Alright anyone who is Canadian or follows the free trade agreements that the US has agreed to knows that the US is known for renaging on those agreements.
In the past the US charged tariffs on Canadian softwood lumber despite the free trade agreement and for years the US government stole billions. Finally after negotiations and the United Nations demanding the US repay what it stole some of the money was returned. Canada dropped the issue and we went on trading.
But in 2009 President Obama announced his $787 billion economic stimulus bill. In this bill he stated that American companies would get all of the contracts and all products used by these companies would have to come from America. He stated that steel and other products had to originate in the US and that developers could not use products from other countries. Canada had many of the contracts to provide the steel and other products however those contracts were turfed. Canada took the US up on this issue offering certain measures to help the US through their hard time.
However the damage was done and Canada lost billions of dollars on products we have been exporting to the US for years. The US companies also lost billions because they could not buy Canadian products and instead had to purchase American made products exclusively. In the end the US realized it was violating free trade and stepped back allowing after months of trade losses for American companies to use Canadian products.
So we thought the issue was over and dealt with. The US had acknowledged that they had been in the wrong to issue such protectionist policies that violated free trade and hurt Canadian/US relations. But it would appear Obama doesn't really care about following his agreements or learning lessons.
Canadian Trade Minister Ed Fast said "It is disappointing that it is coming from the Obama administration given the fact that we have been there before," Mr.Fast also assured Canadians that we are prepared this time to deal with this betrayal, we have a fast track consultation process with the United States for issues just like this.
All of you know the President of the United States issued a new job action plan. However what you do not know is that this job action plan specifies that companies involved cannot use products or services from other countries. The plan includes requirements that all "iron, steel, and manufactured goods" used in public buildings or works be supplied by American firms. In clear violation of NAFTA, creating a monopoly that prevents Canadian products from being sold in the United states.
As dictated by the agreement, the main purposes of the Canadian-United States Free Trade Agreement are as follows:
"eliminate barriers to trade in goods and services between Canada and the United States;"
"facilitate conditions of fair competition within the free-trade area established by the Agreement"
"significantly liberalize conditions for investment within that free-trade area"
"establish effective procedures for the joint administration of the Agreement and the resolution of disputes"
"lay the foundation for further bilateral and multilateral cooperation to expand and enhance the benefits of the Agreement."
Mr.Fast also confirmed that Prime Minister Stephen Harper is personally involved in the effort to get the US to follow its international obligations and respect its free trade agreements. However Fast declined to say whether Prime Minister Harper would phone the President himself to resolve the issue.
For those of you unaware Canada is the US's biggest trading partner. 70% of all exports from Canada go to the United States and the US relies heavily on those imports.
Canadian's are outraged by Obama's disregard for the North American Free Trade Act. The Government is promising swift action and I am left wondering. Canada is the US's largest trading partner, why would the US back stab Canada when they stand to loose a lot if the trade agreement were to fall apart?
Also why isn't Mexico pissed, don't they also provide raw materials?
Do you think Canad and the US should even have a free trade agreement if the US doesn't abide by it? Many Canadian's think that Canada should terminate the agreement. This was discussed in parliament in 2009 when Obama first broke the agreement. It was suggested Canada could increase trade with China, Japan , Britain and South America to make up for any loss in trade with the US.
Seriously whats up with this clear violation of the free trade agreement?