New "NAFTA" deal is still a big bargain for huge corporations

The new NAFTA deal is called the USMCA, the United States Mexico Canada free trade agreement. The deal contains several changes to the original NAFTA, of varying importance for the countries involved.

Plus factors in the new agreement

There are two major advantages to the new agreement according to Maude Barlow, chair of the Council of Canadians: the Chapter 11 state dispute mechanism, which allows corporations to sue states, and the energy proportionality provision which guarantees a certain amount of energy exports to the US are both absent from the new agreement.

Marlow said: "This is a major victory for the many groups and individuals who sounded the alarm on how these dangerous provisions affect our ability to protect the public interest and the environment. Our movement should be very proud. But as always, we should be vigilant about the rest of the agreement, which was hatched in order to erase rules, and help out big business."

Canadian objectives in negotiations were discussed in a pervious Digital Journal article. It was not listed as an objective to remove the proportionality provisions. It may be that since Mexico was exempted from the provisions and they are not in the new agreement with Mexico that they should not be in the Canada agreement.

The U.S. is now much more energy self-sufficient and also the demand for fossil fuels may soon decrease so perhaps it was not thought necessary even though it could be of great benefit to the U.S.

Dairy Provisions break promises made by the Liberals

One of the priorities that was in the original list of Canadian objectives was to protect the supply management system used to produce dairy and some other products in Canada. The changes will have a considerable effect in the province of Quebec and may hurt Liberals both in provincial and federal elections.

But even Mike Southwood, general manager of Alberta Milk in the west, complained of the new provisions. He noted that dairy producers had already given up ground in the Progressive Agreement for Trans-Pacific Partnership (CPTTP) and the Comprehensive Economic and Trade Agreement (CETA). Having already sold out the farmers twice it was not surprising that the U.S. demanded the Canadian government do so again.

Southwood pointed out that with more access to Canadian markets for U.S. companies, processing jobs will be lost and quota on dairy farms across Canada will be reduced. Barlow claimed that under the deal Canadians would not be getting local, fresh, hormone-free milk.

Other negative features of the deal

A recent Rabble article notes: "In Article 32.10 Canada agreed not to negotiate commercial agreements with non-market countries. That would be China. Should Canada decide to sign a trade agreement with China, the non-market country, it would be booted out of USMCA. For trade expert Peter Clark this amounts to Canada being treated as a vassal state by the U.S."

Chapter 33 is entitled "Macroeconomic Policies and Exchange Rate Matters". Canada will now sit down with the US whenever they think that our dollar is too low and we will be accused of currency manipulation. There goes the independence of our Central Bank. According to Rabble, Canada's macroeconomic policy, government spending and taxation would need to be coordinated with the U.S.

Federal Crown corporations which have often been a key to Canadian economic development in some areas under Chapter 22 of the new deal become State-Owned Enterprises. Their activities are to be restricted to non-competition with private sector companies. Forget any new policies such as public auto insurance except in areas where private companies can find no profit so do not compete. Forget launching a public company to build public transit vehicles. There are even penalties spelled out for non-compliance. The neo-conservative free enterprise ideology is being enforced as a gain to global corporate domination of the economy.

The new deal also gives a two year extension on biologic drugs and this will prevent lower cost generic drugs from entering the market. This will make it difficult for Liberals to keep their promise of a national pharmacare program.

Previously published in Digital Journal

French farmer and critic of CETA finally allowed to stay in Canada but just for 7 days

Jose Bove a French farmer, member of European Parliament, and anti-globalization activist has been allowed to stay in Canada for seven days after being told yesterday he would have to leave the country today.

However, Bove missed his speaking engagement scheduled for Montreal last night. The Council of Canadians had asked Bove to speak on his opposition to the Canada-European Union Comprehensive Economic Trade Agreement (CETA). He will be able to attend a conference at St. John's later on this week.

After Bove had spent hours in customs by Canada Border Services Agency on Tuesday, Bove had his passport confiscated and was informed he had to leave Canada on Wednesday afternoon. He was told he was being expelled because of his previous criminal convictions, including one in which he vandalized a McDonald's restaurant.Bove has been convicted of crimes resulting from his activism a number of times. However, he has been to Canada many times before with no issue. His experience in the U.S. has been different: In February 2006, Bové was stopped by U.S. Customs and Border Protection agents at New York's JFK Airport as he arrived en route to Cornell University's School of Industrial and Labor Relations for events sponsored by Cornell's Global Labor Institute. According to Bové, the Customs agents told him he was "ineligible" to enter the U.S. due to his past prosecutions for "moral crimes". After being detained for several hours, Bové was placed on an Air France flight to Paris.[2]

At a new conference Wednesday Bove called on Canadian PM Prime Minister Trudeau to explain why he was held at the airport. Maude Barlow, national chair of the Council of Canadians described the situation as "outrageous" saying: "Is the case for CETA on such thin ice that it can't withstand free speech?" Alex Lawrence, a spokesperson for Chrystia Freeland denied that there had been any interference from the government. A spokesperson for Ralph Goodale, the Public Safety Minister said that decisions as to who can enter Canada is at the discretion of border service agents. Lawrence claimed that the government supported open public debate including about trade, as the only way to build public support and consensus.

Jean-Marc Desfilhes, Bove's press attache who was able to clear customs with no problem, though he had the same visa as Bove, said: "He isn't a criminal. He is an elected member of the European Parliament. This is simply an extremely embarrassing situation." CETA has not yet been ratified or signed but a signing ceremony is expected in Brussels later on in the month if it is ratified by the European parliament. Bove claims the deal is bad for farmers in both the EU and Canada. Critics say it is dangerous for the environment as well as unjust socially. A detailed critical analysis of CETA can be found on the Policy Alternatives website.