While a majority 55% of my visitors believe that an Australian company should be allowed to spend $40 billion dollars for the Potash Corp of Saskatchewan, I sense that there is a growing sentiment on the right for protectionism. The Tories are going to listen to popular Premier Brad Wall and veto the deal, even though it is the wrong thing to do. This was a bad decision, and just about everyone with an economics background knows it. Even Laura Ingraham discussed on her show recently that she visited many states in the recent campaign promoting her new book, and many on the American right want to put up trade barriers against China. By the way Americans who want to put up a firewall with China, they own your debt and could crash your currency with the push of a button. That being said, China doesn't play by the same rules as we do and has the ability to exploit its massive labour force. I suppose it could be argued that free trade isn't always fair trade is different competitors play by different rules.
Do you think there is a trend towards protectionism, or is the Potash case and the China case just two specific examples with specific points of contention that do not show a trend in any one direction?
I don't think it is protectionism if thousands of trade deals go through. We are talking about two deals that not have met the requirement.
ReplyDeleteThey can return in 30 days with a sweeter offer. Gerry Ritz made some interesting comments about the strategic interest and competition if it changed hands.
The other deal was national interest trade technology secrets.
The trade currency conflict in the G20 has been going on for years. We may end up getting hurt again by the US debasing their currency by 20%.
While i don't agree with killing the deal, I am pleased that the Tories did not over-rule the will of the the duly elected Sask. government.
ReplyDeleteOne of my complaints of the Libs was their interference in provincial matters. Lets see how the next 30 days play out.
Anon, they wouldn't have been over-ruling anyone, those decisions are completely within federal jurisdiction.
ReplyDelete