Sunday, December 9, 2018

nafta was not a free trade agreement.

proof:

not
a
free
trade
agreement

qed.

but, the reason it wasn't a free trade agreement is because the tariffs had already been slowly broken down, starting with the gatt. what the mcdonald commission called for was a standardization agreement. what nafta really is is an investors' rights agreement.

so, nafta doesn't have anything to do with tariffs, and signing a new nafta isn't going to strengthen or loosen existing tariffs. that's the fundamental point the left tried to get across in the 80s - this has nothing to do with free trade. we need to separate these ideas in our heads.

the new nafta will not act as a counter-balance to rising american protectionist rhetoric, or the policy likely to come out of it.

and, how long did canada have to wait for a loosening of tariffs under the last round of american protectionism?

well, reciprocity ended in 1866, arguably as a consequence of the civil war - and this was arguably a push factor in confederation, to get an understanding of how important trade with the united states is for canada.

the gatt was 1947.

the auto pact was 1965.

the fta was 1988.

it could be a very long while before the situation reverses; we shouldn't assume this is in the short run. that is not evidence-based thinking, it is wishful projection.