Prelude To Capitulation: Mr. Carney Blinks Again

 

It was not so long ago, during the election campaign, that I remember Mr. Carney's soaring rhetoric, his stout orders calling for  "Elbows Up, Canada!" and all that it implied in our 'battle' with the United States. We were told a new reality was upon us, and our former 'trusted partner' could no longer be depended upon. Lo, a total reordering of the trade world was drawing nigh, and we had to seek and support our real friends in the larger world, as well as respond to America's bullying with punishing counter-tariffs.

Well, that was enough for the Liberals to secure a strong minority, and truth to tell, I voted with some enthusiasm for Carney, arms akimbo, his opponents offering nothing credible. That said, I know that many, both online and offline, do not agree with my recent criticisms of the prime minister over how he dealt with the DST. The feeling seems to be to wait and see, and not to rush to judgement. Surely there is a strategy at work here.

Well, now comes another sign that my Carney carping was not out of line.

Prime Minister Mark Carney says he sees little evidence that it’s possible to strike a deal with President Donald Trump that removes all U.S. tariffs on Canadian goods.

This is the first time the Prime Minister has acknowledged that a pact to end the Canada-U.S. trade war would likely leave some of Mr. Trump’s protectionist tariffs in place.

“There is not much evidence at this moment of agreements, arrangements, or negotiations with the Americans for any country, any jurisdiction, to have a tariff-free deal,” Mr. Carney said.

Probably a realistic assessment, but what is the purpose of publically surrendering a vital negotiating position before those negotiations are complete?

The only reason I can think of is to prepare the public to start forgetting that bellicose campaign rhetoric. 

William Pellerin, a partner with McMillan LLP’s international trade group, said Mr. Carney may be lowering expectations for what Canadians and Canadian businesses can anticipate from a trade deal with Mr. Trump.

He said he and his clients must now prepare for the possibility that U.S. tariffs are here to stay for the long term and that any Canadian business which made a short-term decision to “eat the tariffs rather than passing them on” to U.S. buyers may have to rethink that.

Mr. Carney’s comments “could also be a trial balloon that he’s floating to Canadians and to the markets to see how people react,” Mr. Pellerin said.

My reaction is the same as it was when I voted for Carney. I expect Canada to put up a real fight, a fight he cultivated during the campaign. A fight that would include strong counter-tariffs. Our pride was at new levels, and it was predicated on a defiance of the American trade madness.

And I am not alone in disdain for Carney's pending capitulation. People remember his caving earlier on the Digital Service Tax:

... to those pushing for a more hawkish approach to Trump’s trade war, it was an unacceptable concession after Canada already repealed its digital services tax and ramped up its defence and border security spending in response to Trump’s concerns.

“We should call this what it is. It’s extortion by the United States,” said Unifor president Lana Payne, who said normalizing the idea of tariffs could result in Trump pushing things even further, and urged Canada to push back with every tool at its disposal.

“The challenge we have is that we’re dealing with someone who continues to change the goalposts,” Payne said. “Giving things away up front has not worked for us.

And while it pains me to say this, I find I have to agree with little P.P.'s acerbic assessment.

“The Prime Minister is now conceding that American tariffs on Canada will be part of an eventual deal,” Mr. Poilievre said in a post on X.

“Another unilateral concession from a man who said he would never back down to the U.S. President.”

Mr. Carney seems to have perfected the art of making good speeches. Sadly, backing up those speeches with real action is proving to be something else entirely.

 

We Should Not Be Surprised

Well, the news has come in that Trump is cancelling trade negotiations with Canada over our digital services tax, which he says is an attack on the U.S. He promises punishing tariffs for our 'temerity'.

No doubt he expects us all to quiver and cave. I think it's time to take the gloves off and really hurt the Americans at least as much as they intend to hurt us.

Here's a video that articulates a Western view about life in the U.S. and the need to act:

Another Compelling Video From Operation Maple

Operation Maple (Take Canada Back) is continuing its fine job of reminding us of the terrible way we are governed, offering us frequent and compelling evidence that demonstrates how the neo-liberal agenda, pursued with such diabolical glee by the Harper regime, is continuing to undermine our country. I suspect its resources, and others (the Salamander, for example, has some interesting ideas in this regard which I shall soon write about) will become increasingly important as we move ever closer to the next federal election. Please visit their site and disseminate their material as you see fit.

The following video explores the history of the free trade agreement and its costly consequences, consequences that continue to this day and promise to grow even more grave under the Canada-China Promotion and Protection Agreement (FIPA) and the Canada-Eu (CETA) deal.

Our sovereignty as a nation continues to erode thanks to these agreements, brokered with such secrecy, with the only true beneficiaries the corporate elites and the multinationals.

What U.S. Steel Shutdown Reveals About Harper

While all of us continue to be riveted by the ever-deepening pit into which the duplicitous Prime Minister is digging himself over the Duffy scandal, other events are equally revelatory of Stephen Harper's dark psyche. One of them is the announcement by U.S. Steel that it is permanently shuttering its steel-making capacity in Hamilton.

Briefly, in 2007 the Harper government permitted the takeover of the troubled Stelco by U.S. Steel on the promise of certain undertakings, including employment guarantees, which I talked about in previous posts.
Those guarantees were never honoured, and despite the fact that the government took the company to court and won, it essentially gave a free pass to U.S. Steel, which then made new and unfulfilled promises to keep the plant going until 2015 and make capital investments of $50 million by the end of that time.

The charade of co-operation is now at an end, and as Thomas Walkom writes in today's Star,


From the federal government came a deafening silence.

A spokesperson for James Moore, the current industry minister, said only that the government doesn’t involve itself in the day-to-day business decisions of private companies.

And with that kiss-off, a steel-making operation that has defined manufacturing in Canada for 103 years came to an end.

Why should this be of broader concern to Canadians? In my view, it exemplifies the total disregard that the Harper regime has for the social and economic costs involved in industry betrayal. By dismissing such events as merely the result of implacable market forces, we perhaps have a window into what the so-far still secrecy-bound details of CETA have in store for even more employees and Canadian citizens in the near-future.

A New Warning About CETA

While much has already been written about the economic threats to Canada inherent in the Canada-European Comprehensive Economic and Trade Agreement currently being negotiated in secret by the Harper regime, a new development in those negotiations has come to light that will cost all of us dearly.

In a piece entitled Harper government caves in to Big Pharma, Michael McBane reports the following:

Ottawa is prepared to give the Europeans, and the pharmaceutical industry, at least part of what they asked for on drug patents – a move that could cost Canadians up to $1 billion a year.

As McBane points out, thanks to a deal brokered by Brian Mulroney in the 1980's, Canada already pays 15 to 20 per cent more than the international average for new brand name drugs; at the time, the justification was the promise by the pharmaceuticals to invest 10 per cent of R&D (Research and Development)-to-sales in Canada, a figure that has never been realized. In fact, it currently stands at only 5.6 per cent of R&D-to-sales.

Yet despite pharma's betrayal of its undertaking, Canada is once more preparing to give away more of the shop through CETA; reports indicate

Canada will extend monopoly drug patents from 20 to 21 years. This patent extension will come without any conditions. In other words, we get nothing in return for this major concession. No jobs, no research, no innovation, no benefits whatsoever – only higher drug bills.

Prime Minister Harper is found of promoting the message that Canada is open for business. What he doesn't tell us is that it is the business of plundering and pillaging, hardly the basis for a domestic economic revival.