NAFTA For and Against

1
NAFTA For and Against
2
In Support

• Tariffs merely serve to protect inefficient
  businesses from competition.
• Raises cost of products to consumers.
• Huge market under free trade brings manufacturing
  costs down, benefits consumers.

3

• Canada is replacing low-tech jobs with high-tech
  jobs.
• Low-tech jobs are low paying. (Moving to Mexico,
  US)
• But not all low-tech jobs will leave simply for
  cheap wages in Mexico.
• There are other factors for business to consider
  cheap power, transportation, health care,
  educated work force. All available in Canada.

4

• Canadian firms can bid on US and Mexican
  government contracts.
• Environment will benefit because there are
  minimum standards the country must meet.
• Culture is excluded from agreement.

5
Opposition to NAFTA

• Encourages movement of jobs out of the country.
• Why? Lower wages dont have to pay for health
  care and pensions low environmental standards
  low workplace safety standards.

6

• To compete with US and Mexico in NAFTA, Canada
  may have to lower its wages, reduce social
  benefits and its environmental standards.
• Perhaps Medicare (OHIP) will have to be abandoned
  as an unfair subsidy to business.

7

• Benefits of free trade are uneven across the
  country.
• Natural resource export industries are benefiting
  while some domestic manufacturing are losing out.
• Culture is not adequately protected.
• Recent battle over split-run magazines supports
  this.

8
The Future?

• Can we maintain traditional markets? Developing
  countries are marketing cheap raw materials.
• Can we export more manufactured goods? Requires
  funding (RD) from industry and government.

9

• Can we take advantage of new opportunities to
  trade in services?
• Can we (should we) decrease reliance on trade
  with US? If its economy softens, we are badly
  hit.
• Can Canadian firms compete with large US firms
  and cheap Mexican labour? When Canadian firms get
  big and profitable, they often get bought up by
  foreign firms.