Canada should unilaterally drop all tariffs.

[Machjo]

Your thoughts?

[Smallc]

And then just shut off the lights on the way out.

[-1=e^ipi]

I support the elimination of tariffs, but I think one should take a tit-for-tat approach. Otherwise one can in some cases make it so other countries do not have an incentive to completely eliminate their tariffs.

We should unilaterally abolish supply management though.

[Argus]

Your thoughts?

Costs and services will always favour the lowest cost jurisdiction. That means countries which have little or no pollution control, little or no taxes - since they have no social services, few safety regulations, and rock bottom wages on the order of a dollar a day will invariably be able to produce just about anything cheaper than it can be produced in Canada. That means we can get lots of cheap stuff, but how do we pay for it if we're not making anything? Even most of our services can now be done overseas. That includes all software and hardware engineering, for example, as well as accounting, marketing, customer service etc. And there's only so many barrista jobs to go around.

[Machjo]

Costs and services will always favour the lowest cost jurisdiction. That means countries which have little or no pollution control, little or no taxes - since they have no social services, few safety regulations, and rock bottom wages on the order of a dollar a day will invariably be able to produce just about anything cheaper than it can be produced in Canada. That means we can get lots of cheap stuff, but how do we pay for it if we're not making anything? Even most of our services can now be done overseas. That includes all software and hardware engineering, for example, as well as accounting, marketing, customer service etc. And there's only so many barrista jobs to go around.

Impossible.

If all we do is import, the Canadian dollar would quickly plummet. Not necessarily a bad thing.

Plus, we would still have the education advantage and the language advantage.

Seems to have worked for Hong Kong.

The weak dollar would attract tourists and international students too.

[TimG]

If all we do is import, the Canadian dollar would quickly plummet. Not necessarily a bad thing.

It would allow foreigners to cheaply buy all of the assets worth having and ensure the profits from those assets are keep out of the hands of Canadians.

[Machjo]

It would allow foreigners to cheaply buy all of the assets worth having and ensure the profits from those assets are keep out of the hands of Canadians.

But then we could enjoy economies of scale, something we severely lack now.

[TimG]

But then we could enjoy economies of scale, something we severely lack now.

The issue is how can Canadians produce the income required to pay for imports at any price. With access to foreign markets blocked and no local protections Canadian companies would not have a chance. The inevitable consequence is there would no longer be any industry in Canada that generates goods/services for export that was not in foreign hands. Please explain how Canadians would benefit from money they would never see? Edited August 25, 2016 by TimG

[dre]

Trade with people who's practices we approved of. Don't trade with the ones who's practices we DON'T approve of.

Today's free traders would have lost us the cold war, because we would have been buying cheap products made by slaves on Soviet work prisons. Russia would have been flush with cash like China is now.

Free trade with China has created a communist global powerhouse, and there's a chance we will be really sorry we did that one day. Trade with the US, Britain, France, Germany, etc etc. Sure the cost of some products will go up, but so will our wages, and we will rebuilt our productive capacity.

The era of us making a living off of shuffling paper and selling foriegn imports to each other is not gonna last much longer.

[Bonam]

Free trade with China has created a communist global powerhouse, and there's a chance we will be really sorry we did that one day.

China isn't communist in any meaningful sense of the word. It's economy is now largely capitalist in nature.

[dre]

China isn't communist in any meaningful sense of the word. It's economy is now largely capitalist in nature.

That's pretty much smoke an mirrors. 63 trillion NMB's is directly state owned. About a third of the economy. Hundreds of thousands of companies. But state control is actually much wider because these SOA's are positioned on what they call the "commanding heights" of the economy and have huge influence over the rest of the economy as well.

And its still more or less a dictatorship as well.

[bush_cheney2004]

Canadian governments have long solicited foreign investment and ownership regardless of tariffs, as Canada lacks sufficiant domestic capital to do otherwise. EMD London was never a Canadian company...just a tariff beating strategy.

As for approving of trading partner practices, one need only look at the Saudi arms deal to know what a farce that is.

Edited August 25, 2016 by bush_cheney2004

[Argus]

But then we could enjoy economies of scale, something we severely lack now.

How do we lack that now? With free trade we can sell things all across north america.

[TimG]

Canadian governments have long solicited foreign investment and ownership regardless of tariffs, as Canada lacks sufficiant domestic capital to do otherwise.

When US companies come in they generally have no objections to hiring Canadians for the work that needs to be done. Not so with China that expects the profit from investment AND wants to import their workers. Edited August 25, 2016 by TimG

[bush_cheney2004]

When US companies come in they generally have no objections to hiring Canadians for the work that needs to be done. Not so with China that expects the profit from investment AND wants to import their workers.

Whether it is China or not, Canada has historically been the least prepared to withstand globalization, and in fact actively encouraged it long before it was ever called that. Sounds like foreign money is welcomed with open arms...foreign workers less so.