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CandaEUFTA

Harper turns kitten eating grin to 11.

The European Union/Canadian Free Trade agreement was unexpectedly foisted onto the Canadian public – like driving over a deep pothole at night, the consequences of  this agreement require the public to pull over and carefully examine the damage done to our society and economy.   Strangely enough, our benevolent leadership has arranged for little to no public consultation and thus no debate as to what the consequences are for Canadian society.  We just have to trust our leaders when they say that this is a “good thing” for Canada.  In light of such trenchant analysis this Canadian commentator has a few niggling doubts when it comes to the heralded panacea of Free Trade Goodness for ALL!!!11!!

The timing of this “historic accord’ threatens to ruin my suspension of disbelief with regards to the upcoming Canadian federal election cycle. Our Conservative government appears to be busting out the sugar plums and candy-canes early to get a head-start on the official bamboozling of the electorate process.

This list from the CBC is exactly what I mean:

1. Cheaper goods –

When CETA comes into force, Canadians will pay less for items including food, wines and spirits, and even high-end European cars — if retailers and European manufacturers pass on the savings from the elimination of tariffs.

2. More Canadian beef, pork and bison –

CETA will significantly raise the quotas for Canadian beef, pork and bison, giving producers much greater duty-free access to the EU market. The potential increase in annual sales is estimated at $1 billion.

3. More European cheese –

EU cheesemakers will be allowed to sell Canada 29,000 tonnes of cheese, up from the current 13,000 tonnes.

4. Intellectual property rights and drugs –

Intellectual property rights and patent protection was a key area of concern for the Europeans during negotiations, particularly in the area of pharmaceuticals.

5. Provincial and municipal contracts –

Wynne also said she supports the deal because it gives its manufacturers and service providers more access to European markets.

Cheap wine! More Cheese! Consumers will be dancing in the streets, look how amazingly great this deal is… just like NAFTA!!

“Structures of governance have tended to coalesce around economic power. The process continues. In the London Financial Times, James Morgan describes the “de facto world government” that is taking shape in the “new imperial age”: the I.M.F., World Bank, Group of 7 industrialized nations, General Agreement on Tariffs and Trade (GATT) and other institutions designed to serve the interests of transnational corporations, banks and investment firms.

One valuable feature of these institutions is their immunity from popular influence. Elite hostility to democracy is deep-rooted, understandably, but there has been a spectrum of opinion. At the “progressive” end, Walter Lippmann argued that “the public must be put in its place,” so that the “responsible men” may rule without interference from “ignorant and meddlesome outsiders” whose “function” is to be only “interested spectators of action,” periodically selecting members of the leadership class in elections, then returning to their private concerns. The statist reactionaries called “conservatives” typically take a harsher line, rejecting even the spectator role. Hence the appeal to the Reaganites of clandestine operations, censorship and other measures to insure that a powerful and interventionist state will not be troubled by the rabble. The “new imperial age” marks a shift toward the reactionary end of the antidemocratic spectrum.

It is within this framework that the North American Free Trade Agreement (NAFTA) and GATT should be understood.’

But, but… what about the cheap cheese?  NAFTA ,described in terms closer to reality,  was a Free Investors Agreement.  It opened the doors for business to compete helter-skelter everywhere and with everyone on the North American continent.  NAFTA green lighted the noble quest for the profit and as Chomsky notes indiscreetly kicks the working class in the teeth:

“Particular cases fill out the picture. G.M. is planning to close almost two dozen plants in the United States and Canada, but it has become the largest private employer in Mexico. It has also opened a $690 million assembly plant in eastern Germany, where employees are willing to “work longer hours than their pampered colleagues in western Germany,” at 40 percent of the wage and with few benefits, as the Financial Times cheerily explains. Capital can readily move; people cannot, or are not permitted to by those who selectively applaud Adam Smith’s doctrines, which crucially include “free circulation of labor.” The return of much of Eastern Europe to its traditional service role offers new opportunities for corporations to reduce costs, thanks to “rising unemployment and pauperisation of large sections of the industrial working class” in the East as capitalist reforms proceed, according to the Financial Times.”

The damage wrought by NAFTA to the manufacturing sector American economy is still being felt today as speculative bubbles deliver hammer blow after hammer blow to the dessicated middle class and ever growing contingent of working poor.  The happy-clappy propaganda of NAFTA bringing consumer paradise to the people brings small comfort to the poor and soon to be poor people of the United States.

The run up to the EU/Canada FTA has the same eerie feeling that was present when NAFTA was being touted as good for everyone, lifting all boats and other assorted nonsense.  The surprise, the promise of cheese, the timing in the electoral cycle all point toward yet another free investor agreement.  Investor agreements, will not benefit the great majority people in Europe and Canada, but rather,  will enhance the bottom line of a select few.

Three cheers for the eminent pauperisation of even more people?  I think not.

We have many interesting ideas floating around about how capitalism works and its benefits. I would like to focus on just one small aspect of capitalism with regards to how it is implemented in the world and how it applies to difference classes.

One economic fact that escapes many proponents of the ‘free market’ is that for an country’s economy to grow strong, high tariffs and decidedly protectionist measures are required to protect sovereign industry from competition. State intervention in the economy is necessary for the economy to prosper an grow. The pattern has been repeated several times in recent history.

Starting with Britain and her industrialization and capitalization of her economy. To foster the domestic cotton industry, that in the beginning had no hope of competing with a superior product from India, Britain raised tariffs on Indian products and well, brutally conquered India, kicking there textile industry back into the stone age. Imperial solutions for economic problems were easier back then as we could take the role of ‘bringers of civilization’ to the unruly barbaric masses.

Flash forward to today; the economic imperatives remain the same. Protectionism for us and free market discipline for the rest of world. The mailed fist is still omnipresent, but not so blatant as public opinion of the generally benevolent masses must not be stirred from their slumber to protest the injustices being wrought in their name. One of notoriously sublime moves our business classes made in North America was the North American Free Trade Act, which more aptly should be called the North American Free Investing Act giving enormous power to private business and severely curtailing the power of the states involved to intervene in their economies. Mexico, being the weakest signatory to NAFTA, has suffered the most.

Unable to control the flow of goods into the Mexican domestic economy, Mexico’s society has steadily been devolving under the weight of cheap imported products, especially foodstuffs, that have undercut and essentially destroyed the local economy. What has replaced industry in Mexico is the narcotics industry, given the huge market in the US for drugs, narcotics trade and trafficking has become the new Mexican domestic economy.

The Mexican state, not strong to being with, can do little to quell the illegal drug industry, as people have to work and eat. However, the resulting narco-state is not particularly stable or safe as recent headlines have illustrated.

“The bodies of 15 young men, 14 of them headless, were found Saturday outside a shopping centre in the Mexican resort of Acapulco, police said.

Police believe the victims, all appearing to be in their 20s, were killed and their bodies stuffed into five vehicles by drug cartel members.  Investigators say handwritten signs were left with the bodies, a common calling card for the country’s cartels.

This was the largest single group of decapitation victims since Mexican President Felipe Calderon launched an offensive against cartels more than four years ago.”

Not exactly something you want to put in your tourism brochures.

So Mexico is currently embracing the free market and devolving (has devolved?) into a narco-state to feed demand in the US and Canada.   Thanks NAFTA.

If we were to apply the same free market prescriptions the IMF and the World Bank do to other countries to ourselves,  we might get a small taste of why we and our trumpeted economic system are not welcomed with flowers and open arms.

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