Mike said:
don said:
there is such a tendency on this board to blame all things bad on obama and to accept as gospel any criticism of the president. there was american protectionism against canadian lumber, cattle/beef, wheat and other products long before obama and through administrations of both parties. protectionism was coming regardless of who won the election; hard times make it seem an option to some. objective thinking makes things a lot clearer than knee jerk dogmatism. america (and canada) should realize that balances of power are shifting around the world and adjustments will have to be made. business wanted globalism, now we have it and it's unlikely it will become a thing of the past. the trick is to find solutions under today's conditions instead fo just thinking we can go back to the future.
February NAFTA trade down 30%
By eTrucker Staff
Trade using surface transportation between the United States and its North American Free Trade Agreement partners Canada and Mexico was 30.9 percent lower in February 2009 than in February 2008, dropping to $47.9 billion, the biggest year-to-year percentage decline on record, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation.
February was the fourth consecutive month with a yearly decline of greater than 13 percent. During the first two months of 2009, the value of surface trade dropped 29.1 percent compared to the first two months of 2008.
Actually good comparisoms - the problem is that protectionism is rising from the Obama "buy American" policy.
This is not a trade dispute that can be settled in court - unless you wish to discuss the court of public opinion - and at present the average American that lives a long ways from the border does not see this as a bad happening. So they continue to support this in pretty decent numbers - which in turn keeps the Obama camp happy - for now.
Votes and polls showing good numbers makes a politician very happy.
And there will be some in Canada that see this as Obama bashing or as a normal business practise when times get tough.
However those south of the border that cannot heat or cool their homes due to expensive - or a shortage of natural gas - or buy a product not made in the U.S. but made in Canada - will sooner or later have the same opinion as many thousands of business owners in Canada who even now cannot sell their wares - or
even bid on a contract in the U.S. of A. and therefore must lay off their workers - who in turn will begin to realize there is a serious problem at the border.
Don makes some good points - but without intending to insult him - I see him as a person who has a good grasp on what can happen - but not at what IS happening at present.
Ontario is a manufacturing province - and it has seen output drop dramatically as demand from the main trade partner drops. Multiply that by all the provinces and we will see how happy Canadians are in 180 days - UNLESS - as I stated - things turn around somehow and this becomes a minor bump in the road.
Ontario is the weathermark when it comes to manufacturing in Canada and it is down - way down as the main trading partner stops accepting bids on American contracts.
However - as long as the Obama camp believe this "Buy American" policy is a good thing - and the people of the U.S. of A. continue to support it - things will not get better.
A good idea in principle - but in practise a lot of people and companies will be hurt quite badly as it continues. On both sides of the border.
Producers on the north side will have to reduce labour and production as their produce piles up.
Workers and companies south of the border may suffer lay offs to to short supply and or rising costs of newly developed manufacturing capability.
And we do not even get into who gets the gas and oil Canada supplies - which is more than Saudi supplies - what if it goes to China? Your costs go up.
All of this can happen.
One good thing for the the U.S. of A. - several Ontario companies are now opening branches in the U.S. of A. to continue doing business with the Americans - but the Canadian worker loses out.
Going to be interesting as this continues.
BC