Free Trade - Part 2

Continuing with the theme of yesterday's post, I am taking the liberty of reproducing some letters that appear in today's Star on free trade. They nicely puncture the myth, propagated and perpetuated by the right, of its unalloyed benefits to Canada:

Brian Mulroney and the harsh reality of Canada-U.S. free trade: Hepburn, Feb. 21

For many years before and after Brian Mulroney's free trade agreement I worked as a mechanical engineer with consulting firms. During those years I was involved in the design of a number of food processing plants. At least four of the plants were “grassroots” operations and were setting up in Canada because of the sales advantages offered.

All of those plants were closed down shortly after the FTA came into being and all were employers of large numbers of people who lost their jobs. Many of the other plants that I was involved with, mostly expansions of existing operations, also shut down their Canadian operations after the FTA.

When the FTA came into being, not only did plants shut down but the market for design of plants tapered off considerably and many engineering consulting firms laid off a number of engineers and architects. Some even closed completely and I am sure the domino effect came into play in many industries that relied on Canadian building for business.

I should probably add that because of the interest for companies to build in Canada, a great deal of new technology and advances in older technology was developed here and thus with the FTA a great deal was lost to other countries, mostly to the U.S.

Dean Ross, Port Hope

I agree and empathize fully with Bob Hepburn 's comments on the real effect of free trade on ordinary people: people who have lost their jobs and the fact that almost all of these factory jobs are gone forever. It is a sad fact that real truths like this are covered up and never acknowledged by those responsible. This article is front page material in my opinion.

Another effect that I personally observe is the loss of basic manufacturing skills in our country. All but gone are the machine shops, factories and the businesses that served them. A simple example of my own was my recent inability to purchase a round threading die. It seems that these replacement dies are no longer sold by the likes of Home Depot, Lowes, Canadian Tire, Busy Bee, Princess Auto, etc. The only possible reason is no demand. As little as three years ago, they were available. (I note that some of the above do offer sets with many dies of different sizes, but they are all aimed at the hobbyist and not suited for manufacture.)

We have indeed sold our souls to the Asian manufacturers. It is beyond sad and we will experience the effects for years to come.

Don Dorward, Pickering

How refreshing , if unusual, to read a mainstream piece that actually talks turkey about the disastrous free trade deal. In Canada, we've been living in a kind of opium dream since the late ’80s, with the usual suspects — quick-buck artists and ideological hobbyists — insisting ever since that we've never had it so good.

Just as there was a conspiracy by business elites in '88 to foist free trade on the country, there's been a de facto conspiracy ever since to push the line that it's been some kind of boon for us all, even despite the overwhelming contrary evidence. Remember, more than 60 per cent of us sensibly rejected the deal when it was an election issue, even if our disgraceful electoral system gave Brian Mulroney a “mandate” to saddle us with it.

Brian Mulroney and his patrons obviously think we're stupid, and they might well have a case, based on almost 30 years of our allowing their nonsensical economic analyses to float.

But watch and enjoy nevertheless the inevitable unravelling in our lifetime of the doublespeak concept of “free” trade, as unaffordable energy costs and other factors begin to make the shipping of goods thousands of miles to market look merely old-fashioned and quaint.

George Higton, Toronto

The Legend of Brian Mulroney

Actually, our former Prime Minister is more a legend in his own mind, but then, confronting harsh reality has never been one of Mr. Mulroney's strong suits. His litigious past serves as ample testament to that fact.

But myth is always much more exciting than truth, and what better myth could Mulroney propagate than the one about the free-trade agreement his government negotiated 25 years ago with the United States? Last week, he made an appearance at the University of Toronto’s Rotman business school, where more than 700 guests gathered to commemorate his government's 'great' achievement. In his usual hyperbolic and self-congratulatory tone, in an hour-long chat with Rotman professor Joseph Martin, Canada's erstwhile 'leader' asserted that his accomplishments will stand among the greatest in Canada’s history, one of his proudest being the free-trade agreement. Indeed, he even went so far as to describe the pact as “the greatest in the history of the world.”

It is an assessment with which many would strongly disagree. One of the dissenters is The Star's Bob Hepburn who, on February 21, wrote a piece entitled Brian Mulroney and the harsh reality of Canada-U.S. free trade. He begins by reminding readers of some harsh truths that Mulroney seems unwilling to confront:

One morning 10 years ago, my brother lost his long-time job when the owners of the Scarborough electronic parts factory where he worked announced it was closing the plant and moving its operations to Chicago.

Soon after, his company shut down two other factories in Oakville, tossing 400 employees out of work. The jobs were shifted to the U.S. and Mexico. A bit later, the Markham electronics company where my niece had worked also closed its doors. It, too, moved its jobs outside of Canada.

The owners never admitted it, but workers were convinced a major reason why the companies closed the Ontario plants was the Canada-U.S. free trade agreement reached in 1987 under former prime minister Brian Mulroney.

The deal, which was the focal point of the 1988 federal election, eliminated import tariffs on most products, resulting in many profit-hungry companies closing plants here and moving the jobs to cheap-labour areas.

And Hepburn is not alone. Economist Jim Stanford, quoted in Hepburn's piece, wrote an article for he Progressive Economics Forum, replete with empirical date that shows those who extol the agreement are living in a world of fantasy and faith, a world typical of right-wing ideology, one fueld by the tactic of repeating something enough times so that its veracity is rarely called into question.

Citing government statistics, Stamford observes that our exports to the U.S. are at the same percentage level as in the mid-1980s, that our trade deficit is the highest ever, that our productivity has fallen in comparison with the U.S and that income levels of most Canadians in real terms are unchanged.

Then there are those who believe, using both anecdotal and empirical evidence, that people are decidedly worse off since the free trade deal was concluded. Youth unemployment hovers somewhere between 14 and 15%. People's lives are on hold. A study released today, conducted by McMaster University and the United Way, finds that the rate of insecure or precarious work has increased by 50 per cent in the past 20 years and is impacting everything from people’s decision to form relationships, have children and volunteer in their community.

Indeed, the statistic are grim:

- Barely half of working adults in the GTA and Hamilton have full-time jobs with benefits and expect to be working for their current employer a year from now;

- The other half are working either full- or part-time with no benefits or no job security, or in temporary, contract or casual positions.

And while statistic may seem dull and unevocative, the accompanying profiles are anything but, ranging as they do from a 27 year-old university lecturer struggling to cobble together a career that could take him far from his wife and young son to a 60-year-old home-care nurse whose working conditions and hours are anything but stable.

Just don't expect Mr. Mulroney, in his present and persistent self-congratulatory mood, to be moved by their plight.