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Conference kaosws::canada

Title:True North Strong & Free
Notice:Introduction in Note 535, For Sale/Wanted in 524
Moderator:POLAR::RICHARDSON
Created:Fri Jun 19 1987
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1040
Total number of notes:13668

603.0. "North American Free Trade - Is it Good?" by BAKBAY::FRITZ () Thu Aug 13 1992 13:37

    There have been news reports down here in the states regarding
    the North American Free Trade agreement.  What is the Canadian
    reaction to all of this? I have not seen the agreement in detail
    but the intent is to allow the free flow of goods and services
    between borders...is this the case?  How will this effect the
    buying power of Americans in Canada?  Will Americans have
    fewer restrictions of buying big ticket items and bring them
    back to the states?
    
    rf
    
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603.1NAFTA - I don't knowTROOA::BROOKSThu Aug 13 1992 14:5115
    As far as I'm concerned and I know, there has been very little media
    attention given to NAFTA.  When the Canada-US agreement was being
    talked about, it was front page news almost every day.  Your questions
    are valide but I'm sure very very few people know how this will affect
    them.
    
    My gut feel is BBAAAAAAADDDDDDDDD!!!!!!
    
    Even if Bob Rae is against it, I am not comfortable with trying to
    compete with the Mexican economy, especially with the US in between.
    
    Hopefully, more details will surface before it is ratified by our
    respective governments.
    
    Doug
603.2KAOFS::S_BROOKThu Aug 13 1992 15:0213
    The biggest fear is loss of jobs because of wage costs in Mexico.
    
    Even with the US Canada free trade deal, due to lower wage costs in
    the US, particularly for US based companies, there is the strong
    perception of the loss of many jobs.  This must also be a big factor
    to the US, since wage costs in Mexico are so much lower, it could
    easily be cheaper to open a Mexican subsidiary (if there isn;t already
    one) and begin manufacturing there.
    
    This deal could have some very serious implications, especially at the
    moment with corporations so concerned about cost cutting.
    
    Stuart
603.3We got away with murder!POLAR::RICHARDSONSick in a balanced sort of wayThu Aug 13 1992 17:428
    What I find amazing is that there was no mention of the Grand Canal in
    any of the negotiations! I am amazed that the Americans and Mexicans
    would overlook such an important thing as the Grand Canal and the great
    advantage it gives to Canada over its other trading partners!

    Wonders never cease.

    Glenn
603.4I learned more...BAKBAY::FRITZFri Aug 14 1992 17:5515
    I have learned more about this since my base note.  There was a radio
    talk show discussing this issue.  
    
    My concern is Bush turning it into a campaign issue.  Another concern
    is the fact that THOUSANDS of jobs have since been lost to Mexico due
    to cheap wages.  How can you compete when Mexicans make 2/3rds less!
    Not to mention the environmental issues.  
    
    Will Canada now "take advantage of" going into Mexico to have their
    goods manufactured?  I hear that 70% of Canadians are against such
    an agreement and pushing it to go before the voters.
    
    rf
    
    
603.5What about people?SALES::THILLMon Aug 17 1992 14:5311
    What about the "Free Trade" of people? Is this an EC-type situation
    where Americans can live and work in Canada and vice versa? I haven't
    heard anyone address these issues.
    
    Another point about US-Mexico is that environental regulations are
    almost nonexistent in Mexico, so American companies can not only get the 
    cheap labor in Mexico, they can also just dump their toxic waste into
    the rivers (where peopel get their drinking water) without having to
    pay for any expensive clean up procedures...
    
    Tom
603.6Same as Canada?US dealTROOA::SOLEYMoney talks. Mine says "Buy me a Drink"Tue Aug 18 1992 09:1814
    Regarding the "Free Trade" of people, my understanding is that NAFTA
    takes the same approach as the existing Canada/US agreement. Previous
    to that deal the law required a Canadian traveling to the US to do
    ANY business to have a work permit, in fact this was never fully enforced
    (for example travelling to take a business related course or attend a
    convention should have required a work permit but in practice didn't).
    
    Now an employee of a Canadian company travelling to the US for the
    business of his/her employer does not require a work permit, this means
    you can attend meetings, make sales calls and so on without a permit. 
    There are limiting conditions, say that I'm a service technician for a 
    Canadian manufacturer, under free trade I can go to the US and perform 
    warranty service without a work permit but would need one to do time and
    materials work. 
603.7JPLAIN::FRITZTue Aug 18 1992 13:096
    Will this effect Digital?  I know that DEC has been involved with
    purchasing goods from Mexico via another company to be sold with
    DEC logos.
    
    rf
    
603.8DNEAST::ESTES_CRYSshelter animals need a chanceSat Aug 22 1992 12:4910
    RE:-1
    
    I know I have some major concerns around this. What I understand is DEC
    is in the process of building a manufacturing plant down in Mexico. (At
    this point, they may already have one.) I talked with a process
    maintenance tech from ABO and he was saying they will be starting to work
    with people down there. (This may not be true, and I hope it is not).
    Does anyone else know anything about this??????
    
    
603.9KAOFS::J_DESROSIERSLets procrastinate....tomorrowWed Aug 26 1992 10:4321
    Free trade would be good for ALL of us if the Americans respected the
    deal, as soon as they are undercut by Canadian industries, they impose
    trade barriers, but they raise a stink when they have to play by OUR
    rules.
    
    Ex #1: Norsk Hydro makes magnesium in Qu�bec, the US has imposed some
    50% duty on magnesuim because ours is cheaper, they claim Norsk does
    not pay it's electricity at a fair rate which gives them an advantage
    over their own companies.
    
    Ex #2: Ontario beer MUST be sold in brewers retail outlets and a levy
    of 10� is placed on every bottle (environment protection).  When all
    this is added up, american beer is almost as expensive as canadian
    beer (but not as good) so they lose their competetive edge (lower
    price) and they scream bloddy murder and threaten to impose duties on
    canadian beer as a retaliatory measure.
    
    The US never play fair, so Mexico watch out.
    
    Jean