Tag: protectionism

What’s on the agenda for G8/G20?

China
Prior to the G8, Prime Minister Harper will hold bilateral with President Hu from China on June 24th who is in Canada for a state visit. The visit will mark 40 years of diplomatic relations between Canada and China. Bilateral trade now stands at $50 Billion between the two countries. It is expected that PM Harper will raise the importance of China’s role in helping to bring stability and security to the Korean peninsula as one of the few nations that talks to North Korea and as a permanent member nation of the UN security council.

India
On June 27th, PM Harper will host bilateral with Indian PM Singh in Toronto. PM Harper will look to build upon agreements signed during last meeting in India which addressed economic partnership and energy cooperation.

Focus of the G8 for the government of Canada:
– focus on achieving 2015 United Nations Millennium Development Goals (halving extreme poverty levels, cutting the spread of HIV/AIDS)
– nuclear non-proliferation and continuing work achieved at non-proliferation treaty review conference in NYC and Nuclear Security Summit in DC. Focus specifically on keeping nuclear arms out of the hands of terrorists.
– Recognition that Iran and North Korea continue to pose threats to global security.
– International cooperation on fighting Latin American, Caribbean, West African and Asian transnational criminal networks.
– Muskoka Initiative on maternal, newborn and child health.
– Progress in Afghanistan, in Pakistan and in the Middle East on combatting terrorism and its link to organized crime and drug trafficking
– G8 leaders will join seven African leaders as well as the leaders of Colombia, Haiti and Jamaica in order to discuss the interlinkages of crime and terror networks.

G20 priorities for Canada:
– G20 should restore public finance while maintaining economic growth in order to achieve global economic recovery.
– Canada implores G20 nations to tackle fiscal consolidation, reduce debt, reduce deficits and for countries to return to balanced budgets
– address root causes of global economic crisis
– fully implement stimulus plans
– prepare fiscal consolidation measures
– resist protectionism
– promote open markets
– continue reforms to financial and regulatory systems
– continue governance reforms to international financial institutions and multilateral development banks
– call upon the international financial institutions and multilateral development banks

Buy American: Canadians to become “American”?

Late breaking news from DC,

The Senate will vote on this surprisingly contentious issue tonight, after a day of vocal lobbying from corporations and other countries. Sens. Byron Dorgan and Max Baucus have an amendment to make the “Buy American” provisions consistent with international trade obligations. That’s in line with what the White House has requested. It’s not clear what the language will require; either companies would be required to use American-made steel, iron and other commodities in projects, or they won’t.

Trying to salvage the Buy American provisions late today, the Steelworkers Union urged lawmakers to include Canada in its definition of “American.”) Some Democrats have threatened to withhold support from the legislation if it doesn’t include Buy American provisions. The Senate and House versions of “Buy American” will have to be reconciled in a conference committee.

I’m not sure about how I feel about US law defining “American” as inclusive of Canada (what other legal implications might this have one wonders). However, if this goes through, this may save Jack Layton’s base (unionized steel) and infuriate his protectionist sensibilities too. Layton has been pushing a “Buy Canadian” policy, effectively reacting to protectionism with protectionism. A change in the provisions to label it a “Buy North American” policy would still be protectionist (though broader to include Canada) and one wonders what sort of concessions would be asked of our country in participating in such an arrangement. What would this mean for labour and/or commerce mobility within Canada and the US, and outside of both countries on steel manufacturing and related industries?

Canadian labour and therefore the cost of our steel is relatively expensive compared to Mexican steel. Dems are considering the competitive quotient between Canada and Mexico and are likely finding that Canada is a safe concession for their constituents.

Senator John McCain, who Canadians passed over for Obama, introduced legislation earlier today to completely strip the “Buy American” provision out of the Obama stimulus bill. Stephen Harper, Gilles Duceppe, Bob Rae and Michael Ignatieff have hoped that the US Congress will remove the protectionist element from the stimulus package.