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Yuen Pau Woo

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Harper Should Lobby for Free Trade with China

Posted: 01/13/12 10:42 AM ET

Canada Post has just issued its annual Lunar New Year stamp series, featuring a wide-eyed dragon that looks more surprised than menacing.

Coming after a year that saw a devastating earthquake in Japan, political upheaval in the Middle East, economic crisis in Europe, and the emergence of the "Occupy" movement, it is not hard to see why the dragon might be reluctant to take its turn in the lunar calendar.

As if the world did not have enough uncertainty to deal with, 2011 ended with the death of North Korean leader Kim Jong-il, ushering a period of leadership transition in a perennially insecure regime that is armed to the teeth.

The United States is also going through a leadership transition -- in terms of its place in an increasingly multipolar world -- as well as domestically, as the presidential race dominates American politics and policy for the next 11 months. Recent statements by the Obama administration -- on the foreign policy "pivot" to the Asia-Pacific region and on a defence strategy that is increasingly focused on China -- open a new chapter in the contest for influence in Asia.

China will also see leadership renewal in 2012, and while the contest is less public and more predictable, Chinese leadership hopefuls are susceptible to political posturing and populist actions, as are their counterparts in the United States. The risk of trade conflict has risen in the last year, and will likely continue to mount in an environment of sluggish world growth.

With Asia now prominently on the world's centre stage, the challenge of building relations with countries in the region has become much more than trade and investment promotion. For Canada, it means embedding Asia into business, educational, and community strategies and building long-term relationships with Asian counterparts that demonstrate Canada's commitment to be a serious player in the Asia-Pacific region.

It comes as welcome news therefore that Prime Minister Harper will visit Beijing next month. Harper should use the opportunity to signal his version of a "pivot" to Asia -- without the overtones of geopolitical positioning that invariably accompany U.S. foreign policy.

An excellent way to do so would be to propose a Free Trade Agreement with China. Coming on the heels of his statement of Ottawa's desire to join the U.S.-dominated Trans-Pacific Partnership (which China has so far been excluded from), a proposed economic partnership agreement with China would not only expand Canada's options but also demonstrate an awareness of the bigger game that is being played out in the region.

Such an announcement would also underscore and put substance behind the Prime Minister's recent comments about the need to diversify Canadian exports (especially oil and gas) to be less reliant on the U.S. market. Free trade talks with India are already underway and an FTA with Japan is being studied by both governments. Adding China to the list would be a major achievement -- and would require significant political commitment to get the deal done.

The First Day covers issued by Canada Post include a description of dragon years as "marked by innovation, exploration and risk, ultimately culminating in achievement on a grand scale." With his trip to Beijing scheduled shortly after the start of the Lunar New Year, Harper should travel with precisely the level of ambition expected of a dragon year.

 

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11:23 AM on 01/15/2012
Over the last few days we have seen articles on disproportionate loss of Canadian industrial jobs, the
offers of 55% wage cutbacks, the decreasing balance of trade which is tied in with importation of
goods produced with starvation wages. These wages are paid in countries that have a much
reduced level of social service. We have those who want to deplete our country of those resources
which aid industrial growth and development - wanting to send those resources to the countries
which are manufacturing the cheap goods. Canadian middle class can kiss their economic futures
goodbye while the 1% puts the rest of our country into economic servitude. It would be better for
governments to use our resources to help the 99% and to develop a game plan that will benefit us all.
12:21 PM on 01/15/2012
Canada is blessed with LOTS of resources and a small population - think Australia times 3 or 4.

You wouldn't call the Aussies 3rd world, would you? Truck driver jobs go wanting in West Australia at $200,000 a year, because of the resource boom. Now that is foresight in government policy.

"Dig dirt, export, repeat" has served the Aussies well. Canada can have double its current per capita income and GDP in 5 years, if it follows Australia's example.
11:05 AM on 01/15/2012
We need to start distinguishing between trade & the WHOLESALE SELLOUT OF OUR NONRENEWABLE NATURAL RESOURCES. I ranch for a living, and the Canadian Governments current policies are starting to remind me of a farmer who has suddenly figured out he can make a lot more money selling off his topsoil than working....In the farmers case though he is the one that actually gets the money even if the land is spoiled for the future generations....In Canada's case though, it is the Corporations that make the bulk of the money, and Canadian taxpayers are left with the BILL......& the local residents are left with the mess......Show me a country anywhere in the world, at anytime in history, that has benefited long term by the quick sale of its natural resources to foreign interests....
12:24 PM on 01/15/2012
Life is about choices. Resources that are in the ground does nobody any good. Environmental concerns, at least the legitimate ones, should be (and are, in the case of Canada) taken care of through regulation. They should not hold back progress.

Australia is a shining example of its people living well off of selling dirt. $200,000 truck driver jobs, much like the demand for oil rig operators in Edmonton, go unfilled. You wouldn't call the Aussies 3rd world, would you?
10:30 PM on 01/15/2012
Life is about choices. Resources that are in the ground does nobody any good.

Neither do resources that are gone.
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Warren Yuill
Jesus Built My Hot-Rod
10:10 AM on 01/15/2012
By China's own admission, they need to purpetuate 8% annual growth in GDP just to maintain political stability.
By China's own admission, they have rendered 11% of all their domestic airable land unusablle for agricultural purposes through pollution and over-.development
That being said. I have to admitt, some admiration for the Chinese governments ability to think and plan, long-term.
The question you have to ask yourself is "where do we fit into the obvious disparity between the realities of unrestrained growth and shrinking resources".
When you consider the Chinese governments ability to think and plan long term.
12:18 PM on 01/15/2012
Where do Americans fit?

"Fit" is a good question. Americans eat and waste enough enough food, per capita, to feed 10 in the poorer nations. As a result many are OBESE, and fit is always a problem.

Americans even turn good, edible corn into something you burn in cars, borrowing billions of dollars that you do not have to subsidize that process (because it is EXTRAVAGANT and energy wasting to turn food into fuel).

Americans use 6 times as much energy per year (10381W) compared to China (1516W), even as manufacturing is a much smaller fraction of the economy (selling derivatives over the computer uses much less energy than forging steel).

http://en.wikipedia.org/wiki/List_of_countries_by_energy_consumption_per_capita

Yes, Americans should really think of where they and their country fit. Cutting waste would be a good start.
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Warren Yuill
Jesus Built My Hot-Rod
01:43 PM on 01/15/2012
I thought the discussion was on free trade.
All the points you made though are completly valid IMO.
(by the way I'm a Canadian)
Donna Meness
www.findmaisyandshannon.com
12:17 AM on 01/15/2012
It is truly remarkable. Reading it (and it is a very long article) is like watching a beautifully crafted knife being withdrawn from its sheath with agonizing slowness and deliberateness. When you are finished, the knife is revealed to you in its all its gleaming fullness. It lies there in front of you, winking with malevolence."

read more:

http://www.thedailybell.com/1425/IMF-Article-Predicts-New-World-Order.html

Related info:

http://www.newswiretoday.com/news/10853/

http://www.theage.com.au/national/investigations/heads-roll-at-rba-company-20090914-fnva.html
Donna Meness
www.findmaisyandshannon.com
12:17 AM on 01/15/2012
First ... Europe is too slow and fragmented currently to compete in a world of dashing powers like India and China. Second ... same thing with the United Nations, according to the IMF which is an arm of the UN).

The United States itself, divided between its republican past and its authoritarian future has also given offense and is characterized as "egomaniacal."

Third ... the legislative body of choice, this article seems to indicate, is going to be the G20, and the IMF will seek validation and credibility from it (along with funds) before proceeding on its mission which is to become the G20s "administrative unit."

Reading this article, it is possible to visualize the Anglo-American elite as straining ponderously to take flight. It is attempting to shed in one convulsive effort, the painstaking paraphernalia with which it has encumbered itself in the past. The days of patiently building world government through the EU or the UN are OVER.

The decision has been made.

The G20 is now the vehicle of choice and the IMF will interpret its G20 mandate as it wishes to rather than before when it wants nothing more than to build "peace through economic stability."

outta char. again.. next post.
09:42 PM on 01/14/2012
Why? Harper Inc. is happy to sell Canada out from right under our feet. Harper Inc. disregards any treaty or law they don't like anyway. They don't even know when the Chinese are hacking into the government systems or planting spies to "massage" the egos of their own MPs. Why bother with a complicated FTA negotiation when all they need to do is agree what price they want for the rest of our natural resources. For Canada to have FTAs with countries like Colombia or China is not something that this Canadian can support.
12:32 PM on 01/15/2012
Under Harper, Canada was the LAST industrial nation to seek to make nice with Beijing. But after a few years of mutual cold shoulders (China was mad about Canada's harboring Lai, XingChang until the smuggler crook ran out of money), he saw the light and shipped Lai back to Beijing for trial. China in turn granted Canada authorized tourist destination status. The immediate future of trade and investments look bright between China and Canada.

Canadian trade with the Americas (most exports ARE natural resources on the Canadian side) is at least 10 times that going to China. Cup half full view is that Canada can easily DOUBLE current exports by fully exploiting the markets in China.

Prices are fixed in and by the market. China is just one out of many countries buying from Canada. Japan and Korea are major Asian importers from Canada.
10:26 PM on 01/15/2012
"Under Harper, Canada was the LAST industrial nation to seek to make nice with Beijing."

Before Harper we had PMs who were not totally blinded by their own self-perceived brilliance.

Unless both parties are equal in labour , environmental, and social standards, free trade won't work. China's standards in all of these are far below those of Canada and the US.
The only possible outcome is a huge trade imbalance in China's favour and consequent job losses and lowering of those standards in Canada. A race to the bottom.
09:03 AM on 01/14/2012
Another free trade agreement, no thanks. They are the tools of the 1% and the bain of the 99%.
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Warren Yuill
Jesus Built My Hot-Rod
07:40 PM on 01/13/2012
Sorry, but all I read was the headline.
Free trade with China?
Suicidal.
Thats all that would be.
Plain old economic suicide.
I question Mr Woo's intentions in writing this piece.
Is he a Canadian citizen?
Or is he some covert corporate operator
I would ask Mr Woo if his intentions in proposing a free trade pact with China is a measure to elevate the standard of living for the Chinese people or an attempt to lessen ours?
09:31 PM on 01/13/2012
WHY would it be suicidal? FTAs increase trade flow. Canada and China are almost like Australia/NZ and China - the economies are complementary (with the exception that Canada also exports planes and trains).

China has 8 FTAs and another 6 being negotiated. In every one of the 8 signed, bilateral trade (both goods and services) went up.

FTA probably works less well if the two sides are in heavy competition over the same sectors.
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JBSCanada
They paved Paradise and put up a parking lot!
10:15 PM on 01/14/2012
F&F for you my friend!

The only comment I add to yours is: It is up to the government to negotiate the best FTA possible for Canada.

Cheers!
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tnanimation
03:33 PM on 01/14/2012
My guess is that Mr. Woo is a Chinese Government plant. There are many trolling here and can be spotted easily.
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JBSCanada
They paved Paradise and put up a parking lot!
06:12 PM on 01/13/2012
Free Trade agreements are becoming more common world-wide. It is up to the countries involved to set their own particular free trade agreement rules and conditions. Every bi-lateral agreement is different.

It is a trade matter - it is not a venue to browbeat the other country over their human-rights situation etc... it is simple matter of you sell us X and we will pay Y, on as many products or services as both sides decide to include in the accord.

One thing that we like about this scenario is that by engaging in trade with Western nations developing nations learn our ways. This helps them to progress in real time in all matters, including among other things, best practices for the business community, human rights, environmental legislation and the reasons for those standards.

Where there is better communication - better relationships result.

A FTA with China, Japan, India and other countries will facilitate better relationships with those countries AND improve Canada's economy.

Will an FTA solve every problem? No, obviously not. There will never be one big agreement that will address every identified negative policy or procedure in a developing country. An FTA will however, play an integral part of that process going forward.
Donna Meness
www.findmaisyandshannon.com
10:47 AM on 01/14/2012
Re: One Thing...human rights, environmental legislation..etc..

http://www.miningwatch.ca/en/newsletter-categories/newsletters/newsletter-29-autumn-2010

So the PM is stonewalling and hoping to run out the clock on this one, as per the usual MO. I hope pressure mounts for the truth to come out, and I would love to find out which lobby group was implicated in this.**

which lobby group? Mining for sure GOLDCORP is in Guatemala

the industry lobbying
effort became even fiercer. Canadian mining giant
Barrick Gold had registered seven lobbyists to
lobby on Bill C-300 and Barrick's lobbyists met
with at least 22 Members of Parliament and 3
Senators. Other mining companies that registered
one or more lobbyists to lobby on Bill C-300
include Vale Canada, Goldcorp, Kinross, and
IAMGOLD.

Additionally, the Mining Association of
Canada lobbied at least 29 members of Parliament
and PDAC lobbied at least seven MPs.

http://www.miningwatch.ca/en/bill-c-300-high-water-mark-mining-and-government-accountability
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JBSCanada
They paved Paradise and put up a parking lot!
04:05 PM on 01/14/2012
I'm glad that lobbyists must be registered as it does add a level of transparency as to whom is influencing the government and the opposition parties.

There is nothing wrong with a foreign government or corporation making it's "best sales pitch" to a sitting government or opposition MP's.

It is up to the government to only accept the best deal for Canada, with no unethical conduct.

Thanks for the links. I'm strongly in favour of checks and balances for government and business - and any other organizations BTW, from churches, to agencies, to sports teams, to the Boy Scouts.

Cheers!
Donna Meness
www.findmaisyandshannon.com
05:05 PM on 01/13/2012
Thinking about it..since CHINA has the USA by the short & curlies..& USA has CANADA by the short & curlies under NAFTA

China is already buying up Canada stealthily.. since HARPER'S GOVERNMENT has put up the for sale sign
03:53 PM on 01/14/2012
And your suggesting we bring back FIRA ????
Its been about 40 years since we had to live through that fiasco,when foreign investment dried up, value of our dollar nose dived and the interest rates on mortgages hit 20%.
Our great prime minister of the day (Trudeau)engineered that, and you want to relive it?
Donna Meness
www.findmaisyandshannon.com
04:27 PM on 01/14/2012
Azzi, Stephen. Walter Gordon and the Rise of Canadian Nationalism. Montreal and Kingston: McGill-Queen’s University Press, 1999.
Bliss, Michael. “Founding FIRA: The Historical Background.” In Foreign Investment Review Law in Canada, edited by James M. Spence and William P. Rosenfeld, 1-11. Toronto: Butterworths, 1984.
English, John. Just Watch Me: The Life of Pierre Elliott Trudeau 1968-2000. Toronto: Alfred A. Knopf Canada, 2009.
Gillespie, Alastair W., with Irene Sage. Made in Canada: A Businessman’s Adventures in Politics. [Montreal]: Robin Brass Studio, 2009.
Globerman, Steven. “Canada’s Foreign Investment Review Agency and the Direct Investment Process in Canada.” Canadian Public Administration 27, no. 3 (1984): 313-328.
Levitt, Kari. Silent Surrender: The Multinational Corporation in Canada. Toronto: Macmillan, 1970.
Rotstein, Abraham. Getting It Back: A Program for Canadian Independence. Toronto: Clarke, Irwin, 1974.
Safarian, A. E. Foreign Ownership of Canadian Industry. 2nd ed. Toronto: University of Toronto Press, 1973.
Donna Meness
www.findmaisyandshannon.com
04:42 PM on 01/14/2012
http://www.youmespp.com/

What do secrecy, police provocateurs, an assault on democracy and infringements on citizens’ rights have in common? The Security Prosperity Partnership.

‘You, Me, and the S.P.P: Trading Democracy for Corporate Rule’ is a feature length documentary which exposes the latest manifestation of a corporatist agenda that is undermining the democratic authority of the citizens of North America.

Two processes, the Security Prosperity Partnership (SPP) and the Trade Investment Labour Mobility Agreement (TILMA) are rapidly eroding and eliminating standards, civil liberties, regulatory systems and institutions put in place over generations through the democratic process. Proponents of the SPP and TILMA say that they are needed to keep trade flowing, opponents say these agreements not only undermine the democratic authority of citizens they threaten the sovereignty of the three nations through the integration of military, security structures and regulatory regimes.

http://rabble.ca/news/2009/10/you-me-and-spp-filmmakers-journey

http://rabble.ca/blogs/bloggers/rabble-staff/2009/09/rabble-live-broadcast-you-me-and-spp-tour-launch-parliament-hill
Donna Meness
www.findmaisyandshannon.com
05:02 PM on 01/13/2012
China ..get in line since the EU has second dibs of CANADA:

“From NAFTA To CETA: Canada-EU Deep Economic Integration
In a recent article Maude Barlow, national chair of the Council of Canadians, points out the dangers Canada faces with the current CETA trade model.
She warns that:
“CETA will open up the rules, standards and public spending priorities of provinces and municipalities to direct competition and challenge from European corporations.” Barlow goes on to say, “Europe is seeking a comprehensive and aggressive global approach to acquiring the raw materials needed by its corporations.
At its heart, this deal is a bid for unprecedented and uncontrolled European access to Canadian resources.”
She also added, “CETA will likely have a NAFTA-type investor-state enforcement mechanism, which means that European corporations will have the same right that U.S. companies now enjoy to sue the Canadian government if it introduces new rules to protect the environment.”
If CETA includes something similar to NAFTA’s Chapter 11 which gives corporations the power to challenge laws and regulations that restrict their profits, U.S. and Mexican companies could benefit from any rulings that favour the EU.
Ultimately, like NAFTA and other trade deals, CETA will further serve corporate interests.”

full article http://beyourownleader.blogspot.com/2011/01/from-nafta-to-ceta-canada-eu-deep.html
Donna Meness
www.findmaisyandshannon.com
05:00 PM on 01/13/2012
Besides Canada already over a barrel with USA NAFTA since their electical needs & FRESH WATER come before CANADIANS..sigh

NAFTA's controversial investor-state dispute mechanism The Chapter 11 dispute process has allowed and encouraged large multinationals to sue North American governments for compensation against public health and environmental policies that limit corporate profits.
Donna Meness
www.findmaisyandshannon.com
04:54 PM on 01/13/2012
The real foreign interests in the oilsands
By Terry Glavin, The Ottawa Citizen January 12, 2012

But if we’re seriously supposed to be going all villagers-­with-torch­es about foreign outfits with weird ideologies underminin­g Canada’s national economic interests, let’s review what’s really going on, shall we?

The $5.5-billi­on Enbridge pipeline project is all about sending Alberta bitumen in huge oil tankers to China. Beijing’s own state enterprise­s are among the project’s major backers, and Beijing has been buying up Alberta’s oilpatch at such a dizzying pace lately it’s hard to keep up. In the spring of 2010, China’s state-owne­d Sinopec Corp. took a $4.65-bill­ion piece of Syncrude. Then the China Investment Corporatio­n, which is run by the Chinese Communist Party, took possession of a $1.25-bill­on share of Penn West Petroleum. Last summer, the Chinese National Offshore Oil Corporatio­n gobbled up Opti Canada for $2.34 billion. And so on.

Then, last month, Sinopec spent $2.2-billi­on to take over Daylight Energy Ltd., and last week, Petro-Chin­a, with the final push of $1.9 billion, became the owner and manager of the MacKay River oilsands project. This is what Ottawa doesn’t want you noticing.

Read more: http://www­.ottawacit­izen.com/b­usiness/re­al+foreign­+interests­+oilsands/­5981230/st­ory.html#i­xzz1jK6h4i­lr
09:34 PM on 01/13/2012
You exaggerate. I'd be surprised if the China Oils own more than a few percentage points of all the oil reserves in Canada (or anywhere else, for that matter).
Donna Meness
www.findmaisyandshannon.com
10:55 PM on 01/13/2012
Chinese state-owned oil companies have also begun seeking ambitious oil deals in Canada, the top petroleum supplier to the U.S.

In recent months, Chinese state-owned oil companies have begun seeking ambitious oil deals in Canada - the top petroleum supplier to the U.S. - including the acquisition of Canadian energy companies. Sinopec, one of China's largest state-owned energy companies, is interested in buying stakes in the vast reserves of the Alberta oilsands. The Canadian giant Enbridge is pushing ahead with a plan to build a $2.5-billion pipeline to transport oil from Alberta to the coast of British Colombia from where it will be shipped across the Pacific to China. Though it is not clear which of these deals will come to fruition, the possibility of Chinese acquisition of portions of Canada's energy industry - which could lead to a loss of up to a third of Canada's potential exports to the U.S. - should be a source of concern in Washington.

Control of major companies by a Communist government could weaken U.S.-Canada relations exposing Canada to Chinese pressure to part ways from the U.S. on issues which both countries have historically agreed upon regarding China, like human rights abuses, arms sales to the Middle East and China's relations with Taiwan.

http://www.iags.org/china.htm
http://www.iags.org/n0118041.htm
Donna Meness
www.findmaisyandshannon.com
03:57 PM on 01/13/2012
The US should abolish NAFTA the day that passes. That's all we need - more dumping of Chinese goods, but this time circumventing trade barriers through NAFTA.

Free trade, for anyone not in a mercantilist economy, will not work. If you Canadians want to find some roof to commit mass suicide on like the Foxcomm workers, go ahead and pass free trade with China.
02:58 PM on 01/13/2012
The effect of a free trade agreement should be to raise the standards of industry, labour and environment to the higher standard of the two countries. Therefore I could agree with a free trade agreement with China, or anyone else for that matter that requires Canadian regulations with respect to labour and environment for any Canadian companies doing business in China, and, conversely, when the Chinese company sends Chinese workers into Canada they work under Canadian labour laws. Otherwise we continue a race to the bottom. The one other caveat I would insist with China is a de-occupation of Tibet, and a recognition of the Dali Lama as Tibet's spiritual leader.
09:35 PM on 01/13/2012
What does Tibet and the Dalai 14 have to do with a FTA? Either you wanna do business, or get out of the way since there are lots of others in that long line behind ya.