Canadian free trade negotiators are going all-out to get a deal with the EU on a new free trade agreement. The Harper government wants a deal badly for largely symbolic and ideological purposes, to show that the free trade agenda is back on track under this "stable majority government." Many valid concerns have been raised about the implications of a deal on pharmaceutical costs, on public procurement, and more. What would a Canada-EU deal mean for the auto industry? Here are a few summary points:

- Canada's auto industry would be especially hard hit by a free trade deal with Europe.

- Europe sells billions of dollars of auto products in Canada, but buys virtually nothing back from the Canadian auto industry.

I was recently invited to speak to the annual management briefing conference sponsored in Michigan by the Center for Automotive Research, a fine outfit which does the best research work in the continent on auto employment, workers, and skills. My slides are available here.

My panel was addressing the current UAW negotiations with the Detroit Three automakers -- the first big contract talks since the meltdown and bailouts of 2009. I was diplomatic enough as a visitor to the U.S. not to make any direct comment on the UAW talks (the "host" union), but rather addressed the broader economic issue about the North American auto industry's painful recovery, and what role -- if any -- labour costs have played.

What's wrong with this picture?

The GM deal has left a lot of us scratching our heads in wonder at the power of the auto industry to garner billions in government support while the rest of us are stuck mostly going it alone, mano-a-mano with the recession.

But is it possible that the GM bail-out is a case of real-life experience that has gone so far off the rails that it's actually nudging us toward an entirely new paradigm?

Capitalism has most certainly driven itself way beyond its own comfort zone. There is no map yet for the road ahead.

The high drama in the auto sector keeps speeding along on a mind-bending course.

Due to just-announced concessions from U.S. banks and bond-holders, it appears at press time that both Chrysler and GM will avert bankruptcy though radically reduced job and projected sales numbers, and U.S. auto workers will be their new controlling shareholders.

Chrysler could be 55 per cent worker-owned and GM 39 per cent. That's a major milestone.

While the Canadian government watches closely and is careful not to rule out taking equity in GM itself, many voices are predicting only looming failure for companies moving so beyond the pale of private enterprise.

It's auto showdown time.

As the April 30 deadline nears, we're entering the final week of negotiations between Chrysler and its union. GM is close behind with its June 1 drop-dead date. (Sorry the term is so applicable.)

As he sits at that negotiating table, CAW head Ken Lewenza faces a nightmare-scape filled with different ways to lose. What's a union leader to do?

Unfair as it may be, it's a dark road ahead, and sacrifices are going to be made. What are the offsetting gains that might come with them and sustain the best outcome for auto workers and Ontario taxpayers called upon to be generous in their support?

By any logic, advocates of unfettered capitalism should be seeking cover from public wrath these days, as the deregulated capitalism they foisted on us continues to self-destruct, bringing calamity into the lives of millions.

Yet I've heard barely a whisper of mea culpa from members of this corporate crowd.

On the contrary, they seem to see the economic meltdown as an opportunity to finally do in their old foes in the labour movement.

After years of demonizing unions and undermining workers' rights, they're now taking advantage of the unpopularity of the auto bail-outs to try to take away gains that the Canadian Auto Workers spent decades achieving, and that set a standard for the labour movement.