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Forums - Politics - Obama breaks free trade agreement a second time, Canada thoroughly pissed!

Alright anyone who is Canadian or follows the free trade agreements that the US has agreed to knows that the US is known for renaging on those agreements.

In the past the US charged tariffs on Canadian softwood lumber despite the free trade agreement and for years the US government stole billions. Finally after negotiations and the United Nations demanding the US repay what it stole some of the money was returned. Canada dropped the issue and we went on trading.

But in 2009 President Obama announced his $787 billion economic stimulus bill. In this bill he stated that American companies would get all of the contracts and all products used by these companies would have to come from America. He stated that steel and other products had to originate in the US and that developers could not use products from other countries. Canada had many of the contracts to provide the steel and other products however those contracts were turfed. Canada took the US up on this issue offering certain measures to help the US through their hard time.

However the damage was done and Canada lost billions of dollars on products we have been exporting to the US for years. The US companies also lost billions because they could not buy Canadian products and instead had to purchase American made products exclusively. In the end the US realized it was violating free trade and stepped back allowing after months of trade losses for American companies to use Canadian products.

So we thought the issue was over and dealt with. The US had acknowledged that they had been in the wrong to issue such protectionist policies that violated free trade and hurt Canadian/US relations. But it would appear Obama doesn't really care about following his agreements or learning lessons.

Canadian Trade Minister Ed Fast said "It is disappointing that it is coming from the Obama administration given the fact that we have been there before," Mr.Fast also assured Canadians that we are prepared this time to deal with this betrayal, we have a fast track consultation process with the United States for issues just like this.

All of you know the President of the United States issued a new job action plan. However what you do not know is that this job action plan specifies that companies involved cannot use products or services from other countries. The plan includes requirements that all "iron, steel, and manufactured goods" used in public buildings or works be supplied by American firms. In clear violation of NAFTA, creating a monopoly that prevents Canadian products from being sold in the United states.

As dictated by the agreement, the main purposes of the Canadian-United States Free Trade Agreement are as follows:

"eliminate barriers to trade in goods and services between Canada and the United States;"

"facilitate conditions of fair competition within the free-trade area established by the Agreement"

"significantly liberalize conditions for investment within that free-trade area"

"establish effective procedures for the joint administration of the Agreement and the resolution of disputes"

"lay the foundation for further bilateral and multilateral cooperation to expand and enhance the benefits of the Agreement."

 

Mr.Fast also confirmed that Prime Minister Stephen Harper is personally involved in the effort to get the US to follow its international obligations and respect its free trade agreements. However Fast declined to say whether Prime Minister Harper would phone the President himself to resolve the issue.

For those of you unaware Canada is the US's biggest trading partner. 70% of all exports from Canada go to the United States and the US relies heavily on those imports.

Canadian's are outraged by Obama's disregard for the North American Free Trade Act. The Government is promising swift action and I am left wondering. Canada is the US's largest trading partner, why would the US back stab Canada when they stand to loose a lot if the trade agreement were to fall apart?

Also why isn't Mexico pissed, don't they also provide raw materials?

Do you think Canad and the US should even have a free trade agreement if the US doesn't abide by it? Many Canadian's think that Canada should terminate the agreement. This was discussed in parliament in 2009 when Obama first broke the agreement. It was suggested Canada could increase trade with China, Japan , Britain and South America to make up for any loss in trade with the US.

Seriously whats up with this clear violation of the free trade agreement?




-JC7

"In God We Trust - In Games We Play " - Joel Reimer

 

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Lol yeah more government intervention. Watch Obama make the US economy even worse.



well,the purpose of these products being made in the U.S. is so that more money can go into the american economy.America is in an economic crisis and I honestly don't think Canada is all that big of a concern. I mean I think I can live without canadian bacon and maple syrup. lol



another thing mexico is'nt pissed,because all they provide is the drugs and as long as america keeps trading with it's biggest partner china,then everything should be fine.



I wish we would stop exporting fresh water and electricity *evil laugh* Oh and maple syrup!



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What's canada going to do about it ? Have Justin Bieber and Celine Dione sing a duet?



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

NiKKoM said:
What's canada going to do about it ? Have Justin Bieber and Celine Dione sing a duet?


that was a good one nikkom. I can always count on you for a good laugh.



Boutros said:
I wish we would stop exporting fresh water and electricity *evil laugh* Oh and maple syrup!

Canada exports electricity to the US? 0_o



oldschoolfool said:
well,the purpose of these products being made in the U.S. is so that more money can go into the american economy.America is in an economic crisis and I honestly don't think Canada is all that big of a concern. I mean I think I can live without canadian bacon and maple syrup. lol


Umm The United States exports more then 248.8 billion dollars to Canada each year. By far the biggest market for American goods infact no other country comes even close with Mexico being the second biggest buyer of American goods at 163.3 billion dollars. Without Canada the US economy would loose a huge amount of their gross domestic product. China on the other hand only buys 91.9 billion dollars worth of products from the US almost 1/3rd of what Canada spends on American products. Infact Canada imports more products from the United States then the entire European Union combined!

As for imports there you are right American's buy more Chinese products then Canadian. However Canadian products bought by Americans account for 276.5 billion dollars a year. The majority of what Canada exports to the United States is raw materials like lumber,steel, oil etc...etc... While the majority of what the US imports from China are manufactured goods.

In total cross border trade between Canada and the US is around 525.3 billion dollars a year, almost 100 billion dollars more then the US trade with China.

I know your Canadian bacon and Maple Syrup thing was a joke, at least I sure hope it was.

Long story short the United States sells more to Canada then it buys. So if free trade were to go out the window and Canada put tariffs on everything coming into Canada. The US would loose billions and billions of dollars in trade, millions of American's would be out of work and the American economy would be in even more danger.

If Obama is worried about jobs then he needs to worry about trade. Because its Canada that keeps these people employed and Canadian trade that accounts for such a huge hunk of the US's trade income. Heck the Presidents entire Job plan only costs slightly more then what the US would loose if NAFTA were to be abolished.

*** Also yes a huge hunk of America's electriciity comes from Canada, if free trade were abolished then a huge hunk of the US would go dark***

"Canada is the major supplier of electricity to New England, New York, the Upper Midwest, the Pacific Northwest and California" - Government of Canada



-JC7

"In God We Trust - In Games We Play " - Joel Reimer

 

This is just great, it's simple abuse and corruption, how terrible.