Canadians Going Hog Wild Over Protectionism
Canada asks the World Trade Organization (WTO) to rule against an American food-labeling law that seems to have destroyed much of its hog-farming industry, states the New York Times. The dispute derives from an American rule requiring that food products be labeled by country of origin. The U.S. government denies that labeling its food products is an act of protectionism, although Americans have decreased purchases of pork produced in Canada, traditionally about 7 percent of Canadian pork is consumed in the United States.
The Canadian international trade minister, Stockwell Day, publicly criticized the rules “as so onerous that they affect the ability of our cattle and hog exporters to compete fairly in the United States.” He said Canada “has no choice” but to request that the World Trade Organization scrutinize the labeling rules.
The U.S. trade representative defended the allegations and its claim that the Obama administration is practicing protectionism by stating that the information on the labels given to consumers complies with the WTO.
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Canada Settles Its Anti – “Buy American” Ban
Canadian officials have come up with a resolution that threatened to ban American companies to bid on city contracts because of the ‘Buy American’ push by the United States says Canadian news source, CBC News.
The threat to ban American companies deminished after it was reported that the U.S. would exempt Canada from the “Buy American” created in the Stimulus Plan.
“We are encouraged by the talks now underway between Canadian and U.S. officials and want to give them the time and space to reach a successful outcome,” federation president Basil Stewart said Saturday Oct 3rd.
The resolution created by the Federation of Canadian Municipalities will support cities that adopt policies allowing them to buy only from companies whose home countries don’t impose trade restrictions against Canadian goods. The action was to take effect Sunday.
The “Buy American” provision gives priority to U.S. iron, steel and other manufactured goods for use in public works and building projects funded with taxpayer stimulus money.
Canadian governments and businesses are against the policy, arguing it violates NAFTA.
To read more, click here.
U.S Border Patrol May Be More Foe Than Friend to Canada
Discussions on the U.S. response to increase security by 45 percent after top officials talked openly to build stronger ties to the two countries have caused debate.
On May 27, Canadian public safety minister, Peter Van Loan and U.S Secretary of homeland security, Janet Napolitano met to discuss border relations between the two countries.
“We are committed to a collaborative approach to our border—one that enhances our security and public safety while facilitating the trade and travel that connects our two countries,” they said in a joint statement.
But, memories of 9/11 aren’t too far in the past for Americans. Last week. Jayson Ahern, acting commissioner for the U.S. Customs and Border Protection announced $12 million out of the $60 million allocated to improving border protection will be spent by increasing the number of agents stationed in the Northern states patrolling the U.S./Canadian border.
Currently, there are around 1,500 agents monitoring the Canadian border, this will increase to a little more than 1,800 by the end of this year and nearly 2,300 by the end of 2010.
Deborah Aarts, managing editor of MM&D magazine in Toronto, Ontario, Canada writes a strong opinion of what she thinks is a mis-representation the U.S. has given in its cooperation to work together to secure and protect its border as well as continue open trade.
What I have a problem with is the one-sidedness of it all. The US agreed to work together with Canada on border issues, then promptly announced on its own its intent to ramp up security by 45 percent. The Canada Border Services Agency has voiced no similar plans. Even if the decision was made before the May 27 meeting, and even if Canada knew about it, the optics suggest that the two countries are not on the same page.
Although Ms. Aarts doesn’t speak for every Canadian, I’m sure more decisions and debates will arise as plans begin to be implemented.
To read more about the increase in U.S security, click here.
To read more about Deborah Aarts editoral, click here.