
* “We need to consider the growing tendency towards trade barriers within our nation. A recent study estimates that non-tariff trade restrictions within our borders will cost Canadians $2 billion next year. Barriers include provincial government purchasing policies, freight rates and labour requirements. I would support an economic code of conduct eliminating such restrictions and I believe the provinces should begin the process of developing one. *’If we commit ourselves to free trade, how much sovereignty do we stand to lose? The answer may be quite disturbing. We are not simply appendages of our southern neighbour. We have our own culture, our own institutions, our own unique approach to the issues of the day.”
“We are left,” said Mr. Miller, “with what appears to be a contradiction between an absolute need to have access to the U.S. market and an absolute need to maintain our sovereign identity. I suggest there need be no contradiction if we focus first on security of trade rather than free trade.”
To pursue the more immediate goal of security of trade, Mr. Miller said we must impress upon our largest trading partner the importance of Canada to the U.S. economy. “American decision makers need to know that we are their largest customer.
“I propose that the federal government pull together a list of (trade) issues in consultation with the provinces. The next step is to negotiate a fair trade agreement with Washington in which both parties agree to renounce certain non-tariff barriers, or at least negotiate them in advance. This is a practical step which does not open up Pandora’s Box.”
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Originally published in bout de papier, Vol. 3, No. 1 (1985) — March 1985 // Mars 1985, p. 16. Read the rest of this issue →
